Phoenix Projected As Number One Housing Marketing For 2017
According to Zillow: Home Prices in Phoenix rose by 9.4% from December 2015 to December 2016.
Top 2017 Housing Markets Despite a more moderate housing market overall in 2017, strong local economies and population growth will continue to fuel the nation’s hottest markets. The realtor.com® 2017 top 10 housing markets based on price and sales gains are: 1. Phoenix-Mesa-Scottsdale, Ariz.; 2. Los Angeles-Long Beach-Anaheim, Calif.; 3. Boston-Cambridge-Newton, Mass.-N.H.; 4. Sacramento–Roseville–Arden-Arcade, Calif.; 5. Riverside-San Bernardino-Ontario, Calif.; 6. Jacksonville, Fla.; 7. Orlando-Kissimmee-Sanford, Fla.; 8. Raleigh, N.C.; 9. Tucson, Ariz.; and 10. Portland-Vancouver-Hillsboro, Ore.-Wash.
The bottom line is that Phoenix home buyers who postpone their purchases until later in 2017 will likely pay more for a house.
Additionally, the cost of building has increased 50% in the past two years, according to Arizona housing analyst Jim Belfiore
1.) Western cities will continue to lead the nation in prices and sales- This is where Phoenix comes in. Price will rise by 5.9% and sales growth 7.2%
2.) Millennials and boomers will dominate the market- These two competing generations will power the market for at least the next 10 years. Millennials are expected to hold 33% of the market share and baby boomers are expected to make up 30% of buyers in 2017. Given today's boomers are less dependent on financing, they are anticipated to close on more homes.
3.) Nationally, home prices are forecasted to grow at a slow 3.9% this year- The Phoenix Metro area, is expected to nearly double that.
4.) Fewer homes will be on the market- Inventory is down 11%, making the homes on the market move fast.
5.) What about renting?- Using the median wages in Phoenix, data shows that consumers will spend on average, 2.7% more of their wages on renting a house, than they would on buying a home. Read the full blog here.
6.) Most popular inbound states for relocation and new real estate sales: According to the Phoenix Business Journal, Arizona had 57 percent of moves coming into the state, placing it on the "top inbound states."
The top inbound states of 2016 were:
District of Columbia
Data provided by Joe Kirchner, Senior Economist for Realtor.com
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