Arizona’s economy is booming and people are noticing. Experts predict the state’s economy will see more growth, jobs, and 100,000 new people by the end of this year.
According to data from the Bureau of Labor Statistics, Arizona experienced an impressive 3.4% employment increase year-over-year. And the situation doesn’t seem to be slowing down. A report from the Arizona Office of Economic Opportunity said last year that the state will add another 165,000 jobs by 2020.
The bright jobs outlook is making the state one of the hottest real estate markets in the U.S. According to Zillow data, home values saw a spike of 6.5% last year over 2017. The forecast for this year is more moderate. So, if you’re a home buyer, this may be the right time to enter the market.
Median home values in the state are $252,900. The median price of sold homes is slightly lower, creating a great opportunity for investors. The median rent price in Arizona is $1,500 a month.
But prices fluctuate greatly between each city and can be significantly different from one neighborhood to the next. Having a good realtor will help you determine what location is right for you, your family, your lifestyle, and your budget.
Here are some of the communities home buyers should consider when deciding on the best neighborhoods in Arizona.
Old Town Scottsdale
Scottsdale offers its 220,000 residents a relatively high quality of life due to its amenities, outdoor activities, and energetic downtown, also known as Old Town Scottsdale. It’s also milder than some other communities in the state due to the fact that it has such low humidity.
If you like golf, you’ll love Scottsdale. It has 51 golf courses, all accessible from Old Town. There are also lots of biking and walking paths.
If you’re looking to buy, Old Town Scottsdale, has exploded recently with condos and urban housing. This is the perfect place to work and play. There’s also a lot of nearby shopping with major department stores and smaller retailers. It is also the hub of the city’s creative community, with many museums and art galleries in the area.
The median home value is $481,200. It rose sharply last year and analysts are projecting a more modest rise of 2.3% this year. That’s good news for buyers looking for a time to enter the market.
If you’re looking for a place that’s in a major city, affordable, and a great investment, then look into South Phoenix. This is an area of the city that has traditionally been overlooked by buyers. But that’s changing as real estate analysts predict this will be the city’s next housing hot spot.
The reason for the neighborhood’s upswing is that Phoenix is the epicenter of the state’s booming economy. That’s pushed people further from the city center leading to developers revitalizing communities like South Phoenix.
Homes in this part of the city are a great opportunity for investors. You can still buy property for about the $150,000. Five-bedroom, 2,000 square foot homes can be found for as little $230,000.
If you’re a first-time or low-income home buyer, you’ll want to look into South Phoenix. Prices are expected to keep climbing as the neighborhood gentrifies.
This community is tucked near Scottsdale and the Fort McDowell Yavapai Nation reservation. It’s a major tourist draw due to its downtown geyser fountain, the fourth-tallest public fountain in the world.
Fountain Hills has a diverse population. You can see the range of economic and social differences in the real estate market. There are homes that go for $120,000 and you can also find properties listed for higher than $3 million. There are many architectural styles to choose from including Mediterranean, mission revival and Spanish ranch fusion.
Fountain Hills is a family-oriented community with many public pools, a good selection of schools, and several nearby colleges.
Oro Valley is a small town with a big city feel just outside of Tucson. It’s bordered by two mountain ranges and word is getting out that this is prime real estate. The town has been growing so quickly that it’s expanding further into its desert perimeter.
It’s an excellent place to raise kids. There are plenty of options for good public schools and the city is known for its charter school system. The town is also beautifully landscaped and residents can always find a nice park or shopping center nearby.
This is also an extremely affordable community. It’s not hard to find a four-bedroom home for about $300,000 with a designer pool and view of the mountains.
This is one of the safest communities in the state. Located about 15 miles west of Phoenix, Litchfield Park has a high median income and some of the best public schools in the state. The high school diploma attainment rate is 96%.
Litchfield Park works hard to create a small town feel. There are more than 20 festivals, town-wide sporting events, and parties throughout the year, including a fine arts festival, wine tastings, and fun runs for the family.
Litchfield Park also has a small, but quaint downtown. It’s dotted with restaurants and cafes, and there’s also a brewery.
The median home value is $327,500. It shot up by an amazing 8.8% between 2017 and 2018. The growth rate has slowed to about half that but buyers thinking about entering the market may want to do it soon. It’s also a great place to invest in rental properties given the median rent price is $1,622 per month and higher than the surrounding areas.
Find a Top-Rated Real Estate Agent
There have never been more options to buy a home in Arizona than right now. The state’s economic growth is surpassing expectations and that’s increasing home prices. Don’t get priced out. Find a great deal by working with a Clever Partner Agent.
They have complete access to MLS listings and a wide networks of home for sales so that you can be sure you find the home that’s right for you and your price range.
Clever partners with top-rated real estate agents from major companies like Keller Williams, Century 21, and RE/MAX. They are all full-service and they can help you find additional cost-saving opportunities.