Arizona has long been the most booming Sun Belt state, with a steadily growing population and a tourism industry that rivals Florida or California. With a population of nearly seven million, it’s still the sixth fastest growing state in America, and over half that growth comes from in-migration. A popular destination for college students and retirees alike, Arizona has, at times, registered annual growth rates topping 20%.
While it’s not growing quite that fast anymore, it’s still a very healthy state, in terms of both population and economic growth. Arizona ranks fifth among all states for personal income gains, and sixth for state GDP. It’s seventh in job creation, and the state unemployment rate is trending steadily downwards.
People move here for the dry heat and the strong economy, but also for the high quality of life; Arizona features 22 national parks and monuments, all of which also support a $21 billion tourism industry, bringing in over 40 million visitors annually. Overall, Arizona is growing fast, and looks to continue that upward trend.
2019 Real Estate Market Forecast for Arizona
Arizona home values increased 8.9% over the past year and 18.4% over the past two years. They’re forecast to rise by 4% in the next year, which could bear watching.
At present, the median home value in Arizona is $232,366, which is slightly above the national average. The average monthly rent is $1,367, which is roughly on par with the national average. Arizona has many very strong rental markets, mostly driven by demand from college students, making investment in this area a good bet.
What’s the Best Time to Sell a House in Arizona in 2019?
Using data from the Phoenix market, which is Arizona’s largest, we can draw some very useful and actionable conclusions.
The best time to sell your home in Arizona is going to be in the month of October, when homes sell an average of 3.3 days faster than the yearlong average. If you’re looking to maximize profit as opposed to a quick sale, the very next month, November is the best time to sell for the most money. Homes sold in November fetch 4.1% more than the yearlong average, so it might be worth your while to try and time your sale.
Keep in mind that picking the ideal month is only part of the puzzle. Picking the right day to list your home can have a huge impact on what kind of sale you experience; homes listed on, say, Mondays will be seen by considerably fewer eyeballs than a home listed later in the week, when prospective buyers are looking at listings and planning their weekend open houses. Studies have shown that Thursday, as early in the day as possible, is the best day to list your home, as that’s when the most people are browsing listings.
What’s the Best Time to Buy a House in Arizona in 2019?
On the other side of the equation, if you’re looking to buy a home in Arizona in 2019, there are some very clear trends that can be to your benefit.
If you’re looking to get a deal on your dream home, January is the month you should be targeting. Homes sold in January stayed on the market for over 9 days longer than the yearlong average, and sold for 6% less than the yearlong average. Aiming for this low demand window could get you a substantial discount on your dream home, not to mention cutting way down on the stress of going up against dozens of other prospective buyers.
Why is January such an advantageous time for buyers? January is a common “bottoming out” month in markets across the country, but while it’s usually the product of harsh winter weather, in Arizona it’s more likely due to the post-holiday “hangover” effect.
After the marathon of the Halloween to New Year’s period, people are psychologically drained and financially unsteady, which makes January particularly unpopular for the majority of potential buyers. If you can gather the motivation to hit the market in January, it could be worth your while.
On that note, it could be even more advantageous to hit the market a few weeks earlier, in the dead of Christmas week. This stretch is the period of lowest-demand overall, and if you find your dream home during that time, you could very well be the only one putting in a bid. Though it probably won’t be convenient to browse homes during the holidays, it could get you a huge discount.
Properly timing your local market can be the difference between having your initial bid on your ideal home accepted in hours, and getting the keys to your dream home in hand within weeks, or repeatedly being outbid on a series of incrementally less-ideal homes, before having a too-high panic bid accepted on a house you may not really love, leading to years of regret and second thoughts.
But timing the market isn’t just a matter of looking at some nationwide or statewide statistics and picking a day. Your local market has many unique eccentricities and fluctuations that only a local, experienced real estate agent will know about. Your best bet to get your optimal real estate outcome is to partner with a local agent and tap into their knowledge of the market. A great agent will not only be able to time the market perfectly, they’re an invaluable resource on everything from property taxes, to mandatory disclosures, to negotiation tactics.
Clever Partner Agents are top performers in their respective markets, come from top brands and brokerages, and have long, proven track records. Whether you’re looking to invest in rental units in Tempe, buy a vacation home on Lake Havasu, or start your retirement in Sun City, your Partner Agent can guide your home search to its ideal outcome. Contact us today for a no-obligation consultation, and start your real estate journey!