What are the trends for Arizona home prices right now?
It is hard to know for sure, but many exciting factors will contribute to the Arizona housing market. One factor is the housing market in Arizona is very competitive. The demand for homes is high. There are not enough homes on the market to meet that demand.
If there's a higher demand than supply, then prices will generally be higher. Another factor that may affect the price of homes in a given neighborhood is the quality of schools and amenities such as shopping and restaurants and mortgage rates available to home buyers.
Where are prices going in Arizona? This is not an easy question to answer since many factors may have influenced it in any given year.
Here's a quick insight into the last several months of housing from experts from CoreLogic:
More and more people are investing in property, leading to an increase in prices across the country. It's a relatively safe investment with the potential for high returns.
The value of Arizona homes has increased substantially over the last 12 months.
The CoreLogic Home Price Index shows that prices have been increasing steadily over the last eight months.
The appreciation rate for homes, as shown by CoreLogic, has increased in the past year, a trend that's also been picked up from other home price indices - the FHFA Home Price Index and the S&P Case Shiller Index.
Home prices have been going up a lot, which has put a significant amount of extra cash in the pockets of Arizona homeowners. It's been possible by the appreciating value of their homes over the last year.
Prices for Arizona homes have been going up.
According to the graph below, the three indices I've described all show that appreciation levels are in double digits and price acceleration is beginning to level off:
Arizona Homeowners are likely to receive an annual return of 20% or more for 2021. However, the growth rate is slowing, and many experts believe it will drop below 15% by the end of the year 2022.
Keep in mind that doesn't mean home values will depreciate. It implies the appreciation rate will slow yet stay well above the 25-year average of 5.1%.
What about next year?
The recent uptick in prices is the result of solid buyer demand and not enough homes to purchase.
Real estate and financial experts believe the supply and demand for housing will become a lot more stable as new inventory comes onto the market. This means more options for Arizona home buyers!
Experts agree that home prices around 2022 will experience a slower appreciation than before. Here's what these six major forecasting organizations predict:
The future of the Arizona housing market is a topic that experts have debated for years. The question on everyone's mind, "how much will my home be worth in 2022?" is answered by six major forecasting organizations:
Fannie Mae
Freddie Mac
Mortgage Bankers Association
Home Price Expectation Survey
Zelman & Associates
National Association of Realtors
Experts predict a variable rate of growth, but what is clear is that the value of your Arizona home will continue to grow in 2022
Bottom Line
In the past year, home prices have been appreciating at a pace not seen in decades. They'll slow down as we progress from 2021 to 2022, with still an upward trajectory. This will be good for the housing market as it means a more stable and predictable environment for investors.
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