Realtor.com® recently analyzed housing markets across the nation to make their 2017 predictions and found that prospective buyers/investors should set their sights on the west. While other US markets showed signs of slowing down, they expect western cities to hold the nation’s highest prices and sales.
And the Phoenix real estate market? Realtor.com economists placed the sunny city at the top of the list: The Valley is projected to be the number one housing market out of 100 metro areas.
Breaking Down the Numbers in the Phoenix Real Estate Market
When the looking at the country as a whole, national growth rates are predicted to reach 3.9 percent for prices and 1.9 percent for sales. Forecasts show that prices will rise 5.8 percent for popular west coast metropolitan markets and sales will also follow an upward trajectory, increasing 4.7 percent. But the numbers for Phoenix rise well above the rest. Valley prices are expected to increase 5.9 percent and sales jump up to 7.2 percent.
So what’s driving growth in the desert?
There are many forces at play in the Phoenix market, including population growth, relatively low cost of living and a healthy job market. In other words, the makings of a strong local economy.
Attracting New Residents from Other States
As part of the so-called “sun belt,” Phoenix has always been a hot spot for snowbirds, or those escaping the cold northern winters, and full-time retirees. In some parts of regional Phoenix, the population can even fluctuate as much as 30 percent in the winter months.
However, situated in the fourth largest county in the US, Phoenix is not only attractive to those celebrating their golden years. Realtor.com noted that large populations of boomers and millennials were present amongst the top 10 markets. And in 2015, more people were moving to Arizona from other states than anywhere else in the nation, according to the Census Bureau. The area has led domestic migration since 2010.
Poised to add more than 65,000 people by 2040, Scottsdale is one region within metro Phoenix seeing an influx of new residents. And, from world-class resorts to iconic mountains, it’s not hard to see why. There’s seasonal sporting events, like the PGA Waste Management Phoenix Open and Spring Training games, which bring millions of spectators to the Scottsdale region. Other unique events include the renowned Barrett-Jackson car auction and Scottsdale Arabian Horse Show. These are just a few of the many unique events bringing people from all over — and boosting the local job market in addition to Scottsdale real estate.
Boasting a Strong, Diverse Job Market – #1 in the Nation
In fact, Scottsdale is the best city to find a job, according to recent research from financial website WalletHub. The study ranked the 150 largest cities in the nation based on 17 different criteria, including total job opportunities, transportation costs, housing affordability and more. Overall, Scottsdale had the right mix of socioeconomic factors — even placing #4 in the nation for highest median annual income.
Living in Scottsdale, AZ
- 2016 population: 231,200
- Median household income: $73,387
- Household income distribution: 38 percent make $100,000+ annually
- Median value for Scottsdale, AZ homes: $413,400
Top 10 Employers
- HonorHealth, a leading healthcare provider in Arizona
- CVS Health
- Scottsdale Unified School District
- Vanguard, one of the world’s largest investment companies
- City of Scottsdale
- General Dynamics, a global aerospace and defense company
- Mayo Clinic, one of Arizona’s top healthcare clinics and hospitals
- Nationwide Insurance
- McKesson, a pharmaceutical distributor and healthcare IT company
- Yelp
The city is also a vacation destination, which certainly has a positive impact on Scottsdale real estate. So, while not represented in the top ten list, the hospitality industry also makes significant contributions to the local economy and jobs.
It’s interesting when we compare this community to the regional Phoenix job market, which is becoming more and more diverse. For one, the city is becoming a technology hub. There’s large semiconductor employers here like Intel, Freescale and Microchip. And more IT companies are moving to Phoenix. Just last month, Endurance International Group, a web hosting company, announced it is spending $2 million to double its office in Arizona and hire 600 new employees. Many are even coming from Silicon Valley, like mobile application developer DoubleDutch. Interest from this community has driven up tech-based jobs by nearly 20 percent since 2010.
In all, Phoenix being named the top real estate market for 2017 only reinforces what we’re seeing in our listings, investment properties and communities every day. It is certainly an exciting time to be a buyer, seller or investor in Phoenix – as the Valley of the Sun is quickly becoming the Valley of Opportunity.