Crazy Appreciation in AZ! Why is that?

Question

AZ investors interested to hear your opinion on why home prices in Maricopa county AZ are flying up? Also do you think it will continue if so why?

Bob Okenwa · Answer

1. Supply and demand. Inventory is about 1.5 months right now. More people wanting houses than there are good homes on the market. Residual pent-up demand from the lack of a spring buying season due to covid.

2. Low interest rates.

3. Migration. Large influx of people moving here everyday. Maricopa is routinely the fastest growing county in America the last few years.

4. Jobs. This ties into point #3. Lots of tech companies have planted roots here the last 10 years and there has been a large influx of good jobs. (tech, construction, healthcare)

It won't last forever, but with rates being what they are and prices still being a lot lower than CA, we should see relatively high demand in the short and medium term

Shiloh Lundahl · Answer

@Thomas Corley I am seeing the same thing with regards to appreciation. I’d have to say that I have seen the market appreciate probably 10% in just the last 4 months or so for the same reason @Bob Okenwa outlined. However, as they say a rising tide lifts all ships, I think the opposite can also be true.  I think that there could be a decrease in values if the market gets inundated with foreclosures due to loan defaults based on people not being able to go back to paying for their mortgages after the their loan deferral time frames are up. That is probably the only thing I could see that may bring the market down in Arizona right now.

Ryan Beatty · Answer

Wealthy people from CA moving to AZ

Anthony Gayden · Answer

Yes, I did a 1031 exchange to the Kansas City area with the proceeds from the sale of my Tucson property.

Laura Guerrero · Answer

@Thomas Corley I’m in north San Diego county and know about half a dozen people who have recently bought weekend places in lake havasu with several planning to move there permanently either at retirement or if working from home.  The place doesn’t look too appealing to me but they like the relative freedom from cal coronavirus lockdowns, party atmosphere, lower house prices and favorable gun laws.

Robert Withers · Answer

@Thomas Corley because the Californians are moving in! Probably why AZ voted blue this time around. And I don’t see any sign of this slowing down. Hope you’re this helps!

Thomas Corley · Answer

Good for you Anthony just curious are doing a 1031 to another market?￼

@Anthony Gayden

Anthony Gayden · Answer

@Thomas Corley

I’m getting out of Arizona this year and cashing in on this appreciation. It was too much to let pass.

Thomas Corley · Answer

@Bob Okenwa great points Bob would definitely agree with you. I definitely see Maricopa county is a top spot for CA buyers are moving to and that’s driving the inventory to be low as well as interest rates being low also is a driving factor also.

Crazy Appreciation in AZ! Why is that?

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