If you’re seriously looking to buy Arizona property, you need to work on understanding the Arizona real estate market. The thing about the market is that it is really made up of lots of sub-markets. Many factors affect the market in a given neighborhood--schools, proximity to the highway, local jobs, and amenities all come together to create very individualized market conditions. The other thing to understand is that different price segments of the market will behave differently. While lower-priced homes are going fast, the top of the market is much slower, with supply outstripping demand. Why exactly these segments are moving so differently is not always understood in the moment. It may take some time to get perspective and see all the factors at work.
Another key for understanding the Arizona real estate market is to remember how far away from the 2008 crash we are. At this point, we are seeing more people who lost their homes or had to do short sales re-entering the market. The so-called millennial generation is also starting to consider homeownership. Many of these younger people came of age around the time of the crash and so were leary of buying a home. With interest rates staying pretty low, they are being convinced that buying a home really is a better bet than renting after all. Increasing rental rates are also influencing the decision to purchase a home.
Making predictions for the real estate market is notoriously difficult, but most experts believe that Arizona, and particularly the greater Phoenix area, will continue to see a strong housing market for the near future.