Home Appreciation Rates on the rise in Flagstaff, Tucson and Prescott, Arizona
Arizona is experiencing a population boom statewide. The state is increasing
population so rapidly that soon it will be the 17th largest state in America.
The increase in population affects the real estate industry as well. With more
and more residents moving to the state, the average home price is rising and
resale rates are increasing as well.
What is happening to Real Estate?
Home values are increasing all over the state as first time buyers as well as
investors and second homebuyers snap up property. The Tucson, Flagstaff and
Prescott areas of Arizona are experiencing an all time high in real estate
appreciation rates. In fact, the median resale price for a home in these areas
has increased by 10%.
What cause real estate appreciation?
While there can be many reasons for real estates to rise in value, the three
most common reasons are:
-
Inflation
-
Demands on land and new buildings
-
Physical change in property, inside or outside
Investors are busy grabbing up property in the market
Investor activity in the real estate market is at an all time high, which may
be a main contributor to the appreciation rate of the real estate. With the
Arizona economy booming, and the population increasing, investors are snapping
up available real estate at a very quick rate. In fact, investors account for
23 % of the buyers in the real estate market. Second homebuyers also make up
many of the buyers in the market.
Homes are selling quickly
Not only are home prices increasing at an incredible rate, but also they are
selling quickly. Homes are selling faster than ever with the average time on
the market reduced to only 30 days. In some cases, homes are only on the market
for a day, with multiple bidders bidding on the property.
|