The median home price in Metro Phoenix throughout the last five years has skyrocketed from $215,000 to $405,000 according to Redfin market data. With soaring demand and limited supply, the average days on market have also plummeted. Maricopa County specifically, Arizona’s most populous with its temperate climate and stunning desert backdrop, has quickly become the sought-after destination for those in the luxury housing market. This includes homes that start at $1.5M and often offer unique custom design aspects.
Maricopa County has become one of the most sought-after destinations for the affluent as the pandemic continues to push professionals out of urban areas and into wide open spaces. But the area has not always been associated with luxury. Some factors driving up the price of homes in the area, say experts, are limitations in buildable land, supply issues, and an abundance of job opportunities in the knowledge economy, manufacturing sector, bioscience, and technology specifically in Maricopa County. And with the pandemic opening avenues for more remote work, where better to Zoom-in than Arizona, where you can enjoy superb value for your investment.
Now one of the fastest-growing areas in the United States, Maricopa County offers an attractive opportunity for luxury home buyers who can acquire, for example, a $5M luxury home at a fraction of what they’d pay for the same property in a larger metropolitan area, such as New York or San Francisco. And it’s not just primary residences that buyers are snatching up. Real estate professionals in the area have also noted increased demand for second homes, as well.
Today’s housing prices in Maricopa County, which can range from $4M to $6M in some areas (with new home construction reaching as much as $20M) would have been unfathomable five years or even a decade ago. And cost hikes are affecting not just real estate but also renovation, as the pandemic drives more demand for home renovations and remodels, home gyms, home offices, plus outdoor entertaining spaces complete with barbecues, open-air kitchens, and swimming pools.
So what does this mean for buyers? If you’re in the market, you should expect to compete with numerous other eager buyers all interested in a limited number of active listings. Be prepared, also, to offer more than the asking price and to make your decision quickly, with homes closing faster than ever. And that growth is not likely to end in the near future. In fact, some real estate professionals have predicted another five years of rising demand in Maricopa County assuming the overall investment climate remains the same.