Phoenix is the survivor of the desert. Much like Albuquerque or smaller Tucson, this city has thrived under the harsh conditions of scorching temperatures and monsoon season.
It is important to note that even though you can experience hot daytimes in the city, you can also experience cool, breezy temperatures at night. This is all due to the desert biome that the town is currently nestled in. Enjoy the great outdoors at all times, and give yourself a nice place to live in Phoenix, AZ.
Brief Background
Phoenix is the capital of Arizona, located on a relatively shallow valley that borders the harsh deserts of Southwestern United States. Minus the towns that dot the surrounding area, the closest major city to Phoenix is Tucson, which is roughly a 1 hour, 40-minute drive.
What's interesting about Phoenix is that the city has a total estimated population of 1,680,992 people. Boasting this high population count, it is currently ranked as the 6th largest city in the United States of America. It is also the most populous state capital of the country. You might wonder why Phoenix, out of all places, has a high population even though it's relatively in the outer rim of the Sonoran Desert. This is because Phoenix, being a valley, is located on a river confluence zone, particularly the Salt, Agua Fria, and Gila Rivers. Combined, these rivers provide life to the otherwise barren landscape. Think of Phoenix as an oasis of sorts; only this one is irrigated by canals and rivers instead of underground water.
Phoenix 101
During summer, you can expect temperatures to rise to around 106 degrees Fahrenheit. The heat is no stranger to most parts of Arizona and those who make the desert their home learn to love it or adapt their lives to at least make the heat tolerable during the summer months. The coldest month of the year is December, which experiences an average high of 66 degrees Fahrenheit. While still relatively hot, it's more than enough to feel relief compared to the summer months of June, July, and August.
There's always the warm nights of deserts and the lovely rains that come and both of those qualities draw the large population that Phoenix possesses. Sometimes you can even see snow, but only in the higher elevations of Northeastern Phoenix. Phoenix is close to several mountainous areas though and many vacation here to hike and enjoy the desert's beauty.
Another factor to Phoenix's population boom is its shift from agricultural to commercial and industrial focus. Office jobs became a hit in the city, owing to its suburban feels despite its urbanized status. Again, as of the 2010 US Census, people were mostly employed in office and administrative support, sales, food preparation and serving, transportation, material moving, and management. Dozens of companies have built their headquarters in the city, such as PetSmart, Republic Services, Honeywell, and U-HAUL. Overall, Phoenix has become a commercial powerhouse in the middle of nowhere, much like Las Vegas, but bigger.
The Communities
Phoenix, AZ, boasts several urban villages. These are carefully planned divisions of the city that are enacted upon a historical and cultural basis. These are Phoenix's neighborhoods, on top of the traditional Downtown, Midtown, Uptown areas of the city, as well as Arcadia, Biltmore, and Sunnyslope.
The villages (or neighborhoods) of Phoenix include:
- Rio Vista
- North Gateway
- Desert View
- Deer Valley
- Paradise Valley
- North Mountain
- Alhambra
- Camelback East
- Maryvale
- Encanto
- Central City
- Estrella
- Laveen
- South Mountain
- Ahwatukee Foothills
Expect each neighborhood and area to have a mix of residential, commercial, financial, and industrial districts throughout.
The primary things that kept Phoenix alive over the past century are Cotton, Cattle, Citrus, Climate, and Copper. Why climate? It's because warm temperatures such as this in Phoenix boast great sustainability and fertility when it comes to various crops. These five things are the primary reasons why these communities came to be in the middle of the desert, and thus communities grew from one resource or another.
Education
Education-wise, there's not much to worry about. Public schools are literally scattered throughout the city, and you'll have access to quality education. According to data collected by Realtor.com, there are 323 elementary schools, 243 middle schools, 158 high schools, and 99 private and charter schools. Most big schools in Phoenix have excellent ratings which is a large selling point to interested buyers.
Is Phoenix, AZ Worth Living in?
Now that we know almost everything about Phoenix, it is with confidence that we can say that living in Phoenix is unique since there are a lot of things to do in this city. The multitude of attractions and museums make up for the heat and the relaxed vibes of a fully-developed metropolis make it truly a one of a kind experience for everyone living in Phoenix.
The City's Real Estate Situation
Phoenix is currently a seller's market. According to the recent Cromford Report, if no new listings come into the market, Phoenix's real estate inventory will run out in roughly one and a half months! This can bring in wonderful opportunities for realtors out there and open up new possibilities for the realtors in the area.
Also, according to Redfin, Phoenix's market is very competitive by nature. Many homes get multiple offers, and this is because Phoenix is an urbanized city. Right now, it takes around 31 days to sell a house, but homes and real estate properties that are above average than usual sells around two days at best with a mark-up of 2% from their original selling price.
Of course, we aren't just talking about only sellers here. As buyers of real estate in Phoenix, it is essential to know that the supply of real estate properties in the city and surrounding metropolitan area is running out. This means that buyers should act fast if they want to settle down in Phoenix.
The current average price of real estate properties in the city is at $421,124, and has already risen by around $60,000 from $361,567. That means prices are higher than before, and this could imply that this constant rise in prices would happen again in 2021 as per the trend of real estate across America right now.
Although the average selling price stands at that amount, we can see that most homes in Phoenix are being sold at around $137,000 to $273,000. This is relatively cheap for a real estate property in an urbanized setting and is a factor as to why so many want to move to Arizona.
The median sales price for real estate properties in Phoenix stands at $330,000 – a huge step from $281,000 from last year. The lowest real estate being sold in Phoenix is at $12,000, while the most expensive real estate is at a whopping $9,500,000.
In general, the Phoenix real estate market trend goes up every year. The median sale price of real estate properties in Phoenix goes up roughly by 18% every year.
Real estate sales were lower compared to the early weeks of November. It isn't a stark contrast, though – only 1,553 compared to November's 1,584, much better than last year's 1,243. This shows that Phoenix's real estate market is gradually growing despite the pandemic situation we're currently facing right now.
For sellers, there's not much to fear. The listing success rate currently stands at 89%, making it great for sound investments in the long run. While obviously not ideal, this percentage should encourage sellers to go for the gold when doing business in Phoenix.
Supply is going down and new players need to make an entrance into the game here soon so that supply and demand doesn't create the giant issue it has in areas like Austin, TX. As per the law of supply and demand, the lower the supply, the higher the price of goods. Not to worry yet though, prices are more or less regulated in the city thanks to the level of real estate competition it has right now.
To further solidify this case for the sellers, real estate sales are still high, so that means the demand is still there. Also, at least 33.9% of homes in Phoenix are sold above the listing price, making it feasible for sellers to set up shop in this beautiful city by the desert.
Moving on, the average sales price per square feet is set at $207.01, which is better than most areas. This is yet again an increase from last year's $179.92. If you want to build some real estate properties from scratch, you have an above-average opportunity here in Phoenix, AZ.
Where do I find the perfect home here?
Try looking for real estate properties in the neighborhoods of Paradise Valley, Camelback East, and Deer Valley. Not only do these places have fewer crime rates, but they also have access to the city even though they're somewhat in the outer rim of Phoenix. Paradise Valley, in particular, is home to high-end real estate properties.
Going to and from in Phoenix, AZ
Phoenix is a bikeable city which is a huge selling point. If you have a bike, you can ride it, thanks to the city's extensive bicycle land network. Although the city is still is car-dependent, you can usually take a walk to do your errands -- heat permitting of course.
Final Thoughts
Phoenix is a city that continues growing despite the slowdowns imposed by nature itself. The pandemic has not slowed down the real estate market in the area, and it still maintained an upward trend over the past months and years.
This trend, as mentioned previously, is a shallow incline trend. Don't expect the median price to go up sharply. Sure, there are chances that it might happen if more real estate is being sold than resupplied, but this is still relatively far from reality as the supply continues to pour in as usual.
This is why that while Phoenix is a seller's market, realtors must seize the opportunity to organize themselves to keep pushing the market towards new heights.
The Phoenix, AZ real estate market is an opportunity worth investing in. The demand, coupled with low supply, can give sellers the edge to carry on through this pandemic. It won't crash later in 2021, and it isn't crashing now!
Phoenix, AZ, is a growing market, and it's ample time for buyers and sellers to jump in!
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