Last year, Arizona saw major highs in Phoenix’s real estate market. The year 2021 was the hottest year for housing in the area, and, based on real estate news and trends in Phoenix, Arizona, that momentum is likely to continue in the near future.
So, what does this mean for homeowners in the city thinking about selling their homes this year? For the month of February, at the very least, it looks like the market is in the seller’s favor. Here’s what you should know.
Phoenix Property Values Are Soaring
By the end of 2021, property values in Phoenix were 32% higher than their value when the year started. This makes it the second highest increase among all large metros in the United States, behind Austin, Texas. And while it appears that 2022 won’t be as competitive, it’s far from a buyer’s market – sellers are still clearly in control.
Zillow predicts a 20% property value increase for homes in Phoenix in 2022. It’s far from the 32% we saw last year and puts Phoenix down at the eighth highest value increases (below Tampa and other metros in the Sun Belt) but it’s still a pretty good value for those looking to profit from the increased market value of their homes.
Many Properties Will Continue Renting
With more people coming to Phoenix, many homeowners are opting to rent their properties out rather than selling it on the market. A large demographic of renters consists of millennials in their 30’s looking for bigger rental homes. Aside from having families, more people are looking for larger rental properties to accommodate a home office for the growing work-from-home practice that many businesses are using.
This means that you have two lucrative options: sell your property in a market with less homes for sale (which means the possibility for a bidding war, if your home is one of the few with desirable unique features); or become a landlord, rent out your property, and profit from the rental income. Keep in mind that renting is often easier said than done, and many landlords end up trying to sell their properties fast when renting no longer feels like a lucrative and convenient income generator.
Home Improvements Are Essential on the Market
Bidding wars and above-market value offers may seem like music to your ears if you’re thinking of selling. But keep in mind that the properties that sell best on the real estate market are those that undergo home improvement projects prior to listing the property.
Growing trends in home improvement include neutral or natural paint colors, sustainable and green living, bathroom renovations, kitchen remodeling, creating designated home offices, and turning basements and attics into livable spaces.
Additional home improvements like these can improve your property’s value and desirability on the market. Not all homes have the same level of demand, but those that are ready to move into and have the features many buyers are looking for are likely to see better offers. A pro-tip when you spend on renovations: keep it to 15% of your property value for every room.
Seller Beware: Sales Aren’t Guaranteed on the Market
Based on real estate analysts, “hot homes” – homes that are in high-demand because of their location and features – are likely to sell 3% higher than its list price and receive offers within 10 to 30 days. And based on median sale prices based on housing market trends in Phoenix, the prices of homes in the area are steadily increasing.
While many of the factors suggest a favorable time to sell, keep in mind that results can vary for various types of houses. If your property isn’t big enough to reach the demographic of millennials looking for larger properties or you don’t have the means to undertake home improvements, then you may not experience the same favorable results. If you’re still looking to sell your home in Phoenix, AZ fast, there’s always cash home buyers to provide fair cash offers based on your property’s market value.
Need to Learn More?
As homeowners in Phoenix, it’s best to keep an eye on real estate market trends to find the right time to sell. If you can afford to take a chance and have a home that meets the current trends and demands on the market, then listing your property on the market can be a lucrative endeavor.
But if you want an assured sale within a short timeframe without the added costs of selling on the market, cash home buyers like United Home Offer can help you sell with minimal effort on your end. Contact United Home Offer today to sell your house in Phoenix, Arizona fast.