The Phoenix-Mesa-Scottsdale metro area is forecasted to be the #1 real estate hot spot in the nation next year, according to the 2017 Housing Forecast Report by Realtor.com® released on November 30, 2016. The report predicts that the following 10 metro areas would see the highest price gains and sale gains next year:
The Top Ten Housing Markets in the Nation for 2017:
- Phoenix-Mesa-Scottsdale, Arizona
- Los Angeles-Long Beach-Anaheim, California
- Boston-Cambridge-Newton, Massachusetts-New Hampshire
- Sacramento–Roseville–Arden-Arcade, California
- Riverside-San Bernardino-Ontario, California
- Jacksonville, Florida
- Orlando-Kissimmee-Sanford, Florida
- Raleigh, North Carolina
- Tucson, Arizona
- Portland-Vancouver-Hillsboro, Oregon-Washington
The report forecasts that, overall, the nation’s real estate market is “predicted to slow compared to the last 2 years” with prices increasing 3.9% and sales of existing homes increasing 1.9%. However, the Phoenix-Mesa-Scottsdale area is expected to out-perform the national market with a predicted 5.9% increase in prices and a 7.2% increase in sales for the coming year. Tucson is also expected to outperform the national market with price and sales increases forecasted at 6.1% and 5.5% respectively.
Interestingly, the Realtor.com report predicts that the Phoenix-Mesa-Scottsdale market (as well as 7 other markets listed above) will not perform as well as they did in 2016, but the Los Angeles and Tucson markets will likely show a stronger growth than the previous year.
The report names several other interesting trends for the upcoming year:
- Millennials are expected to dominate the market, overtaking the baby boomers in the overall pool of buyers. This trend still stands even after economists downgraded the impact of millennials for the coming year with the increase in interest rates.
- Mid-western cities will continue to be the most popular area for millennial home purchases.
- Price appreciation is expected to slow with almost ½ of the 100 largest metro markets experiencing a 1% slow down in price growth.
- Low inventory rates are expected to continue in the top 100 metro areas.
- Western cities continue to dominate the market in price and sales growth.
Thinking about shopping for a new home in the Phoenix metro area? Contact the professionals on The Matheson Team, your Phoenix and Scottsdale real estate experts.