There are some real hot spots in Phoenix this winter. These Hot Spots are fueled by two things:
There’s been a lot of job growth recently in the I-10 corridor, the I-17 corridor as well as right around North
Tempe and South Scottsdale.
So let’s use a fun bee analogy, shall we?
These areas (Phoenix Metro area) are attracting a lot of employers (hives) which in turn are attracting employees (bees).
Ok, silly bee analogy over. I just wanted to be cute.
What’s big right now is what I like to call “Urban Roosting.” There are two demographics at play when it comes to Urban Roosting:
Demographic 1) The older population. A lot of these folks feel they have done enough hard work in their lifetime (mowing lawns, house renovations, day jobs) and want to move in closer to the big city and trade in their hard work for fun (gambling, drinking, golfing, swimming, no mowing lawns).
Demographic 2) The younger (and sometimes older) population. These folks are typically coming into the homeownership market for the first time. They want that easy-peasy, fun lifestyle too. The fact that they can go have a beer with their friends after work and not have to worry so much about driving is ideal for them. Every store and convenience is centrally located right near their home.
Budget is a big, big thing, and as the Hot Spot areas around Phoenix become more popular, the prices just go up. Last year, 72% of all homes sold in Phoenix sold for $300,000 or less. Only 47% of the current inventory falls in this price range. Even worse, 40% of the homes were sold in the $200,000 or less price range. Only 23% of the current inventory has that kind of price tag. Like I keep telling you *cue broken record* this price range is disappearing FAST.
All the new builds are going to the outskirts of town, away from the Hot Spots in town.
You’re going to see investors coming into town, buying up these properties that are old and crummy, then making them all new and pretty so people can move in and not have to worry about doing a lot of maintenance because again, that’s what the Hot Spot buyers are trying to get away from.
The Upside of Buying in a Hot Spot: You’re probably going to see a little bit higher appreciation rate than you might see in other areas.
The Downside of Buying in a Hot Spot: There’s much more demand than supply. You’re going to need a really good strategy to get in there and buy.
If you have any questions or comments, or if you just wanna have some hot chocolate with me on this cold wintry day, let me know. Thank you for reading and watching!