AZ Real Estate - Arizona Homes For Sale | Zillow (2024)

FAQs

Are housing prices dropping in AZ? ›

Arizona Housing Market Overview

In July 2024, home prices in Arizona were up 1.9% compared to last year, selling for a median price. On average, the number of homes sold was up 4.1% year over year and there were 8,135 homes sold in July this year, up 7,811 homes sold in July last year.

There's no better time than NOW! 28.8% of homes are selling below their listing price. Moreover, there's a 17.6% increase in newly listed homes. So, not only are you spoilt for choice, but you're also more likely to crack a good deal on your dream home.

The overall median home price in Arizona has grown almost 7% in the past year. However, as in many states, many residents of Arizona are facing a housing crisis. High interest rates and home prices have priced out many Arizonans who would otherwise be in the buying market.

The median-price of a home in Arizona was $352,536 in December of 2023, according to data from Arizona Realtors.

1. Tucson, AZ. Tucson tops our list as the best place to live in Arizona. Home to gorgeous weather, a world-renowned cycling race, and surrounded by four mountain ranges providing endless vistas and hiking trails, Tucson is truly an outdoor haven.

Market Trends

Inventory: Housing inventory is gradually increasing, offering buyers more options and potentially creating some room for negotiation. Interest Rates: Mortgage rates have risen in 2024, impacting affordability. However, rates remain historically low compared to previous decades.

Here are some general FHA loan requirements for Arizona. A credit score of 580 or higher: A lender may accept credit scores of 500-579 under certain conditions. A credit score lower than 580 will require a larger down payment. Minimum of two years employment: Must have verifiable, steady, and consistent income.

Renting in Arizona can be more affordable in the short term, as it involves lower upfront costs compared to the costs of buying. Renters typically pay a security deposit and first and last month's rent, but avoid the significant down payment and closing costs associated with a home purchase.

Conventional Loan Calculator in Arizona

Conventional loans typically require a 5% down payment. However, there are flexible conventional loans programs designed for to help Arizona first time home buyers that only require 3% down.

As the wealthiest city in Arizona, it's no surprise that Paradise Valley is also the most expensive city in the state.

Why is Arizona getting so expensive? ›

From 2021 to 2022, Maricopa County — which contains much of greater Phoenix — added 57,000 people, registering the largest population growth in the nation. As the Federal Reserve lifted interest rates to lower inflation, mortgage rates increased sharply, raising the costs of buying homes.

Key Takeaways. The average home price in Arizona is $434,865, marking a 4.3% increase year over year. Despite higher prices, the sale-to-list price ratio of 98.9 suggests a balanced market, favorable for both buyers and sellers.

The annual salary needed for a single adult to live comfortably is $79,997.

In order to afford any median-priced home in the area, you'll need to make $121,368 (as of October 2023). Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.

It is usually cheaper to buy a home than build a new one. However, by building your own home you get a brand-new residence, customized to your needs. It costs $295,580 on average to build a home in Arizona. This figure can add up to $445,580 if you include land costs, excavations, permits, and other expenses.

As we move through 2024 and head towards 2025, we expect that rent prices will continue to rise, even if there are some brief downward fluctuations. The pace of growth may slow down, but not by much. New rental construction will ease the short supply and meet the demand of a growing population of renters in Phoenix.

The median rent in Phoenix fell by 0.4% over the course of August, and has now decreased by a total of 3.2% over the past 12 months. Phoenix's rent growth over the past year has is similar to the state average (-2.7%) but has fallen below the national average (-0.7%).

Crash in Phoenix single-family home sales. Down 40% from 2021. After booming for two years during the pandemic, the U.S. housing market experienced a significant price correction between late summer 2022 and spring 2023.

Across Arizona, there is a shortage of rental homes affordable and available to extremely low income households (ELI), whose incomes are at or below the poverty guideline or 30% of their area median income (AMI).