The Greater Phoenix single-family home market is booming!

Record Home Sales Continue in 2003

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The Greater Phoenix resale market set a first quarter record with 15,030 recorded sales. This, despite the war in Iraq and continuing concerns about the economy, as investors demonstrated continued faith in the housing market.

Investors seeking a safe haven from the stock market put their money into housing in 2002. The median price of a used Greater Phoenix home rose 7% last year, while the stock market fell 22%.  Arizona's hot housing market has enticed investors from around the country, especially Californians.  Key factors here are Arizona's low prices and projections for increased population over the next several decades.

Greater Phoenix home buyers continue to take advantage of record low mortgage interest rates.  Here, the average 30-year mortgage rate declined from 6.7% in first quarter 2002, to 5.25% at the end of second quarter 2003.

Experts predict the strong single-family housing market is likely to continue through this year and into 2004.

Some relevant statistics:

• A record 7,890 homes were sold in June 2003, surpassing April 2002's previous record of 6,790

• June 2003 also saw a new quarterly record of 19.845 sales, considerably above the previous record of 17,555 in 2002

• In April, 2003, a median home price record was set at $152,400, up from $149,000 the previous month and $142,000 in 2002

• Home prices have risen more than 40% over the last five years in half of the Valley’s neighborhoods

• In some emerging neighborhoods, home prices have appreciated 10% annually

• A steady stream of retirees are buying main or second homes in the Valley, as an estimated 300,000 “Snowbirds” resided in Arizona in winter 2002-03

• Phoenix just became America's fifth largest city, moving ahead of Philadelphia

Trends & Development

The Valley's recently completed Loop 101 freeway is transforming once-quiet little communities like Peoria, Avondale, Surprise, Goodyear and Buckeye into Greater Phoenix's newest commercial hubs.  When the eagerly awaited Loop 303 is completed farther west, the area will be reshaped for even more development.

Also, several new world-class “Megaresorts” are adding prominence to the Phoenix Valley, while generating significant new business: J.W. Marriott Desert Ridge Resort, Sheraton Wild Horse Pass, and Westin Kierland Resort.  With over $600 million in hotel investments, all three will feature custom golf courses, elaborate spas, fine / casual dining, and sprawling water parks with flowing "lazy rivers."

In addition, the city’s job base will receive a significant boost due to Intel Corp's recent decision to invest $2 billion in its Chandler plant.  That action will make the facility one of the world's most sophisticated computer chip factories.