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Arizona Real Estate Appreciation – A Solid Market For Ownership or Investment

Arizona real estate has been one of the most talked about real estate markets in the country. Arizona has seen record appreciation levels in real estate in the last couple of years. Many locals attribute the record increase to out-of-state investors – people with deep pockets and lots of cash from real estate markets that have spiraled out of control.

The reality is that Arizona real estate is appreciating despite the out-of-state investors. The demand for housing is high; Arizona has always been a popular destination with retirees and has become even more so as custom built homes are created around resorts, spas and other luxurious areas. Other retirees are looking for homes that they can use part time and rent out for the remainder of the year. This is just one demographic that is responsible for appreciating values.

Arizona also has a strong economy. The NAFTA agreements have made Arizona an attractive climate for businesses. There are also a number of excellent universities and colleges located in Arizona. Phoenix and surrounding communities offer a wealth of hard working, well educated employees. These employees need housing and the natural outcome is to immediately purchase a home. Of course, this contributes to the real estate appreciation.

The combination of beautiful environment, economic prosperity, and affordable housing has been a magnet for people from other parts of the country. But local residents are also contributing to Arizona’s real estate appreciation. The economic growth has helped local residents afford to buy their own homes, while appreciating values help current owners build their equity and reinvest into higher priced real estate.

The question that’s on most people’s mind is whether real estate appreciation rates will continue to rise at the same level or as many experts have suggested, pop like an over inflated balloon. Real estate has had rapid declines in Arizona, but these declines are almost always associated with precipitous declines in employment levels. Both the national economy and Arizona’s are strong, as is the job market. Interest rates remain stable and low.

Forecasts for appreciation levels in the future show that Arizona’s market will continue to be strong. While there are some forecasters that suggest the appreciation rate will be more moderate than in the recent past, almost all agree that real estate in Arizona will continue to appreciate.

Arizona has surprised many real estate experts with the strength of growth in the last several years. But for those that know Arizona, it’s no surprise. Who wouldn’t want to live where the sun always shines, the homes are cool and welcoming, and opportunities abound? Arizona is a new frontier for prosperity.

Go to and get a free copy of Jeff Nelson’s 2005 Housing Appreciation Report. A 10-page report with data analyzing the housing appreciation throughout Maricopa County.