Arizona, especially the capital city Phoenix, is one of the hottest real estate markets for Arizona Land Auctions Online in the United States. The Phoenix real estate market has not only recovered from the effects of COVID-19, but demand for new properties has also increased. In February, the repeat sales in Phoenix rose to almost 32.9 percent year over year, well exceeding the national average of 19.8 percent.
Real Estate Market Overview
The housing market in Phoenix is quite competitive. However, Phoenix is anticipated to be among the top 10 hottest markets in the country in 2022, with home values expected to rise at a faster rate than the rest of the country. Experts predict that in the next few months, a larger inventory will also be available for sale.
Here are some stats about the Phoenix real estate market –
- The median sales price in the Phoenix area in March 2022 was $460,000 while the average selling price was $569,752.
- Phoenix home prices were up 27.7% year over year in April 2022, selling for a median price of $461K.
- In Phoenix, homes sell after an average of 21 days on the market, compared to 23 days last year.
- In April of this year, 2,286 residences were sold, down from 2,538 the previous month.
- More than half of all residences (61.5%) were sold for more than their original asking prices, up 4.3 percent from the previous year.
- About 22.5 percent of the residences on the market were sold at a discount.
- The ratio of sale-to-list price was 102.6 percent.
Why Invest in Land on the Arizona Real Estate Market?
The Arizona real estate market has been prospering and growing blazing hot in recent years, despite the increased mortgage rates. In the coming year, the Phoenix is expected to remain a seller’s market, based on present patterns.
Here are some of the reasons why you should invest in Land in Arizona-
- Phoenix’s home market has been one of the most rapidly appreciating in the country, not just in Arizona.
- It’s more affordable housing, lower cost of living, available labor, and stable climate all point to a stronger economy and housing boom.
- Home prices in Phoenix have only recently returned to where they were 12 years ago, at the peak of the real estate bubble.
- When inflation is factored in, however, Phoenix home values are still 20% below their inflation-adjusted peak from 2005.
- According to current patterns, Phoenix property prices and real estate appreciation rates will most likely be the same in 2022 as they were the previous year.
- Phoenix’s real estate appreciation rate was 11.85 percent in the most recent quarter, equating to a 56.50 percent annual appreciation rate.
- The national economy is booming, and the number of people migrating to Phoenix has increased significantly since the Great Recession.
- For the previous few years, job growth has been strong, but single-family building permit activity has been low.
- People who live in high-cost areas such as Los Angeles and Seattle are flocking to Phoenix.
Buy Your New Home in Online Auctions
Online bidding procedures are becoming the most common method of buying homes in Arizona.
Online land Auctions are beneficial to first-time bidders because they provide a platform to easily obtain the necessary information, ask questions, or just observe and learn. Online auctions also help you understand the rules, as each auction site has its own set of rules.
When you participate in online land auctions, you need to pre-register on an auction website such as Auction Flippers and establish that you’re a serious, pre-qualified buyer. Then the auction website will let you select your desired property from its inventory and help you throughout the buying process.
Advantages of Online Land Auctions
Commitment to Sale –
With sellers that are driven to sell a property on a certain date, auctions remove the uncertainty from the buying process. Buyers have the ability to do due diligence prior to the sale and have confidence that the transaction will be completed quickly.
In an auction, all bidders have the same information and are bidding at the same moment, competing fairly on the same terms as the other bidders. Unfortunately, the traditional sale process is sometimes opaque, influenced by parallel talks, relationships, and reputations, and can result in unfair practices — whether intentional or not.
Real estate auctions take away the stress of negotiating, which can take up a lot of your time, money, and sanity.
Auctions give the buyer (and seller) the opportunity to comprehend the terms and conditions of the sale right away. The selling time and date, as well as the closing date, the number of earnest money deposits necessary, and so on, are all determined.
Multi-property auction websites allow buyers to compare many offers in one location.
Observing the bidding on a similar property may provide you with greater insight into the worth of the property in which you are interested if you plan to buy land at auction. If you want to look at a lot of different houses, an auction may be the best option for you.
An auction’s goal is to determine a true fair market value for the property you’re buying.
The competitive bidding process fosters wise investment by allowing purchasers to acquire a sense of market value in real-time.
Special Tips for Online Land Auctions
1)Know Your Limit
If you’ve calculated how much you’ll have to pay for auction property to make it worthwhile, whether you’re a homeowner or an investor, write it down somewhere and make a sincere commitment not to go over that number. It’s difficult to stick to, especially during a bidding war when emotions are running high. However, you might avoid overpaying for an auction property if you know when to walk away.
2) Do Your Research
Make sure you’re familiar with the market in which you’re bidding. You may not grasp the market or know what types of damage are there in your new house, especially if you are moving from a high-cost real estate market to a lower-cost location.
In an auction situation, all risks are on the buyer, so there is no one to turn to for financial aid if the problems in a home, or its legal status, turn out to be more serious than you anticipated.
Even the most well-kept home can have major issues within its confines.