Predictions for East Valley Home Prices in Maricopa County in 2024

TABLE OF CONTENTS

Embracing Technological Innovations

Rise of Sustainable Living

Neighborhood Transformation

Remote Work Influences Property Preferences

Navigating Market Competitiveness

Diversification of Property Types

Real Estate Market Trends in Mesa, Gilbert, Tempe, and Chandler, Arizona

Mesa, Arizona

The real estate market in Mesa, AZ has shown steady growth in 2024. The median sale price for homes in Mesa has increased to around $470,000, a rise of 4.7% compared to the previous year. Homes typically receive two offers and sell within approximately 40 days, indicating a somewhat competitive market. The average price per square foot is up by 8.2%, reflecting the growing value of properties in the area​.

Overall, the Mesa housing market remains stable and moderately competitive, with a balance between the supply of homes and buyer demand​.

Gilbert, Arizona

In Gilbert, AZ, the housing market has also been robust. The median home price is around $530,000, with properties generally selling quickly due to high demand. Gilbert continues to attract buyers due to its family-friendly environment, excellent schools, and numerous amenities. The market remains competitive, with homes often selling at or above list price. The consistent demand has kept prices rising steadily​.

Tempe, Arizona

Tempe, AZ is experiencing a strong real estate market driven by its vibrant economy and the presence of Arizona State University. The median home price in Tempe is approximately $450,000. Homes in Tempe tend to sell faster compared to other cities in the region, often within a few weeks. The demand is particularly high for properties close to the university and major employment centers. This demand keeps the market competitive, with a good mix of young professionals and families looking to buy​.

Chandler, Arizona

Chandler, AZ, known for its thriving tech industry and excellent quality of life, has a median home price of about $520,000. The market here is quite competitive, with homes selling quickly and often above the asking price. Chandler’s appeal lies in its strong job market, high-ranking schools, and numerous recreational facilities. The housing market trends in Chandler indicate steady growth, driven by continuous population influx and economic stability​.

Predictions for Home Prices in Maricopa County in 2024

As we look ahead to 2024, the housing market in Maricopa County, which includes cities like Phoenix, Mesa, Gilbert, and Chandler, is expected to experience several notable trends influenced by interest rate cuts and other economic factors.

Interest Rate Cuts and Economic Factors

Economists predict that the Federal Reserve will start cutting interest rates in the latter half of 2024, with a potential first cut as early as September. This anticipated reduction in interest rates is expected to lower mortgage rates, which have been relatively high over the past few years. Lower mortgage rates will likely improve affordability for buyers, increasing demand in the housing market​ (Home Buying Institute)​​ (The Mortgage Reports)​.

Impact on Home Prices

Given the expected rate cuts and other economic factors, the following trends are anticipated for home prices in Maricopa County:

  1. Gradual Price Increases: Home prices in Maricopa County are expected to continue rising, albeit at a slower pace than the rapid growth seen in previous years. The median home prices in areas like Phoenix, Mesa, and Chandler have shown consistent year-over-year increases, with predictions suggesting a modest rise of 2-3% for 2024​ (Home Buying Institute)​​ (The Mortgage Reports)​.
  2. Improved Affordability: As mortgage rates decrease, more buyers will be able to enter the market. This increase in buyer activity could drive up home prices slightly, though the overall rise will be moderate compared to the peaks during the pandemic years​.
  3. Increased Inventory: An improvement in the housing inventory is expected, with more homes being listed for sale. This increase in supply, coupled with stabilized demand, will help balance the market, preventing dramatic price spikes​ (Norada Real Estate Investments)​​ (Home Buying Institute)​.

Local Market Dynamics

  • Phoenix: Phoenix remains a strong market due to its robust job growth, favorable weather, and relatively low cost of living compared to other major U.S. cities. The area’s housing market is expected to see continued demand, especially as interest rates fall, making it more attractive for buyers​ (Home Buying Institute)​.
  • Mesa: Mesa has shown steady growth, with the median home price rising by 4.7% over the past year. The market is competitive, with homes receiving multiple offers and selling relatively quickly​ (Redfin)​​ (Norada Real Estate Investments)​.
  • Gilbert and Chandler: Both cities are expected to see continued demand due to their family-friendly environments, excellent schools, and strong local economies. Home prices in these areas are anticipated to rise moderately as the market stabilizes​.

Conclusion

Overall, the housing market in Maricopa County is poised for a stable and moderately growing trend in 2024. The anticipated interest rate cuts will play a crucial role in improving affordability, increasing buyer activity, and sustaining demand. While the market will not see the rapid price growth of previous years, steady and controlled appreciation is expected, making it a balanced environment for both buyers and sellers. Keeping an eye on economic indicators and local market conditions will be essential for making informed real estate decisions in 2024.

 

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