As we head into 2024, the real estate market in Surprise is poised for some significant changes. From shifting interest rates to changing demographics, there are a variety of factors that will impact the market in the coming year. As a real estate investor, it’s important to stay informed and up-to-date on these trends in order to make informed decisions about your investments. Here are ten things Surprise real estate investors need to know about the real estate market as we head into 2024.
1. Interest Rates Are Expected to Rise
After years of record-low interest rates, many experts predict that rates will continue to rise in 2024. This could have a significant impact on the real estate market, as higher interest rates can make it more difficult for buyers to afford homes. As an investor, it’s important to keep an eye on interest rates and factor them into your investment decisions when utilizing funding to facilitate the purchase. It’s not the only factor, however, especially if you don’t need to use conventional financing to fund your purchase. But the rising rates can play a factor in how many homes are on the market or on homeowners who purchased at a higher rate needing to get out of their situation.
2. Millennials Will Continue to Drive the Market
Millennials are the largest generation in history, and as they continue to age into their prime home-buying years, they will continue to drive the real estate market. This generation is known for valuing experiences over possessions, and as such, they are often drawn to urban areas like Surprise with access to restaurants, nightlife, and cultural events. As a real estate investor, it’s important to keep this demographic in mind when selecting properties. When appealing to millennial tenants, be sure to keep proximity to restaurants, cultural activities, and shopping in mind. Surprise is a very attractive location due to its substantial variety of housing communities that appeal to the new young family buyer, those wanting new builds with the latest amenities and upgrades, active seniors, and young adults drawn to outdoor active living. Along with being the spring training grounds for major league baseball teams (Texas Rangers and Kansas City Royals) and the latest restaurants and shopping facilities going in, Surprise is the perfect place for millennials.
3. Technology Will Play an Increasingly Important Role
Technology is rapidly changing the real estate industry, and this trend is expected to continue in 2024. From virtual tours to online mortgage applications, technology is making the home buying process faster, more convenient, and more transparent. As an investor, it’s important to stay up-to-date on these changes and leverage technology to streamline your investment processes. By using the right technology, Surprise real estate investment can be accessible to anyone.
4. Supply and Demand Will Remain a Key Factor
Supply and demand is a fundamental principle of economics, and it will continue to be a key factor in the real estate market in 2024. As demand for homes in Surprise and on the 303 corridor continues to grow, it’s important to keep an eye on supply. If there are not enough homes on the market to meet demand, prices will continue to rise. However, there are many new homes continuing to be built and once national source is reporting:
As national economists see mounting headwinds in the U.S. housing market, metro Phoenix has a different story to tell.
While new home sales fell 5.6% nationwide in October, they increased in the Valley, according to research by R.L. Brown Housing Report.
The metro had 1,854 new home closings in October, up 4.04% from 1,782 in October 2022, according to the Phoenix housing report.
5. Urbanization Will Continue
The trend towards urbanization is expected to continue in 2024. As more and more people flock to urban areas in search of jobs, entertainment, and cultural experiences, demand for urban properties will continue to increase especially in Surprise. The 303 corridor provides the perfect artery for moving around the Phoenix metro area, to new technology hubs and to the plethora of outdoor activities in the Phoenix metro. As an investor, it’s important to keep this trend in mind when selecting properties.
6. Environmental Concerns Will Become More Prominent
Environmental concerns are becoming increasingly important to home buyers, and as such, they will become more prominent in the real estate market in 2024. Thankfully, homes in the Surprise are a perfect match for this trend. From energy-efficient features to sustainable building materials, green homes are becoming more and more popular. As an investor, it’s important to stay up-to-date on these trends and consider incorporating green features into your properties if not already in.
7. The Importance of Location Will Remain Strong
The old saying “location, location, location” will remain as true as ever in 2024. Buyers are often willing to pay a premium for properties in desirable locations, such as those with good schools, easy access to transportation, and proximity to amenities. Again thankfully, Surprise has off of this in spades. As an investor, it’s important to keep location in mind when selecting properties.
The West Valley, where Surprise is located, is experienced an explosion in growth — all of it new, fresh and functional. According to Don MacWilliam, executive vice president for Colliers International, years of planning, investment in infrastructure and the expansion of key transportation links such as the Loop 202 and Loop 303 opened the floodgates for development west of Phoenix after several major employers moved to the area.
8. Political and Economic Uncertainty Will Continue
Political and economic uncertainty has been a hallmark of the past few years, and this trend is expected to continue in 2024. From changes in tax policy to geopolitical tensions, there are a variety of factors that could impact the real estate market. Since Phoenix metro has been diversifying its economy over the past decade, its cities have really benefited from an influx of grounded, salt of the earth citizens both those seeking employment, entrepreneurs and new industries. This acts as a buffer to the upheavals that other large metro areas have experienced of late… Still, as an investor, it’s important to stay informed and to have a solid contingency plan in place in case of unexpected events.
9. The Rise of Co-Living
Co-living is a growing trend in the real estate market, particularly among millennials. Co-living spaces are designed to offer affordable housing and a sense of community, and they often feature shared living spaces and amenities. As an investor, you may want to keep this trend in mind when selecting properties and consider incorporating co-living features into your properties.
10. The Importance of Flexibility
Finally, flexibility will be important in 2024. As the real estate market continues to evolve, it’s important to be able to adapt to changing trends and circumstances. This may require being open to new types of properties, new investment strategies, new funding methods and new technologies.
The real estate market in Surprise is poised for some significant changes in 2024. By staying informed and up-to-date on these trends, real estate investors can make informed decisions and position themselves for success in the coming year. If you are looking for investment properties for sale in Surprise, Fresh Start Homes AZ can help. Reach out to our team to learn more about what’s currently available! (928) 421-2678 and (928) 239-7573