Rains: East Valley real estate market ready for a bountiful spring

Rebecca Hidalgo Rains

Integrity All Stars Realty

Last winter, the East Valley real estate market was in a state of limbo. Relatively high interest rates remained in effect, meaning fewer prospective buyers could enter the market. Despite the higher interest rates, home prices in the East Valley were not negatively impacted due to the lower housing supply compared to the demand.

This spring will be different, at least on the interest rate side. The Federal Reserve is signaling that they expect rates to drop in 2024, and we anticipate this drop will begin this upcoming spring.

However, we don’t expect interest rates to drop significantly this spring, but we expect them to fall while the Fed tests the waters of a low-interest rate market. It should be noted that even a moderate drop in rates will lead to more buyers entering the market, and more buyers with limited housing supply means we expect East Valley home prices to go up. Buyers interested in purchasing a home should start looking now because we will see increased competition for buyers by the start of April and significantly more competition for buyers this summer when we expect the Fed to lower interest rates even more.

Arizona’s East Valley remains one of the most popular areas for home buyers. Scottsdale remains the No. 1 city for people moving here from out of state. Money is always flocking into Scottsdale, and it remains a hot spot for affluent buyers moving to the Valley.

Mesa and Apache Junction are experiencing a rise in demand, partly due to the lower home prices compared to Scottsdale and, more importantly, because they are the next booming areas of development and demand. Downtown Mesa is constantly improving and offers a diverse selection of homes, catering to both affluent homeowners and first-time buyers.

Chandler and Gilbert are the most popular areas for East Valley homebuyers, and we expect these areas to maintain high demand in the spring and summer of 2024.

Chandler is popular because it features the best school district in the state. Good schools are one of the leading drivers of real estate for families, and as long as Chandler hosts some of the best schools in the country, it will be a hotspot for real estate. Chandler home prices will remain high as the area has become landlocked, making it difficult to find space to build new housing.

Gilbert has emerged as a sought-after location for those originally interested in residing in Scottsdale but who fell in love with Gilbert thanks to its lower home prices and lively downtown area. With a significant amount of new home construction currently taking place in the city, Gilbert is expected to continue to be a popular choice.

Rebecca Hidalgo Rains has worked in Phoenix real estate for nearly 30 years, helping Arizonans find their dream home. Go to integrityallstars.com.