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Expecting a dip in Mesa's property prices in 2025? Think again.
Despite economic shifts, Mesa's real estate market is poised for growth, driven by increasing demand and limited housing supply.
In this blog post, we will explore why property prices in Mesa are set to rise in 2025.
We rely on solid, up-to-date data and statistics from multiple credible sources, ensuring our analysis is grounded in reality.
By thoroughly examining this information, we draw our own conclusions, which we share with you at the end. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) Mesa boasts an impressive livability score of 81, highlighting its excellent quality of life
Signal strength: strong
The livability score of 81 in Mesa is a strong indicator that the area is desirable, which often leads to increased demand for housing.
One reason for this excellent score is the abundance of outdoor recreational activities available, such as hiking in the nearby Superstition Mountains and enjoying the numerous parks. Additionally, Mesa boasts a thriving arts and culture scene, with attractions like the Mesa Arts Center and various local festivals that draw both residents and tourists alike.
Furthermore, the city has a strong educational infrastructure, with reputable schools and proximity to higher education institutions like Arizona State University, making it attractive for families and students. These factors contribute to a high quality of life, which can drive up housing demand and prices.
If the livability score were to drop below 70, it might suggest a decline in these appealing characteristics, potentially leading to stagnation or a decrease in housing prices.
Source: AreaVibes
2) In Mesa, there are only about 0.44 homes for each person, which is quite limited
Signal strength: strong
In Mesa, the fact that there is around 0.44 home per inhabitant indicates a limited housing supply. This ratio suggests that the number of available homes is relatively low compared to the population size, which can lead to increased demand.
When demand exceeds supply, housing prices tend to rise as more people compete for fewer homes. A specific factor in Mesa is its growing tech industry, attracting professionals who need housing.
This influx of workers can further strain the already limited housing market, pushing prices upward. If the ratio were to increase significantly, say to 0.6 home per inhabitant, it might indicate a more balanced market.
Source: USCensus
We created this infographic to show how property prices in Mesa compare to other big cities in Arizona. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) Home values in Mesa have risen by 0.5% since last year and could keep increasing
Signal strength: strong
The fact that home values in Mesa have already changed by 0.5% since last year is a key indicator that the housing market is on an upward trend. This change suggests that there is a growing demand for homes, which often leads to higher prices.
Currently, the median home price in Mesa is around $437,088, which is a substantial figure that reflects the area's desirability. Additionally, the median sales price per square foot is around $270, indicating that buyers are willing to pay a premium for space in this market.
These statistics, combined with the recent increase in home values, support the assumption that housing prices are likely to continue rising in 2025. For potential investors, this trend could mean a promising opportunity for returns on investment.
However, if the home value change were to drop significantly, it might suggest a different market direction, potentially indicating a cooling or declining market.
Source: Redfin
4) Three major websites confidently predict that home prices in Mesa will rise in 2025
Signal strength: strong
There are three major websites forecasting a positive growth for home prices in Mesa in 2025, which is a promising signal for potential investors.
Among these forecasts, Realtor is the most optimistic with a projected increase of 13.20% in home prices, followed by Redfin at 4% growth, and Zillow with a more conservative estimate of 2.60% increase. The significant gap between Realtor's and Zillow's forecasts highlights the variability in predictions.
While these forecasts are encouraging, it's important to approach them with caution as they are based on predictive models that can change. We will also rely on strong, reliable, and actual data to make a more informed and professional judgment about the market.
If these forecasts were to predict a negative growth in home prices, it would suggest a different outlook for the Mesa housing market.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
Our team designed this infographic to show how competitive the real estate market in Mesa is vs. other major cities in Arizona. It shows the percentage of sales above the list price, a key indicator of market competition.
5) In Mesa, home prices have risen by an average of 9.8% annually over the past decade
Signal strength: moderate
The fact that home prices in Mesa have appreciated at an average rate of 9.8% over the last decade is a noteworthy signal for potential investors. This historical growth rate suggests that there has been a consistent demand and upward trend in housing prices in the area, which can be a positive indicator for future price increases.
While this 10-year average appreciation rate points to favorable conditions, it's important to remember that past performance doesn't guarantee future results. However, such a strong historical trend can still be a valuable piece of information when considering investment opportunities.
Investors should consider this data as part of a broader analysis, as other factors like economic conditions and market dynamics also play crucial roles in determining future price movements. If the appreciation rate were to significantly drop, say to below 3% over a similar period, it might suggest a different outlook for the market.
Source: NeighborhoodScout
6) In Mesa, about 17% of homes sell for more than their listing price
Signal strength: minimal
In Mesa, around 17% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it often means that competition among buyers is intense and they are eager to secure a property.
This eagerness can drive prices up because sellers recognize the high demand and may increase their asking prices. As more buyers compete for limited inventory, the market dynamics shift in favor of sellers, leading to potential price increases.
For someone considering investing in real estate, this trend suggests that property values might appreciate in the near future. However, if the percentage of sales closing above the listing price were to drop significantly, say below 5% of total sales, it could indicate a cooling market.
Source: Zillow
This infographic we have made will show you how market values have changed during the last decade in Mesa vs other major places in Arizona. Here, the percentage increase or decrease in market value will help you see long-term trends.
So, are prices going to climb in Mesa in 2025? Absolutely
In Mesa, the combination of a high livability score, limited housing supply, and a history of rising home values strongly suggests that prices will climb in 2025.
The city's livability score of 81 highlights its excellent quality of life, attracting more residents and increasing housing demand. With only 0.44 homes per person, the limited supply further intensifies this demand, especially as the growing tech industry draws more professionals to the area.
Home values have already risen by 0.5% since last year, with a median price of $437,088, indicating a market on the rise. Forecasts from major websites predict further growth, with Realtor projecting a 13.20% increase in 2025.
Historically, Mesa has seen an average annual appreciation of 9.8% over the past decade, reinforcing the trend of rising prices. Additionally, 17% of homes selling above listing price shows strong buyer competition, further driving up prices.
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- Yes, investing in real estate is a solid option in 2025 in Mesa