Buying A House In Arizona: How It’s Done And Where To Live

Since 2010, Arizona’s population has grown by over 1.1 million people. That means homes are now in high demand.

Arizona’s appeal rests on its economic opportunities and weather. Living in Arizona, you can say goodbye to dreary months spent shoveling snow and instead say hello to the Grand Canyon, Sedona’s red rocks, the famous Four Corners Monument and plenty of sunshine.

If this sounds like your idea of paradise, you’re in the right place. Here’s what you need to know about buying a house in Arizona.

Is Buying A Home In Arizona A Smart Investment?

Arizona continues to be one of the fastest-growing states, with 4.3% growth since 2020.

This growth in popularity makes Arizona real estate a solid investment. Arizona often ranks as one of the most attractive states to retire in, and its strong economy is a magnet to many people. Whether you choose to live there permanently or rent it out, a property in Arizona can provide a good return on your investment.

The Arizona Housing Market

From a statewide perspective, it’s safe to say that Arizona is a seller’s market. While statistics vary by city and neighborhood, homes typically stay on the market for a relatively short time, and many of them sell above asking price. As a buyer, you’ll probably need to be competitive and assertive to get the house you want.

Top Real Estate Cities In Arizona

Rocket Homes Real Estate LLC has compiled a list of the top real estate markets for buying a house in Arizona. For the full list, visit the Arizona page on the Rocket Homes^SM website.

Here are some of our picks, all of which are in the greater Phoenix area.

Phoenix

Phoenix is the state capital and the most populous city in Arizona. Its economy centers around health care, retail, hospitality and construction.

As the biggest city in Arizona, it’s also the state’s cultural center. Fine arts, performing arts, professional sports and excellent cuisine from around the world all find a home in Phoenix.

You’ll also find historic neighborhoods with one-of-a-kind homes, along with master-planned subdivisions. The city’s system of mountain preserves encompass more than 41,000 acres and 200-plus miles of trails. That means you’ll have access to one of the largest urban outdoor areas in the nation. If you’re looking for big-city life in the desert, look no further than Phoenix.

Phoenix Real Estate Listings

Phoenix Trend Report

Scottsdale

Part of the greater Phoenix area, Scottsdale borders the Tonto National Forest and is home to a booming tourism industry. If you’re looking to relax, Scottsdale also has more destination spas per capita than any city in the country.

Unsurprisingly, Scottsdale is one of the pricier real estate markets on this list. According to our listings, the median sold price in March 2024 was just over $810,000 – down 1.3% from March 2023.

Scottsdale is sandwiched between Phoenix and the McDowell Mountains, making it ideal for anyone wanting a balance of city and nature.

Scottsdale Real Estate Listings

Scottsdale Trend Report

Chandler

Chandler is another suburb of Phoenix, situated east of the city. Its major employers include Wells Fargo, Bank of America, PayPal and Intel. Since 2010, the population has grown by nearly 48,000.

The town is full of historic homes, some of which have been included on the National Register of Historic Places. One of these homes is the McCullough-Price House, which is designed in a Pueblo Revival style.

Chandler is more affordable than Scottsdale and generally has a growing job market and good schools. It’s also closer to larger cities, such as Mesa and Phoenix. Plus, it has a thriving downtown with plenty of restaurants and shops.

Chandler Real Estate Listings

Chandler Trend Report

Tempe

If you’re a frequent traveler or just like to be near transportation hubs, Tempe might be the right city for you. It offers easy access to the Phoenix Sky Harbor International Airport and the local freeways.

On top of its airport and freeway access, Tempe is well-known for its many other transit options, including bike lanes, shuttles, light-rails and buses. Tempe is also home to Arizona State University.

The median price of homes sold climbed just 1.4% in the last year. Plus, in March 2024, nearly 50% of the homes that sold were bought in less than 30 days.

Tempe Real Estate Listings

Tempe Trend Report

Mesa

Mesa sits just east of Tempe and north of Chandler. It’s the third-largest city in Arizona, and with over 512,000 residents, it’s the largest suburban city in the U.S. Additionally, the Mesa Grande ruins, which date back to 1100 A.D., are located there.

Mesa’s downtown, which is served by the Valley Metro Rail, is experiencing a renaissance, thanks to locally owned businesses and many museums.

The median age for Mesa residents is 36, and the median household income is around $79,500. The area’s top employers include Banner Health, Mesa Public Schools and the City of Mesa, which collectively bring thousands of jobs to the area.

With Mesa’s extensive business district, shopping, cultural history and growing economy, buying a house there could be a great investment. It’s worth noting that more than 20% of homes sold recently in Mesa went above the asking price.

Mesa Real Estate Listings

Mesa Trend Report

Gilbert

Once a small, agricultural town, Gilbert is now a bustling economic center located southeast of Phoenix.

The town’s population growth is an incredible story. In 1980, Gilbert had only 5,717 residents. Fast-forward to more than 40 years later, and the city has grown to a population of over 275,000 people – more than 48 times its former size.

The growth isn’t stopping, either. The Gilbert, Arizona Office of Economic Development claims, “By 2030, Gilbert is expected to be fully built out, with an anticipated population of over 300,000.” If you want to move into an expanding community before home prices rise, now is a good time to buy in Gilbert.

Aside from rapid growth, Gilbert has a wide selection of recreational activities and excellent parks.

Gilbert Real Estate Listings

Gilbert Trend Report

Tucson

Arizona’s second-largest city offers world-class outdoor recreation, a slightly cooler climate and a historic, artsy vibe. It’s also home to the University of Arizona and Davis-Monthan Air Force Base.

According to the Rocket Homes Trend Reports, homes in Tucson stay on the market for about 61 days and have a median listing price of $399,015.

Tucson Real Estate Listings

Tucson Trend Report

What To Know About Buying A House In Arizona

Whether you’re relocating to Arizona or buying your first home, it’s important to understand the nuances of real estate in the area. These tips can help prepare you for the journey ahead.

Find A Trusted Arizona Real Estate Agent

To find the right home, you’ll first need to find the right real estate agent. A Rocket Homes Verified Partner Agent can help you house hunt in the areas you’re interested in. These agents know the market and your needs, and they’re well-versed in the laws and practices specific to Arizona.

It’s important to note that dual agency is permitted in Arizona, so your agent may also represent the home seller.

Know Your Financing Options

Some first-time home buyer grants and programs are specific to Arizona. For instance, Home Plus Arizona offers a down payment assistance program aimed at making homeownership possible for first-time buyers.

Be Prepared To Pay Earnest Money

Arizona is a competitive seller’s market, meaning that sellers often have their pick of bids. While putting down 1% of the home’s purchase price as earnest money is pretty standard, a larger amount can strengthen your offer and show the seller you’re committed to buying their home.

Enjoy Low Property Taxes

Arizona has a law that caps the tax rate on owner-occupied homes. This means that as long as you aren’t renting out your home, you can enjoy property taxes that are well below the national average.

Plan To Pay More For Homeowners Insurance

Because of intense weather and flood risk, be prepared to pay a higher homeowners insurance premium than you would in other places. If your home is in an area that floods, you’ll need flood insurance, too. It’s also important to know that the area is prone to wildfires.

Know Your Rights To Property Tax Exemption

Property tax exemptions are limited in Arizona. However, if you’re disabled, a senior or in a certain income bracket, you could be eligible to avoid paying property taxes.

Read The Seller’s Disclosure

Arizona is one of the states that requires home sellers to complete a Seller’s Disclosure, which outlines potential issues with the property. Be sure to review this disclosure carefully to identify any issues that need addressing.

How To Buy A House In Arizona

While purchasing a house is a huge decision, these seven steps can help make it more manageable:

1. Save for a down payment and closing costs. While down payment requirements vary by lender and loan type, you’ll likely need a minimum down payment of 3% – 5% of the purchase price. In addition, closing costs are typically 3% – 6% of the loan amount. However, to avoid paying private mortgage insurance (PMI) on a conventional mortgage, borrowers need to make at least a 20% down payment.

2. Get mortgage preapproval. Find the mortgage lender you want to work with and get preapproved for a mortgage. They’ll take your info, check your credit and determine how much to lend you. A preapproval letter also shows sellers you’re serious about the purchase.

3. Decide what you want in a house. Consider what’s a deal-breaker, what’s a necessity and what you’re willing to compromise on for your home.

4. Find an agent. Working with a licensed real estate agent can improve the entire home buying process. Whether you’re looking in Gilbert, Tucson or elsewhere in Arizona, a good agent will analyze market conditions, your budget and your needs to find the right house for you.

5. Tour homes. Get out there and see the houses. This will give you a good idea of what you like and don’t like.

6. Make an offer. Work with your real estate agent to put together a competitive offer for your dream home.

7. Close on the house. This is where everything falls into place. Once you’ve gotten the appraisal and the home inspection, all you have to do is complete the paperwork and sign your name on the line.

FAQs: Buying A Home In Arizona

You may still have questions about buying a house in Arizona, especially if you’re moving from another state. We’ve got you covered with questions and answers below.

When’s the best time to buy a house in Arizona?

When considering the housing market overall, the spring and summer months typically have more inventory. However, buyers are less concerned about moving in before winter because Arizona winters are less severe. As a result, sellers aren’t very worried about selling before winter arrives, either.

Because Arizona is currently a seller’s market, the best time to buy a house could be right now, since you’ll have plenty of options to consider.

How much down payment do I need to buy a home in Arizona?

Your down payment will depend on the type of mortgage you’re getting and the purchase price of your home. 

With a conventional loan, your down payment can be as low as 3% of the purchase price, but you’ll need to put down at least 20% to avoid paying PMI. Remember, the bigger your down payment, the more motivated you may appear to the seller.

Is it smart to buy a house in Arizona?

This depends on you. Does Arizona have the job opportunities, climate and recreational activities that are important to you? Can you afford the median home price your preferred city? If the answer to these questions is yes, then buying a house in Arizona could be the right call.

What credit score do I need to buy a house in Arizona?

It probably goes without saying that the higher your credit score, the better. That said, the credit score you’ll need to buy a house will largely depend on the type of loan you’re applying for. For example, conventional loans typically require a minimum score of 620, while FHA loans often require a minimum score of just 580.

The Bottom Line: Arizona Home Buying Could Be The Move For You

Arizona is a competitive market. Phoenix and the surrounding communities attract people from far and wide, and the state’s population is booming with little sign of stopping. Whether you’re looking for your first home or someplace to retire, investing in Arizona real estate could pay off for you.

Interested in a mortgage for home buying in Arizona? You can start the approval process today with Rocket Mortgage^®.