Home Values in Arizona
The median home value in Arizona is $320,000. Phoenix metro saw among the largest gains in the US 2020-2022, up 50%+, followed by a 2023 correction. Values have stabilized around 2022 peaks.
What Drives Home Values in Arizona?
Several Arizona-specific factors influence home values beyond national trends:
- Property tax burden: At 0.62% (avg. $1,648/year), Arizona's taxes are below average — a buying incentive
- Assessment methodology: Arizona assesses residential property at 10% of full cash value (FCV).
- Buyer exemptions: No traditional homestead exemption, but owner-occupied primary residences receive the 10% assessment ratio versus 18% for commercial.
- Financing limits: Conforming loan limit is $726,200 — Most Arizona counties are at the standard conforming limit. Scottsdale and parts of Maricopa County approach this ceiling.
Closing Cost Consideration
When estimating net proceeds from a home sale, account for closing costs and transfer taxes. Sellers in Arizona typically pay 6-8% of the sale price in total transaction costs. Arizona imposes no mortgage recording tax. Title insurance and escrow fees are the primary closing cost components.
Frequently Asked Questions
What is the average home value in Arizona?
The median home value in Arizona is $320,000. Phoenix metro saw among the largest gains in the US 2020-2022, up 50%+, followed by a 2023 correction. Values have stabilized around 2022 peaks.
How do property taxes affect home values in Arizona?
Arizona's effective property tax rate is 0.62%, with an average annual bill of $1,648. This low tax burden is a positive for Arizona home values — lower carrying costs increase buyer demand.
What is the conforming loan limit in Arizona?
The conforming loan limit in Arizona is $726,200. Most Arizona counties are at the standard conforming limit. Scottsdale and parts of Maricopa County approach this ceiling. Buyers needing loans above this require jumbo financing.
How much are closing costs when selling a home in Arizona?
Sellers typically pay 6-8% of sale price in total transaction costs. Arizona imposes no mortgage recording tax. Title insurance and escrow fees are the primary closing cost components. Buyers pay an additional $2,600 in closing costs.