In many ways, 2020 has been an unpredictable year. Although the pandemic irreparably changed some economic sectors, others, like the Phoenix real estate market, seemed to have been relatively unphased. Before the COVID-19 outbreak in the U.S., the Phoenix real estate market was competitive, with hundreds of new residents moving into the Valley daily. Since then, major employers have set up new operations in Metro Phoenix, transplants are still arriving daily, and single-family homes are in high demand. As 2020 draws to a close, what can homebuyers expect in Phoenix in 2021?
Home Prices May Continue Rising
In Maricopa county, fall housing market conditions have been like those in the summer—low inventory and rising prices. According to a recent report by the Home Buying Institute, low supply and high demand are expected to keep Phoenix prices climbing at an unusually fast rate in 2021. Whenever there are more buyers than houses, the cost of real estate has the potential to escalate. A seller’s market can create bidding wars and higher asking prices than properties would ordinarily command.
The online real estate company Zillow.com found that Phoenix home prices have steadily risen over the last year. In a September housing market update, Zillow identified the Phoenix market as having one of the country’s most significant home price gains. In November, the company reported a 12.6% increase in the city’s median home value. Zillow’s data also showed that fewer homes were available now than at the same time last year.
Low Mortgage Lending Rates Propel Demand
As mortgage lending rates remain at record lows, buyer demand continues to increase. For qualifying homebuyers, this may be an excellent time to borrow. With no sign of the rates changing, 2021 is likely to include more ready and willing buyers wanting to take advantage of the low-interest lending climate.
Phoenix’s Population is Expected to Grow
In a recent article, the Home Buying Institute reported that the “U.S. Census Bureau found that the city’s population grew by 16.2% from 2010 to 2019. The rate was far higher than the national average and that of many other metro areas across the U.S.” According to the online real estate company Redfin.com, Phoenix is one of the country’s top relocation cities. The company’s data also showed that more people were moving into the city than leaving. The city has a lower cost of living than comparable metro U.S. cities, and its warmer climate appeals to those looking to move away from colder regions.
Laura B. Bramnick is an experienced Arizona real estate attorney who can help you manage all aspects of your Arizona real estate matter. If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona, and throughout the State of Arizona, contact Laura B. Bramnick to schedule your consultation.