One year ago, as 2019 came to a close, experts were predicting a highly competitive Arizona housing market for 2020. A few months into the year, however, there was some doubt cast on those predictions as the COVID-19 pandemic created uncertainty as to whether or not the housing market would stay strong.
Those doubts proved to be unnecessary, however, as the Arizona market performed even better than expected throughout 2020.
Hot Competition in the 2020 Market
Average sale price trended steadily higher throughout 2020, ending with a year-over-year increase of 18%. Monthly sales trended higher and higher throughout the year, as well. After a slight dip in during April and May, June jumped right back up with a 38.6% increase from previous months.
The average number of days homes spent on the market also dropped down to 41, compared to the 2019 year-end number of 60. Homes in Arizona continue to sell faster and faster.
2021 Forecast, Higher Prices & Continued Demand
A Strong Sellersâ Market
According to the National Association of Realtors, the Phoenix Metro Area is expected to be in the top 10 U.S. housing markets in 2021. This is great news for sellers in the area as homes will likely sell quickly and for good prices.
When a housing market is especially beneficial to home sellers, itâs called a sellersâ market. This is often caused by decreasing inventory and increasing demand, which is what weâre seeing in the Phoenix metro area.
In fact, the final months of 2020 saw record-low numbers of homes listed for sale, and yet the number of homes selling is at record-highs. This creates a limited supply of homes for prospective buyers, causing homes to sell faster and home values to rise. This sellersâ market is expected to continue throughout the upcoming year.
Increasing Home Prices and Home Sales
Realtor.com predicts Arizona home values will increase by 7% during 2021. The number of home sales in Arizona is also expected to rise in 2021. With an 11.4% predicted increase, you can expect this housing market to stay hot.
A hot market like this one has benefits for both buyers and sellers. Homeowners can expect home values to increase, which allows for greater profits during a sale. On the other hand, prospective homebuyers can be confident that their new homeâs value will appreciate sooner rather than later.
Why Work With an Agent?
Real estate agents are your number one resource when it comes to buying or selling a home. Agents, like the pros at Homie, know all the ins and outs of the market. They have experience recognizing details that other people may not see.
Whether youâre looking for your perfect starter home or youâre selling in preparation for a big move, your agent can help you get the best deal possible. You wonât want to navigate the red hot Arizona real estate market without one!
Talk to A Homie in 2021
If youâre looking to make the most of the strong sellersâ market in 2021 by selling your home, click here to get in touch with us and start your listing.
If your 2021 plans include finding an awesome deal on a new home, let one of our buyerâs agents help you find the home thatâs perfect for you. Click here to start the process!
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