2020 IN REVIEW PHOENIX REAL ESTATE MARKET
Here is our 2020 in review for the Phoenix real estate market. It had uncertainties and lots of surprises. One of the biggest surprises being how little the market was impacted by the pandemic issues that surrounded so much of our life in 2020.
Yes, the market took a pause for about three weeks or so in March when our state shut down. But then the numbers took off after that. Simple economics has been fueling price increases all over the valley. Not enough supply and a huge buyer demand have led to bidding wars, homes selling above list price, buyers waiving appraisal contingencies, buyers waiving inspection contingencies. Throw in ridiculously low mortgage interest rates and the fact that there are still so many people moving here and the combination has led to our current market state.
Month after month in 2020 brought new records broken in regards to list price, inventory amounts, price per square foot, number of homes sold. I work in this market day to day. The changes are steady, incremental and sometimes indiscernible. Seeing the data analyzed at month end is incredibly eye-opening.
WHAT TO EXPECT IN 2021
Prices have increased dramatically from where we were a year ago. Which is great news for sellers. Sellers hold the upper hand in this market. Buyers are struggling to find the right home. However, homes are still selling, so hang in there, buyers! Your agent is working hard to protect your interests in the purchase of your new home while still putting your best foot forward and presenting a strong offer.
Local housing analysts predict that the current conditions will last through 2021. Which means prices will continue to increase and if you are in the market to buy, it is best to start now. The longer you wait, the more prices will continue to increase.
The pandemic has added restrictions in showings. Real estate agents are doing the best that they can to keep everyone safe. The ability to tour homes virtually had already existed. It is a tool that is being leveraged in this environment. Technology is amazing. For sellers, please know that we offer ways to market and show your home that fit your comfort level. If you are considering selling your South Phoenix home, feel free to contact us by phone call or text at 602-391-8986, or e-mail us here.