Thursday, March 4, 2021 / by Ryan Nager
Here’s a quick update on Phoenix real estate heading into spring 2021.
Today we’re going to take a closer look at the spring market for Phoenix real estate in 2021. The word unprecedented is probably overused in today’s world, but it’s hard to find a better word to describe what’s happening right now.
For starters, we’re sitting at record-low inventory levels. There have never been this few homes for sale in Phoenix. Inventory is down almost 60% from where it was this time last year, and even that was low for our market. Additionally, homeowners have seen a 19% home appreciation rate year over year, so a lot of homeowners are sitting pretty with some nice equity in their properties.
The biggest things driving home price growth are record-low interest rates and an influx of people coming here from the coasts and other big cities. They’re able to offer a little more on homes right now because of the equity they gained this past year, and homes are selling just about as quickly as they’re listed. Most economists predict another year of stable growth in 2021. They think that 19% equity could turn into 30% by the second quarter.
How long is this going to last? It’s hard to say. Not enough homes are being built or listed to keep up with demand from buyers, that’s for sure. It’s hard to imagine this cycle changing quickly, but if anything does change, we’ll make sure you’re the first to know.
In the meantime, don’t hesitate to reach out if you have any questions about real estate. I’m always here to help you navigate the market. I look forward to hearing from you soon.