Well, 2020 was quite a year. If there was one lesson we learned, it was that home is everything. And as an essential industry, the Phoenix, AZ Valley real estate market thrived last year. Think about how many times in the past six months you’ve heard about our hot real estate market – it was probably more times than you could count! That’s because people will always need to buy, sell, and move, and now more than ever it’s important to love the place you call home. Let’s dive in and take a look back at real estate in 2020 and what’s in store for us this year.
Looking Back | 2020 Real Estate Market
Last year, the Valley saw a large influx of out of state buyers that were attracted to Phoenix for more reasons than just affordable housing and great weather. According to the Updaters Moving Destinations Report, Phoenix ranked number two in the top 20 US cities for inbound moves. So, what’s bringing buyers here? A recent study by labor-analytics firm Emsi found that Metro Phoenix ranked number one in the nation for attracting and retaining workers. According to the report, “Perhaps what is most striking about Maricopa’s economy is the breadth and depth of industries. It’s reasonable to assume Maricopa is benefiting from a feedback loop: existing talent attracts firms and investment, which in turn attracts more talent.” And with our amazing weather, affordable real estate and endless things to do, once people get here they don’t want to leave.
The Agency just released their 2020 Red Paper report, and here’s an excerpt of their findings for Arizona, “The real estate market hit record highs from late summer to fall during what’s typically the slowest season of the year. In 2020, single-family home sales in Scottsdale and Paradise Valley were up 9% with median prices rising 18% over 2019. Buyers from California, Washington, Colorado and Chicago joined well-heeled locals seeking their place in the sun, requesting larger homes with expanded amenities and outdoor living spaces. Buyers recognized the value in The Grand Canyon state, where they can get more bang for their buck”.
Looking Ahead | 2021 Phoenix, AZ Valley Real Estate Market
So, where are we at now? Real estate is starting out strong in 2021. With inventory down 50% compared to January 2020, we’re still in a seller’s market, but there’s plenty of opportunity for buyers too. Listings under contract are up almost 24%. And although The Cromford Report is predicting our real estate prices will have an increase over the next few months, with low interest rates and an on-going demand from out of state buyers, we believe there’s still plenty of opportunity for both buyers and sellers. Per The Agency, “Expect more transplants arriving to Arizona from highly- taxed and high-priced markets demanding California- esque mansions, with a lower price tag. The $1M – $2M market should remain extremely active as buyers realize the value proposition and lifestyle the state affords”.
Here’s the bottom line. Arizona – and especially the Phoenix Metro area – is an increasingly popular place to put down roots. That’s not only because of our affordable real estate market, but also because of job availability. And of course, the practically endless sunshine is a draw, too! Would you like to know more? Give us a call at 480.363.1622. Whether you’re thinking about buying or selling, or just want to know more about the current housing market in your neighborhood, we would love to help!
