Learning about the real estate market in Phoenix will help you understand why:
- The housing market increased in 2020 and is expected to continue the trend throughout 2021.
- People are flocking to Phoenix for career moves, good weather, and an opportunity for property value appreciation.
Nearing the end of 2019, housing experts were looking at 2020 in great anticipation of one of the most highly competitive years there had been in a while. When the COVID-19 pandemic hit, many became discouraged at the thought of having the market tank. Surprisingly, the Phoenix market picked right up, leaving the Arizona market performing better than expected overall. With an influx of real estate loans, the housing market was set up for a great year in 2021.
What Happened in 2020?
It was amazing to see what happened in Phoenix in 2020, while around the nation, there were real estate markets that were falling apart. Throughout the year, sales trends kept increasing, besides a small dip from April to June, but it jumped to a 38.6% increase after that. By the end of the year, price trends had seen an 18% increase from the previous year. Houses were in high demand, and there was a rush of people who wanted to live in The Valley of the Sun.
At the end of 2019, houses were on the market for an average of 60 days, which is pretty good for the market. By the end of 2020, however, that number had dropped to 41. Families were eager to get into their homes, and that trend is continuing today.
What Does 2021 Look Like?
Phoenix is currently a seller’s market and is expected to be throughout the remainder of 2021. The National Association of Realtors predicted that this area would be in the top 10 prospective markets for 2021-2022, and it is right on track to meet that mark. Though there were fewer homes listed for sale by the end of 2020, there were record-high sales. This limited supply is bringing the number of days listed from 41 to much lower, sometimes even just one or two days.
Home values in Arizona are also expected to increase by 7% this year, with increased home sales expecting to be at 11.4%. While this is an obvious benefit to sellers, it’s not a bad situation for buyers, either. Real estate investing might be something you’d want to look into, as home values are appreciating more quickly than they have in the past.
Why Are Families Flocking to Phoenix?
You have to wonder why families are flocking to Phoenix like this. While it’s obvious, they’re here for sunshine and good entertainment, what’s making them stay long-term?
Phoenix is known for jumpstarting business owners into a world of success. The Center for Entrepreneurial Innovation is located here, with space for entrepreneurs of all kinds to get moving. PetSmart, Insight Enterprises, and other Fortune 500 companies are also headquartered here for those who are more comfortable seeking employment with an established company.
Location, Location, Location
When you’re in Phoenix, you are close to some of the best eateries in the state. The city also has 189 parks with 200 miles of trails in 33,000 acres of desert preserves. South Mountain Park, the biggest municipal park nationwide, is located here. Getting around from location to location is accessible with light rail transportation, a grid road system, and a bike-friendly community.
If you’re looking for something a little outside of town, we’re not too far from Glendale, Scottsdale, or Tempe. With just a few hours in the car, you’re also not too far from Las Vegas, California, Mexico, or Northern Arizona, where you’re going to find many more activities and entertainment.
Phoenix sees the sun about 300 days out of the year. The weather is incredible! You never have to worry about shoveling the snow, and you don’t have to keep the old winter clothes stored in a bin under the stairs.
Those months, temperatures reach over 100 degrees almost every day, but those are the days when you hit the gym, a museum, a theatrical product, or an indoor sporting event. During those three to four extremely hot months, nights are beautiful, allowing you opportunities for star-gazing hikes and other nighttime activities.
Start Looking Into a Real Estate Investment Today
As you can see, the real estate market is looking fantastic in Phoenix, AZ, right now, and is expected to stay this way throughout the remainder of the year. If you’re looking for a great way to invest, real estate might be it! To get started with your investment, get in touch with Capital Fund 1, the hard money lenders who are committed to helping you invest wisely. Give us a call at 480-795-3422.
Featured Image: Gregory E. Clifford/Shutterstock