You May Be Busier Than Ever As Arizona’s Real Estate Market Heats Up
Despite the onset of the COVID-19 pandemic last year, the Arizona real estate industry has remained strong. In 2021, markets across the state (our Business Development Executive in Arizona, Lynda Western, highlights Phoenix and Tucson specifically) are forecasted to continue that momentum. With high demand, limited inventory, and rapidly rising home sale prices, real estate agents all across Arizona should gear up for another booming year.
2021 Arizona Real Estate Outlook: Heating Up
In November 2020, the average home in Arizona was priced at $303,230, a 13.7% increase year-over-year. There’s little sign of prices stalling, though, as Zillow predicts this figure will rise another 11.5% within the next year. Rising prices echo the gradual healing of the economy statewide, signaling that this year could be profitable for agents and sellers alike, while low-interest rates maintain some degree of affordability for buyers.
Along with rising home prices, home sales statewide grew 8.9% year-over-year in 2020’s third quarter. Inventory also fell a significant 17.8% in that same time frame. This momentum illustrates a departure from the typical seasonality of home buying and is a good sign for the coming winter months. Buyers are still eager to commit, even in historically slower months. Between lasting low-interest rates bolstering demand and a consistently low supply, Arizona is a seller’s market as 2021 unfolds.
After the economic tribulations of 2020 and as more and more people flock to the Grand Canyon State, rent prices increased 4.4% statewide and 9.4% in the Phoenix metro area. Meanwhile, only 0.3% of Arizona homeowners fell delinquent on their mortgage, and equity slipped into the negative on only 2.2% of homes statewide. So, while new renters and buyers alike make the move to Arizona, current homeowners continue to thrive as well.
2020 Arizona Real Estate Market Data
|Zillow Home Value Index||$303,230|
|1-Year Change on Home Values||+13.7%|
|1-Year Change on Rent Prices||+4.4%|
|Homes With Negative Equity||2.2%|
|Delinquent on Mortgages||0.3%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Arizona
While Arizona’s economy was particularly hard hit by COVID-19, the resilient housing market is a bright spot in the new year. State-level policy goals designed to support Arizona residents and businesses as well as a gradual return to air travel could further help mitigate some of the economic damage. Federal assistance may also bolster economic growth and compound success in real estate. Though Arizona’s lucrative tourism industry took a hard hit last year, here’s how the state currently ranks among the nation:
- Tenth in economy
- Eleventh in infrastructure
- Twenty-third in healthcare
With a strong 2021 forecasted, Arizona real estate agents will need to be at the top of their game. From buyers battling rising prices to sellers fielding multiple offers, there has never been a better time to serve your fellow Arizonians. This year, agents can expect to benefit from and help contribute to a booming local and national economy as the Arizona real estate market heats up.
Take On 2021 With the Best Arizona Real Estate Courses From The CE Shop
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Arizonans with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything Arizona? Join the Western Real Estate Facebook Group!