This figure also corroborates with Zillow's positive forecast, so the home prices in this region would increase by at least 8-10% in the next twelve months. 85043 zip code has the lowest foreclosure rate, where 1 in every 10190 housing units become delinquent. As of October 6, the company’s website stated: “Phoenix home values have gone up 11.4% over the past year and Zillow predicts they will rise 6.1% within the next year.”. This is the time for buyers to take advantage before they are increased again. In short, Phoenix remains a sizzling hot seller's real estate market in the current cycle. This can have an adverse effect on the housing market as many people will call you to make their rent or mortgage payments. The green shaded area shows Zillow’s home-price predictions for the Phoenix housing market, going into 2021. Sales were up 18.5% from September 2019 and up 4.8% from August 2020. There are plenty of reasons to invest in the Phoenix real estate market, only ten of which we’ve provided above. This can be compared to 2020 when around 6 million of the population failed to pay their rent. The Greater Phoenix real estate market is on fire. Everything depends on how much longer the nation must deal with the coronavirus pandemic and how quickly the economy is able to recover from the blow. Should you consider Phoenix real estate investment? https://www.littlebighomes.com/real-estate-phoenix.html Phoenix remains the biggest city of Arizona and the state’s capital. https://azbigmedia.com/downtown-phoenix-development-makes-it-harder-to-find-a-place-to-live/, Granny flats/ADUs It is the nation’s fastest-growing county, home to approximately four and a half million people. Phoenix has a mixture of owner-occupied and renter-occupied housing units for sale. These 13 housing crash factors will shape the housing market. Distressed sales accounted for 0.4% of total sales, the same as the previous month. Maricopa County is a county in Arizona and consists of 43 cities. That probably explains why Airbnb guests grew by 150% in 2016 alone. Is It The Right Time To Invest In Real Estate? To accommodate aging in place, they’ve loosened the rules on building “accessory dwelling units”, commonly known as mother-in-law suites. The Chandler area offers strong market fundamentals in addition to a favorable tax and regulatory climate. In this episode I go over predictions for the real estate market in 2021. Desirability brings demand. In 2018, Millennials made up about 22 percent of the population in the United States. In March, Metro Phoenix’s median home price hit a record of $302,500. CoreLogic's Market Risk Indicator predicts 125 metro areas have at least a 75 percent probability of price decline by May 2021 and prices are expected to retreat in every state. While this has got housing market bulls all charged up for a stronger 2020, one shouldn’t forget that a crisis could be just around the corner. https://www.realtor.com/realestateandhomes-search/Phoenix_AZ/overview Properties purchased today are expected to strongly appreciate by 8-10% over the next 12 months. Phoenix isn’t just redeveloping downtown to create a dense, walkable urban core. The Motley Fool Canada » Coronavirus » The Housing Market Could Fall Very, Very Sharply by 2021!. That’s well above the nation’s growth rate for that same timeframe. If the tenant violates the rental agreement or doesn’t pay rent, they can be evicted quickly. What are the Phoenix real estate market predictions for 2021? Housing Market Crash 2021: The housing reports are comprehensive assessments and predictions of US Housing markets drawing insight from NAR, CAR, Corelogic, Wall Street Journal, Freddie Mac, tradingeconomics, statista, and more industry sources. Only Texas and Florida outpaced it, in terms of year-over-year growth. Better yet, a large number of those properties don’t have a mortgage on them. This makes Phoenix a great place to buy a single-family home or condo to rent out to tourists (as a short-term rental). However, Phoenix itself is massive. They’re also two of the key factors influencing those positive housing forecasts mentioned above. “The most popular places for Redfin.com users to look to move into are typically inland areas with affordable housing, and the second quarter of 2020 was no exception. It is the only state capital with more than a million people. The average interest rate on a 30-year fixed-rate mortgage fell to a record low of 2.81% as of October 29, 2020. That is making this area and neighborhoods bordering it an excellent place to invest in the Phoenix housing market. Sun City stands out as a mecca for seasonal and year-round retirees, but it is far from the only retirement community in the Phoenix real estate market. As per the Phoenix foreclosure data by Zillow, in Phoenix 0.4 homes are foreclosed (per 10,000). The 15-year fixed-rate mortgage has dropped 2.32%. The Phoenix real estate market has not only recovered after a slump due to COVID-19 but the demand has reached new heights. Similarly, a recent housing report published by Zillow showed that total inventory for the Phoenix metropolitan area dropped by -21.8% from September 2019 to September 2020. Population growth is particularly high within the Phoenix metro area. For 2022 and 2023 Hamptons predicts the housing market to go back to its “longer-term growth path” with property prices expected to increase across all regions by 2.5% and 3.5% respectively. Here they will not face multiple offers, but they may find some builders are not accepting contracts except for homes that are near completion. The worst performance over a three year period in the Phoenix Market was -43% in the three years ended with the 2nd Quarter of 2010. As our economy’s record-breaking expansion continues into its 126th month, talk of an impending recession is to be expected. But keep in mind that home prices are unlikely to fall to the bargain-basement prices many were hoping for. https://www.azcentral.com/story/news/local/mesa/2015/01/20/phoenix-area-snowbirds-easily-seen-tracking-financial-impact/22034575/, Full-time snowbird/Permanent retirees Realtor.com's forecast and housing market predictions on key trends that will shape the year ahead. Phoenix Housing Forecast for 2021: Above-Average Price Growth Ahead? Not just limited to Phoenix or Arizona but you can also invest in some of the best real estate markets in the United States. This is good news for real estate investors looking to buy a rental property in a strong housing market. https://www.phoenix.gov/sustainability/transportation, Redevelopment sites As the economy continues to rebound, the pending home sales in the Phoenix area are climbing again, which indicates that the housing market slowdown this summer would be much less than previously expected. In the latest quarter, the appreciation rate has been 2.42%, which annualizes to a rate of 10.02%. 30251 Golden Lantern, Suite E-261
Maricopa County is a seller's market, which means that there are more people looking to buy than there are homes available. The neighborhoods in Phoenix must be safe to live in and should have a low crime rate. We can conclude that demand has not only recovered from the COVID-19 pandemic but has reached heights that make it very strong by any historical standard. The start of 2020 was like a nightmare for regular homebuyers of Phoenix due to tight inventory and an increasing rate of price appreciation. All rights reserved. Click here to read past editions of Zillow’s Market Pulse updates. The average size for a Phoenix, AZ apartment is 801 square feet with studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. According to the real estate information company Zillow, home prices in Phoenix, Arizona have risen steadily (and substantially) over the past year or so. The snowbird movement is somewhat different than the conventional tourist market. Specifically, these are metropolitan-area real estate markets that have the best potential for home-price appreciation over the next year. The post The Housing Market Could Fall Very, Very Sharply by 2021! August’s sales were at 99% of the 3 year average of 165 (from 2017-2019). Maryvale, where renters pay $926/mo on average. And that’s not surprising, when you look at the current supply-and-demand situation in this market. Currently, the gap between a median-priced new build and a resale is only $40,397. Housing markets heavily reliant on entertainment, tourism and hospitality are forecast to have hardships going ahead to next year. But in May and June, spending actually went up 18.2% and 7.5%, respectively. Similarly, if you are an investor, Scottsdale has a track record of being one of the best long term real estate investments in the nation. September’s 6.54 million in sales has left the market with only 2.7 … The slow recovery of the national housing market has taken a decade. Other housing market predictions for 2021. And there’s plenty of those to be found in the Phoenix metro area. The median home’s value has crossed $300,000 but that’s still cheaper than a starter home in coastal California. The national economy is super strong and the number of people moving into Phoenix is finally strong again after tanking during the Great Recession. Don’t forget that the large retiree market means there is strong demand for one and two-bedroom houses and condos here, and those units are a fraction of the cost of a three-bedroom home. These 13 housing crash factors will shape the housing market. High-tech house flippers such as Zillow are using algorithms to reshape the stodgy, $26 trillion market for U.S. residential real estate. CoreLogic expects Las Vegas home prices to drop 11.3% by June 2021, while places like Lake Havasu, Ariz. — where coronavirus cases have resurged most — face the greatest risk of falling housing values. Based on the last two Las Vegas housing market predictions for 2021, it’s possible that the city may go through a market shift – from a very hot seller’s market, closer to a buyer’s market. It’s only wise to think about how you can and should be investing your money. The Phoenix housing market is one of the hottest markets for 2020. https://azbigmedia.com/7-projects-between-the-7s-in-downtown-phoenix/ Disclaimer: This story contains third-party predictions and forecasts for the Phoenix-area real estate market. In July, the median sales price — up 3.3% in a single month, and up 12.5% for the last 12 months. Similar growth has been recorded by NeighborhoodScout.com as their data also shows that in the past ten years, Phoenix real estate appreciated by 139.72%. Particularly, previously-owned single-family houses compromise the majority of residential sales in the Arizona real estate market- approximately 80% of all sales. The median sale price in the area was around $317,000, according to the national real estate brokerage Redfin. And the city is almost certain to approve it because they want denser development. Continue Reading Show full articles without "Continue Reading" button for {0} hours. The Housing Market Could Fall Very, Very Sharply by 2021! It also accounts for those positive predictions and forecasts for the Phoenix real estate market extending into 2021. The highest forecast in a September Reuters poll of 16 economists was price growth of 10% in 2021, while the lowest prediction called for a 10% drop. A heavily imbalanced supply-and-demand situation. Social-distancing requirements are also likely to hold construction back in the coming months. In September of 2019, the difference was $75,153 With the chronic shortage of re-sale homes, many buyers are turning to new-builds. Some of the popular neighborhoods for buying a house or an investment property in Phoenix are Vistancia, Laveen, Deer Valley, South Mountain, Biltmore, DC Ranch, Arcadia, McDowell Mountain Ranch, Anthem, North Scottsdale, Cave Creek, Old Town, Litchfield Park, Trilogy at Vistancia and North Phoenix. Ultimately, nobody knows with 100% certainty what's going to happen. In the bill, municipalities were allowed to restrict rentals to overnight stays and prohibit events that otherwise would require a permit, like weddings. http://www.friends.org/latest/accessory-dwelling-units-are-cities-and-counties-doing-enough The state has a relatively low transfer tax on deeds or land contracts, too. The CoreLogic HPI Forecast indicates that home prices will increase on a month-over-month basis by 0.2% from September 2020 to October 2020, and on a year-over-year basis by 0.2% from September 2020 to September 2021.