The real estate in some US cities has seen a great rise in demand and prices in the last year. Similarly, we have also witnessed a surge in the housing market in Phoenix. Not only this, but the market is likely to remain stable and expected to remain demanding in the coming months. The housing
The real estate in some US cities has seen a great rise in demand and prices in the last year. Similarly, we have also witnessed a surge in the housing market in Phoenix. Not only this, but the market is likely to remain stable and expected to remain demanding in the coming months.
The housing market is pretty much similar to 2020, but there are a few differences you can predict in 2021. Read the article to get a clear idea of real estate.
Housing Market in Phoenix in 2021
You will continue to see a great rise in the housing market of Phoenix in 2021. Let’s discuss what trends you may observe in the market.
Rise in Home Values
Zillow‘s research gives insight and data that can tell you what you can expect from 2021. According to the data of the last year, the home value rose to 12.6%. Experts are expecting it to rise by 8.5% in 2021.
Additionally, the home values of the Phoenix-Mesa-Scottsdale Metro reached 11.7% in the last year. You will witness another 7.7% rise in the next twelve months. Till now, the housing market is pretty stable and still following the home values of the last year.
No Chance of Crashing
According to the Housing Market Recovery Index of Realtor.com, the Phoenix metro area is recovering from the crisis it has gone through in the last years. Experts claim that there will be no chances of a crash in 2021 based on this data. Furthermore, this data shows that the Phoenix-Mesa-Scottsdale metro area’s market is expecting to recover completely.
Increase in Area Home Sale
The housing market in Phoenix is expected to increase by 11.4% from 2020 to 2021. Surprisingly, this is the eleventh-largest expected rise in home sales among the 100 top metro areas in America. Thus, it is one of the hottest housing markets in 2021.
However, this is creating problems for the buyers who are looking for affordable properties. As the houses are in demand, the buyers need to have a higher amount of money to purchase one.
Rise in Interest Rates
Interest rates were low in 2020, which contributed to the housing market and helped increase sales. But because of the current economic uncertainties, lenders are looking for higher credit scores.
According to the data, experts predict that the interest rate will surge to 3.3% in 2021. Additionally, you will also see high demand and higher interest rates, leading to a great impact on the market.
Is Buying a House in Phoenix a Good Investment in 2021?
Yes, according to the current situation of the market, it is the perfect time to buy a house in Phoenix. The expectations of the Phoenix market stayed true the last year despite the devastating situation due to Coronavirus. So, purchasing a property in the Phoenix housing market can be a good move if you are a competitive real estate investor with good cash revenues. This is because Phoenix is a steady market that has no to less risk. If you are looking for long-term gains, this market is ideal for you. Although this is not a buyer’s market, it greatly depends on how you can deal with it.
The current housing inventory is low compared to the high and widespread demand. This is making Phoenix market a competitive purchasing place. This means some investors may not get anything from it. On the other hand, this housing market will be great for those who are ready to pay premium prices. These investors can get a significant return from plenty of tenant options.
It does not matter where and when you invest; make sure to analyze the market trends properly to get future returns. Take help from expert real estate agents to make the right decision. Furthermore, if you want to sell your property in a time of high demand, wait for a while to the highest offer for your property.1 comment