As Realtors, we get asked daily what the market is like and what we think will happen in the foreseeable future. Although we are not fortune tellers, the numbers and statistics are great indicators of what is going on and what will transpire moving forward. As 2021 rolls in, here is what we know so far…
Inbound Migration Growth
Inbound migration or in-migration is when people permanently move from one state(area) to another within their own country. Arizona has been in the top 10 inbound states in the US for years now. People typically move to Arizona for the weather, a new job, and/or better quality of life. Just like anything else, there are pros and cons to the growth we are seeing because of inbound migration. The good news is that our economy is stimulated and we have more tax revenue. The bad news is that it will put pressure on the housing market and there won’t be enough homes on the market to choose from. But, if new homes continue to be built and people continue to sell and move around within Arizona, it will be ok.
As of January 8th, 2021 the Arizona real estate market is still favoring sellers. What that means is that there are not enough homes on the market, so the demand is high because supply is low. Below is a chart that shows the number of homes currently on the market in the greater Phoenix area up to $500,000. As you can see, the number is only a fifth of what it was in December 2019. That is great news for people selling their homes because they can typically sell for more than they would be able to in a buyer’s market.
As you will see in the chart below, housing prices in the greater Phoenix area have been climbing since early 2012. According to experts, this trend will likely continue in 2021 for the Arizona real estate market. Of course no one can guarantee this, but the data certainly is indicating a continued increase in price per sq ft. One reason for this is that Phoenix is a top moving destination, especially because of Covid-19. Experts are tracking the numbers and seeing that people are choosing warmer weather and places that are less dense to move to in the wake of Corona.
If you ever have questions about the real estate market in Arizona, Success Real Estate Group can help. Call us anytime at 480-945-1111 or email us at email@example.com