Arizona is currently among the hottest real estate markets in the country, with the Greater Phoenix real estate market in particular booming. Buyer demand is still hovering higher despite the increasing home prices with dwindling housing supply, particularly new listings.
According to Redfin, home prices across Arizona were up 19.1% year-over-year in March. At the same time, the number of homes sold in Arizona rose 16.7% while the number of homes for sale fell 49.8%.
Moreover, home prices in Arizona City were up 39.5% in March compared last year selling for a median price of $219,000, according to Redfin. Homes in Arizona city housing market sold after 33 days on the market in March compared to 40 days last year. Redfin also reveals that there were 45homes sold in March 2021 in Arizona City, representing a surge from 32 recorded last year. Arizona City has a competitive score of 75 according to the Redfin Compete Score, meaning many of the listed homes get multiple offers, some with waived contingencies.
Moving on to Phoenix, homes prices went up 17.1% in March 2021, selling for a median price of $350,000 compared to last year, according to Redfin. Homes in Phoenix sold after 26 days on average in March compared to 32 days last year. According to Redfin, there were 2,693 homes sold in March 2021, an increase from 2,170 last year. Regarding this, how hot is the Phoenix market? According to Redfin Compete Score, Phoenix housing market is slightly above Arizona City with a competitive score of 76 out of 100.
Elsewhere, if you’re considering moving to Arizona, some of the top places you should consider calling home include Scottsdale, Phoenix, and Tucson. A recent study by SmartAsset has revealed that millennials are moving to the Valley of the Sun in their numbers, as Phoenix ranked number three among top cities among cities where millennials are moving. According to the study, millennials make up 23.23% of the population in Phoenix, or in other words, 390,570 out of the more than 1.68 million Phoenix population.
In another report by Redfin in February, Phoenix recorded the most significant increase of new residents around the country in 2020 and the second highest median home price of $340,000.
Arizona real estate market predictions.
Let’s have a look at the future of the real estate market in Arizona?
“If the housing inventory continues to stay as low as it has been, the market will continue to be strong well into 2021,” says Jan Leighton, Arizona Association of REALTORS president. “Unfortunately, this sudden boom has made it more challenging for first-time homebuyers, however, there may be more opportunities in the outskirts of their towns.”
Leighton further reveals that if mortgage rates maintain the current lows throughout the year, “buyers will continue to buy which also sweetens the pot for both buyers and sellers as buyers will take advantage of rates to upgrade.”
Moreover, Arizona Association of Realtors President-elect, Gary Nelson expects the real estate market in Northern Arizona to remain “extremely vibrant” throughout this year, same as last year. Northern Arizona’s real estate market was expected to begin heating up in early April and peak during the summer months.
In Southern Arizona, Tucson, which is the second-largest housing market, remained strong through Fall when it typically slows down.
“New constructions sales will continue to remain strong throughout 2021,” Arizona Realtors First Vice President Eric Gibbs says. “Even as sale prices continue to rise due to low inventory, new construction will continue to keep prices as low as possible for both Arizonians and families from out-of-state looking to buy.”
In general, the Arizona real estate market is expected to continue growing through the second quarter and throughout the rest of the year. Brace yourselves folks. The housing market is not slowing down any time soon.
Works cited.
https://www.redfin.com/state/Arizona/housing-market#overview.
https://www.redfin.com/city/21311/AZ/Arizona-City/housing-market.
https://www.redfin.com/city/14240/AZ/Phoenix/housing-market.
