In a normal real estate market, buying and selling pick up in the spring. But in the spring of 2020, the market slowed down instead. Stay-at-home orders and health safety precautions meant people weren’t keen to go into strangers’ homes or let strangers into theirs.
In some markets, notably expensive cities, this slowdown led to nice discounts on real estate for buyers who decided to keep shopping despite the difficulties. In Arizona, however, the market has remained strong. There are still fewer houses on the market than there are people who need them—and there are no signs that this will change anytime soon.
Arizona Is a Hot Market
Arizona, especially the Greater Phoenix area, is one of the hottest markets in the U.S. If you're thinking of selling your Arizona property, now is the perfect time. You have the power to drive the deal because it’s a seller's market. It’s not unusual to get multiple offers above asking price, allowing you to decide things like how much time you need to move and which repairs you want to make.
The COVID-19 pandemic slowed the economy, but 2021 brings improved economic outlooks thanks to the rollout of COVID-19 vaccines and treatments. The improved economy combined with a surge of millennial buyers purchasing their first homes and low mortgage interest rates have led to a booming real estate market that is not slowing down.
What Makes the Valley Hot (Besides the Weather)
As COVID-19 spread, many companies transitioned from onsite to remote work. After working from home for more than a year, an increasing number of employees has been able to make remote work a permanent change. People who live and work in expensive cities now have the option to move outside the city, or even the state, to find more affordable housing.
Even though housing prices are on the rise, interest rates are so low that buyers can still get a reasonable monthly mortgage payment. Remote workers looking to relocate are drawn to the Valley for its affordable housing and growing economy, as well as its warm, sunny climate. That’s why there is such a high demand for houses in Arizona and it is one of the hottest markets.
Buying in a Competitive Market
When it comes to purchasing a new home, buyers are faced with fierce competition. Expect to go up against other offers if you're in the market to purchase a new home now. In order to get a head start on the competition, buyers should get pre-approved for a mortgage and work with a trusted real estate agent.
Tech-savvy homebuyers can use online research tools to help them find their dream home faster, but don't fret if you aren't comfortable with computers. There are even more tools at your agent's disposal to assist you in finding the perfect home.
Today’s real estate market is like nothing we’ve ever seen before. Whether you’re looking to buy or sell, please connect with me today so I can help you navigate this unique market.