Arizona real estate has seen a strong 2020 recovery, and now the real estate experts believe 2021 is well positioned for an even stronger year in 2021. Home buyers in Peoria Arizona having access to record low mortgage rates, and cashing in on home equity built during 2020 are a driving factor.
According to the latest Realtors Confidence Index Survey from the National Association, buyer demand across Arizona is incredibly strong. That’s not the case, however, on the supply side. Seller traffic in Arizona is simply not keeping up. Here’s a breakdown by state:
As the map chart shows, seller traffic is low compared to the demand side/traffic side of the buyers. The record low Arizona home inventory is creating a mismatch between supply and demand. Even the new builders cannot get supplies and materials fast enough delaying new homes.
NAR also just reported that the actual number of homes currently for sale stands at 1.28 million across the US, down 22% from one year ago (1.64 million). Additionally, AZ inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal Arizona real estate market, that number would be 6.0 months of inventory – significantly higher than it is today.
How does affect Home buyers and sellers?
Arizona Home buyers are going to need patients in the home search process. 2020 and 2021 is like no other years. Home buyers making an offer on a home has changed. To purchase a home your offer in most cases will have competition. Some agents are reporting homes for sale getting 17 offers in the first few days of listing. So when looking for homes for sale you may take a different approach. Sellers are not having to repaint, remodel, and make the home spectacular. So look at the floorplan, the size of the home and backyard. Most people buy the home and re-do the floors and paint anyway. So looking for the ones that are not as done up will help!
Arizona Home Sellers, with such high demand and low supply of homes for sale in Peoria Arizona for example, right now you are in a good position to sell. This will get your desired terms and a great price for your home. Waiting for spring and for the forbearance homes to start hitting the market may cool things down a little bit.
2021 with rates this low and super low inventory, the real estate experts are all very optimistic about a great 2021 for real estate prices.