- Home Values Continue to Rise in Phoenix, Scottsdale, and Surrounding Areas
Zillow has some compelling data to be aware of as we head into 2021. Over the past year, Phoenix home values have gone up 12.6%, and are expected to rise by another 8.5% in the next twelve months. Home values for the Phoenix-Mesa-Scottsdale Metro area have risen 11.7% in the past year and are predicted to go up another 7.7% in the next twelve months.
2. There Won’t Be a Housing Market Crash in Arizona in 2021
The Housing Market Recovery Index from Realtor.com shows that the Phoenix-Mesa-Scottsdale metro area is coming back from the unavoidable decline earlier this year. This index factors in supply, housing demand, prices, and the pace of sales on a weekly basis.The benchmark for recovery happened in July. While this is only one area, it points to how the state is recovering from COVID-19. Experts do not anticipate a crash in 2021 based on the data.
- Phoenix-area Home Sales Will Likely Surge for 2021
Realtor.com’s 2021 Housing Forecast predicts Valley home sales to increase 11.4% from 2020. This is the eleventh largest expected increase among the 100 top metro areas in the United States, making it one of the hottest housing markets in the nation for 2021. This could present a challenge for buyers as affordability dwindles. Having a top Phoenix or Paradise Valley buyer’s agent can help buyers get the property they are looking for at the best possible price.
- Interest Rates Could Start to Rise in 2021
Undoubtedly, this year’s record-low interest rates were a contributing factor in the real estate market, and they continue to help boost sales. However, lenders are requiring higher credit scores due to the current economic uncertainties. Also, lenders like The MBA predict that interest rates will creep up to 3.3% by this time next year and could go even higher depending on who takes the two Senate seats in Georgia’s January runoff election. More stringent lending requirements, coupled with slightly higher interest rates, could have an impact on the real estate market.
More stringent lending requirements, coupled with slightly higher interest rates, could have an impact on the real estate market.
