If the 2020 Maricopa Real Estate market could be described with a picture, there would be lots of fireworks and rockets. We started the year in what seemed like a normal start with a lower inventory and the expectation of an increase of inventory as January progressed.
By March, we were in a worldwide pandemic and inventory was lower than we had experienced in decades. Normal supply and demand economics applied, less supply and more demand equaled higher prices in 2020. The average square foot closing amount in 2020 was $128.65 compared to 2019 which was $113.02.
Sellers experienced an average of 13% more in equity if they sold their home in 2020. Homes also closed a lot quicker in 2020 with average days on market being 41 compared to previous year of 64. There were 2163 homes in an HOA subdivision that closed in 2020, compared to 2072 the previous year.
Overall, it was still a great time to buy and a great time to sell because interest rates hit rock bottom for buyers and well we already talked about the equity gain for sellers. So what does 2021 look like? Americans are moving, especially out of larger, expensive cities. The Phoenix metro area, according to Realtor.com, is one of the top 10 areas people are moving too.
As long as supply remains low or stable, and interest rates don’t increase too much, 2021 will look very much like 2020 in the overall real estate market. In fact, new builds across the valley are taking longer to build homes and this is having a positive effect for sellers in the resale market.
If you are thinking of selling your home in 2021 and not leaving the state, have your Realtor take you out and look at what you can buy before you decide to list your home. Having an educated, local Realtor is more important than ever if you are a buyer. You don’t want to miss out on your dream home because you are not prepared or your agent does not know the local market and what it will take in your offer for you to get that home.
We are in a market where buyers need to be well prepared and ready. Franklin D Roosevelt said “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, managed with reasonable care, it is about the safest investment in the world.” I agree with him.
Happy New Year and hope it is your best year yet!