Phoenix Metro Area Market Update – Dec. 2020
December real estate in the greater Phoenix metro area continues to suffer from an acute housing shortage. Active listings stand at 7,388, down 46.7% year over year, and the median sales price is $330,000, up 17.4% year over year.
Many of the government programs that have protected both renters and owners from foreclosure or eviction during the pandemic are set to expire at the end of this year. Owners are less impacted by the potential expiration as they almost certainly have equity in their homes that could be tapped in an emergency; however, renters are in a more difficult position and industry analysts are predicting a possible wave of evictions if the moratorium is not extended. The most recent national statistics for the number of people who rent versus own is 36.6% who rent and 63.3% who own. (IProperty Management, 2020)
Phoenix Metro Area Interest Rates
Interest rates have hardly moved and are still at historic lows. Thirty-year money is down slightly at 2.71% with .7 points, and rates are expected to remain the same for the foreseeable future. (Freddie Mac, December 2020)
What does all this mean for today’s buyers and sellers?
For sellers, the go-forward market looks bright. Due to our historically low inventory and very low interest rates, home values are expected to remain high well into next year. This may not be good news if you are a buyer looking for a deal, however, our extremely low rates make Phoenix housing very affordable.
As always, if you are buying or selling, please work with a trusted real estate agent and loan officer. They can help you make the best real estate decision.
We are full-time, experienced Realtors working in Queen Creek and the surrounding areas. With decades of East Valley real estate experience under our belts, we are here to answer any questions you may have. Please do not hesitate to reach out to April Anderson at 480.272.1977.
We’re looking forward to hearing from you soon!
United Brokers Group
21321 E Ocotillo Rd E-111
Queen Creek, AZ 85142