2020 Phoenix Real Estate Market Review & 2021 Forecast
On to another year that will see a change for the better in regards to COVID19! With herd immunity and vaccinations rolling out, there is reason for optimism. How did the Phoenix real estate market fare in 2020? And what can we expect for 2021 with all coronavirus efforts? Let’s do a review of the Phoenix real estate market for 2020. I’ve prepared a video that reviews 2020 and also points out some fundamental metrics such as negative equity and mortgage delinquencies that have been brought on by COVID19. Continue reading to learn more.
A Look back at 2020 and forward to 2021
2020 was a very active year in terms of sales and also price appreciation that accelerated in the last half of the year. Historically low interest rates were a major motivation for buyers, and many sources indicate that interest rates will stay low in 2021 keeping buyers in the market. One characteristic of the Phoenix real estate market at the beginning of 2020 was low inventory and this has not changed as we enter 2021. The coronavirus, COVID19 has complicated the market by causing job losses and unemployment as state governments have attempted to battle increasing cases and deaths. These government imposed lockdowns have been moderately effective at best. Unemployment, mortgage delinquencies, and mortgages under water are metrics to be considered as we move forward into 2021. There will not be an avalanche of foreclosures hitting the Phoenix market as many have predicted. The accumulated equity that 97% of homeowners with a mortgage have will allow them to have options that they did not in 2008 – 2012 after the last real estate crash. Just sell the house and walk away with the accumulated equity.
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