ARIZONA HOUSING MARKET PREDICTIONS FOR 2021. WHEN AND WHERE TO INVEST.
Yvonne Mcfadden With everything that has happened in the 2020 pandemic-induced economy, someone who had planned to invest in the Arizona real estate market come next year may turn skeptical. According to Mashvisor. com, all that can be said about the 2020 Arizona housing market is that investors have earned a good rental income and ROI this year, despite the pandemic. However, you might be wondering whether the same will happen in 2020. Let’s have a look at some 2021 predictions for the Arizona housing market from Mashvisor.com.
1. HOME VALUES.
According to Zillow, home prices in the Arizona market are expected to record an 8.2% increase from November 2020 through to September 2021. Looking at the previous trends in Arizona, the Zillow forecast isn’t too surprising as the Arizona market has recorded strong housing appreciation historically. According to Neighborhoodsscount.com data, property values appreciated by 128% since Q1 2000, representing a 4.15% yearly rate. This gives the hint that Arizona home values will continue to surge despite the pandemic. Moreover, data from Veros Real Estate
WWW.THEPINMAGAZINE.COM
Solutions shows that the hottest 2021 housing market in Arizona will be Sierra Vista, increasing by 5.8% in home values.
2. RENTAL SECTOR.
As we get into 2021, the long-standing issue of affordability will continue to drop for residents. According to data from Mashvisor, the current price to rent ratio in Arizona is quite high, at 23. This suggests that it’s more affordable to rent in the Arizona housing market than buy a home. With home values climbing higher, many prospect homebuyers will be priced out of the market. Despite the low mortgage rates, the rapidly rising home values won’t be easily offset.
l
23
