Arizona Housing market predictions for

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 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.

Additionally, Arizona is also struggling to recover from high unemployment rate, which is worsening affordability. With such facts, it’s justifiable to forecast that the renter population will increase in Arizona in 2021, since renting will be cheaper than buying a home.

AIRBNB

The 2020 Airbnb sector has generally faired well despite the pandemic restrictions. The market sector managed to be profitable this year amid the pandemic-induced economy. This hints that Airbnbs in Arizona will remain profitable even in 2021.

MOUSING MARKET CRASH.

Realtor.com’s Housing Market Recovery Index (HMRI) revealed that the largest

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metro in Arizona (PhoenixMesa-Scottsdale) is making a comeback since declining earlier this year. The HMRI takes into consideration housing demand and supply, home prices, and the pace of home sales. Although this is only one sector in the state, it still represents a good indicator of how Arizona is fairing in terms of recovery from the pandemic. Based on this, it’s clear that the housing market will not experience a crash in Arizona come next year.

TYPE OF MARKET.

Arizona is likely to experience an increase in property prices in 2021, pricing out many prospect buyers out of the market. This will be good for sellers waiting to capitalize on real estate appreciation gains. From that, we all expect Arizona housing market to remain a seller’s market in 2021, since there are no major foreseeable changes in the current key trends.

Conclusively, for investors looking to buy Airbnb rental properties, here are the best cities to do that in 2021; Tucson, Chandler, Tempe, Gilbert, and Avondale. If you’re looking to invest in a traditional rental property, here are the best cities you can do that in 2021; Chandler, Avondale, Scottsdale, Gilbert, and Mesa.

Work cited.

https://www.mashvisor.com/ blog/arizona-housing-marketpredictions-2021/.