Baby it’s cold outside, but the real estate market is still hot, hot, hot! In January I made 3 predictions for real estate in 2020: Arizona would continue to be a sellers market, prices would continue to go up and interest rates would remain low. I did not predict a pandemic, record real estate prices and transactions, dramatic year over year house appreciation and the lowest mortgage rates in history. Yet, here we are with only a few weeks left in December and arguably the best year in Arizona real estate ever… period.

At time of press, we are at a record high on the supply and demand index in Arizona. The number of homes available for purchase has consistently trended downward and sits at 64% lower than a normal blanched market where supply and demand are at equilibrium. Demand for purchasing houses has stayed strong at 35% above normal. This is the environment that has led to an average annual appreciation rate of 11.5% versus the same time last year. This means that if you bought a $400,000 house at this time last year you’d have over $45,000 in equity in your home today. Not bad for a year’s interest.

The pandemic raised a multitude of questions on how the housing market would perform. Real estate has proven to be incredibly resilient in the face of stock volatility, political uncertainty, high levels of unemployment and significant lifestyle changes for most people. When it comes to real estate, I’m learning to expect the unexpected (read in Julie Chen’s voice on Big Brother). 

If you’re planning to transact in real estate in 2021 let’s start the conversation now. No pressure or obligation, this is my passion and I absolutely love game planning to help achieve your long term wealth goals through investing in real estate. 

Lindsay Fricks, Helping you, your family and friends Live & Love in Arizona.