With the strongest fourth quarter in recent history to close out the year, 2020 has been a year of uncharted territory in many ways. Creating only a blip on the sales charts, the global pandemic had little to no negative effect on our market. Prices have accelerated due to the huge imbalance between supply and demand, and that imbalance is set to continue for some time.
Several Factors Affected the Arizona Housing Market
Many factors have played their part in this record-setting year such as pent-up demand from the effects of the pandemic in March and April. But there are other factors that have positively influenced the market, including historically low-interest rates and heightened demand from states like California, Washington, and Illinois. This movement is not just driven by baby boomers or retirees, it’s also driven by young families now working remotely that have the opportunity to relocate or purchase a home for the first time.
The Housing Market Continuous to Improve
As we head into the new year it appears demand continues to rise above 2020 numbers with a continued influx of out-of-state buyers and move-up buyers. Supply is heading in the opposite direction with a 58% drop from the end of 2019.
As evidenced by the Cromford Market Index (CMI) the entire valley remains a seller’s market. Standing at 410 and climbing, the CMI for Scottsdale continues to be in record territory. Having topped out at 197 last year, it was 195 exactly a year ago. A CMI of 100 represents a balanced market of supply vs demand and simple economics indicates that prices under these conditions will continue to rise.
List Your Home With Us Now!
These unprecedented market conditions make now an ideal time to sell. If you are thinking of selling your home, please call for a complimentary market analysis and our detailed marketing strategy.
