Wednesday, February 10, 2021 / by Juan Grimaldo
Phoenix Ranked 2nd For Hottest Housing Markets in 2021
We rank #2
2. Phoenix, Ariz.
Share of survey respondents expecting market to outperform the national average: 69%
Local lender: Rich Simon, owner of AZ Lending Experts. Simon has served the Phoenix market for 17 years.
What’s the activity like now and what do you anticipate for 2021?
Demand is the highest we’ve seen and we’re stuck in a situation where supply is extremely low. Active single-family homes for sale in the Phoenix market were 3,498 as of Jan. 28. We're used to seeing somewhere between 18,000 and 22,000. I'll call a listing agent to try to put in a good word for my client, and they'll tell me my client is one of 32 offers.
It's become a regular practice to waive appraisal contingencies. We're seeing anywhere from $20,000 to $40,000 being deposited in escrow. Typically, it used to be 1%. And we're seeing people go $30,000 to $40,000 over asking price. I expect the strong appreciation to continue in 2021.
What’s driving demand in your market?
Affordability is still great. The freeway systems are really good out here so it's relatively easy to get around. We still have plenty of room for growth and land that’s not built upon. It's not like other metropolitan areas where they're having to now build up or tear down older neighborhoods.