Arizona Real Estate

Phoenix Residential Housing Market: A Review of 2020

Phoenix Residential Housing Market: A Review of 2020

Phoenix Residential Housing Market: A Review of 2020

The Phoenix residential housing market is consistently regarded as one of the fastest growing in the United States.  When COVID-19 hit in March, the residential housing market braced itself for impact. While there were and continue to be challenges, we quickly learned that the Phoenix market was not only resilient, it soared in the face of the pandemic.

Landmark Title has closely followed 2020 real estate trends during COVID-19. Here is a look back on Phoenix’s residential housing market, and how the global pandemic impacted this sector in unexpected ways:

March brought fewer buyers and sellers

In March 2020, ongoing health concerns and mandated stay-at-home orders led to significant decrease in buyers and sellers. From the buyers side, fewer people were looking for a new home and instead modifying their current home to meet their work or school needs. On the other hand, there were less sellers willing to list their property for strangers to enter into during a pandemic.

Phoenix summer lead to a hot market

Despite the significant drop in sales during the spring, home sales started to increase in the summer. Real estate agents, mortgage brokers, title agencies, home builders, and home inspectors quickly adapted to safety concerns with masks and gloves and found a way to keep home sales going despite the ongoing health and economic crisis. 

According to ARMLS, the lost sales of late March began to surface in the summer, leading to a greater frequency of home sales in July. July and August was a hot seller’s real estate market, which means there were more buyers than active homes for sale. The demand for housing greatly surpassed the supply, making it a competitive market where sellers could greatly increase their price.

Norada Real Estate Investments reported that sales in the Mero Phoenix residential housing market not only recovered, but had a 13% year-over-year increase. This record breaking summer proved to many investors that the Phoenix housing market remains resilient despite grave times.

Supply remains low through fall

In October, RE/MAX LLC reported Phoenix as having one of the tightest real estate markets the region had ever seen. Many sellers saw five to twenty offers on their homes, making this 3rd quarter the 2nd best in Greater Phoenix history for closings, falling just 436 sales short of 2005 according to the Phoenix Real Estate Market Report for October 2020.

While most residential housing sectors in various cities struggled to get someone in the door, the greatest concern in the Phoenix housing market was trying to get the supply count to rise for more sales. 

2021 predictions

It is no secret that most people are looking forward to a change from 2020, however the Phoenix residential housing market is looking forward to more of the same. According to Andre Grant-Godoy from Wells Fargo Home Lending, it is safe to expect a very active purchase market going into 2021. Now that people are using their home as a workplace, school, fitness, and restaurant, people are viewing purchasing a home as more important than ever. 

The COVID-19 pandemic is unlike any health or economic scare we have faced in the past. Whether you are buying, selling, or looking to invest, Landmark Title is continuing to operate with your best interest. Our offices remain open with 65% of our team working remotely and our in-office staff regularly sanitizing office surfaces and maintaining social distancing. In addition, we have (add info on remote notary services), for contactless transactions whenever possible. 

If you have a residential or commercial real estate transaction and need escrow or title services, we are available to answer your questions.

Leave a Reply

Your email address will not be published.