Now that we’re a few weeks into May, it’s a perfect time to take a look at the changes we’re seeing in our market. First of all, many people have found themselves involuntarily saving their money, as the pandemic prevented them from spending like before. This translates into being able to afford more on a down payment for a home.
Additionally, interest rates remain at historically low levels, which has caused more buyers to flood into the market. As parts of Arizona begin opening up, people will begin traveling, going to restaurants, enjoying entertainment, and spending their money again. This may soften demand slightly, but it’s still going to take years for supply and demand to balance out. Sales prices will continue to increase at around 22% year over year, and luxury home prices are up by 25% in the first quarter of 2021.
What this means is that we’ll still be in a seller’s market for a while, and competition will remain fierce among buyers. However, we’ll have a bit more inventory to choose from, so it’s still a great time to take advantage of low interest rates. For sellers, now is a fantastic time to list—before the market begins to balance itself out again. You’ll enjoy multiple offers for your home, and buyers are still waiving appraisal contingencies and offering nonrefundable earnest deposits.
Whether you’re a buyer or a seller, there are plenty of opportunities in today’s market. No matter what you’re looking for, we’d love to help you meet your real estate goals, so we invite you to reach out to us with any questions you may have about our market. We look forward to hearing from you soon.