December real estate in the greater Phoenix area continues to suffer from an acute housing shortage. Active listings stand at 7,388, down 46.7% year over year, and the median sales price is $330,000, up 17.4% year over year.
Many of the government programs that have protected both renters and owners from foreclosure or eviction during the pandemic are set to expire at the end of this year. Owners are less impacted by the potential expiration as they almost certainly have equity in their homes that could be tapped in an emergency; however, renters are in a more difficult position and industry analysts are predicting a possible wave of evictions if the moratorium is not extended. The most recent national statistics for the number of people who rent versus own is 36.6% who rent and 63.3% who own. (IProperty Management, 2020)
Interest rates have hardly moved and are still at historic lows. Thirty-year money is down slightly at 2.71% with .7 points, and rates are expected to remain the same for the foreseeable future. (Freddie Mac, December 2020)
For sellers, the go-forward market looks bright. Due to our historically low inventory and very low interest rates, home values are expected to remain high well into next year. This may not be good news if you are a buyer looking for a deal, however, our extremely low rates make Phoenix housing very affordable.
As always, if you are buying or selling, please work with a trusted real estate agent and loan officer. They can help you make the best real estate decision.