Talk about a roller coaster of a year! 2020 has proven to be one wild ride and it does not give much signs of slowing up anytime soon. Given the pandemic, layoffs happening left and right, and overall uncertainty in the economy, you may be asking yourself is this really a good time to sell my home? The short answer is yes! Here are a few reasons why the market moves are creating a great opportunity to sell.
Inventory levels remain low
The inventory level of properties active for sale has dropped significantly nationwide and this is more apparent that ever here in the valley of the sun. This is in part due to people relocating from denser populated locations around the country. The volume of available inventory is down 40.2% year over year in June (statistic from realtor.com) and down 27.4% nationwide. Inventory supply was already low last year and the pandemic has caused a lot of homeowners to pull back from selling. The economy has shown slow signs of recovery and therefore has sellers waiting in the shadows wondering if now is a good time to be listing their home for sale.
Home prices are on the rise
Inventory levels are low and demand is high. This lack of inventory is causing home prices to rise and sellers are seeing they are able to get top dollar in this market. The national median list price grew 3.8%, with that percentage being much higher in markets like Arizona.
Interest rates are low
Lower interest rates are driving buyers to shop. Mortgage purchase applications have jumped significantly since last year and are expected to continue as long as rates stay low. Average interest rates reached a new record low of 3.07% for a 30 year fixed rate, according to Feddie Mac’s July 2 report.
Despite the challenges sellers are facing in this environment, we are seeing the demand continue to rise. Low inventory, increasing prices, and low interest rates all make this a sellers market you don’t want to pass up! If you are thinking of listing your home in Arizona, the can help you get your home sold! We are a team of experience north Scottsdale and Desert Mountain real estate agents ready to help guide you thru the process of selling. Learn more about our and how we can bring our luxury service to your luxury listing!