Even after suffering from the pandemic, the Phoenix housing market 2020 still comes out on top. As we saw Arizona real estate market thriving & becoming sizzling hot in the past couple of years, even the rise in mortgage rates was believed not to affect it. We've been seeing real estate appreciation rates increasing year-over-year in the entire metro area. The Greater Phoenix area was also predicted to be among the top housing markets in the year 2020. It is now clear that the pandemic could not change that prediction. It could only pause sales, which in turn created a huge pent up demand.
The Phoenix real estate market has not only recovered after a slump due to COVID-19 but the demand has reached new heights. In July & August, the Phoenix was a hot seller’s real estate market, which means there were roughly more buyers than there were active homes for sale. The demand for housing has completely outpaced the supply. It also means that the market is very competitive and difficult for buyers. The annual real estate appreciation rate is in double digits. In July, the median sales price — up 3.3% in a single month, and up 12.5% for the last 12 months. According to ARMLS, the lost sales of late March, April and May began to surface in June and then with greater frequency in July.
Sales in the Metro Phoenix housing market have fully recovered and posted a year-over-year increase of almost 13% in July. The 10,303 home sales were not only the highest number of sales ever in July, but one of the highest monthly totals ever. Although August's housing statistics are yet to be released by ARMLS the total sales in August are expected to surpass July's figures. Despite the rise in new listings, the environment is extremely difficult for homebuyers in metro Phoenix. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers.