The Valley’s real estate market and home values have reached new heights since recovering from COVID-19.
Phoenix ranks second for the hottest housing market in 2021, following Austin, Texas, according to Zillow’s economists and real estate experts.
The online real estate marketplace said Phoenix’s annual appreciation was second-fastest in August 2021 at 31.8%.
Recent home sellers, Gary and K.K. Brown sold their Phoenix home this past April at asking price.
The family said they had planned to downsize within a few years, but with the high rates of the housing market, they decided to change their plans.
“We wanted to take advantage of the hot market and downsize now,” Gary Brown said.
Brown said their realtor advised them to list their house around $140,000 higher than they originally anticipated.
K.K. Brown said they had expectations for the house to be on the market for a week, but it ended up selling within four hours after its listing.
Zillow’s website says the typical Phoenix-Mesa-Scottsdale Metro home value is $418,170 and it has increased by 32.7% over the past year.
The website is predicting home values to increase by 20.8% this upcoming year.
Brian Reilly is a homeowner in the Phoenix area and stays in tune with his neighborhood’s real estate market.
Reilly said his next-door neighbor’s house had cash offers well over asking price before it even hit the market.
The home selling turnover rate in Reilly’s neighborhood is so quick that sellers will turn down offers based off of the prospective buyer’s contingencies, according to Reilly.
“In this market, sellers don’t want to have to wait for a buyer to sell their house,” Reilly said.
Phoenix was the fastest growing city in the United States from 2010 to 2020 according to the U.S. Census Bureau.
The rapid growth of Valley will continue to fuel its hot real estate market and homes will continue to increase in appreciation this upcoming year, according to Zillow.