The Phoenix area housing market is set to see a surge in home sales in 2021, with prices continuing to rise more than the national average.
That’s according to Realtor.com’s 2021 Housing Forecast, which predicted home sales in the Phoenix area next year, to jump 11.4% over 2020 levels, the 11th-largest expected increase among the top 100 metros in the U.S.
Average prices are expected to jump as well, cranking up by 7% in the Valley, which is the 12th biggest rise forecasted in the report.
Nationally, home prices are expected to rise 5.7% next year, with existing home sales up 7% and housing starts up 9%.
Arizona’s second-largest housing market, in Tucson, is expected to see a 3.4% year-over-year rise in home sales next year, with prices increasing by 4.5%, according to the forecast.
Nationwide, the analysis predicts inventory to make a steady comeback and give buyers some relief, but interest rates are expected to increase by the end of 2021, to 3.4%, combining with rising prices to make affordability a continuing challenge.