Despite all the challenges, 2020 went down as the year with the 2nd highest number of homes sold, with just 2,471 fewer sales than 2005. Real estate sales are up +8.8% month-over-month for December and +27.4% year-over-year.
We also saw continued growth in the median sales price as well as the average sales price. In December, the median sales price rose to $333,000 and the average sales price hit $431,528, accounting for year-over-year increases of +14.9% and +20.0% respectively.
The issue continues to be supply and demand as inventory remains at record lows down -36.9% compared to 2019. In December, overall listings dropped -21.5% resulting in only 9,791 total listings compared to over 15,500 a year ago. This includes active and pending sales under contract.
As we move into 2021, there is no more important metric than supply and how supply relates to demand. We begin 2021 with above normal demand and extremely low supply. As we entered 2020 there were 11,602 active listing but as of January 2021, we currently only have 5,969 active listings, a -48.6% decline from the beginning of 2020.
The Pandemic Effect
2021 begins with optimism for the vaccine to help us return to normal. Unfortunately, the year begins with the highest cases and death rates since the pandemic began. Arizona has recorded the most cases worldwide based on population. We expect real estate inventory to remain low until homeowners feel comfortable listing and moving. Those who want to move are hesitant for health concerns or they do not want to enter the buyer’s market at such a difficult time. This will all take time to adjust and level out the market but expect the Arizona real estate market to remain hot for the foreseeable future.
Many Canadians have sold or are looking to sell to capitalize on price appreciation and currency exchange rates. Many Canadians did not return to Arizona this winter, so they are waiting out the pandemic and plan to return when the border reopens. Sellers left in a hurry last spring and hope to return soon to clean out personal items before selling their property. We are helping many fellow Canadians virtually and planning for future sales.
Many Canadians still want to buy and have purchased properties over the past few months. Arizona will always be a hot spot for Canadians and the cross-border lifestyle we all love so much will return in the not too distant future. Many of our clients are watching the market from Canada with hopes of planning a trip south as soon as they feel safe to do so. We are here to help you virtually and plan for your future purchase. Mortgage rates have never been lower which helps offset the increased property values. Canadians will always call Arizona their second home and we look forward to welcoming all our fellow Canadians back soon!
The Canada to Arizona team offers Canadians an all-inclusive real estate experience for their clients which includes not only expert real estate services but also professional cross border tax planning and FIRPTA processing, exclusive currency exchange rates, discounted title and closing fees, and much more.