Average House Price In Arizona in 2020
Average house prices are high Phoenix-Mesa-Scottsdale metro area.
Why?
Because inventory is historically low, and so are mortgage rates.
According to the National Association of Realtors®, there were 18.2% fewer homes available for purchase in June 2020 than the year before.This has pushed house prices up, in spite of the recession and impact of COVID-19. The median price of an existing home was $295,300 in June, up 3.5% from 2019.
Home prices and COVID-19
The coronavirus pandemic has had an impact on almost every aspect of our lives, including the housing market.
The process of showing, buying, and selling homes slowed because of health concerns, economic fears, and the stay-at-home orders implemented in mid-March. In addition, many would-be homebuyers lost their incomes as the country experienced record-high unemployment rates.
Virtual showings increased, and real estate agents and homeowners learned safer ways to visit homes, including mask-wearing, physical distancing, and fresh air circulation. Some properties even changed hands without an in-person viewing.
Existing home sales fell 17.8% in April and 9.7% in May, then started to pick up in June. June sales climbed 20.7% from 3.91 million in May to 4.72 million. However, the figure is still 11.3% lower than it was a year ago.
Existing home sales
| Existing home sales | March | April | May | June |
|---|---|---|---|---|
| 2020 | 5.21 million | 4.33 million | 3.91 million | 4.72 million |
| 2019 | 5.27 million | 5.23 million | 5.33 million | 5.32 million |
Data source: National Association of Realtors®.
Low inventory and lower-than-usual sales volume have driven prices up: June’s median existing-home price of $295,300 is 3.5% higher than the year before.
According to the NAR, the total housing inventory at the end of June was 1.57 million units — 18.2% lower than in June 2019.
Median existing home prices (all housing types)
| Median home price | March | April | May | June |
|---|---|---|---|---|
| 2020 | $280,600 | $286,800 | $284,600 | $295,300 |
| 2019 | $259,400 | $267,000 | $278,200 | $285,400 |
Data source: National Association of Realtors®.
The Federal Reserve slashed interest rates to help the economy, which pushed mortgage rates down to new lows.
Buyers able to qualify for these mortgage rates have faced increased competition for houses, with many entering bidding wars for the property they desired.
A number of homeowners who were planning to sell were still prepared to do so as soon as the stay-at-home orders ended. Some never even took their homes off the market, especially in rural areas less affected by the pandemic.
Average home value in Arizona: $283,623
- Median top-tier home value in 2020: $449,443
- Median single-family house value in 2020: $290,075
- Median bottom-tier home value in 2020: $197,259
- Median condo value in 2020: $189,677
Arizona is a great place to buy a home if you love sunshine but hate lawn care. Xeriscaping with rocks, succulents, and cacti is a popular way to decorate your yard here to conserve water in the hot, dry desert.
Median home value in Phoenix: $269,175
The median home value in the Phoenix-Mesa-Scottsdale metro area is $294,161. June home values are up 9.6% in Phoenix compared to last year, representing the biggest increase among the 50 biggest metro areas in the United States, according to Zillow.
