State of the Market Report Mid Year 2021 - Oro Valley Real Estate
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Fast Start to Real Estate in 2021
The housing market was fast and furious in the first half of 2021. The pandemic, which started in early 2020,
sparked an increased demand for housing which was further fueled by historically low interest rates. This created
a “run” situation on available listings that were in limited supply. Multiple offers and homes selling almost “real
time” became the norm, with large gains in home values as a result. Those fast market conditions created
challenges for buyers trying to find a home to purchase and tilted the market to a strong seller’s market. Increases
in home equity, strong market fundamentals, government stimulus, and recovering employment so far staved off
the risk of increases in foreclosures or a market crash.
Early Signals of Normalization? Not a Burst
We do not see indications of a real estate bubble or any market burst. Rather, we have been experiencing robust
buyer demand fueled by demographics, pandemic lifestyle shifts — such as untethering geographic constraints
with remote work and re-evaluating needs in a home — and very attractive mortgage rates, coupled with a
shortage of available inventory to purchase. The excess demand to supply resulted in home sale prices increasing.
We are seeing some possible early signals of the start of a market normalization, with buyer demand leveling and
supply increasing slightly.
GET YOUR COPY OF THE REPORT FOR TUCSON AND SOUTHERN ARIZONA