Arizona saw a huge decrease in snowbirds in 2020, and while many people believe that it was due to the pandemic and limited travel, the Arizona market is hopeful that the number of snowbirds relocating to the area will see a rise this year. While a few snowbirds will generally flock to Arizona starting in October and November, with many people limiting travel, a large handful of snowbirds chose to remain “home” until after the Holiday Season ended, and thus, Arizona is expecting to see a rise in snowbirds in January and February of this year. While many of this year’s travelers already own their Arizona home, many locals are wondering if snowbirds will continue to purchase homes in the area.
While most people tend to head back home as the weather warms, generally around May and June, the Arizona market is hoping to see a large rise in snowbirds for the New Year. There are a few reasons that Arizona is one of the most coveted states for snowbirds to purchase a second home, first, weather, and second, affordability. While the weather remains the same, affordability has changed drastically over the past few years as real estate prices continue to climb.
Will we See More Snowbirds?
The Real Estate Market has seen exponential growth over the past few years, and with home prices continuing to rise, many people are left wondering if the affordability to own a second home in Arizona is possible. Home prices in Arizona increased by more than 32% in 2021, a huge jump from only a 14% increase in 2020. While those who already owned a winter home can easily still make the winter move, many professionals are worried that new homes wouldn’t sell with the current increase in pricing.
Luckily, even though home prices did indeed see an exponential increase, the low interest rates helped to offset the increase as many buyers were able to secure historically low rates, making their monthly mortgages affordable even with the higher purchase prices. Ultimately, as travel restrictions rise, and interest rates remain low, even with higher purchase prices, Arizona is expected to see an influx in snowbirds in 2022, which means that over the next few months, as current snowbirds begin to head south for the winter, the rest of the year will see a huge spike in home sales as people prepare for next winter.
If you’re currently searching for a new home, whether as a primary residence or a second home, are ready to sell your home and need a qualified seller’s agent to assist you, or if you have any further questions regarding Arizona Real Estate, please feel free to contact our office at any time.