2021 is an ideal time to buy a home in Arizona. Mortgage rates at near-record lows, meaning that you have more flexibility in choosing where to live. A recent prediction by Realtor.com also revealed home sales in Arizona and especially the Phoenix area will jump 11.4 percent over last year’s levels, which is more than the national average.
Arizona Housing Market Trends in 2021
If you are considering buying a piece of real estate in Arizona, some of the best places to call home include Scottsdale, Phoenix, and Tucson. The combination of beautiful weather, high-end restaurants and shopping malls, specialty education options, a reasonable cost of living, and adequate infrastructure to support working from home continue to draw more people from out of state to these cities.
Phoenix area’s real estate specifically is thriving and has become a sizzling hot market for most investors. High demand and low inventory have led to a sharp increase in prices in recent times, which could be present good opportunities for investors planning on selling in the future.
Some of the trends to keep in mind include:
- The home values for the Phoenix-Mesa-Scottsdale metro area rose by 11.7 percent in the last year and is expected to rise by 7.7 percent by the end of 2020
- Interest rates could start rising in 2021 due to the current economic uncertainties
- There will be no housing market crash in Arizona in 2021, thanks to a strong comeback in the Phoenix-Mesa-Scottsdale metro area
Things to Consider Before Buying a Home in Arizona
Arizona has a lot to offer, including natural beauty, great weather, and plenty of entertainment. The state is known for being a popular destination for retirees looking for a serene home. Whether you are planning on moving to Arizona from another state, or you already live in Arizona, consider the following things when buying a house in this state:
- Varying temperatures: Arizona temperatures will vary depending on the season. While you can expect sunny days all year long, you should be prepared for hot summers and mild winters. Some parts of Arizona get snowfall in winter and low humidity.
- Check out all locations: For most people looking to buy a home in Arizona, Phoenix and Tucson are the popular locations that come to mind. However, you can consider several other smaller cities and towns such as Chandler, Scottsdale, Litchfield Park, and Glendale. If you prefer the serenity of small towns, you work in the big cities and still commute to your home in any of the smaller towns.
- Research on the housing market: It is also ideal to understand the Arizona housing market and prevailing trends. In 2021 mortgage rates are expected to stay grounded, at least for the better part of the year. Currently, the 30-year fixed rate is hovering around an all-time low of 2.75 percent, which is actually a 50-year low. The refinancing rates are hovering at 2.45 percent. If you are looking to save money on your monthly mortgage payments, ensure you compare rates from multiple lenders.
Is Buying a House During the COVID-19 Pandemic a Good Idea
Purchasing a home now will likely be influenced more by your financial situation than the pandemic. In the current economy, income stability and employment are key factors determining whether you will qualify for financing. Mortgage lenders typically want to see a stable income that will continue at its current level for at least 36 months after closing.
Buying a home during the pandemic can be a good idea if you earn a steady income and have dependable employment. You can also consider purchasing a home now if you have money saved up for a down payment and closing costs and a low to moderate debt-to-income ratio (DTI).
Get Help from Fairway Independent Mortgage Corporation
Arizona is considered one of the ideal places to buy a home in the US. A recent Zillow’s Home Value Index (ZHVI) report reveals that since 2012, Arizona’s average housing prices jumped from $137K to $315K, representing a 130 percent increase. In the past year alone, Home values have gone up 16.5 percent despite the ravages of the pandemic.
Our real estate experts at Fairway Independent Mortgage Corporations are ready to help you get a perfect home in any of the Arizona locations. Our goal is to act as your trusted mortgage advisor, provide highly personalized service, and guide you through every step of the loan process.