With Arizona housing prices far lower than surrounding states like Utah, Nevada and California, the state has become a popular destination for those looking for a new start. With serene views of copper mountains and moderate climates, it’s no wonder that Phoenix, Scottsdale and other AZ cities are among the fastest-growing cities in the country. Choosing the right city can make a big difference in how far your cash stretches. Home prices in Scottsdale average $779,000, while buyers can purchase a home in Phoenix for around $429,000.
Low Interest Rates
With national interest rates still hovering around 3% and lower, home buyers are still willing to pay higher housing prices. Currently, 30-year fixed rates are as low as 2.65% in some markets. This makes it an attractive time for new buyers to enter the market and current buyers to refinance their existing loans to cash in on their equity. So, even if the sales prices for houses seem a little scary, it could be a great time to set up stakes in Phoenix, Scottsdale, Mesa, Chandler or Tucson.
Sparse Inventory Will Keep Home Prices High
Many pundits predict that housing prices will remain high due to low inventory levels. Why is this good news for homebuyers? Rising prices mean instant equity. So, if you are a real estate investor, you can use the quickly accumulating equity to purchase multiple properties. Additionally, with the renters market also soaring, you can command high rental prices to offset the higher mortgage payments.
What If You’re a First-Time Buyer?
First-time home buyers from Gen-Z and upward can lock in low interest rates without seeing housing prices dip too deeply in the next couple of years (based on current inventory and interest trends). Buying a home is a good alternative to paying someone else’s mortgage as a renter. It’s also good news for second-time homebuyers who are able to keep their existing property and rent it out for lucrative cash flow.
What to Think About Before Buying a Home in Arizona
Whether you are looking for a place to retire or begin a family, Arizona has a lot to offer. Natural beauty, including one of the wonders of the world at Grand Canyon National Park and a strong entertainment scene, attract young professionals as well as retirees. However, keep in mind that temperatures can vary greatly in the desert and summer heat can rise into the triple digits throughout the state.
So, it’s important to set your goals when buying real estate in Arizona. Whether you’re looking for a place to how’s your family or build a real estate portfolio, it’s still possible to find reasonable mortgage rates from knowledgeable lenders who look out for your interests.
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.
The mortgage experts at Potempa Team can help you navigate the Arizona market and walk you through the entire mortgage process.