Houses for sale here in Phoenix offer a bounty of choices. If you’ve been a long-time renter, you may want to buy this year instead. Why? While rental rates are going up, home mortgages are currently in a stable position. As a result, buying a home may be more cost effective for you in the long run.
As you probably know, however, the Federal Reserve recently announced interest rate hikes that will have an affect on mortgage rates as the year progresses. So, if you are serious about buying a home, the best time to shop for houses for sale is now. Higher interest rates mean an increase in mortgage payments and borrowing costs. Something to note, though, is that interest rates would need to rise to near 6.5% for the cost of buying to match rental costs nationally.
The price of houses for sale is not expected to climb as fast as last year. The industry expects a 3.5% increase, according to Zillow’s Chief Economist Svenja Gudel in a CNN Money article. This slowdown will encourage more homeowners to list their homes. This means more options for you. You’ll also have a choice of new houses for sale. Home builders are expected to focus on starter and mid-price homes. With these additional homes in the marketplace, bidding wars won’t be the norm and prices may lower even more – great news!
There are plenty of affordable houses for sale in our area. In fact, as noted in an AZ Central article, Phoenix is ranked among the top 10 cities in the U.S. for affordable home buying last year. Median price for houses was $217,000. Additionally, a new housing program–Arizona Housing Finance Authority’s Home Plus–makes it easier for some with no down payment. It gives eligible buyers $5000 or more in down payment help on FHA loans.
If you have any questions about houses for sale in the Phoenix metro area, our agents at Ravenswood Realty are glad to answer them! Now might be just the right time to stop renting and consider your home buying options. We look forward to helping you find a home that’s right for you!