Are you thinking about buying a house? There’s no better time to do it than now. Here are five reasons why:
Loan rates are favorable
The average rate for 30-year fixed-rate mortgages across the United States currently hovers around the mid-4% range, much lower than the average national rate of 6.26% recorded from 1990 to 2019.
These competitive rates favor borrowers opting for a long-term financing strategy. Take advantage now. Work with this sure thing than waiting for rates to drop lower. Loan rates tend to rise faster than they fall.
For example, if you buy a $500,000 home with a mortgage principal of $400,000, the 4.4% loan rate will fetch a total interest amount of $321,095.71 over the 30-year loan period. If the mortgage rate rises to 5%, the total interest you’ll need to pay increases to $373,023.14. That’s a difference of almost $52,000.
Use this tool to calculate your mortgage payment information based on the price range that you are targeting.
Competition is getting tighter by the day
Phoenix is one of the hottest real estate markets in the US. The Valley of the Sun is gaining plenty of interest not only from Arizona residents looking to relocate to a more prolific metropolitan area, but also from buyers, investors, and home flippers based elsewhere around the country.
The Metro Phoenix area boasts of a strong economy, attractive desert landscapes, and an appealing climate that provides bright and pleasant conditions nearly all year round. More importantly, homes here are more affordable than in other popular destinations in the region, such as San Francisco and Los Angeles.
Home prices will continue to increase
2018 saw more than half of all neighborhoods in Metro Phoenix post record-setting home price increases. Affordable areas exhibited the most notable jumps, such as the Maryvale (ZIP codes 85031, 85033, and 85035) and Garfield (85006) neighborhoods. Here, prices increased by as much as 300%.
Upscale communities are also becoming even more expensive. ZIP code 85018, where portions of the Arcadia neighborhood are located, recorded a price climb of 24%.
With demand for homes in the Greater Phoenix area on the upswing, buyers can anticipate the trend of rising real estate prices to continue. Buy now before you get priced out of this coveted metropolis.
Rent is also rising
While increasing home prices and tough competition in a hot real estate market can be intimidating, remember that it’s getting more expensive to rent, too. This is why you are better off buying a house instead of renting.
While you’ll need to spend more in the short term, buying a house means building equity. Your money goes into an asset that you own, rather than just ending up with a landlord.
Your personal circumstances are bound to change
Don’t wait for major life changes like getting married or having kids before acting on your home buying goals. Put your money in Phoenix’s growing real estate market before your personal circumstances shift your financial priorities. With one foot in the door, you can put yourself in a good position to buy a better home when you enter the next chapter of your life.
Start your home search today. Find the best available real estate for sale in Phoenix, AZ with help Urban Luxe Real Estate providing expert professional assistance every step of the way. Call 480.359.6519 or email info(at)urbanluxere(dotted)com to learn how we can work together.