If you enjoy warm weather and outdoor activities, Phoenix is a city worth considering planting roots in. But is now the perfect time to buy a home in Phoenix? Here’s what you need to know.
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Inventory is very limited
Phoenix had just 0.95 months of affordable homes on the market in May, according to data compiled by Housing Tides, EnergyLogic. This is 1.51% less than in May last year.
Of course, this issue is not unique to Phoenix. Housing inventory decreased across the country mainly due to the impact of the pandemic on the economy and human health. Nationally, only a 1.13-month supply of affordable homes was available in May, far less than the 4-5-month supply needed to create a fair housing market for both buyers and sellers.
Since there is so little inventory in Phoenix, it can be difficult for you to find a home that suits your specific requirements. It can also be difficult for you to find a home that suits your budget, especially given the current housing prices in the city.
Houses are more expensive
In February 2016, the median home price in Phoenix was $ 217,000. In May 2021, the median home price hit an astounding $ 400,000. This represents an increase of 33.3% over the same period last year (which means that house prices have risen significantly from the previous May). And only this can interfere with your plans. To buy a house in Phoenix.
Mortgage rates are still competitive
While home prices in Phoenix have skyrocketed and stocks are extremely limited, the good news is that mortgage rates are still quite competitive nationally. And this extends to rates in arizona also. In fact, at the time of this writing, the average interest rate on a 30-year fixed loan was 3.2%. And if you can get a 15 year mortgage, you can get a rate of just 2.4%. These low rates can help offset higher property costs.
Should you buy a house in Phoenix today?
Phoenix is a great place to live, and the fact that the value of a home has grown steadily over the past five years means that buying it could be a good investment. But whether or not you should buy a home there today really depends on your level of financial comfort.
If you have enough money saved for an initial fee home in Phoenix and you think you are in a good position to get a low mortgage rate, then it might be a good idea to look at buying now, while the rates are competitive. On the other hand, if you wait for the housing stock to open, you can benefit from lower house prices and more choice, which in turn can make you happier with the home you end up with.
At the end of the day, there is no right or wrong answer, so think about what you think about buying a home in Phoenix. There’s nothing wrong with taking the plunge if you’re ready, but don’t feel pressured to get down to business right away. There is a good chance that mortgage rates will be stay competitive for at least another year, if not longer, so you don’t necessarily lose those savings by delaying buying a home.