Among the most important decisions that most people make during their lifetime is buying a home. As a result, people usually seek out as much information as they can find about home buying so they can make a smart decision once they pick out a home they want and like. If you are familiar with this yourself, you have probably already recognized some neighborhood trends in real estate in Tucson, AZ.
Mortgage Rates Should Remain Low
Anyone with a little knowledge of the housing market will tell you that during the past year, interest rates have stayed quite low at around 3-to-3.5% and that rate is probably not going to vary a lot in the year ahead, based on industry experts like the National Association of Realtors.
As you can imagine, this is excellent news for people who are presently seeking to buy a home or will be in the market to do so in the near future. Nevertheless, it is very important to note that although interest rates have been at all-time lows and should continue that way, the overall price of homes in Arizona has been increasing steadily since 2012.
Rising Home Prices
Based on a 2020 City of Phoenix housing report, it found that between 2010 and 2018 the median home price in the city rose by 57% and it is still rising today. This is a trend that housing experts expect to remain the same throughout this year and next.
Among the reasons home prices have continued rising is that the amount of homes being built during the past few years has decreased because of increased construction costs while the pool of prospective home buyers has risen, creating an imbalance for the supply and demand ratios.
In addition, the population of Phoenix has grown during the past ten years and that boosts demand and prices for housing for homebuyers and renters. Some people pay over the asking price to be done with bidding wars or give incentives to the seller.
What Area You Want a Home Plays a Role
Needless to say, common trends in real estate influence the market as a whole but it can be extremely different in specific places because of various potential factors. For example, some industries often focus on specific areas like Chandler and Scottsdale while others don’t, meaning that some trigger a spike in local jobs where they are located and that creates a demand for homes in the Scottsdale area which leads to higher prices due to the demand. Similarly, a neighborhood or subdivision that doesn’t have demand will in all likelihood have similar homes that have a lot lower prices.