Since 2010, Arizona has undergone massive growth, speedily increasing its population by half a million. What’s driving that growth? Many Arizona homes for sale stem from busy builders working hard to accommodate the influx of new residents.
New state residents include a mix of retirees and those moving for the many economic opportunities in the desert state. The cities of Tucson and Phoenix continue to blossom, as do their outlying communities, such as Scottsdale, Chandler, and Tempe.
The weather in Arizona also entices many individuals who want to avoid cold winters and snow shoveling. Towns like Mesa, Flagstaff, and Gilbert offer gorgeous vistas and recently constructed homes. In 2021, Arizona ranked third among U.S. states undergoing growth.
Arizona Real Estate Offers Many Hot Properties
With new homes and established residences becoming available when someone needs to relocate or passes away, you can find many Arizona homes for sale. How do you know if it’s a smart time to buy property in Arizona, though? Consider four factors before deciding, including:
- Your personal finances
- The overall economy
- Mortgage rates
- Home prices
Many sources place your personal finances last on the list, but that really tops the list. If you would have to struggle to pay the mortgage, wait to buy a home.
Your Personal Finances
Analyze your finances for credit health, credit score, debt-to-loan ratio, and other important factors. Mortgage lenders look at more than your credit score. They want to see established credit over a couple of years and no missed or late payments. Use an online mortgage calculator that shows you how much you can afford for monthly payments based on what the banks use to calculate. Typically, banks set your maximum monthly payment at 30 percent of your monthly income. They also base how much to offer you for a mortgage based on your earnings. This forces you to build a financial cushion.
The Overall Economy
In a good economy, unemployment remains low, and so does inflation. When inflation rises, it can inflate the cost of houses. Some buyers may get priced out of the housing market until inflation drops.
In a strong economy, you may earn more money, making it simpler to save money for the down payment on the home. In a weak economy, the uncertainty caused by poor market conditions can influence buyers to wait. The economy influences mortgage rates and the interest rates offered on a loan. Currently, the U.S. unemployment rate stands at 3.5 percent, while Arizona’s is at 3.2 percent.
These interest rates consist of the main interest rate and the annual percentage rate (APR). When mortgage rates dip low, that signals a good time to buy. While they have risen to the five percent range for people with good credit, that’s still rather low. The better your credit score and credit history, the lower your mortgage rate, typically. Those with the best credit scores earn the prime rate, the lowest interest rate.
The cost of a home in the U.S. housing market varies, typically influenced by supply and demand. In Arizona, home prices overall remain close to the U.S. national average. Some cities and towns in the state offer great deals; you just have to know where to shop. (Read our article on the Arizona cities with the lowest housing prices to help you find great deals.)
Houses for sale seem scarce in the state; certain cities or towns may offer more homes. Check the reason for this. Often, a developer has just finished a new subdivision, or a particular employer has transferred employees to a new work location. Within Arizona, home buyers can find many homes available in the $200,000 to $300,000 range.
Is It a Smart Time to Buy a Home in Arizona?
It’s a great time to buy an Arizona home. Arizona’s houses hold their value, and the state offers a great place to live. Whether you want to live in the home or rent it to another party, homes in this state work for you because they make ideal investments.
The state’s strong economy depends on its large retirement community, which won’t relocate. The state offers one of the mildest climates in the country.
Arizona’s government issued its long-term water plan that sets new water rights requirements for builders. Before a new development can go in, the developer must acquire the water rights to serve the homes. That slows down building and creates a safer environment for state residents, increasing the home value steady state.
What’s Holding You Back from Buying?
Do you lack a saving cushion? Do you need to sell your existing home in Arizona before you can purchase a new one? Have you found it tough to locate an affordable home? You may be moving from out of state and need assistance choosing a suitable location within a specific metropolitan area.
Let ITSSOLDAZ help you. We buy homes quickly on an as-is basis. You can sell your existing condo or house in Arizona in two weeks and have the cash to purchase your new home.
We renovate the home we purchased, then flip them. That means you can also count on us for a terrific home to purchase. We know our state and its real estate.
Contact ITSSOLDAZ for more information on selling your existing home or buying one of our great houses. Let us help you find the Arizona home you want at an affordable price. Weed through the many Arizona homes for sale with our help to find the perfect one for your needs.