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Phoenix is an area that many people are trying to move to. With this, there is a serious problem in the prices of housing in Phoenix. Many people are trying to move to Phoenix but there are not enough homes being sold. Those that have purchased a house are choosing to stay in their homes and renovate versus selling and upgrading. Leaving many buyers wanting more. This is bad news for buyers, but great news for those homeowners looking to sell their home in the upcoming months.
Housing prices can rise or drop depending on the supply and demand for houses in that area. Many other factors can affect the housing market and its prices. Phoenix has seen steady increases in the price of homes in recent years. Within a single year, housing prices rose almost eight percent and they are expected to rise at least another five before the year is out.
This increase in prices has started since 2012. Before this time the prices in Phoenix were dropping significantly. Allowing investors and homebuyers to scoop up homes at some of the lowest prices seen in the years in years. The homeowners that bought during this time have the opportunity to sell their homes for significantly more than they purchased it.
While there are many factors that go into the national housing market and even in a local housing market, there are some markets that have a large change due to one major factor. The factor that has changed the most in Phoenix is the supply of homes available. Otherwise known as the number of homes for sale. This includes both new builds and pre-existing home that is up for sale by their owner.
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When there are few homes for sale and a lot of buyers looking to make a purchase the market tends to favor sellers. A seller’s market will make it more difficult for a buyer to be picky when choosing a home. They may also need to make their best offer right out of the gate to beat out the other buyers looking at the same home.
Since there are too few homes and too many buyers the price of the homes for sale can increase. Buyers cannot haggle with homeowners overprice because there is another buyer waiting. Most buyers make minimal demands during a sale and a homeowner can sell for more than what they purchased the home for.
Unfortunately, for the starter homes that are available in the area, there is a slim selection. As the prices increase in the homes the market has a bit more to offer. Those looking to find a starter home at a low price will need to research and act quickly. Any homes that are put on the market are likely to be sold before a buyer can do much deliberation.
Nationally the rising prices are a common occurrence. However, this has started to change. On average, the prices of homes are starting to hit their ceiling and will eventually take the turn to decrease. Phoenix is one of the few exceptions. While other larger cities have seen this plateau Phoenix is still rising.
Even though many of these factors make it sound impossible for a home buyer to find a property, it is far from the truth. While it may not be the easiest task it is possible. Phoenix is one of the best cities for first-time buyers to invest in, currently.
This is due to the successful sales that buyers see in Phoenix. Buyers can make offers and close on a sale in Phoenix easier than in other cities. The homes that are on the market at lower in price. The down payment that is needed on these homes is often smaller, as well. Making it easier for first-time buyers to obtain and start house shopping.
Since home prices are projected to continue to rise a person who invests in a home now may see the price of their home continue to rise once they purchase it. The choices that are available for buyers are often great quality because their owners have taken care of the properties.
There are many homes available at higher prices that are sometimes out of reach for first-time buyers. However, since there are so many home buyers looking for homes on the cheaper side there are homeowners who have to lower their prices. A first-time homeowner who looks for homes with price cuts may score the deal of a lifetime by purchasing a home that should be in a higher price point once it is reduced.
Not everything is grim about buyer’s futures in Phoenix. While they are likely to still see rising prices that may make many buyers feel nervous about their home buying potential there is something positive coming. Lenders are helping buyers invest in their next home with great mortgage rates.
Since the end of the year mortgage rates have been dropping. Buyers who are serious about making a purchase need to get to their lender of choice and get that rate locked in. When the rates are low it is best to lock it in to avoid missing out on this great deal.
This is a new trend and buyers may want to act fast. Even though the rates are gradually dropping at a consistent rate, there is no telling when they are going to rise again. The sooner a buyer invests in a house, locks in their rate, and starts looking the better. Waiting too long will result in a higher purchase price and a worse rate.
Buying or selling a house in any area can be a tricky business. For those that have never bought or sold a home, it can be even harder. Getting through the terminology and questions about the housing market is enough to many many people to quit before they get started. However, investing in a home in a great city is a necessary step that buyers need to take quickly.
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