The Sky is Not Falling for Arizona Real Estate
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3/21/2006
Many media outlets have predicted an Arizona Real Estate bubble burst. Sure, home prices sky-rocketed during last spring and summer months, however Arizona has much more room to grow. There still remains many new home communities in which prices continue to increase, yet remain affordable with various incentives offered by the builders. Resale homes continue to appreciate, although at a lower rate. Last year, the Phoenix Metro area experienced around 40% appreciation. The normal rate is around 3-5%. Will homes continue to appreciate at 40%. No, but 10-12% is not out of the realm of possibility. Home prices are remaining steady and homebuyers are noticing that sellers are willing to assist with closing costs, add flooring allowances and also negotiate pricing. During this time last year, any kind of seller assistance was out of the picture.
Mortgage interest rates remain very solid and at lows nationwide. Mortgage companies track the real estate market and are able to offer homebuyers with mortgages that will allow them to purchase a home affordably. While the mortgage may not be the best long-term plan, most homebuyers simply refinance to accomplish their goal and at the same time afford to realize their dream of homeownership.
Although the Arizona real estate market has become slower, it is your real estate agents job and duty to properly market your home for sale in order to get it sold. Simply placing on the MLS will not do the job in this market. The sky is not falling!
Casey Ross
Century 21 Centre Point
Phoenix, AZ
Casey | Litchfield Park, AZ