Reasons to Buy Phoenix, AZ Real Estate NOW

Reasons to Buy Phoenix, AZ Real Estate NOW
November 1st, 2008

As the market continues to adjust to the changing economy, a number of factors are coming together in the housing market to provide unique opportunities for homebuyers and investors. For those looking to take advantage of falling interest rates, excess inventory and government incentives, there’s no time like the present.

Increasing Down-Payment Requirements

One factor that’s leading many buyers to act now is the pending increase in minimum down payments required for HUD loans. On January 1st, 2009, the minimum down payment will jump from 3% to 3.5%. A half of a percentage point may not seem like much, but this change will add an average of $1,000 to the down payment on a new home.*

Increasing Rent

As more people move out of their homes and more potential homebuyers decide to wait, renters are facing higher prices and more competition for leases and apartments. As the costs of maintenance, repairs and utilities continue to rise, property owners, rental agencies and apartment complexes must raise their rates to stay aoat. As the cost of renting or leasing climbs, the stability of a xed mortgage payment becomes more appealing for many homebuyers.

Low Interest Rates

Despite the turmoil, interest rates remain steady at near-record lows. Compared to rates at the height of the real estate boom, this can mean substantially lower mortgage payments for those who buy now. Of course, lending standards are tighter now than they were a few years ago, but that means that lenders today are even more eager to work with buyers with good credit. As a result, new homebuyers can lock in at substantially lower rates now than they could have a few years ago, and existing owners can move up to a bigger and better home with little or no change in their monthly payment.

Competitive Home Prices

As the number of potential homebuyers declines, many homebuilders are facing a surplus of inventory homes. Throughout major markets and growth areas, average home prices rose faster than at any time in history. In many of these places, prices reach levels that the average buyer was unable or unwilling to pay, and home values began to drop.

As everyone adjusts to the current market conditions and builders compete for remaining buyers, these prices are returning to normal levels.

Great Selection

Another result of market growth and decline is the incredible selection of homes available. As new communities and developments cropped up throughout major growth areas, innovative floor plans, features and designs helped many builders differentiate themselves from the market. Today, many of those communities are filled with spec, models and a wide range of inventory homes, offering buyers a great opportunity to find the perfect home.

*Based on average home price of $200,000

Call Laura B. today, Downtown Phoenix Homes Specialist and Historic Phoenix Homes Specialist to purchase a Phoenix or Phoenix-Metro home, and, to purchase a lender owned home with ZERO DOWN. 100% Financing!