Here is some interesting data on what is going on with our AZ Real Estate Market and Mortgage Rates.
Rates are touching 6% now, many experts see the Federal Reserve raising rates by .25% but it is already priced in and hence mortgage rates could come down into the 5% range later this year. They were at 4.875% just in July 2022
The important thing to take away from the shortage of housing units is that economists anticipate that the price of homes may continue to rise slowly in the AZ housing market in 2023.
On the supply side, it favors the property sellers. The bottom line here is that a stark imbalance between supply and demand continues to put upward pressure on AZ home prices. This partly accounts for the somewhat bold Arizona real estate market forecast for coming years. The other factors are that the economy of Arizona is robust, but the state is struggling with elevated levels of inflation and housing price growth. In 17 different states, the unemployment rate is at an all-time low.
Arizona has 3.3 percent unemployment. The pace of population increase in Arizona is the fourth fastest in the country. A significant number of states saw a loss in population as a consequence of COVID-19, low birth rates, and migration to neighboring states. Florida, Texas, and Arizona are the three states with the most rapid population increases. Years of underbuilding are a key contributor to the low inventory.
According to a study conducted by the Weldon Cooper Center for Public Service at the University of Virginia, Arizona’s population is projected to expand by 26.1% between 2020 and 2040 – an increase of 1,897,585 people. As the population is expected to rise yet there are only a few available homes on the market.
The take away from this is that we are not going to see our market “crash” as some are saying. Prices are actually increasing. There are still multiple offers on many homes throughout the valley.
Don’t try to time the market. Buy or sell when it is the right time for you. Do you need a bigger house? Are you moving out of state? Are you getting a job on the other side of the valley? Life changes, so homes have to also. If you need to sell your house, timing is still good. If you need to buy a house, we can get you into a great home and then you can refinance later when the rates go down. Don’t let the media scare you into sitting on the sidelines.
I am here to answer any questions you may have. Betsie Melter Realty ONE Group 480.734.3644