Right now the housing market in Arizona is booming, but what does our crystal ball predict will happen in the upcoming months? If only it were as easy as looking into a crystal ball, but we can turn to the experts to see what they are saying.
In this week’s blog, we’re going to highlight recent predictions from the real estate experts at AZ Big Media.
The first of our housing market predictions are mortgage rates will stay grounded. Currently, the 30-year fixed rate is hovering around an all-time low of 2.75%, which is a 50-year low.
Next, inventory will stay sparse. This is good news if you plan on selling. In fact, it’s not uncommon to have a home go under contract in just a few hours because inventory is so low.
First-time home buyers will remain a strong force as well. The largest group of Millennials are now in their mid-30s and this is bringing a wave of demand from renters looking to buy their first homes.
Rental inventory is also low, and home rental prices are also on the rise, so if there’s any way to hold onto your home and rent it out, do it.
Lastly, buyers are putting down a lot more cash. We expect to see buyers continue to put more than 20% down in order to avoid paying for mortgage insurance.
The experts are also saying, that many buyers aren’t waiting for a return to normal. They’re anticipating a ‘new normal’ in which they live, work, and entertain and having a home is a big part of that.
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Source: AZ Big Media, 5 Arizona housing market predictions for 2021, by Asher Cohen, Founder of Scottsdale-based BUYAZRE.com, May 22, 2021