I’ve heard it too many times. Someone is interested in searching for homes and then decides to “wait a year or two.” It’s understandable that you might be hesitant to put such a major financial investment on hold. The process of buying a home can be intimidating to say the least. That said, the real estate market in Phoenix is booming, so there are plenty of reasons to purchase property now, rather than later. With my team of professionals by your side, it’s never been easier! We’ve gathered all the important reasons you shouldn’t wait to buy a home.
- Interest Rates are Rising
This fact doesn’t need too much explaining. Interest rates have continuously gone up over the past few years and there’s no sign of stopping. In fact, next year, rates might be as high as 5.5-percent. If your finances are in check, apply to today. Even if you’re not sure if you’re ready to buy next week, pre-approval will lock you in to the current interest rate.
- Home Values are Rising
It’s no secret that the real estate market had hit a high point, but the secret is, there’s no end in sight. Home values in phoenix have gone up 9.8-percent over the past year and are expected to rise another 3.6-percent. This means that the homes you’re looking out now might be well out of your price range in the next few months. Not to mention, as home values go up, there’s less reason for home owners to negotiate price. If you’ve found a home in your budget, you better swipe it up before it’s gone!
- Inflation is Rising but Your Paycheck Might Not
I hate to break it to you, but as home values and inflation rise, changes are that your paychecks this year will stay about the same. The average paycheck increase was 3-percent this year and inflation rate was 2-percent. This means only a 1-percent real wage increase, which doesn’t leave much wiggle room as far as investment is concerned.
- Owning is Cheaper than Renting
This fact is a no-brainer. The average rent in Phoenix is $995 for an 822 square foot apartment. On the other hand, you can buy a one-bedroom home for about $130,000, giving you a mortgage of approximately $615. We don’t have to tell you that’s a significant savings. For the same price of rent, you could likely be in a bigger home in a much more desirable neighborhood. This leaves you extra money to enjoy all the fun things to do, save for a nice family-friendly SUV or electric vehicle that is perfect for the extravagant California road trip you’ve been dreaming of.
- You Might Qualify for Down Payment Assistance
If your reason for waiting to buy a home is to save more money for a down payment, think again! The requirement of a 10 or 20-percent down payment is a myth that scares too many people away from buying a home in Phoenix. There are plenty of down payment assistance programs like Home Plus and other programs like first-time home buyer opportunities.
Ultimately, there are plenty of reasons you shouldn’t wait to buy a home in Phoenix this year. With a team like the one you’ll find as Messner Homes, The Most Interesting Arizona Homes, buying a home in Phoenix is easy. Check out our Featured Listings and contact us today to help find your Arizona dream home!