What you need to know if you are thinking of buying a house in 2017 in Phoenix AZ
Welcome to 2017! I hope youre feeling good and ready about buying, investing or selling in 2017. Here are things to expect if you and your family are planning to buy house in Phoenix area.
Mortgage rates are on the rise
The most important consideration for most of those looking to buy a home is how much they can afford. Rock-bottom mortgage rates in recent years have made homes more affordable for most buyer. Now it appears that those rates have hit bottom and are poised to rise. Mortgage rates have climbed dramatically in just after the election.
Also Read: How rising interest rates will impact housing affordability?
It’s a good idea to keep things in perspective. Even with mortgage rates approaching the 4.25 percent mark, homeowners are still benefiting from cheaper home financing. It’s true that rising rates will slightly reduce how expensive a home you can buy for any given monthly mortgage payment, but rates are still favorable.
You might be interested: U.S. 30 Year Fixed Mortgage Rate Since 1971
Home price in Phoenix area are increasing
Based on 2016 Phoenix Arizona Housing Market Trends Report and Statistics, home price for single family homes in Phoenix area are increased from a year ago. Median sold price for single family home in 2016 was $230,000 compare to $210,00 in 2015. That’s about 9.5 appreciation from a year ago. Average sold price in 2016 was $280,305 and that was about 7.8% increased from 2015.
With higher interest rate and appreciation in house value, be prepare to pay more for buying a house in 2017.
Inventory had been increasing from a year ago. In Phoenix, there were 20,915 single family home new listing in 2016 compare to 20,227 in 2015. At the same time, more homes were sold in 2016 compare to 2015. In 2016, there were 16,303 single family home sold in Phoenix compare to 15,509 in 2015.
Although we will see more in balance market, if the house is move in ready and is priced competitively, chances you will see a multiple offers situation bidding war going on too.
Down Payment Assistance Program may expire soon
As today, there are several down payment assistance program available for buying home in Phoenix area. There is still a government grant that provides down payment assistance/closing cost assistance for potential home buyers or assisting creditworthy renters who can afford a mortgage but lack the resources for a down payment.
According to our lender partner, Pathway to Purchase down payment assistance program may expire as early as in March 2017.
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