The real estate sector in the Phoenix Metropolis is at an optimum high going into 2021. Recent statistical reports show an optimistic surge owing to the Valley’s year-round sun and warm temperatures, its unique architectural traditions and community, a reasonable cost of living and the added incentive of working from home due to the pandemic. However, prospective buyers and sellers as well as those looking to move to Phoenix have a few tips to look out for.
A vital consideration is that mortgage rates will remain balanced. At the moment, the 30-year fixed-rate is at a 50-year low and fluctuates around an all-time low of 2.75%. The rates of refinancing mortgages change frequently but hover around 2.45%. Prospective clients interested in saving on monthly payments or considering a cash-out refinance should effectively compare rates from multiple brokers to ensure acquiring the best deal.
Next, the market is extremely competitive. Due to the low rates, there has been a noticeable surge in the number of home buyers, thus, properties do not stay on the market for long. While this is good news for sellers, buyers often have to engage in unconventional tactics like virtual tours in order to beat the competition.
Young adults play a crucial role in the housing market, most of whom are first time buyers. This demographic of under 40s bring in a whole new perspective on the nature of the real estate sector and the landscape moving forward.
As an investment opportunity, renting rather than selling has long term benefits for homeowners looking to engage in the housing market. Rentals are a steady source of income especially as rental prices are always on the upsurge. The average rental home in the Phoenix metro area currently goes for over $2,000 monthly and in some neighborhoods, well over $2,500 a month. For individuals seeking to develop their portfolios, renting allows for expansion as profits from ongoing rentals can be directed towards acquiring more properties.
Buyers are engaging on a very competitive scale. Prospective homeowners are willing to pay more in terms of a down payment. This move ensures that buyers will have lower mortgage payments and subsequently lower interest rates. An upside is that sellers are encouraged when they contend with multiple offers.
The structure of human existence has been challenged by the COVID-19 pandemic. More activities are carried out indoors and the reality is that the home has irrevocably become the center of most people’s day-to-day life, work inclusive. Conclusively, it is vital to engage the services of a certified realtor who is refining his service to adapt to the new norm.