What to expect if you are thinking of buying a home in Phoenix AZ 2021
Whether you are thinking of buying or selling home in Phoenix AZ 2021, it helps to know what you’re up against and set your expectation. Here are things to expect if you and your family are considering buying home in Phoenix AZ 2021.
Interest rates are expected to stay low
The most important consideration for most buyers when looking to buy a home is how much they can afford. Mortgage rates can be difficult to pin down with precision, but experts agree on one thing: Rates will stay at 3 percent throughout 2021. CoreLogic is forecasting 30-year fixed-rate loans to remain below 3% during early 2021 and average about 3.2% during the next three years. Realtor.com is forecasting average 3.2% throughout the year.
2021 AZ new mortgage loan limits
Starting 1/1/2021, the new 2021 FHA loan limit in Arizona for single-family properties in Maricopa county will be $381,347, up about 7.4% from $331,760 in 2020. 2021 conventional loan limit in Arizona Maricopa County for single-family properties will be $548,250, increased about 7.5% from up from $510,400 in 2020.
Phoenix AZ homes price are continue to appreciate
The Phoenix area is set to see a surge in home sales in 2021, with prices continuing to rise more than the national average. Realtor.com forecasting home price in Phoenix area will increased about 7.0% in 2021. Home price increases are expected to slow as affordability gets stretched throughout the year. Buyers will need to act with a sense of urgency if they want to lock in a low rate before home prices increase even more in 2021.
Based on 2020 Phoenix AZ Housing Market Trends Report, both median sold price and average sold home price for single family homes has increased about 16% from a year ago.
Inventory is everything
Number of new listing homes for sale has been decreasing from a year ago. In Phoenix, there are 19,578 single family home new listing in 2020 compare to 35,176 in 2008. At the same time, more homes were sold in 2020 compare to 2008. In 2020, there were 17,574 single family homes sold in Phoenix compare to 11,153 in 2008.
Prepare for bidding wars
In competitive markets, buyers should have financing lined up and prepare for simultaneous offers in a bidding war. 2020 days on market homes for sale in Phoenix is just 44 days compare to 62 a year ago. It takes average about 44 days to sell your home in Phoenix in 2020. It’s common for multiple offers to come in for a home, including from investors in the entry to mid-level price segment paying for properties with cash.
Wondering how much house you can afford?
Click here to access the Mortgage House Payment Calculator. Simply add in the price of the home you are considering and the calculator will return your estimated house payment. Change length of loan and interest rates to adjust results.
New Listing in Last 24 hour Phoenix AZ
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
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