What you need to know if you are thinking of buying a house in 2018 in Phoenix AZ
Welcome to 2018! I hope youre feeling good and ready about buying or investing in 2018. 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 buyers when looking to buy a home is how much they can afford. According to bankrate, mortgage rates expected to increase in 2018.
Here are several predictions from the largest housing and mortgage groups for the 30-year fixed-rate mortgage:
– The Mortgage Bankers Association predicts it will rise to 4.6 percent in 2018
– The National Association of Realtors expects it be around 4.5 percent at the end of 2018
– Realtor.com says the rate will average 4.6 percent and reach 5 percent by year-end
Home price in Phoenix area are increasing
The house value for single family home in Phoenix had been increasing since 2011. Based on 2017 Phoenix Arizona Housing Market Trends Report and Statistics, home price for single family homes in Phoenix area had increased from a year ago. Median sold price for single family home in 2017 was $242,000 compare to $230,00 in 2016. That’s about 5.2% appreciation from a year ago. Average sold price in 2017 was $296,830 and that was about 5.9% increased from 2016. Despite the increase, Phoenix house value still below peak level in 2007.
Inventory is everything
Inventory had been increasing from a year ago. In Phoenix, there were 21,622 single family home new listing in 2017 compare to 20,915 in 2016. At the same time, more homes were sold in 2017 compare to 2016. In 2016, there were 17,295 single family home sold in Phoenix compare to 16,303 in 2016.
Although we will see more in balance market in some areas, if the house is move in ready and is priced competitively, chances you will see a multiple offers situation bidding war going on too.
Changes on Down Payment Assistance Program
Huge changes coming to Arizona Down Payment Assistance Program Home in 5 and Home Plus down payment assistance program. Starting January 2, 2018, it will be changed to forgivable 0% interest second mortgage, instead of grant. It will take 36 months to get the second mortgage forgivable. Basically home buyer with go with DPA program have to keep the mortgage for at least 36 months. If home buyer sell or refinance their home during this 36 months, they will have to pay it back.
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