About Property Values
Current market conditions have brought property values back to reason. This is a fantastic time to buy. See the article 'Now's the Time To Buy" in our articles section. There are lots of great reasons to be poised as a buyer now. We can help you get there.
You've heard “Location, Location, Location”. It's really about the timing. That is the biggest determining factor for property values in Central Arizona.
While housing remains fairly affordable in the area, with top of the line, new build homes with views costing no more than $300,000 in some places, and even some homes for sale still under $150,000 in parts of Central Arizona , this area probably will not see the peak of home values for another 25 years to come. Arizona has grown at a rate of 23.4% since 2000. Move here for the beauty of the area, and buy your home for the potential earnings.
Interest rates will affect the value of a home. In a market like ours, where the percentage of cash buyers is much higher, this can have less of an impact in retention of value in the face of the changing interest rates.
However, consider this: When interest rates are at 5% on a 30 year loan for $150,000, the buyer's payment is $805.24 a month. The monthly difference on an 11% loan is an additional $623.25 a month. How does this affect the value of a home? When interest rates are low, as they have been for a while, more people can afford the $150,000 home. That means more potential buyers. When there is more demand (buyers) than supply (homes), the price of the item goes up. When there is more supply(homes) than demand (buyers), the prices go down. The same holds true on a greater scale for homes. If interest rates go up, thereby eliminating potential buyers, a seller might have to drop the price of a home to have more potential buyers.
Current market conditions have brought property values back to reason. This is a fantastic time to buy. See the article 'Now's the Time To Buy" in our articles section. There are lots of great reasons to be poised as a buyer now. We can help you get there.
You've heard “Location, Location, Location”. It's really about the timing. That is the biggest determining factor for property values in Central Arizona. While housing remains fairly affordable in the area, with top of the line, new build homes with views costing no more than $300,000 in some places, and even some homes for sale still under $150,000 in parts of Central Arizona , this area probably will not see the peak of home values for another 25 years to come. Arizona has grown at a rate of 23.4% since 2000. Move here for the beauty of the area, and buy your home for the potential earnings.
Interest rates will affect the value of a home. In a market like ours, where the percentage of cash buyers is much higher, this can have less of an impact in retention of value in the face of the changing interest rates.
However, consider this: When interest rates are at 5% on a 30 year loan for $150,000, the buyer's payment is $805.24 a month. The monthly difference on an 11% loan is an additional $623.25 a month. How does this affect the value of a home? When interest rates are low, as they have been for a while, more people can afford the $150,000 home. That means more potential buyers. When there is more demand (buyers) than supply (homes), the price of the item goes up. When there is more supply(homes) than demand (buyers), the prices go down. The same holds true on a greater scale for homes. If interest rates go up, thereby eliminating potential buyers, a seller might have to drop the price of a home to have more potential buyers.