A Quick History on the Current Arizona Marketplace
Arizona is a state in the southwestern region of the United States. It's home to hot deserts, snowy mountains, and cool forests. The state is also known for its year-round sunshine, and it's a popular destination for winter vacations.
In 2021, the housing industry in Arizona was going strong, with a projected 12%+ growth in new home construction that year. The market in 2021 is driven by record-breaking low mortgage rates and low home inventory for sale.
The end of 2021 was driven by many "I-buyers," which were institutional corporations that purchased homes in large amounts for Wall Street. We still have not seen the impact of Zillow shutting down their I-buyer program. This was an excellent program for some sellers but bad for Zillow and Zillow investors.
Arizona's Housing Market for winter 2022
The Phoenix metro area has been the fastest-growing part of the United States over the last 20 years, and it continues to grow. This growth in population and relative housing affordability has led to a spike in new home construction and a corresponding decrease in new home inventories.
Experts predicted that the housing industry would see fewer homeowners looking to move due to the winter season approaches. However, this does not seem to be the case as the number of buyers is still firm and sellers remain low. The demand is still high, and it looks like we could see an increase soon. The following data, however, shows that neither of those situations will likely occur.
The latest ShowingTime index, which tracks the average number of monthly showings on available homes, indicates that buyer activity was slightly lower than it was at the same time last year but much higher than at any time in the three years before that. (see chart ):
According to data, the buyer demand remains strong going into this winter. With supply about to increase, there's potential for a great real estate market this winter.
Mortgage Rates going into 2022 are looking fantastic for buyers.
With mortgage rates at an all-time low, it's never been more of a sure thing to take advantage of these great rates. Mortgage rates are more competitive than they have ever been before, which means that you can get the house of your dreams with the assurance that you'll be able to make your monthly payments due to historic lows in interest rates.
The housing market is on the rise, and the rates are still affordable. This is your chance to take advantage of low rates and buy a home before they go up.
I'm sure some people would have predicted these low mortgage rates to have gone up in 2021, but they stayed low!
The good news is that with mortgage rates staying so low for so long, mortgages will be cheaper than almost ever to buy a house in the winter of 2022.
If you're considering buying, selling, or renovating your home, we recommend taking the time to speak to a knowledgeable Realtor who understands the local market. How it's working, because of (s)he's sure to advise you on how these unexpected changes could affect your property investments.