2019 and 2020 Arizona real estate has been tough on home buyers, while rewarding Arizona home sellers with market control. Although homes are moving up in price, buyers have been rewarded with historically low mortgage rates. Showing us all that dealing with the crazy sellers market is worth it financially in most cases.
In 2020 the average APR mortgage rate was 3.93% that is substantially higher than it was in 2020. Did you wait for a better time to move? Looking at rates on a 15 year loan today some banks are advertising 2.115% with an APR of 2.344%. That rate is a huge perk for home buyers in Arizona, they can purchase a lot more home per dollar then 2019-2018
The other perk for home buyers with a home, they probably have equity they can take out and roll into the new home, or they can in some cases keep some of the equity and roll part of it in the purchase another home, taking advantage of the sellers market that way!
If your thinking about moving up into the dream home, or if it is time to move down and make life simpler. Home mortgage rates are definitely on your side.
So the biggest question for most home owners is why would they sell a home, and then try to move in this crazy market? Most are saying the amazing rates and they want to pocket some equity. That makes it worth taking a couple months to find a home in this market for some.
The home sales for November according to ARMLS stats are up +27.4% year over year, so home sellers are taking advantage of the mortgage rates in high numbers becoming buyers!
Foreclosures have you concerned? According to ARMLS stats, year over year foreclosures pending are down -45% and bank owned sale are down -41.3 % compared to last year.
Wish you purchased a home in 2007 or 2008, or even 2009? Take a look at the home affordability index from NAR, the higher the index the more affordable it is to purchase a home with a mortgage:
So now we see rates making homes more affordable for 2020, while Nar's home affordability looks at price and rates, 2019 may win slightly for being more affordable? Also, rates are now even lower, will this drive more home buyers and sellers into the market for 2021? Experts believe if rates remain this low, go lower and we have less concerns with the ongoing pandemic, 2021-2022 can wind up being an amazing real estate market!