For nearly two months in Arizona, most of us have been mandated strict stay-at-home orders from our Arizona and local governments. Living like this is a whole new way of life that has put our daily routines on pause. On the other hand, many families have also found a sense of comfort by slowing down and spending time at home, highlighting the feeling of security that comes with having a much-needed safe place for our families to live.
Checking out the latest results of the Housing Vacancy Survey (HVS) provided by the U.S. Census Bureau shows how Americans place immense value in home ownership, and it is continuing to grow in Arizona. The results indicate that the homeownership rate increased to 65.3% for the first quarter of 2020, a number that has been rising since 2016 and is the highest we’ve seen in eight years (see graph above):
Why is the homeownership rate increasing? The National Association of Home Builders (NAHB) explained:
“Strong owner household formation with around 2.7 million homeowners added in the first quarter has driven up the homeownership rate, especially under the decreasing mortgage interest rates and strong new home sales and existing home sales in the first two months before the COVID-19 pandemic hit the economy.”
The NAHB also emphasizes the year-over-year increase in each generational group:
“The homeownership rates among all age groups increased in the first quarter 2020. Households under 35, mostly first-time homebuyers, registered the largest gains, with the homeownership rate up 1.9 percentage points from a year ago. Households ages 35-44 experienced a 1.2 percentage points gain, followed by the 55-64 age group (a 0.9 percentage point increase), the 45-54 age group (a 0.8 percentage point gain), and the 65+ group age (up by 0.2 percentage point).” (See chart below):
Homeownership is an important part of the Arizona dream, especially in moments like this when many are feeling incredibly grateful for the home they have to shelter in place with their families. COVID-19 may be slowing our lives down, but it is showing us the emotional value of homeownership too.
Home Buyers And Home Sellers Eager To Resume Their Plans
Predicting the Surprise Arizona housing market's future is always an inexact science. Trying to factor in the effects of a global health crisis makes it even more difficult. But one way to get a feel for where things might be headed is to ask potential Arizona home buyers and sellers about their plans, concerns, and perceptions.
After all, what happens next with the Arizona Real estate market is largely determined by what they do. That's why recent surveys showing Americans are still interested in pursuing their plans offer hope for a quick turnaround once stay-at-home orders are lifted.
For example, one new real estate survey found that a majority of respondents indicated that they planned to get back into the real estate market within six months, with even more saying they'd be ready to buy or sell a home within a year.
Naturally, though, buyers' plans come with some concerns. Among them, job security ranks high, along with possible exposure to the coronavirus. However, market factors seem to be less of a worry, with fewer participants expressing concern about a lack of homes for sale or falling prices.
Overall, survey respondents seem eager to resume their plans and willing to adapt to new technology and safety measures.
Check out homes for sale with our map search, or if you're looking for a retirement home in Surprise Arizona Sun City Grand Homes for sale is a fantastic opportunity. Thank you for checking out the Phoenix Real Estate Blog.