Why are Houses So Expensive Right Now

YES!  Homes Are More Expensive in 2021 Than 2020!

The headlines in Arizona are correct: it’s less affordable to purchase an Arizona home today than it was a year ago. The median cost of housing is up in almost every major metropolitan area, and the gap between wages and housing prices is widening.

Home ownership is one of the biggest investments a person can make in their lifetime and the cost has fluctuated over time. For example, in 1975, the average hourly wage was $2.27 which equals out to $8,032 per year. The average home price was $21,000 which would have been about 3 years worth of wages. In 1985, the average hourly wage was $5.

The cost of a home in the US has increased dramatically over the last 45 years. So have the prices of groceries, Gase, and just about every other consumable. When the Home Prices have risen over time – we know it as inflation.

Interest rates are actually a very important factor when it comes to the monthly cost of homeownership. A higher interest rate will increase the monthly payments and, in turn, the total amount of interest that is paid over time. This means that if you are thinking about buying a home at this time, you will want to know what current mortgage rates are before signing on the dotted line.

Have you ever wondered how much your house would cost if it were purchased in the day? What about back in the 1960s or 1970s

home affordability chart by year

Scott Schulte has been helping buyers and sellers with real estate for the last 16 years. He is a licensed Realtor® who now uses his knowledge of the market to help others find the perfect home or sell a property.

Every day we’re seeing more and more people turn to data and analytics to find homes. Instead of scrolling through listings that are already sold, you can use a site like Scottschulte.com which has comprehensive data that will help you find the right home for your family. Scottschulte features detailed information about each listing, that is updated every 15 minutes.  So if a home sells, your not wasting your time getting excited about looking at it.  Just to find out it is sold. 

As you pursue your goal of looking for a new home, please consider that the home you're interested in may have already been sold. You can help yourself out by setting up alerts on your favorite properties so you'll know when they're actually available for viewing. This will give you time to look at it and make an offer prior to most people knowing about it. 

The housing market had been booming for years in the late '90s before it all came crashing down in 2008. 15 years ago, the first signs of an impending crash began to show when home prices plummeted by more than 50%. In some parts of the country, the housing crisis was catastrophic.

If your purchasing with a mortgage At every other point, even in the 1970’s, it was more expensive to buy a home than it is today.

This may be still be a good time to buy a home because interest rates are still very low. Plus, rental prices have gone up so buying a home is now much more affordable than renting one per month.

The housing market is not unlike any other industry. The prices change depending on supply and demand. More people want houses than there are houses available, so the prices go up until more houses become available or the population in the area starts to diminish.

Condo Sales Are Up

The cost of housing is skyrocketing, and there seems to be no end in sight. With prices getting more expensive each year, it has been difficult for people to find an affordable place to live. Condos are a popular alternative because they are comparably cheaper than houses or apartments. The chart below shows the increase in condo sales.

Condo Sales Chart

 

One of the newest reports from the National Association of Realtors (NAR) refers to the median sales price of a condo in the United States is roughly $59k less than the median sales price of a single-family detached residential home, which is currently standing at $311,600.

condo cost vs single family chart

Condominiums, or condos, are a type of living arrangement that allows people to purchase individual units in a single building. They can be found in cities and towns all over the world, and they are becoming increasingly popular.

One of the main reasons people decide to buy a condo is knowing that they will be saving a lot of time and money in the long run. With condos, there's no lawn to mow, no snow to shovel, or anything like that. HOA fees (In Most Cases) also cover things like snow removal and landscaping so you don't have to worry about any maintenance.

Not having do all that home maintenance is liberating because you can spend your time at the condo complex and enjoy all the amenities it has. This may include dog parks, pools, private clubhouses and even grilling areas. Use this time well!

 

Use Scottschulte.com to search for condos for sale, and get alerts as soon as new listings get posted. 

Scottschulte.com is a location-based search engine for condos and other properties in Phoenix and the surrounding valley. It provides property listings, interactive maps, and listing information like square footage, HD photos and Virtual Tours. 

 

Is multi generational housing the future of Arizona real estate?

Arizona is a place where the culture is meshing and evolving quickly. With different cultures and beliefs, there are more opportunities for more people to live together in one area. The number of multi generational households is growing, showing that Arizona has potential for this type of housing in the future.

 

New builders have multigenerational options

Multigenerational living is becoming more and more popular. The average size of a new home has increased, which means there is more space for multiple generations to live together. New builders are including features in their homes that cater to multigenerational living such as designing their homes with 2 kitchens and 2 living areas to accommodate all family members. This is a growing trend in the United States, especially among families that want to share expenses.

Multigenerational living by including features such as 2 kitchens and 2 living areas. This space is ideal for the grandparents who want to maintain their independence as they age and can feel more comfortable in their own space. By incorporating this into a home's design, you will have a space that is perfect for everyone.

 

Bottom Line

If you're looking for a home or condo in the Surprise or surrounding areas, Scottschulte.com is the place to go! We have an extensive database of listings with detailed property descriptions and photos, so you can easily find the right property for you. You can also use our mortgage calculator to estimate your monthly payments and when your ready, get mortgage quotes from lenders in minutes.