Will Home Prices Drop in 2021?

Some questions to ask yourself before buying an Arizona home:

You may get general tips from friends or family, but their suggestions may not always be useful. They might overlook important information that can help you to make the right decision when buying a home. You want to make sure you have all of your information before going shopping.

Before attempting to buy a home, make sure you're as ready as you can be.  You should know how to answer these 3 important questions:  1) Can I afford this home? 2) Will the mortgage payments fit my budget? and 3) Do I have enough for a down payment & closing costs?

The future of Arizona is looking good for home owners and the state economy. However, home prices are still increasing and with a growing population, this trend is expected to continue. One thing that you can do to protect yourself from market swings, is by purchasing a home with an affordable payment. To weather swings in the housing market.


1. What’s Going on with Arizona Home Prices?

Arizona home prices have been on the rise in recent years, but a slight increase in inventory has some investors questioning how much longer this trend will last.

Home prices in Arizona are incredibly important. They impact how much it will cost to buy a home and how much you stand to gain as a homeowner when prices appreciate.

Experts are predicting prices will rise this year with there home price forecast for 2021:

Price increase percentage for homes in 2021 chart

Continued price appreciation in recent years means more homeowners are turning to these forecasts to make informed decisions. They let you know how much waiting could cost you, so you can decide if it's worth the risk.

chart of mortgage rate projections for 2021 and 2022

It's not surprising that house prices have increased in line with the average of all forecasts. This means that whether or not you were buying in the regions where house prices are lower, they will be higher by the end of 2021.

More home prices are continuing to climb, with homes appearing in the higher price brackets more often. These markets will most likely continue to behave in this way, and it's important not to wait too long when you're a buyer. Buying now would potentially save you a lot of money.


2. Will low mortgage rates continue?

You can finally take advantage of the mortgage interest rates at an all-time low these days. It is a very important factor to consider when looking for a new loan.

Much like prices, though, experts forecast rates will rise over the coming months, as the chart below shows:

It's easy to see how the cost of your monthly mortgage payment can rise after even the slightest increase in rates. It's important to stay aware of this and act accordingly, or you might end up paying more in long run.

The recent volatility in the housing market has been a major problem for a lot of homeowners. This is due to the fact that while home prices are rising, interest rates may also start to rise. 


3. Why Is Arizona Homeownership Important to You?

What are your motivations for buying a home, and what is an important goal to you in achieving success?

The financial benefits of owning a home in Arizona are oftentimes easier to account for, and can even be relatively more important in the long-run.

There are a number of reasons Americans love homeownership, but one of the most important for many is how it helps them live their life. Here are the 6 things homeowners say they value:

  • Stability of homeownership
  • Safety and Security
  • A Sense of Accomplishment
  • A Life Milestone
  • A Stake in the Community
  • Personal Pride

The rate of homeownership has been steadily increasing across the nation and is a sign of economic stability. However, factors such as safety, a sense of accomplishment and community pride are still important to consider when purchasing your home.

Other benefits of home ownership chart

It's hard to deny that homeownership is emotionally beneficial, as illustrated by the National Housing & Financial Capability Survey from NeighborWorks America.

Homeownership can provide personal pride, security, and satisfaction beyond financial benefits. It has been a key factor in the American Dream since the early days of the country. As a result, there is an enormous demand for it and homeownership rates have increased.

Bottom Line

Homeownership in Arizona can be life-changing with all the benefits that come along with being able to call your own home. Whether you’re beginning your journey to homeownership for the first time or seeking an area you’ve already lived in, our team is here to help. If you take the first step and contact us today, we can start your journey together.


Also Check out: 

Phoenix Arizona Real Estate 2021