If you are in the market for a new house this year, you may be in luck! Trends that have been consistent for the past 5 years appear to be changing, and for the better.
Let’s take a look at the Arizona real estate market forecast for 2018:
More homes will be on the market
For the last few years, it has been hard to find homes to buy because there have been fewer houses up for sale. This is due to many factors including:
- Baby boomers having no need to downsize their houses as they reach retirement
- Most new houses built were high-end mansions rather than entry-level homes because of increased
- Investors that bought up houses after the housing market collapse are content collecting rent from their properties rather than selling them
However, this trend looks like it’s going to change this year as more houses enter the market.
Home-price appreciation looks likely to slow down
The last few years homes have been appreciating at a wild rate. In 2016, home prices rose by 6.3%. The following year in 2017, home prices rose at an almost equally astonishing pace of 6.0%. Luckily, for first time home buyers, house prices look to only rise by about 4.1% this year, potentially making them more affordable.
Mortgage rates may rise
According to a variety of statistics, it looks as if mortgage rates are going to rise in 2018. Stats that forecast mortgages rates estimate that at the end of 2018 30-year fixed mortgages will average about 4.7%. This is in comparison to the 30-year fixed mortgage rates at the end of 2017, which averaged 4.07%.
If you want further clarification or more information about the Arizona real estate market forecast for 2018, feel free to give us a call here at Housso, and we will be happy to help you in any way you find necessary!