Needless to say that the coronavirus pandemic has impacted the economies around the world, the effects of which are seen in almost every industry. The real estate market also faced the wrath of this global pandemic and the market saw a sharp decline ever since the first lockdown was imposed. In Arizona, the property market was enjoying great volume during the start of 2020, before it was pulled down by the crisis that started showing its effects in March. The decline continued till June but as soon as governments around the world started relaxing the restrictions, the real estate market started growing again.
This sudden change in the property market has put many buyers and sellers of Arizona into a confused state. Buyers are confused because the real estate market is filled with demands, but there aren’t many homes up for listing.
Meaning, the supply is nowhere close to the demand. For the sellers, since the demand is overwhelming, it often puts them in a situation where they are unsure of their home’s worth. To sell it at the price they are getting or wait for more buyers to put up their bid is the most challenging thing for them. Now that definitely means that the property market in Arizona is booming, but what’s causing this huge demand?
Arizona Real Estate Market Rise During The Pandemic
Previous year’s trends have quite clearly illustrated that the state of Arizona is one of the most preferred states in the entirety of the United States. It is considered by independent buyers as well as real estate investors looking for properties that they can own, make some changes, and then sell again to gain profit. But, what exactly has caused Arizona to become the center of attraction for the property market? There are quite a few reasons for that. Firstly, market trends declare Arizona as one of the best states to make real estate investments.
Secondly, many people are moving out from Oregon, Washington, Chicago, and California and are heading towards Arizona. And what’s that one thing migrators looks for when they switch states? That’s right, a home. This is why Arizona homeowners are having the time of their lives as sellers.
Also, as the world gets used to the new normal, various IT giants and tech organizations have stretched their work from home policies until further notice. Some companies have stamped yes on permanent work from home, allowing the employees to continue to work from any part of the world.
This has also encouraged many people to move out of the places that they were only living in to serve their work-related purposes. These people are moving out, possibly coming to better places such as Arizona, and are looking for properties to settle down. This is a major reason why the demand for homes has soared rapidly even during the time of a global crisis.
Current Market Trends And Home Worth
Homeowners in Arizona are worried about the right time to sell, and so are the buyers who are waiting for the competition to settle so that they could buy in peace. However, waiting would be the least favorable option for both home buyers and sellers. The pandemic may be a mentally challenging time, but it actually is quite good when it comes to striking dealings in the real estate market. Why so? Let’s allow the market trends to do more talking.
Mortgage rates have been a major factor for the buyers in their home buying ventures. Higher mortgage rates mean that the buyers have to shell out more money to lock a deal. However, this year has slashed the mortgage rates to an all-time low figure that stoops below 3%. This same rate was topped at 6% in 2007 with a median house price at $227,000.
It’s evident that the interest rates have dropped by more than 50 percent. What this means, is that it is a perfect time to buy the home that you’re eyeing in Arizona. Sure there’s a lot of competition to deal with, but as the economy strengthens and the pandemic settles, the interest rates will go up. At that time, you may regret your decision of waiting as you will only find homes with higher price tags. That is definitely not what you seek as a home buyer.
For sellers, this means neck to neck competition for their homes. With a median house price range of $250,000, it has become easier for the buyers to seek their dream home. And since the supply is less, buyers will bid more for a house that they think is close to their needs.
If you are a homeowner with a home built in a good neighborhood, which is also in good condition, you are already under the radar of many potential buyers. This means that the pandemic, despite having caused mayhem, has instead given you more chance to sell your home.
Time and again, everybody has mentioned the value that comes with the properties in Arizona state. There are plenty of neighborhoods with a median home price so low, that if you think about it, you are getting a property by spending less than half the amount you would spend in other states. Phoenix, Scottsdale, Tucson, Mesa, and home to many more amazing and peaceful neighborhoods, Arizona is a state that can offer you affordable living at an unbeatable price. Also, it is evident that economies around the world are being dragged down due to the coronavirus pandemic, but as visible from current market trends, it has little to no impact on the real estate world. Especially in Arizona.
So, if you are a buyer, congratulations as you have all-time low mortgage rates waiting for you. It’s a miss it once and regret all life kinda opportunity. If you are a homeowner, don’t worry, your house worth may just have increased even during the pandemic. Choose wisely and get a price you have always wanted for your house.