The old saying that it’s wise to purchase real estate because they’re not making any more of it is beginning to be taken seriously in Arizona as the overall economy is getting better. Because mortgage rates are declining and the financial circumstances of many is improving, bigger and costlier homes are selling in the state. The median cost for certain homes is on the rise in comparison with several months ago.
People who are selling their homes for financial distress reasons is also declining which, in turn, is allowing home prices get better. Going back nearly four years ago, the housing prices has been increasing incrementally. At the time the number of people who were selling due to financial distress was at 47 percent. It’s not a simple matter of a real estate broker having a better market to sell to people who are in a financial situation in which they can purchase a pricier home. The economy’s improvement and reduction in interest rates to approximately four percent over the past year has to take some of the credit as well.
People who are interested in real estate often wait until there is a prime time to strike. With any real estate transaction there is likely to be risks given the fluctuating nature of both the market and the economy. Depending on the view of whether the improvements are legitimate or not, it can influence how the sales go. The declining number of people who are dumping a property in a short sale — seven percent were a short sale or foreclosure — shows that there is a better market for aggressiveness in a real estate transaction.
The real estate market is never easy to navigate. There is a better terrain and tougher times, but there are inherent risks involved. Having a grasp on the intricacies can help a buyer and seller exponentially as they make their decision. In addition to that, competent legal advice on how the market works is imperative as well.
Source: Arizona Daily Sun, “Bigger houses selling for bigger prices,” Suzanna Adams-Ockrassa, Sept. 25, 2014