Arizona Real Estate: A Booming Market
The word is out that Arizona is a good market to invest in for both the future homebuyer and mortgage lenders. It’s expecting a sales growth of 7.2 percent this year alone. There has never been a better time to invest in Arizona real estate.
With the focus set on the west side of the U.S, let’s see why Arizona is turning out to be one of the best markets for real estate after the dramatic downturn of the 2008 recession.
Arizona Housing Market
As predicted last year, Arizona is on the rise in terms of housing. After a huge setback from the recession, it’s slowly growing into an ideal market. Housing values are going up, even though values dropped more during the recession than other areas.
Let’s take a look at why Arizona is suddenly booming.
Millennials Are Changing the Neighborhoods
They’re the ones who set the scene for nightlife and trendiness in a city. Living next to a city with the stamp of approval from Millennials has its perks. Arizona offers those perks, along with a beautiful climate.
When a city has value to offer in the form of clubs, restaurants, and outdoor events, it tends to attract more future homebuyers. They want to be where the best is and this translates to increased demand.
This leads me to our next topic.
With millennials saturating the housing market, they’re looking to the West to find their homes. Arizona is an ideal place for buyers to get almost instant home equity because of its lack of inventory.
There was an 18.4 percent drop in inventory, with 20,643 homes currently on the market over the past several years. Millennials see that as a sign that the market is hot. When something is limited, people tend to want it more. This demand is also key to increasing the value of properties on the market, as more individuals are willing to put in offers closer to and exceeding list price. Arizona’s lack of inventory has turned it into a seller’s market.
With that said, starter homes are becoming harder to find as the number has been cut in half. In 2012, there were around 6,000 houses. Now in 2017, there are only 3,432. While it doesn’t necessarily price new homebuyers out of the market, it does mean that sellers often have multiple offers to choose from.
With a shortage of houses comes the need to build more, right? Well, it doesn’t always work that way. Allow me to explain.
Lack of Construction
Prices are rising due to the lack of home building. As more people flock to Arizona, home builders can’t keep up with the demands of an increasing population.
Building supplies are increasing in price, which also drives up the costs of building new homes. Even as builders work to bring more supply online, there is simply too large a demand to meet the needs with construction alone.
This is causing a frenzy as more people look to mortgage lenders to finance their homes, so they can move on a property quickly before someone else purchases it.
Why This Is the Best Time for Mortgage Lenders
Potential homebuyers are seeing Arizona as their opportunity to buy a house that will increase in value due to the booming market. With the demand growing for more houses, so is the lending market. Here’s why.
Loan Originators Are in Need of More Lenders
Arizona is struggling to keep up with the demand of a developing population that needs financing. People are looking for more lending options and comparing various companies to find the best loan. Loan originators are looking for lenders and real estate agents to work with their clients. This market demand is opening opportunities within this industry for job growth.
How Is This Accomplished?
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