Finally some good news regarding the Arizona Real Estate Market and the nation as a whole…Purchase applications for home loans increased 6.7 percent last week, reaching highest level of the year, according to the Mortgage Bankers Association. The MBA reports that government loan applications FHA loans reached their highest level since May 2010, increasing 10.3 percent last week compared to the week prior. This could have been caused by the projected and now imposed FHA mortgage premium increase in Arizona and nation alike.

Below replacement cost pricing of Phoenix homes combined with low interest rates below 5 percent may bring the Phoenix real estate market its busiest spring season in years, economists say. Phoenix Foreclosed Homes sales and other distressed property transactions continue to put downward pressure on home prices, which may lure more buyers off the fence and bring more hungry Phoenix investors ready to snag a deal during the typical prime-time buying season…Spring and early Summer. Some builders are imposing discounts on new homes as well as boosting commissions to buyer agents to try to spark more interest and closings of New Homes Sale transactions in areas such as Laveen, Tolleson, Avondale and parts of the East Valley such as Gilbert, Chandler and Queen Creek in Arizona Homeowners also are getting more competitive in pricing their homes. “After three years of downturn on pricing, people are becoming much more realistic in terms of valuing their home, and if they want to sell their Phoenix Home in some cases underpricing,” says Lawrence Yun, chief economist at the National Association of Realtors®. An improved job market with better income potential may also motivate more people to jump in and Buy Arizona Foreclosed Homes, says David Berson of the PMI Group. “Household formations are also very important,” Berson says. “Kids have moved back home with mom and dad, or two people may have moved in together, due to job concerns. Now they can venture out and purchase a home.” While rates are sitting comfortably below 5 percent for now, economists warn the attractive low rates won’t last long. “Few think rates are going lower,” says Mark Zandi, Moody’s Analytics chief economist. “It’s more likely they will be 6 percent than 4 percent next spring. This lights a fire under Phoenix home buyers to get in and buy before rates adjust.” Source: The Wall Street Journal

Leave a Reply

You must be logged in to post a comment.