As the new year bursts onto the scene, you might be thinking of those lofty goals in the coming months. Whether you’re a pending college graduate or an established professional, finding and securing a home is always at the top of the to-do list. When you live in the Phoenix, AZ area, there are countless housing options to choose from. There are constant shifts in the Arizona real estate market, which prompts consumers to compare renting or buying a home on a regular basis. Now that 2017 is here, it’s time to really analyze the current Phoenix market in order to narrow down that next best move.
Current Rental Prices
At the end of 2016, rentals in Phoenix were evaluated at $1,000 to $1,100 a month on average. The higher end of this average usually included two-bedroom apartments. In reality, two roommates could share this space and split the rental bill. With several colleges in the immediate area, renting isn’t a bad idea if you live in the Phoenix Metro area. For the past few years we’ve experienced rising rents which have driven people to buy homes. If you look at rental trends over the past 6 to 12 months, the average monthly cost has actually dropped by about $24. If you’re looking for a housing option that doesn’t require a major commitment, such as a 30-year mortgage, renting in this neighborhood is definitely an intelligent decision.
Buying Properties and Median Prices
After the Great Recession of 2008 and 2009, there was a huge supply of vacant or foreclosed homes. Many of these properties have been purchased, but there are still perfectly viable and attractive homes still on the market. In fact, some experts say that purchasing an established home in 2017 is a smart decision because of affordable prices. The median price for a home in Phoenix, AZ, is $225,000. When you compare this purchase price to the average income in the metro area, the mortgage will take up about 32-percent of your monthly budget. Any real estate professional will tell you that a third of your income promised to housing is about the right ratio for a comfortable quality of life.
Buying for Rental Income
You may be pleased with your housing choice at the moment, but the real-estate market is a tempting area for investment purposes. If you have enough money for a down payment on a property, purchasing it for rental purposes is still a clever financial move. Be aware that the lending industry is stricter than it once was in regards to borrowing money against a property’s equity. You will need some liquid funds to make the purchase a reality. Consulting professional property management in Arizona might be a good strategy as you determine the best financial moves in 2017.
The Interest-Rate Question
Concerns about exploding interest rates have been flying about as the presidential election year comes to an end. Although rates are expected to rise in 2017, the increase should be minimal. Homebuyers are currently enjoying an incredibly low rate range of around 3 to 4 percent. Purchasing a home at any time during 2017 shouldn’t be an issue where interest rates are involved.
Everyone has different goals when they seek out a rental or home purchase. Included amenities are an important consideration. Apartment complexes are known for their continual competition with other properties so they’ll normally include pools, community spaces and other features to draw in tenants. Purchasing a property requires some creative thought when it comes to amenities. The property may not have a pool, but ample equity can provide the funds to add one in the future. Purchased homes also increase in value over time so that customized additions can always be created, such as that dream kitchen.
Exploring Credit Options
If you decide to purchase a home, try to obtain a pre-approval before shopping for properties. The lender evaluates your income and liabilities, and they’ll offer you a reality-based range of home prices that are possible. Using this information, seek out properties that fit this pre-approved loan amount. You won’t encounter any delays in a home purchase when you know exactly what you can afford. In some cases, you may need a cosigner on the loan. Secure this person’s commitment to the loan before shopping the local, real-estate market too. Once you find the right home, the property transfer can be as swift as possible.
Regardless of your ultimate housing choice, working with a reputable expert is critical. Professionals, such as On Q Property Management, can evaluate your housing situation and verify the options that fit you the best. One size doesn’t fit everyone in the rental or purchasing department so these professionals can guide you to a decision that supports your family and those future goals.