Thinking Of Buying A Home? Do It Soon- Home Prices Might Go Up In The Next 12 Months!
With significant cost inflation and very high demand related to supply, home prices could see big increases over the next 12 to 18 months.
Jim Belfiore, regional real estate expert and president of Belfiore Real Estate Consulting, said the Phoenix housing market could see a 10 percent increase in existing home values which is currently at a median price below $281,000. New home prices which has a current median price of $325,000 could also possibly rise at the same rate. A 10 percent increase to home values is around $30,000.
Belfiore elaborated that prices are looking to get pushed higher due to a combination of very low mortgage interest rates and inflationary pressures on builders led by labor costs and mandates for less density and more amenities by municipalities.
But as seen in other markets like Denver, Austin and Seattle, price gains are a boon for homeowners’ equity, but it will cause issues with affordability which happens to be one of the draws for people looking into moving into Phoenix. But this doesn't mean renting is better; in fact rental housing prices have also increased.
So what does this mean for you, the would-be homebuyer? Well if you've been biding your time hoping that this period of historically low mortgage interest rates improve to much lower rates, you might want to jump off the fence and make a move now before rates go the other way, especially if you've got an eye on your dream home. And be sure to ask us about ZeroPlus By Keller Mortgage which helps you save money when you buy a home, thanks to ZERO lender fees, ZERO origination fees PLUS $1000 credit toward closing costs in addition to low rates!
If you have any topics or questions you would like answered, contact The Shanna Day Dream Home Team - we’ll find the answers for you!
Shanna Day Dream Home Team
Keller Williams Realty East Valley