Do you feel some times that you just GOT-TA GET OUT-TA this place? Yes Summer is here and is time for VACATION certainly or move to the wide open spaces of Arizona.
With the densely packed American Cities the past year has shown a movement to the suburbs especially to Arizona a land of both wide open spaces and ranches but also the fifth largest city in the US, Phoenix. The Grand Canyon state is known for open spaces and sunshine so Arizona is a good place to go to when you where you are that you GOT-TA GET OUT-TA the place you are in know.
The Animals in 1965 sang, "WE'VE GOT-TA GET OUT OF THIS PLACE!"
The Animals were ahead of their time in 1965, when they sang "WE'VE GOT-TA GET OUT OF THIS PLACE!....if its the last thing we ever do, we've gotta find a better life for me and you!"
One would think Americans would think of moving away from apartment buildings with close proximity and no backyards and get out into the suburbs and more rural areas with more social distancing.
Moving from Apartments to Suburbs
This factor along with the increasing prominence of work at home opportunities offered by employers made easier by home based work from home phone and computer capabilities increases this capability in becoming more and more realistic in the months and years ahead resulting in less and less need for working in the inner city core.
This increased demand for residential suburban homes in the Phoenix Arizona metro area is causing a shortage of homes for sale and setting the all time average price for a home to $315,000 in August 2020 per the Arizona Republic.
Amazon and other remote delivery services for groceries and food make all of this rural living more and more possible.
This all points to more home ownership in less densely packed areas of America.
Home Ownership is likely to go up due to COVID19 and related factors
Not only did COVID19 lockdown restrictions create pent up demand to get out confined spaces but the internal drive and desire to own one's home increase combined with the economic factors of continuing near record low mortgage rates mean people want a new place to live.
In an article published in the Scottsdale Area Association of Realtors through Forbes contributor Dima Williams on May 18, 2020 further explores additional economic reasons for home ownership, "As they lose their jobs and rent turns unaffordable due to the pandemic, some tenants – especially those living in expensive cities – are moving in with friends or back with their parents – and, effectively, reducing the number of renter households.
At the same time, however, some Americans, including renters, are collecting more from state unemployment benefits as well as supplemental federal insurance (amounting to $600 a week) than what they had earned working. With few options to spend those extra funds (as a slate of businesses around the country have been shuttered for over a month), many have chosen to preserve them.
According to data site Statista, the rate of personal savings – or the ratio between savings and disposal income – in the U.S. jumped to 13.1% in March, compared to a previous high of 8.8% in December of 2018. In some cases, those savings are morphing into down payments, further growing buyers’ demand amid mortgage rates that are under 3.5% for a 30-year conventional loan (and expected to fall further).
Nonetheless, there are obstacles and unknowns that remain for home shoppers. Lenders have tightened their mortgage origination requirements – both credit scores and down payments – shunning some buyers from the housing market. Moreover, nervousness continues to shroud the country’s jobless claims and unemployment rate, even though both figures have recently slowed down in their growth as the national economy attempts a reopening. “So, what we’re likely to see, as far as the homeownership rate is concerned, is a bit like a cursive ‘V,’” says McLaughlin. “We will see an initial increase in the ownership rates, probably a flattening or maybe even a slight drop, followed by a more persistent increase in homeownership rate over the next five years.”
So whatever your reason whether you feel like you have to "GET OUT-TA THIS PLACE!" or the economic factors are so strong it may be time to move to the wide open sunny spaces of Arizona one of the first states to "Re-Open".
Arizona, the Grand Canyon State is the home of wide open spaces & sunshine
When you are ready to get back into the world and sell or buy a home, give me a call.
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