Monday, April 7, 2014

Are Fountain Hills Homes Affordable for First-Time Buyers?

Conflicting headlines about Arizona's real estate market can confuse first-time home buyers who are looking for direction. For example, Zillow recently made a dour statement that nearly half of Phoenix-area homes are unaffordable.

Days later, posted an article saying that the greater Phoenix area was among the Top 10 metros for first-time home buyers.

Is the glass half-full, or half-empty? Let's take a look at the basis for each claim!

Zillow's computations were based upon median home buyer income of $53,556 against a median home price of $187,900. A home buyer fitting this scenario would spend about 22.3% of their monthly income on a mortgage payment, which is well within traditional measures of affordability.

Zillow's pessimism is largely based on the limited supply of Phoenix-area homes priced under $200,000. However, by their own math, 56% of current listings are affordable for median wage-earners. It just isn't as exciting to phrase it that way.

Meanwhile, lists the greater Phoenix area among the top metros for first-time home buyers based on several factors:
  • Strength in local employment figures
  • Median home prices
  • Median age of inventory (days on market)
  • Inventory of homes of sale
  • Popularity of location by home search activity
Based on market data from February 2014, the greater Phoenix area was ranked #10 in home search popularity. Homes were spending an average of 59 days on market, which is an indication of good home buying activity. The glass is half-full!

Closer to home, Fountain Hills has added new home listings in recent weeks, improving the supply of affordable homes for first-time buyers. We have several attractive condominium units that are in walking distance to Fountain Park with beautiful views. Do the math for yourself, and you'll see why this is a great time to buy your Fountain Hills home!

Ready to find your Fountain Hills home? Let me help! As your Accredited Buyer Representative, I will guide you throughout the home buying process. Consider me your one-stop resource for the latest home listings and community information!

I have helped Arizona home buyers for over 30 years, and I'd like to help you too! Contact me today for complete home buying help in Fountain Hills!

Tina Nabers
Nabers Property Management & Real Estate
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