Arizona Home Buyers Face Common Challenges

Recent articles in the Phoenix Business Journal suggest that home buying has slowed down in metro Phoenix, while rental demand has increased. Has home ownership lost its luster in Maricopa County, or is something else going on?

The answers may rest in a home buying survey completed by mortgage marketer HSH.com. The nationwide survey asked home buyers to share any obstacles they experienced during the process.

About 80% of respondents reported having at least one of the following barriers:

• Insufficient credit score
• Insufficient down payment
• Inability to obtain financing at desired rate and terms
• High home prices
• High property taxes

These issues were common for buyers in every age group. It boils own to two central points:

• Mortgage loan approval is still difficult for many home buyers
• Home prices and home affordability remain a concern

In May of 2013, the median price for a home in Maricopa County was $185,000. As of May 2014, the median price was $205,000, a price gain of 11%. That's a healthy jump. This could be a part of the reason why landlords are enjoying low vacancy rates in our area, along with higher rents.

In fact, if we were to add more reasons to the above list, we would have to include "limited home inventory in appropriate price range" and "competition from cash buyers."  About 25% of all home purchases in Maricopa County are made by cash buyers, who often rent out the property.

This isn't to say that home buying is impossible! You simply need to level the playing field by working with an Accredited Buyer Representative - like me! I can show you comparable sales to help you avoid over-spending on a home. I will also counsel you about appropriate contingencies, home inspections, local amenities, and more. Having experienced, professional home buying guidance on your side is a must.

I also have a network of trusted industry professionals, such as mortgage lenders, home inspectors and contractors. Why go it alone? 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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Arizona Home Price Projections and Home Seller Expectations

The National Association of REALTORS® projects that home prices in Arizona will increase by 3% to 5% during the next 12 months, according to the latest Confidence Index survey. The survey includes responses from over 50,000 professional real estate practitioners throughout the United States, and considers home price trends and overall market conditions.

As mentioned in prior blog posts, Phoenix-Scottsdale real estate benefits from a strengthening local economy and continued investor activity. This bodes well for Fountain Hills home sellers who are entering the market this year. However, sale price expectations need to remain realistic, and homes still need to be prepared for the market to obtain the best offers. Here are a few things to keep in mind:

1. Lending standards have eased somewhat, but buyers remain challenged by the approval process.  Pricing your home according to current market values helps prevent problems with bank appraisals.

2. According to an article in the Phoenix Business Journal, new construction home sales have slowed during the early months of 2014. The median price of a newly-built home was about $290,000 in February; down from $301,000 during December 2013. While the article does not point to a specific reason, it's likely that buyers are finding better deals among the inventory of existing homes for sale. Newly constructed homes are impacted by material costs that have been steadily rising.

For the time being, existing homes have an advantage over new construction when it comes to price. But if builders begin to aggressively discount new homes, it could soften the values of similar properties in the area.

3. All real estate is local. Fountain Hills home values could outpace the projections for Arizona home values - or fall a bit short of those projections. Rather than count on a market trend to lift your home value, it's wiser to keep your home in the best possible condition - and invest in the repairs and improvements it needs to draw the best offers.

4. Being inflexible on price and terms can kill a deal, even if market trends are in your favor. According to the Confidence Index prepared by the National Association of REALTORS®, lack of agreement over price accounted for 11% of transaction failures. This isn't to say that you have to take any offer that comes along, but you should be aware of current values and be flexible within reason.

If you are thinking of selling your Fountain Hills home, now is the time to obtain expert advice and prepare for the market! Get started with my free e-book, "450 Ways to Sell Your Home Faster!"

Ready to find out what your Fountain Hills home is worth on the market? Contact me for your free home value and marketing consultation!

Tina Nabers

Nabers Property Management & Real Estate

Check Out My Website

See Homes for Sale in Fountain Hills

Become a Fan on Facebook

Find Out More About Investing on Facebook

Connect With Me on LinkedIn

Contact Me