Why are Arizona Home Buyers So Optimistic?


Why are Arizona Home Buyers So Optimistic?  It seems like my phone has picked up with Buyer Calls.  What’s going on in the Arizona Home Buyers minds?  Well,  home buyers confidence is at an all-time high, according to a survey performed by Fannie Mae.

Here are 3 possible explanations:

1. Lending is loosening up

Over the past several years, mortgage rates have seen historical lows.

This has meant that homes are actually more affordable, in spite of the increase in prices.

However, lending has been very tight. Fortunately, that’s changing.

Right now, lenders are approving mortgages at highest rates since 2011, with 77% of mortgages for home purchases approved.

2. Jobs are looking good

At the moment, fewer homebuyers are worried about losing their jobs, according to the Fannie Mae survey.

And it’s not just job security that’s contributing to greater optimism about buying a home.

Overall income is higher, making homes more affordable by comparison.

In fact, the median household currently has 150% of the income needed to buy a median home, compared to a historical average of just 125%.

3. Long-time renters are ready to buy

Millennials, the generation born after 1980, have largely opted out of homeownership until now.

Instead, millennials have been renting for a longer time, putting them higher up on the pay scale compared to previous generations of first-time homebuyers.

But now, many millennials are finally hitting an age when they are willing to commit to buying instead of renting.

This is reflected in the Fannie Mae report, which states that much of the increase in home buyer optimism comes from current renters.

Plus the Millennials like the tax write offs from owning a home.

If you are considering selling your home, now is a great time to put it on the Market.  I’d say get it up active before the end of the year.  Once 2018 hits, I feel more folks will list their homes and the competition will be greater.  Contact me today for all your home selling or buying needs.

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