What Arizona Homebuyers Need To Know About The Changing Market
Some people are saying it’s a good time to buy a home in Arizona, while others warn of rising prices—here’s what people need to know.
Those looking to buy homes in Arizona may soon find things becoming more difficult due to rising prices. Recent changes made in the Federal Reserve Bank are leading to increased mortgage rates. In addition, due to increased demand for home improvement building project supplies, the housing industry is facing both an increase in tariffs and in labor costs. This spells higher prices for homes that would have been cheaper only a year ago. Potential buyers should keep a look out for these shifts in the market, so they can better decide whether to buy now or to wait for things to roll back.
What effect has immigration policy had on the market?
In recent years, the White House administration has cracked down on immigration enforcement. While opinions on the effectiveness of these policies vary, the effects can be seen by all. There has always been a concern about being able to keep a labor force big enough and with the necessary skills to meet the demand of home-building projects. The fact is that the stricter immigration policy has led to a decrease in skilled workers, and with the decrease in available labor, the cost of labor can only go up.
How do supplies play into this?
In the current economic setting, tariffs on steel, lumber, and aluminum, much of which is sourced from Canada, has caused the cost of housing to rise even further. Pretty much any imported good has risen in cost, which puts the managers of building projects in a tricky position of needing to balance income and expenses. Overall, the cost of buying a home in Arizona is anticipated to rise roughly four percent.
Is now a good time to buy?
Buyers are advised to keep track of their credit scores and do what they can to make sure they can qualify for the loans they are looking at. While some may say that buying now is a good idea before the market really starts to zoom upward, the number of people who are following this advice makes it more and more difficult. One homebuyer told ABC News that he was having difficulty after searching over 60 properties in finding one below $300,000 that hadn’t already been bought. The thing buyers should bear in mind is that if things do appear good now in the neighborhoods they are looking at, it may not stay that way for long.
Anyone who is looking at buying a home in Arizona, or who is considering leasing out property, will want to have an ally who is knowledgeable about the legal implications involved. It may be helpful to talk to an attorney in the local area who practices real estate law.