By Peggie Simmons
T
he low cost of living and equally high quality of living in Arizona is drawing in a lot of people to the area. An understandable fact, seeing that Arizona is one of the relatively cheap places to live in 2021. Unfortunately, though, inventory is currently very slim. So slim that demand by a large margin supersedes supply. The inventory in Arizona for the previous and current quarter has been moving pretty fast. In fact, for the second quarter, the months’ supply has been just 1.05 months. The supply and demand dynamics, coupled with the low interest rates, have pushed price appreciation up 22.7% from the previous year. The high home prices have seen a lot of people leave the market, that and the fact that there are too many bidding wars. The curtains are falling on the second quarter, and many people are curious to know what the rest of the year has in store for us. WWW.THEPOWERISNOW.COM
1. INTEREST RATES. For the past year and this year included, mortgages have had historically low-interest rates, which has boosted many people’s purchasing power. The 30-year fixed-rate mortgage for the past year has been hovering at 2.75%, while the interest rates of refinancing a home were at 2.45%. However, this year they have gone up although very slightly. In the first week of July 2021, the interest rates for a 30-year fixed were around 3.05%, a slight rise from June’s 2.99%. Refinancing rates have also gone up to 2.75%, according to Smartasset. com. Although the interest rates have gone up, you must agree they are still low. Thankfully, interest rates are not expected to rise beyond the 3.00% average as the federal reserve waits for the economy to recover. Something that may take months to do. l
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123rf.com
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housing market predictions for Arizona Housing market
