Arizona’s housing market is currently one of the most competitive markets in the United States. Low mortgage rates and high demand are resulting in fierce bidding battles. According to Bank of America’s newest Homebuyer Insights Report, the desire to own a house has grown in the last year. Prospective buyers are seeking to replace monthly rent payments with regular monthly mortgage payments. In fact, over half of respondents (46%) believe that generating equity is more essential now than it has ever been.
For the coming summer months, the Greater Phoenix housing market appears to be exceptionally robust. The average ($504,600) and median ($390,000) sales prices set new highs in May 2021. The Arizona Regional Multiple Listing Service Pending Price Index predicts a median sales price of $400,000 in June 2021. Experts expect home prices in the Phoenix area to continue to grow at a rapid rate for some time.
So with these indices in mind, how does one stay competitive in Arizona’s housing market?
Competing in Arizona’s Housing Market
Prepare your financing ahead of time.
When it comes to buying a home, the first thing you need to do is to figure out how you’ll pay for it. If you’re not paying cash, meeting with a prospective lender and getting pre-qualified is vital. You don’t only need pre-qualification paperwork in the typical Arizona purchase contract sellers will also not consider your offer until you have proof that you can afford their house.
In a hot market where properties sell quickly, waiting to become pre-qualified might mean losing out to a more ready, willing, and able buyer. The great news is that being pre-qualified with a lender is free and valid for 90 days. You’ll be able to spot any warning signs that might prevent you from being accepted, and your lender will be able to suggest ways to enhance your credit score and get a lower interest rate.
Know What you Want
Scout homes in the area you want to live in so you can hone in on the price range and type of property that’s perfect for you. This will help give you a better idea on when you want to sell your Arizona home. The Bank of America Real Estate Center will assist you in locating houses for sale in various communities within your price range and become eligible for Bank of America grant schemes.
Prepare to move quickly.
It’s essential to keep on top of new properties that become available in a seller’s market where homes move quickly. Ensure that your realtor sets you up with an automatic search in the Multiple Listing Service that will notify you when properties that fit your criteria become available. It’s the quickest and most accurate method to keep up with what’s available. Make an appointment to see a house you like the moment it becomes available. If you enjoy it, chances are that someone else will as well. Make an offer the same day you see the house and feel it’s the one. Don’t let it get to your head.