Property Prices in Arizona: Experiencing the Best of Both Worlds

Any first time home buyer Arizona would like to know the current property value within the state. Its real estate market took a winding road since the mid-2000s until recently.

The Market Crash

The economic bubble in 2006 spared no local real estate market. Known as the United States housing bubble, this economic changes resulted to highly competitive housing prices in the early 2006. However, the peaked property prices didn’t last for long as it declined within the same year up to 2007. In 2008, reports claim that the property value drop in that year was the lowest in the history. This continued until 2012, where the market experienced another level of low. Many people reported that this economic bubble is probably the precursor of recession.

Arizona experienced the same as its real estate market reported significantly low property values than the earlier years. It resulted to a lot of investors within and outside the United States to take advantage of its geographical location and fair climate.

Real Estate Market is Back Up

That spell of bad economic luck is over as the Arizona real estate market is back up and is re-establishing its normal market conditions. Reports claimed that the market began to normalize in 2013, resulting to better values and now more competitive than other states. A report stated that property values in Phoenix, the state’s capital city, have been slowly increasing compared to other Western real estate industries. The comparison between home price index in May 2014 and May 2015 showed a difference of 3.8 percent, which is an gain for this year’s market.

Although the rate is slower, real estate experts claimed that it is an advantage compared to other industries. Moreover, its improved percent gain is way better than the real estate market in the East Coast and the Midwest. Nationwide percent gain study showed that Arizona gained more than New York, Chicago, and Cleveland.

Considering its current real estate industry, experts can confidently say that it’s the best time to invest in a property in the state. This promoted better mortgage rates Arizona that suits every buyer’s requirement.

The Center of Affordable Housing

Despite its strengthening real estate market, Arizona remains as a mecca for property buyers for its generally affordable housing offers. Some buyers, particularly those from Canada, found Arizona as the best state to get a house at a better price. They also appreciate other perks offered to non-Arizonian investors in terms of taxes and others.

New Building Permits as Sign of Real Estate Competitiveness

One of the main contributors to Arizona’s booming real estate market is its new permits. According to a report, the market obtained significant gains in June as new construction permits have been handed out to contractors. Sales volumes also increased, which is a good sign of its market standing.

Overall, the real estate market in Arizona may have experienced some loses in the past, but is now becoming a booming industry within the state. With lenders and mortgage brokers Phoenix and those in other cities, property investors can get their dream houses at a much better price.


Two Common Reasons Of Some Buyers Like

I have been meaning tell you about a really handy financing option that we can do for borrowers who purchase a home with cash and then want to do a refinance immediately after to get their cash back.

Two common reasons some buyers like this option:

  1. Buyers could get a better deal since they have the ability to give the seller a quick sale without hassles. Sellers love cash offers.
  2. The property could be ineligible for financing because it may need major or minor repairs. This is a good way for buyers to get a good deal without a lot of competition from other buyers.

We use a Conventional loan cash-out refinance to do this and can close within 30 days.

Rates For Our Signature No Closing Cost

Rates for our Signature No Closing Cost 30 year fixed conventional home loan start at 4.625% this week depending on your buyer’s credit score.

A buyer purchasing a home for $240,000 with 5% down can expect to come to closing with only their down payment (assuming a credit score of 740).  By the way, the down payment can even be gifted. In this scenario, the lender will contribute $4,300 that will be used to pay for buyers’ closing costs and prepaids. Buyers who are hoping to bring in the least amount of money at closing will really benefit from this.

Credit Score On Conventional Loan

Recently I pulled credit for one of my customers who would have had perfect credit if it wasn’t for a $70 medical collection. The borrower had a middle credit score of 678. Due to this below average score, he was not going to get the lowest interest rate on a conventional loan.

I recommended he pay off the collection and have him provide us with proof that we could upload to the bureaus to show the collection was satisfied. His credit score was then recalculated. His credit score went from 678 to a score of 791. As a result, he received a .375 lower interest rate.

The bottom line is by paying off the collection and re-pulling the credit, my customer lowered his payment $55.37 per month and will save $664 every year he has the mortgage. All that money will be saved as a result of paying off a $70 collection. Needless to say, my borrower is thrilled 🙂

Self-employed at The Valley of the Sun

The Valley of the Sun has many entrepreneurs who are self employed. You are among them as a Realtor. As you know know very well, it has been a real challenge for self employed borrowers over the years to qualify for mortgages.

The most challenging aspect of the underwriting process for a self employed borrower is the examination of income. Self employed borrowers were required to provide, in most cases, 2 years worth of tax return income to substantiate that their income is consistent.

Good news, we have a Conventional loan program that few lenders use that will in most cases only require 1 year of tax return income. Interest rate is the same as any other conventional loan.

Caveat: the program requires the borrower to be self employed for greater than 2 years.

I will be happy to help you or your clients with any questions on self employed scenarios.