Competition On Buying Houses Rises Fast In Arizona In US Markets
Buying a property has become difficult lately. It's not just the price that makes things challenging, but also the competition. Buying a property has become like any other competition - you have to win it before anyone else does! Bidding wars are breaking out, and you'll need to be prepared for them.
The competition is so high that many people find themselves stuck in bidding wars for months before finally buying their first home. It's even tougher to find an affordable property, especially if you're looking at homes in Arizona! In this blog post, we'll share three different reasons why housing marketing is heating back up in Arizona and how this has an impact.
1 - Mortgage Rates Have Been Lowered
One reason why the housing market is continually rising it's that mortgage rates have lowered. According to Freddie Mac, at the start of 2020, the 30-year fixed-rate mortgage rate was 3.45%. But by the end of July of 2021, the number dropped massively to 2.87%. Because the mortgage has lowered, more people have been able to afford a home. Because of that, the competition is getting even more challenging.
2 - There Aren't Enough Homes On The Market
Another reason this year's house market is rising so fast and will continue to rise; it's because there aren't enough homes on the market. Even though more people are looking into buying their first home than ever before, the number of houses on the market is dropping.
There's an illusion that there isn't much competition, but bidding wars have started as more people enter the market. In hot markets such as Arizona and California, this is especially true. In these states, it's not unusual to see a house being sold within a week of being put on the market. So if you're looking to buy a property, be prepared for a fast and furious competition!
However, for homeowners seeking to sell their houses, it's beneficial. Many homeowners have stated, "I want to sell my house fast for cash in Scottsdale, Arizona, and as the market is booming, I know that my house won't stay on the market for very long."
3 - Homeownership Is Becoming Exclusive
Finally, the last reason why the housing market is heating back up these days it's because homeownership is becoming exclusive. This means that you'll need to have a lot of money to buy your own house, making things difficult for people who don't. If anything, this only makes the competition even more fierce as people try to outbid each other.
What Impact Does It Have?
All of these reasons have one thing in common: they're making it difficult for people to buy a property. This impacts the economy, as people who would have normally bought a house are now renting instead.
To sum up, it's becoming more and more difficult to find an affordable place to live. So if you're looking to buy a property in Arizona, be prepared to fight against a competitive market!