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If you’re thinking of buying or selling real estate next year, it’s important to look into market forecasts. The housing market is always changing. Knowing when to buy or sell in Arizona drastically impacts bargains and returns. Below are important predictions to keep in mind when you partner with a real estate agent.

Understanding the Arizona Real Estate Market in 2020

1. Great Interest Rates Will Drive Sales

Competitive mortgage interest rates mean more people are willing to buy. Interest rates are below 4%. To provide perspective, rates have risen as high as 18% in the past and as low as 3%. Rates will vary from mortgage types—regardless, they offer great opportunities, especially for young and first-time buyers. Rates could rise later in the year, so buy in the spring.

2. A Seller’s Market May Be On the Horizon

All the talk of a housing market recession in 2020 could fuel a seller’s market. Home values increased 7.5% in 2019, and as they continue to rise next year, sellers will want to take advantage.

real estateThis is bolstered by the fact that so many people are looking to buy can take advantage of great interest rates, and that there aren’t enough homes in some markets to meet the demand. Starter homes are in especially short supply, so if you’re planning on buying a home, know that you may not find the best bargain, especially in markets like Tuscon.

This may not be true in Phoenix, however. It was ranked as a top 3 market for first-time buyers because of low median home prices and a higher inventory ratio. To truly find the best opportunities, you should work with a real estate agent.

3. Investment Properties Could Yield Big Returns

If you plan on purchasing an investment property in Arizona, 2020 has great opportunities. The average rental rates in the state are just below $1600 per month. Airbnb rentals are yielding nearly $2500 and show a 55% occupancy rate. Coupled with increases in home value, an investment property could provide a great monthly return while working toward a hefty long-term sale return.

 

The best way to navigate changing real estate markets is with a real estate agent. The Helping Hands Real Estate Team helps buyers and sellers throughout Mesa, Gilbert, Chandler, Queen Creek, San Tan Valley, Ahwatukee, and Tempe, AZ. As a part of Keller Williams Realty, this team is committed to superior customer service. They can help you secure financing, which you can learn more about on their website. Call (480) 385-9107 to schedule a consultation.

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