For many, Buying a home is a stepping stone in the process of life. We graduate from High school, some of us go to college, others begin their careers…and then comes the next step, buying a home. Today’s new home buyer is more cautious than ever before. Following the economic crash of 2008, many first time home buyers were faced with financial hardship and we unable to afford their monthly mortgage payments, resulting in thousands of properties going into foreclosure. The years leading up to the economic crash of 2008 were exciting for many home buyers and sellers, properties were moving fast and prices were through the roof! Looking back to that time, one can now see that the market was extremely unstable and with prices grossly inflating it was only a matter of time before the housing bubble would burst.
With that being said, today’s home buyers saw what many went through and vowed that that would never happen to them. In addition, Mortgage banks are more cautious than ever when it comes to giving out home loans and home buyers are required to put down more collateral…typically a 20% down payment, which ultimately lowers monthly mortgage payments, making the property more affordable. Another new trend that arose in the last few years is the almighty full-cash offer. During the recession, when foreclosures were a dime a dozen, investors from all over the country flocked to Arizona and bought up tons of properties with cash. If you were a traditional home buyer who was trying to buy a property under $400,000 you were usually beat out by an all cash offer. This trend inspired many buyers. The once traditional buyer who used finance to purchase a property began using cash to level the playing field. By using cash to buy a property, home owners are usually able to get better deals and are able to have more security in the future.
In our current real estate market cash is still king, however, we’re not seeing as many cash offers as we were one year ago. The market is balancing out, we are seeing home prices hold steady and interest rates are staying low. This type of market is great for home buyers because there are still deals to be had, there is revolving inventory and money is cheap. If you are interested in finding out what properties are available in your desired neighborhood or what the market is like in a particular community, contact me today 480.593.4844 – firstname.lastname@example.org