The housing market in Phoenix is finally starting to cool down, with the inventory of homes for sale jumping 136.7% at the end of 2022. Potential homebuyers are feeling relieved as the demand for available homes starts to dissipate, making it easier for buyers to enter the market.
While the market is stabilizing, many future homebuyers have wondered if the shift has resulted in a change in Phoenix home prices. It’s been a seller’s market up until this point, with many home sellers getting well above the asking price for their homes.
This guide will discuss what you need to know about Phoenix real estate and home prices. We’ll also discuss various tips on living in Arizona and purchasing a new home.
Ways to Improve Your Credit Scores When Buying a House
Having a good credit score helps increase your chances of getting approved for a home loan. There are some loan options available that cater to those with fair credit scores. However, it’s important to try and boost your credit score as much as you can to ensure you get a low-interest rate.
Some ways you can improve your credit score include:
- Continue making on-time payments toward your debt
- Investigate errors on your credit report
- Don’t open new lines of credit
- Think about consolidating your debt
How Do Phoenix Home Prices Compare to Other Big Cities?
While homes in Phoenix might cost more than other cities in Arizona, it’s still an affordable option when compared to other big cities in the country. Let’s compare Phoenix to other metro cities in the United States.
The median home prices in big cities around the United States are:
- Phoenix: $425,000
- San Francisco: $1.37 million
- Los Angeles: $836,630
- Dallas: $439,900
- Seattle: $814,000
- Atlanta: $413,900
- New York: $789,000
- Chicago: $339,900
- Miami: $515,000
While not the cheapest big city to live in in the United States, Phoenix is one of the most affordable metro cities.
Benefits of Buying a Brand New Home Over a Resale Home
Phoenix is home to many up-and-coming communities. If you’re buying a home in Phoenix, you can choose to live in a newly established neighborhood or one that’s been around for longer.
Purchasing a brand new home provides you with benefits that you can’t experience with a resale home. These benefits include:
- Improved safety features
- Fewer health problems or hazards
- Home warranties
- New appliances and materials
- Less maintenance
- Personalized to your taste and lifestyle
- Better insulation
Best Schools/School Districts in the Phoenix Area
If you have kids and are moving to Phoenix, you’ll likely want to know what the best schools and school districts are. Phoenix has highly-rated public and private schools. Some of the best schools in the Phoenix area include:
- Chandler Unified School District No. 80
- Gilbert Public Schools
- Tempe Union High School District
- Scottsdale Unified School District
- Peoria Unified School District
- Rancho Solano Preparatory School
- Phoenix County Day School
The neighborhoods where these schools and districts are located are one of the top areas to move to in Phoenix. Many of the schools are known for their small classroom sizes and high test scores.
What Are the Benefits of Putting More Down When Buying a House?
It can be challenging to determine how much money you should put as a down payment on your new home. While putting a small amount down is tempting because it means you have to pay less out of pocket up front, you might be left with a monthly mortgage payment that’s too high.
The benefits of putting down at least 20% when purchasing a home include:
- Lower monthly mortgage payment
- Reduced or lower mortgage insurance costs
- You can look at higher-priced homes
Should You Do a Bunch of Upgrades When Selling Your Home?
Doing some minor improvements to your home before you list it might make it easier to sell. Any upgrades you do should showcase your house to its full potential and appeal to buyers. Staging your home is a cost-effective way to ensure your house looks its best during showings and open houses.
Some upgrades you might consider doing to your house include:
- Repainting the interior walls with neutral colors
- Updating your cabinetry
- Changing outdated drapery to modern blinds
- Paint your front door
- Plant new flowers and greenery
- Pressure wash the siding
- Prune bushes, remove weeds, and mow the lawn
How Do You Know Which Mortgage Lender You Should Go With When Buying a Home?
It’s important to shop around to find the best mortgage lender. You can get a mortgage through various companies, like credit unions or conventional banks.
Consider the following factors when shopping for mortgage insurance:
- Additional fees, such as underwriting costs
- Interest rates
- Mortgage insurance
- Down payment assistance programs
Why Today’s Interest Rates Are Still Historically Very Good
The highest mortgage rates ever recorded in history were in October 1981. At their peak, interest rates were 18.45%. The lowest was in December 2020, with rates dropping to 2.68%.
Mortgage rates have inched up little by little since late 2020 but they are still low in comparison to other decades. Interest rates continue to be good due to the Federal Reserve lowering rate due to the COVID-19 pandemic.
What Does the Central Arizona Water Project Say About Future Water Supplies in the Phoenix Area?
Arizona has recently experienced the longest droughts in modern history. The Central Arizona Project delivers water to the Phoenix area and more than 80% of people living in the state. The company is working closely with other agencies to find ways to solve the water crises, such as limiting water usage and cutting back on new builds.
Partner With an Experienced Arizona Real Estate Company
If you’re looking to live in a big city without the extreme price tag, Phoenix, AZ, might be the place for you. Phoenix home prices are lower than in other metro cities in the area. Experience the benefits of living in a major city without your monthly budget taking a hit.
Are you looking for a reputable realtor that can help you find your next dream home? Contact Mahody Realty to schedule a consultation.