The rapid growth of Arizona has made it one of the top states to move to; however, many people are unaware of how much their house payment will cost until they arrive. The median home price in Arizona is about ($349,000) which may seem attractive, but the real estate market changes daily, and prices can change from one day to another.
Here’s what you should know about local real estate trends and markets before moving to Scottsdale AZ, or anywhere else in Arizona:
Compare Prices
When you begin your search for a property in Scottsdale, AZ, be sure to compare the prices of other homes on the market. While some people may tell you that comparing prices taking neighboring houses into consideration may not be the best way to get an estimate of the property prices in the area. The fact is that it can give you a head start in the direction of buying a property. Comparing houses with neighboring properties may not always be accurate, but they should give you a better idea of what agents are showing and selling homes for.
Recently purchased homes are another indicator of prices in an area, but remember that they too could be overpriced by thousands or several hundred dollars per square foot depending on the market.
Understand Local Rules and Regulations
The housing scenario is not the same across all states, cities, counties, and even neighborhoods within them. Before moving to Arizona, you must understand how much your real estate taxes will cost you monthly or yearly depending on the city, how long you have to pay for homeowner’s insurance and whether you are required to undo any renovations or not.
Arizona is Booming
Although prices may seem like a steal, they’re still growing, and appreciation rates are in the 14-15% range (depending on the area you’re looking at). It doesn’t include extra costs such as homeowners association fees.
The main reason for the significant increase in prices is all the new people moving to the place. Another consideration is that if you choose to rent, rates are around $1,200. Since the demand for accomodations on rent is high, you may need to sign a 1-2 year lease if you don’t want to be searching for housing every six months.
Another factor that plays into the high prices is the lack of inventory. It isn’t much available, so it’s more complicated than other major cities when trying to find your dream home. But if you’re ready to buy and live in Scottsdale, you’re in luck.
The best part of the housing market is that nearly every neighborhood has brand-new homes, so there’s never a shortage of new construction or ideas on how to design your home.
Buying vs. Renting
When moving to Scottsdale, AZ, or other places in Arizona, you need to consider your budget before buying or renting. If you plan on moving soon, it makes sense to rent (leaving less of a financial burden), especially if you’re unsure how much time you’ll need in the area.
If your goal is to buy, be prepared for inventory shortages and large price swings. You can benefit from buying now instead of later due to mortgage rates inching closer to 3%. To find better deals, you may also consider availing the expertise of experienced realtors who can help you in locating properties according to your taste, preference and budget.
The most important thing is to make the right choice in your heart; it’s not always about financial figures when buying or renting. You need to be happy with whatever situation you choose. If that means renting for a year then buying next year, do what feels right.
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