“Home sales across metro Phoenix are on track to jump more than 30 percent during the next few months, potentially signaling the restart of the area’s stalled housing recovery.” Cathy Reagor, Arizona Republic
Although Valley home sales fell 14% in 2014, many economists and real estate experts are looking forward to a substantial increase in 2015. One of them is Cathy Reagor who published an article in the February 28, 2015 Arizona Republic.
Below are some interesting facts and commentary included in her article.
- Most people who experienced foreclosures or short sales during the housing crash were required by lenders to wait seven years before they could qualify for a mortgage again. Consequently, those who lost houses in 2007 or 2008 are now eligible to buy again in 2015.
- Interest rates are expected to tick up in in the near future, which is motivating millennials to purchase homes this year.
- Less stringent lending standards such as the federally mandated cut to Federal Housing Administration mortgage insurance and the FHA’s required down payment of only 3.5% may be attracting new buyers.
- The number of Valley houses under contract to sell started to surge in early February, according to Arizona State University’s W.P. Carey School of Business.
- The biggest increases in pending sales were for residences priced from $150,000 to $250,000 and from $250,000 to $400,000.
Let’s cross our fingers and hope that these pending sales will be consummated causing a rebound in Arizona’s housing economy!!!!
By Gary Ringel, CGREA