The Bad News for Renters and Buyers
This information is not the sort of news renters like to hear, but it continues to be our current reality. Rental prices on a per square foot basis have increased 43% since February of 2014. That’s an average of 8.6% per year!
The other bad news for would-be homeowners is that home prices continue to appreciate as well. This is happening at an annual rate close to the annual increase in rental rates – 7.2%!
Whereas this is good news for homeowners and landlords, it could mean “Game Over” for some buyers and renters. Affordability, often touted as a great benefit of Real Estate here in the Phoenix Metro, is becoming a major problem.
Phoenix is becoming a major in-bound population draw for tens of thousands each year. This is primarily due to climate, a business friendly environment, lower taxes, and a state increasing its wages with better jobs. Because of this, I see no end in sight!
A Solution for Some?
For first time home owners, or even those who haven’t owned a home in a few years, there are answers out there! Of course the normal answers of sacrificing some “must-haves” like location and size are always options. However, we also know of a great home loan that is not very well known at all. It’s a loan program with no down payment, no closing costs, no mortgage insurance. The catch? It is a process! This is not the quick, I give you my social and my tax returns and you give me a pre-qualification type of loan. No, no, no, there workshops involved, counseling sessions, budgeting worksheets etc.
On top of that there are a half dozen other legitimate loan programs that may work for you, like VA Loans, Native American Loans, Down Payment Assistant programs etc. We have made it our job to become knowledgeable about these products so we can help our clients know where to begin.