What’s Really Behind the Tucson Housing Market Recovery?
Tucson Housing Recovery
The housing market has shown several consecutive months of improvement in home prices and buyer demand. The housing market—once a downer for the U.S. economy—is now its one bright spot. But why?
A recent TIME magazine article questions what’s really behind the real estate market’s improvement.
Tim Iacano of Iacano Research credits the majority of the recovery and rise in home prices — if not all of it — to the Federal Reserve’s aggressive actions to keep mortgage rates low. The Fed’s quantitative easing (QE) program has prompted mortgage rates to fall to all-time lows in recent weeks.
The lower interest rates have increased Tucson home buyers’ purchasing power and boosted affordability to purchase a home in Tucson AZ.
For example, Iacano points out that a Tucson home buyer today could purchase a Tucson house for sale worth $280,000 and if he’s able to snag a record-breaking 3.3 percent Tucson mortgage rate, he’ll have a $1,100 per month mortgage payment.
“Even if mortgage rates moved back up to their 20-year average rate of 6.5 percent (what many thought were simply unbelievable rates when they first dropped that low last decade), that same $1,100 mortgage payment would finance a Tucson home purchase of just $193,000, not the current $279,000,” Iacano points out. “The difference between these two prices is nearly 50 percent!” [Source Time Magazine]
This really is a time that I tell my family and friends to purchase real estate in Tucson. Please let me know if I can help you.
My best,
Carl F. Pepper, Realtor
carl@MyOwnArizona.com
www.MyOwnArizona.com
(520) 822-6575