Phoenix is a trendy place to move to, so new communities are popping up. The master plan community known as Sky Crossing Phoenix is just one of many unique spots to call home. The Ssun’s Valley is an attractive place to live, with amazing weather and endless things to do. From top attractions to gorgeous hiking spots, Phoenix is a rising city. However, interest rates also continue to rise. Will the rise in interest rates impact these new homes?
Interest Rates
Even though the Sky Crossing community is a bright star in the desert, offering premium amenities, some fear that great communities like this one and others around the city will see a loss of purchases due to high interest rates. With super-cheap mortgages a thing of the past, the spike in interest rates could impact these new North Phoenix homes. The interest rate is at 1.9 percent and is only expected to increase. We have seen close to zero percent interest rates for years, so the rise sends a shock wave to new home buyers.
Real Estate Impact
The impact on real estate doesn’t happen right away, but with the interest rates expected to rise even more, we expect to start seeing lower numbers in home purchases. Other housing market factors play a role, such as the recent tax bill and local and state property taxes. Coastal regions are expected to see more of a spike than the rest of the country. Sales have already declined since owning a new home has become more expensive compared to recent years.
The numbers aren’t alarming yet, but 2018 has had lower sales than 2017. However, the market continues to be stronger than in previous years. As the rates increase, though, sales will likely decrease. There is hope that we may not see too harsh of a decline since Millennials are starting to buy homes.
What to Do?
Since we are unsure how the market will react to increasing interest rates, it is a good idea to start looking now and consider purchasing sooner rather than later. Luckily, Phoenix is full of beautiful new housing communities like Sky Crossing.
