There are numerous reasons why out-of-state folks want to pack their belongings in a UHaul and move to the Greater Phoenix area. The idea of being in a new state can fill you with hope that the move is exactly what you need at this point in your life. However, before getting lofty ideas that relocating will be a piece of cake, you need to come back down to Earth and manage your expectations.
Limited rental options
Naturally, finding housing should be at the top of your list of things to do; but, you don’t want to wait to find a rental (even a short-term rental) until you arrive in your new city. It won’t be as easy as you may think and you may find yourself living in a hotel room until you can find something.
Sixty percent of real estate agents believe the lack of inventory is the biggest challenge of the 2020 real estate market. Plus, when you take into consideration that rentals in the Greater Phoenix area could be as high as four times the usual rate during the summer months, people from out-of-state are going to struggle to secure housing.
“The assumption that one can find a short-term rental in less than a week that allows pets and is under $1,500 a month during our peak season (January to April) is not correct,” Phoenix Relocation Source’s lead client concierge, Ashlea McCaffrey says.
Renting isn’t necessarily the cheaper option
The real estate market in Phoenix is unique compared to other markets, as the median price for a home is less than it would be to rent a comparable house. “A lot of out-of-state clients initially think it will be more affordable to rent; however, when they see the sticker shock and lack of inventory that comes with our rental market, they almost immediately pull the trigger to purchase,”Jonas Funston, founder and team lead, shares.
The median house price is about $265,000 and with the interest rate being 2.99% for a 30-year fixed rate mortgage, why wouldn’t you buy? If you purchased a house at the median price of $265,000 and had a 20% down payment, your estimated monthly payment could be $1,247, whereas your renting a 2 bedroom apartment could be (on average) $1,386.
Owning builds wealth
One thing about owning your own home is that it’s an investment that helps build wealth. If you take care of your home, do renovations with high return on investment, and pay your mortgage down, you could sell your home for a nice profit. Of course, that will depend on what kind of market it is at the time of listing. For example, according to 79% of real estate agents say that it’s a seller’s market in their area, meaning that houses are likely to get sold quicker and at or above asking price!
The real estate market can be tricky to navigate, to be sure, but it’s a lot trickier if you’re moving to a new state, let alone a new city. While you may have done a lot of research about the Greater Phoenix area, you’re not going to know the lay of the land.
Luckily, you don’t have to fumble your way around the city. Phoenix Relocation Source can help you find your dream home and help your move go as smoothly as possible. Drop us a line and talk to one of our team members for more information. You won’t regret it!