Mortgage lenders are quickly making the potential for owning a home in metro Phoenix a possibility, especially for first-time homeowners. Although prices for homes in metro Phoenix have been on the rise so far in 2018, The Federal Housing Administration is allowing for greater limits on home-loans. Mortgage loan companies such as Freddie Mac and Fannie Mae have been instrumental in allowing for larger mortgage limits.
Freddie Mac & Fannie Mae Loan Limits Increased
Nearly half of homes purchased in Phoenix, are done so with a loan through one of the previously mentioned corporations, and experts believe that these new loan limits will result in a boosted market. Overall, loan limits obtained through Freddie Mac and Fannie Mae have been raised close to $30,000, capping off at around $453,100.
Housing Market Growth Expected For 2018
Experts on the Phoenix housing market believe that it will continue to grow throughout 2018. Arizona State University director Mark Stapp believes that although growth is expected, certain factors such as inflation and increased interest rates could be detrimental to the market. Reformed tax laws could also play a role in deterring market growth.
Continuing to create affordable housing opportunities in the Valley remains, for many experts, the larger goal at hand. Cromford Report housing analyst Tina Tamboer expects that home prices will likely increase at a slower rate than the previous 2 years during 2018.
Despite potential setbacks, the housing market is expected to continue on the trajectory of growth it experienced in 2017. Whether or not pricing reaches the highs experienced in 2006, remains in question. Last year alone, home prices in Phoenix increased 6.5%, and were up 7% in the Valley as a whole in 2016. Phoenix homes are currently selling at a median price of $250,000.