By Mike Sunnucks | Rose Law Group Reporter
Real estate expert Jim Belfiore continues to see strength in the regional housing market pointing to new home sales in the West Valley and low mortgage interest rates raising overall interest from buyers.
Belfiore, who is president of Belfiore Real Estate Consulting, said home purchases are seeing typical summer slow downs but are performing better than last year.
“It is still running well above a year ago,” he said.
Belfiore also expects to see continued year-over-year gains heading into the rest of the year. The favorable comparison stems from higher mortgage interest rates that dampened home buying demand last year and the government shutdown fight sparked towards the end of 2018. “Last year, mortgage interest rates were climbing,” Belfiore said.
Now, mortgage interest rates are low and that is spurring home buyers.
“It’s really people who are getting mortgages. It’s really pulling buyers out,” Belfiore said.
Lower rates are also helping home prices. Belfiore said the lower rates allow home builders to raise prices some because buyers can qualify for larger mortgages. That helps offset some extra costs builders are facing such as site improvements.
“That’s enabled by lower interest rates,” Belfiore said
Belfiore’s latest data shows continued demand and strength in West Valley submarket such as Buckeye and along the Loop 303 freeway.
Those markets have lots of entry level homes and subdivisions who have high sales volume but are also more dependent on mortgage rates.
Belfiore said he is also seen strength in the West Valley with some move-up price points.