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Arizona Housing Market 2022

According to the US Census, Arizona recorded the third-highest net gain in internal migration in 2021, behind Florida and Texas. The average home value in Arizona is $407,715. Home values ​​in Arizona have increased 29.9% over the past year. With low supply and high demand, the housing market is expected to grow in 2022.

Big cities in Arizona, like Phoenix, have been one of the hottest real estate markets in the United States. The most expensive homes in Arizona are in Scottsdale, a suburb of Phoenix. Flagstaff has seen the biggest increase in Arizona, with home values ​​up 35.7% over the past year.

How do I calculate my mortgage payment?

We recommend using a mortgage calculator for Arizona. The formula for calculating a hand payment is quite complex. It looks like this:

Mortgage rates in Arizona are relatively low right now. Although they have risen in recent months, mortgage rates overall remain at historic lows. To calculate your monthly mortgage payments in Arizona, you’ll need to enter your estimated mortgage amount, the term of your loan, and the rate you think you qualify for.

The term of your loan is the number of years you have to pay off your mortgage. Keep in mind that the higher your credit score, the more likely you are to get the most competitive rate available.

What other fees do I have to pay?

There are other monthly expenses you will need to consider, such as home insurance and property taxes. When using our Arizona Mortgage Calculator, remember that property taxes paid as a percentage of owner-occupied homes average 0.67%. Property taxes may change depending on your county.

Homeowners can also be part of a homeowners association (HOA) and must pay a monthly HOA fee in addition to their mortgage payment. HOA fees typically cover maintenance of common areas and often include services such as garbage removal. To enter these additional costs into the Arizona Mortgage Calculator above, simply click on “Additional Entries” (under “Mortgage Type”).

You may also need to consider private mortgage insurance (PMI). Homeowners will have to pay PMI if they don’t put down at least a 20% down payment on their home. Our tool will help you break down these varying costs so you can see what your monthly mortgage payments will look like under different scenarios. If you’re looking to refinance an existing mortgage, our Arizona mortgage calculator can also help you figure out your monthly payment — and you can check out our list of the best refinance lenders to start that process.

What to know before buying a house in Arizona

Before buying a home in Arizona, it’s important to make sure your finances are in order. You will need:

There are also specific issues you should be aware of when buying a home in Arizona. Arizona is known for its desert climate, which comes with great weather, with hot summers, mild winters, and low humidity all year round. Arizona has a few large cities such as Phoenix and Tucson, but there are many smaller cities and towns to consider.

Despite the 30% increase in home values ​​over the past year, homes in Arizona are also cheaper than homes in states like California, where prices have skyrocketed. It’s important to know what you want, find the perfect location, and work with the right mortgage agents and lenders to find the best price and rates.

Learn more: Homebuyer’s Checklist

Tips for First Time Home Buyers in Arizona

Here are some important tips for first-time home buyers to help them navigate the process. There are several programs available to first-time home buyers through the Arizona Department of Housing, or ADOH. The Arizona Industrial Development Authority’s HOME Plus program is the only state-run homebuyer down payment assistance program available statewide.

The Home Plus program helps creditworthy tenants who may qualify for a mortgage, but cannot pay the down payment and/or closing costs, with the funds needed to move forward. In addition to the Home Plus program, there are several other programs available to homebuyers.

Loans and programs for home ownership

Here are other homeownership programs to consider and explore:

  • FHA loans are mortgages repaid by the Federal Housing Authority and require a 3.5% down payment.
  • VA loans are for the military and require a 0% down payment.
  • USDA loans are government guaranteed loans for qualifying properties and require a 0% down payment.
  • Fannie Mae and Freddie Mac offer conventional loans that require a 3% down payment.

Budget requirements

Once you’ve decided on the best program and shopped around with different lenders, it’s important to decide on a home buying budget. Many experts recommend that your monthly house payment (including additional costs) be no more than 30% of your monthly income.

It’s also important to maintain a good credit rating, so don’t apply for credit cards or other loans right before your house hunt. Credit report inquiries will impact your credit score. You should also have enough money saved for closing costs and other expenses that may arise during the home buying process.

Read more: Best mortgage lenders for first-time home buyers

Still have questions ?

Here are some other questions we answered:

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