Homes prices have continued rising in Yuma this year in spite of the challenging times.
Historic low interest rates, coupled with record low numbers of homes for sale have created a very strong seller’s market in Yuma Arizona. In May 2020, the average home sold for just under $190,000. We haven’t seen an average monthly price that high in almost 12 years.
A major factor in our rising home prices is the historically low mortgage rates. For a home buyer, a low rates translates to more buying power. That means you can buy a more expensive home with a lower payment. Check out this graph below. You can see that a mortgage payment on $190,000 at 3.25% would be the same as $168,000 at 4.25%. Wow! You get $22,000 more house for the same payment just because of the lower mortgage rate.
Unfortunately for buyers, this means more competition for homes. We are starting to see multiple offers, homes selling for more than the asking price, and bidding wars. Hang in there. Our best advice is get fully pre-approved in advance. That way, when a home you love comes on the market, you will be poised to jump in and write a contract right away.