Real Estate Experts: 5 Reasons Why 2025 Is the Year To Buy in Arizona Article originally posted on HERE on November 27, 2024 The secret of Arizona as a great place to live has been out among retirees for some time now, but they’re not the only demographic that should consider buying a home in Arizona. In fact, 2025 could be a great year for anyone, from first-time homebuyers to young families, to head to the desert for great deals. Of course, you won’t want to wait until too far into 2025, according to Rebecca Hidalgo Rains, a realtor with Integrity Allstars, and Michael Fraley, chief growth officer at Oakwood Homes. Read on to find out why you should buy in Arizona in 2025. Earning passive income doesn’t need to be difficult. You can start this week. Prices Are Poised To Drop According to Fraley, thousands of homeowners are sitting on the sidelines in Arizona, waiting to re-engage when the market becomes more financially favorable. This has created reduced demand. However, he pointed out, “If supply remains steady or even increases due to new construction but demand does not match it throughout the winter, home prices could stagnate or decline in 2025.” Consumer Confidence May Decline Consumer confidence is currently low due to economic uncertainties, Fraley pointed out. That means for buyers who have all their ducks in a row–down payment saved, preapproval and good credit — you can take advantage of the many buyers who are hesitating to enter the market. “This means that right now is a great time to consider buying a house, if it’s part of an individual’s goals,” he said. Many home builders, including Oakwood Homes, are buying rates down to below 5% and offering other incentives, like cash toward closing, to make homeownership more attainable, he explained. There Will Be More New Homes Fraley said that they’re seeing an uptick in buyers preferring new homes over resale homes in Arizona. “[This is] due to competitive pricing combined with the benefits of modern design, energy efficiency, lower maintenance costs and the ability to customize features to their preferences. New homes can offer long-term savings and a lifestyle fit that makes the initial investment worth it.” With more new homes being built — his company alone is building several hundred — there’s a good chance buyers will find what they’re looking for in 2025, he said. Sellers Are Getting Desperate Because of the currently sluggish market, sellers are getting desperate and dropping prices radically because they can’t hang on anymore, Rains said. “Arizona is not a depressed market. It is one of the best markets in the country, and I would not wait.” It’s a Buyers’ Market As a result of seller desperation, and lower interest rates, “This is seriously the best buyers’ market we’ve seen in a decade,” Rains said. The last really good buyers’ markets in Arizona, Rains said, were in the spring of 2014 and a tiny window at the end of 2022. While other parts of the country known to be up-and-coming have begun to see home values and home sales dropping, Rains said that is not the case in Arizona. “There’s definitely a huge pent-up demand for people.” With so much pent-up demand as sellers have hung onto their homes, Rains said the recent lower interest rates feel “like the light finally at the end of the tunnel.” Rains said that buyers have options they are not going to have when everybody wakes up and the rates keep going down. She foresees by the spring of 2025 there will be bidding wars and competition. “Everything’s really changed for buyers,” she said. For the first time, buyers can negotiate with sellers to pay closing costs, pay commissions, repairs and so on. “The best time to do anything in real estate was yesterday.” In addition to these reasons that make 2025 a great year to buy, particularly on the early side, Rains pointed out some of the other benefits of moving to Arizona generally, such as: Better price per square foot Lower taxes Great climate Great for outdoor lovers Proximity to airports, businesses and other amenities For buyers who still need convincing, Fraley pointed out that “homeownership is the single biggest source of generational wealth that passes through a family.” Rains suggested that you buy sooner than later, because if you don’t, “You’re going to kick yourself come spring, mark my words.”