Last week, the Phoenix Business Journal ran an article about Scottsdale-based luxury home builder Meritage Homes’ intention to shift its focus from the luxury market toward building more entry-level homes. With home prices and interest rates on the rise, prospective homeowners, especially Millennials burdened with enormous student loan debt, want affordable housing, so Meritage’s shift makes good sense.
Moving On from Move-ups?
CEO Steve Hilton attributes homeowners’ reluctance to buy luxury homes or upgrade to more expensive ones to rising interest rates, but is that really all there is to the story? He acknowledges that entry-level homes are a necessity and that “[m]ove-up homes are more of a choice” but maybe interest rates aren’t the only reason people are choosing not to move up.
The 2018 Zillow Group Report on Consumer Housing Trends found that 83 percent of Americans love their homes. In fact, loving their home and not wanting to deal with the bother of moving were the top reasons given for not moving.
Renovation Over Relocation
A survey by Zillow Research published this month found that 76 percent of Americans would choose to renovate their current home instead of making a down payment on a new home if they were given a lump of money. It seems that the combination of rising interest rates, increased home prices (and property taxes!) and the hassle of moving are make staying put an increasingly attractive option for homeowners.
Whatever your buyer profile looks like, AZ Mortgage Brothers can help you achieve your goals. Are you a Millennial looking for a starter home? We can help. Are you looking to upgrade to bigger or nicer home or move into a new neighborhood? We can help with that, too. Even if you don’t want to move and are just looking to improve your existing property, we can help you refinance and renew the home you’re in now. Contact the AZ Mortgage Brothers today!