Phoenix More Affordable Despite Price Recovery.
The median home values in many metro Phoenix areas have fully recovered and are near or equal to that of the height of the market in 2006. But there is one important difference between peak prices in 2006 and resale home values today: the cost of money. In June of 2006, the 30-year fixed rate mortgage averaged 6.68%, where for the week ending June 9, 2016 the average rate was 3.66%.
That means interest rates today are 46% lower than they were in June 2006. When those rates are applied to a $200,000 mortgage, the interest paid in June of 2006 would have been $1,113 per month – compared to only $610 today.
But this won’t last forever, so if you are thinking of buying, do it now when homes are more affordable.