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Over last decade real estate in Arizona has been extremely active. Prices in various regions throughout Arizona vary greatly from one area to another. In general Arizona homes have been in huge demand from regional, national, and foreign investors. Over the last several months Arizona real estate prices have begun to soften a bit. The softening market has prompted some sellers to increase incentives to sales agents and buyers, ranging from increasing sales commissions to reducing pricing. Many believe this presents an opportunity to scoop up hot Arizona homes at reduced prices.
The reasons for the cooling market include mortgage rates than are beginning to move higher, a temporary oversupply of homes, and the property tax consequences of moving to a new home.
Many experts and market watchers say the fundamentals underlying Arizona's real estate market remain sound. The 30-year fixed and variable rate mortgages still remain around 6.5 percent, relatively close to historic lows. Another positive factor is unemployment remains very low throughout Arizona. Buy to let mortgage