VA loans or mortgages grow in importance for Phoenix real estate market: Overall sales are down, but surging are sales with VA loans.

While the number of sales of single family existing homes in Greater Phoenix have been down every month this year compared to the same month of last year, not so when it comes to sales involving VA loans.  The number of sales in which a buyer financed the purchase with a VA loan or VA mortgage is up every month this year compared to the same month as last year.  See Chart One below.  In fact, VA loans were 7.2% of all sales of single family existing homes for the first half of 2014 in Greater Phoenix.  The percentage of 7.2% has not been higher this century.  In 2013 the percentage was 5.2% and was 4.1% in 2012.  See Chart Two.

The United States Department of Veteran Affairs, shows the veteran population in Arizona at 527,400 as of September 30, 2013.   A veteran may purchases a home with no down payment up to a $417,000 purchase price.  According to the Arizona Regional Multiple Listing Services, Inc. (ARMLS), for the first six months of 2014, there were 2,098 single family existing homes purchased with a VA loan.  Ninety-nine of these sales had purchase prices over $417,000.   The highest purchases price this year with a VA loan was in Scottsdale, Arizona.  The purchase price was $1,000,000.  I spoke with the selling agent Lyn Trayte with Dominic and Co. International Real Estate.  She said the buyer was a retired veteran and the transaction went smoothly.

Demand for VA loans up as other mortgages fall  an article by Catherine Reagor from the Arizona Republic.

If you need a referral for a lender who knows VA loans contact me at FWilcox@gcta.com or 602-648-1230                                                                                

Table One:  Number of Purchases with a VA Loan for Single Family Existing Properties in Greater PhoenixVA loans1

 

2013 2014 Difference
January 209 245 +36
February 257 282 +25
March 321 379 +58
April 317 365 +48
May 348 402 +54
June 319 425 +106
July 359 388 +29

Table Two:  Percentage of Overall Purchases with a VA Loan 

January 1 through June 30 for 2000 through 2014 

VA Loan Percent

Fletcher R. Wilcox

V.P. Business Development, Real Estate Analyst

Grand Canyon Title Agency, Inc.

FWilcox@gcta.com   602-648-1230

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