Scottdale Housing No Longer Affords Easy Access to Cash

Cheap mortgage rates and frenzied demand have fueled the huge hike in Scottsdale housing prices that occurred over the past couple of years. These price jumps not only benefited sellers, but also homeowners with no intention of selling, as 10 percent gains in Scottsdale housing values allowed them to use "refinancings or home-equity loans to convert some of the windfall into cash."

Unfortunately, many homeowners have become accustomed to a fleeting situation. Scottsdale housing values cannot continue appreciating unchecked, and now, thanks to a strengthening economy and tight monetary policy, mortgage rates are on the rise, and "consumers who made a habit of tapping into their home equity will find that their home is no longer a personal ATM."

Many locals have factored Scottsdale housing appreciation into financial preparations for retirement and payment of their children´s education, a move they will find was a mistake when bills come due. Families with adjustable rate mortgages will find themselves doubly squeezed with much higher mortgage payments as interest rates increase.