Do Mortgage Interest Rates Matter? And…State Of The Real Estate Market June 2014

YES!!! Almost as much as the price of the home itself because the interest rate that you are being charged directly impacts the affordability of the home you want to own.

Here’s an example:

If the home that you are after is priced at $250,000 and you offer on the property today, your interest rate is likely to be approx 4%. Your principal and interest payment would be $1,193.54.

If you wait and interest rates go up even a half of a percent, that same purchase price will cost you $1,266.71. This is a difference of $73.17 a month!! That’s the cost of a week’s worth of groceries for some people and that’s all due to a 1/2 of a percent increase. Now, imagine what it would be if rates went up to 5% or 6%, which they have been in the not so distant past. You are talking $1, 342.05 and $1,498.88 respectively for that same $250k home.

What happens when you wait and the prices go up AND the interest rates go up? You will likely be buying much less house for the same money.

At this time, interest rates are very low and pricing seems to be somewhat stable. This is the busiest time of year though and we anticipate that to change on a dime especially since our listing inventory indicates that we are in a sellers market.

Advice to Buyers: Get your home NOW. Waiting will cost you MONEY. Advice to Sellers: You still need to be the prettiest or the least expensive home on the block to have the most activity at this very moment. Make sure you are using every trick in the book to accomplish this including an attractive marketing package. If you don’t know what that means, call us!

New Listings Active Listings Sold Listings Months Inventory
May/2014 9,809 29,284 7,448 3.93
Apr/2014 10,306 29,250 7,664 3.82
Mar/2014 10,863 29,386 6,700 4.39
Feb/2014 9,908 28,809 5,500 5.24
Jan/2014 11,117 27,072 4,821 5.62
Dec/2013 6,271 26,575 5,832 4.56

 

Top 10 Most Expensive Homes Sold in Phoenix 5-26-14 to 6-2-14

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9810 E Thompson Peak Pkwy. 805 Scottsdale, AZ 85255 – DC Ranch
9290 E Thompson Peak Pkwy. 440 Scottsdale, AZ 85255 – DC Ranch
6427 E El Sendero Rd. Carefree, AZ 85377 – Carefree Grandview Estates
9290 E Thompson Peak Pkwy. 103 Scottsdale, AZ 85255 – DC Ranch
10801 E Happy Valley Rd. 100 Scottsdale, AZ 85255 – Glenn Moor
9147 N Kober Rd. Paradise Valley, AZ 85253 – Brucehelen’s Brigadoon
9710 W JJ Ranch Rd. Peoria, AZ 85383 – Melton Ranch II
40896 N 109TH Pl. Scottsdale, AZ 85262 – Desert Mountain
6460 E Maverick Rd. Paradise Valley, AZ 85253 – Camelback Country Club Estates
10040 E Happy Valley Rd. 2017 Scottsdale, AZ 85255 – Desert Highlands

Top 10 Most Expensive Homes Sold in Phoenix 5-19 to 5-26

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8032 N 75TH St. Scottsdale, AZ 85258 – Paradise Valley Farms
6815 E Caballo Dr. Paradise Valley, AZ 85253 – Camelback Country Club Estates
34532 N 79TH Way Scottsdale, AZ 85266 – The Boulders
9290 E Thompson Peak Pkwy. 130 Scottsdale, AZ 85255 – DC Rach
10040 E Happy Valley Rd. 503 Scottsdale, AZ 85255 – Desert Highlands
5446 E Lafayette Blvd. Phoenix, AZ 85018 – Del Ray Estates 8
9290 E Thompson Peak Pkwy. 125 Scottsdale, AZ 85255 – DC Ranch
5635 E Lincoln Dr. 21 Paradise Valley, AZ 85253 – Mountain Shadows East
5055 E Desert Hills Dr. Cave Creek, AZ 85331 – Panoramic Mountain Views
23401 N 83RD St. Scottsdale, AZ 85255 – Pinnacle Peak Estates

Top 10 Most Expensive Homes Sold In Phoenix 5-12-14 to 5-19-14

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10193 E Happy Valley Rd. Scottsdale, AZ 85255
9701 E Happy Valley Rd. 29 Scottsdale, AZ 85255 – The Peak
13968 E Yucca St. Scottsdale, AZ 85259 – Sierra Estates
27373 N 98TH Pl. Scottsdale, AZ 85262 – Estancia
11123 E Ironwood Dr. Scottsdale, AZ 85259 – Rancho Santa Fe
27410 N 103rd St. Scottsdale, AZ 85262 – Estancia
4801 E Calle Del Medio Blvd. Phoenix, AZ 85018 – Esperanza Estate
5152 N 70TH Way Paradise Valley, AZ 85253 – Via Vista
11181 E Mesquite Dr. Scottsdale, AZ 85262 – Desert Mountain
7175 E Camelback Rd. 704 Scottsdale, AZ 85251 – Scottsdale Waterfront Residences

Top 10 Most Expensive Homes Sold In Phoenix 5-5-14 to 5-12-14

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4142 N Golf DR Buckeye, AZ 85396 – Verrado
13669 E Aster DR Scottsdale, AZ 85259 – Scottsdale Mountain
9820 E Thompson Peak PKWY 604 Scottsdale, AZ 8525 – DC Ranch
6216 E Shea BLVD Scottsdale, AZ 85254
10438 E Balancing Rock RD Scottsdale, AZ 85262 – Candlewood Estates
35705 N 40TH ST Cave Creek, AZ 85331
14336 E Dancing Bears CT Fountain Hills, AZ 85268 – Crestview at Fountain Hills
4507 E Vermont AVE S Phoenix, AZ 85018 – Rancho Marizona
7966 E Santa Catalina DR Scottsdale, AZ 85255
9820 E Thompson Peak PKWY 723 Scottsdale, AZ 85255 – DC Ranch