Market Update

To Sell or Not to Sell? That is the Question.

Let us first mention that mortgage interest rates are GREAT right now!  Inventory is up but not so much that there aren’t buyers for all.  Yeah, it’s a little slower during the holiday season because everyone is a little more focused on pumpkin pie than real estate BUT that doesn’t mean your home isn’t going to sell.  Talk to us about strategy and positioning and you’ll be well on your way to a sold sign in your yard.  What’s that?  If you hold out a little longer could you make more money?  Sure but then you’ll be paying that much more for the next place.  Bottom line… take your equity and invest it in the next place now, before prices & interest rates creep up while you aren’t looking.

Double, double toil and trouble…

It has finally cooled off in the Phoenix area and, as we head into Halloween and the rest of the holidays, our market is still shifting.  We continue to add more listings which adds more inventory and we are seeing a steady drop in sales (since April).   This is great news for buyers as the current conditions allow for more successful negotiation.  Buyers are in an even better position as interest rates are anything but scary at the moment.  Sellers are needing to bend a little to get the sales these days.  The reason is simple, there are more choices out there for buyers.  The sellers that are realistic with price vs condition are still selling successfully and quickly.

Curious as to what your home could sell for in this market?  Visit: http://pricemyarizonahome.com

New Listings Active Listings Sold Listings Months Inventory
Sep/2014 8,680 26,256 6,286 4.18
Aug/2014 8,389 25,924 6,474 4.00
Jul/2014 8,705 26,643 6,841 3.89
Jun/2014 8,945 27,520 7,254 3.79
May/2014 10,053 28,714 7,491 3.83
Apr/2014 10,305 29,297 7,638 3.84
Mar/2014 10,863 29,478 6,684 4.41
Feb/2014 9,908 28,897 5,494 5.26
Jan/2014 11,117 27,115 4,817 5.63

 

The Good, The Bad, and the Ugly AKA “Still Listed”

Inventory is up, interest rates are causing some uncertainty, and buyers are still buying but are mostly only interested in “move in ready” homes.  If you are trying to sell and your price isn’t up to par with your condition, you might be waiting a long, long time for that perfect buyer to come around.  Most buyers are looking for “bring my toothbrush and I’m done” homes.  We are still working with the buyers that are looking for a home to fix up themselves but it’s few and far between and they are not paying market value (or in some cases anywhere near market value) for these properties.  Advice to buyers…negotiate!  In some cases, good ‘ol fashioned negotiation is back in action.  Ask your agent for their advice, though.  There are situations where this isn’t working.  Advice to sellers… make your home PERFECT and, more importantly, price it perfectly for the quickest, most favorable results.

The Dog Days of Real Estate

Real estate is cyclical.  Every year we seem to have a bit of a spike in activity in the summer months beginning in April and lasting until the end of June.  It seems like that little summer spike has been a bit delayed this year as we still hover at the balanced market point into the early days of July.  I don’t know about you but I certainly turned my AC on earlier this year than I remember in the past.  Could it be that the Valley cooled off in the real estate world as we began to heat up outdoors?  Possibly.  Stay tuned for Fall 2014…the spike has yet to arrive.

New Listings Active Listings Sold Listings Months Inventory
Jun/2014 8,788 28,095 7,261 3.87
May/2014 10,053 28,692 7,507 3.82
Apr/2014 10,305 29,265 7,643 3.83
Mar/2014 10,863 29,448 6,696 4.40
Feb/2014 9,908 28,857 5,499 5.25

 

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