It’s official. It’s a sellers market. We have 2.13 months of inventory on the market in the Phoenix area right now. If you are a seller, you are in control. If you are calling up investors or those “close when you want” real estate companies (AKA investors), you are costing yourself more than you think. Contact Katie, at 480-250-0023, to talk about the details of your home and get an accurate value assessment.
Yep, the overall inventory levels are still incredibly low and it’s causing Realtors to have to look to other sources of property for droves of hungry buyers AND unassuming sellers are being taken advantage of by investors and real estate investment companies that are trying to stock up on inventory before our actual busy season (April through June) hits.
HINT: If the deal seems to good to be true from one of these investors or real estate companies that “buy for cash and close when you want” then it probably is or there’s a reason behind it that you aren’t aware of…like your home is worth WAY more than you think.
Keep in mind that we have four “markets” here in the Phoenix area….the under $200k market, the $200-$500k market, the $500k to $1M and then above $1M. Supply and demand is different in all four of these markets. Sales under $200k were 33% of sales in our area in 2017 so keep in mind that has a large impact on the overall average. Ask your trusted real estate advisor what the stats are for your particular area and price range so you remain competitive prior to listing your home for sale.
Appreciation rates are as follows:
Under $200k 7.7%
$200k – $500k: 3.5%
$500k – $1M: 1.7%
Over $1M: 0.1%
Now let’s talk mortgage interest rates.
Yep, they’ve gone up. This past week the 10-year Treasury note hit the highest level in three years which basically means higher mortgage rates. They are currently over 4%. Keep in mind that from 2003 to 2011 the rates averaged between 5-6% and we have basically been spoiled since then. Typically rates are lowered to spark the housing market and, based on the info above, we can see that it worked ? The good news is it’s still very affordable to purchase a home and live here in AZ as compared to many other areas that are this desirable to live.
We’re selling more and listing less than holiday time last year! Buyers are scooping up deals and taking advantage of how low the interest rates still are. Keep an eye on rates if you are in the market to buy this year. Even a small adjustment can make a impact on affordability. Don’t wait and get less house than you’re after…plus the prices are still going up. SEARCH HOMES HERE
It’s everyones question, “What will the market do this holiday season?” The typical answer is, it’ll slow down a little. How do we know that? Well, it’s because it’s cyclical. Every year it’s the same thing. The 3rd quarter sales always drop a good amount from 2nd quarter and then 4th quarter drops a little from 3rd. Basically, if you are thinking of selling this year...TODAY is the day to get started! Stop waiting. If you are thinking of buying this year, expect some competition to fall away as people start shifting their focus to turkey and ugly sweater parties.
Thank goodness the temperatures are falling here in the Phoenix, AZ area. It’s perfect timing to get out there and find your new dream home…everybody else is doing it! The market is still on fire, rates are still jaw-dropping low and prices, although they are rising, aren’t out of control at the moment. Time to shop to be in your new home by New Years!
