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March 27, 2024

Single Women Are Embracing Homeownership




In today's housing market, more and more single women are becoming homeowners. According to data from the National Association of Realtors (NAR), 19% of all homebuyers are single women, while only 10% are single men.

If you're a single woman trying to buy your first home, this should be encouraging. It means other people are making their dreams a reality – so you can too.

Why Homeownership Matters to So Many Women

For many single women, buying a home isn't just about having a place to live—it's also a smart way to invest for the future. Homes usually increase in value over time, so they’re a great way to build equity and overall net worth. Ksenia Potapov, Economist at First Americansays:

“. . . single women are increasingly pursuing homeownership and reaping its wealth creation benefits.”

The financial security and independence homeownership provides can be life-changing. And when you factor in the personal motivations behind buying a home, that impact becomes even clearer.

The same report from NAR shares the top reasons single women are buying a home right now, and the reality is, they’re not all financial (see chart below):

a blue and white diagram with white text

 

If any of these reasons resonate with you, maybe it’s time for you to buy too.

Work with a Trusted Real Estate Agent

If you’re a single woman looking to buy a home, it is possible, even in today’s housing market. You’ll just want to be sure you have a great real estate agent by your side.

Talk about what your goals are and why homeownership is so important to you. That way your agent can keep what’s critical for you up front as they guide you through the buying process. They’ll help you find the right home for your needs and advocate for you during negotiations. Together, you can make your dream of homeownership a reality.

Bottom Line

Homeownership is life-changing no matter who you are. Let's connect today to talk about your goals in the housing market.

March 9, 2024

Opportunities in the 2024 Real Estate Market

Where are the opportunities in this real estate market and what is happening in the Phoenix Valley now?  Let's talk about it!   Click on the video below for all the details or read on for an overview!

 

 

The real estate market is constantly changing and today it looks a bit different than it did just a couple of months ago...   and it looks drastically different than the last decade plus.  So what is happening now?  Here are the numbers:

Phoenix Valley Market Update on Supply March 2024 The Drew Team

Over the last 2 months we have seen 2 very positive trends:

1. An increase in homes available for sale - although available homes are still only about 70% of what we saw over the decade prior to Covid.

2. Homes are going under contract more quickly than inventory has increased - with a 30% increase in contracts and more inventory we see a strengthening market that aligns with our typical seasonality.

This simply means that we are still trending towards a 90 day supply overall in the valley, which is a fairly balanced market.   However there are variations depending on location and price point.

As an example, we have had two different properties with multiple offers the first weekend this past month, but in other areas homes have been on the market 60-90 days. 

Opportunities in the market...

Opportunities in the Real Estate Market Arizona Phoenix The Drew Team

The FIRST opportunity is that more properties are available as new built spec homes.  This means not having to wait 9-12 months for them to be built, but instead typically there are many options just a few months from completion AND we have been successful closing a home recently that the builder gave a rate of 4.99% PLUS they included a buydown rate that was even lower the first 3 years.

New homes aren't the best choice for everyone but there are more options right now, even next gen or multi-generational properties are out there.  We can help you find the right homes to meet your goals AND negotiate the best incentives while representing you and being sure someone is committed to YOUR interests, not the builder's.

Another Opportunity Unique to this market...

assumable loans real estate market update arizona The Drew Team

Having simply not mattered for much of the last 15+ years, Assumable Loans can be a great opportunity in the right circumstance.    As an example, buying a home that sold three years ago that was financed as FHA/VA (and some others) may mean the current owner's mortgage is in the 3s or 4% range.   In some cases that loan can be assumed by a new buyer.

It is a different process, unlike qualifying for a new loan, BUT it may be an opportunity for some.   As an example, if a person/family looking for a home for themselves to live came across a seller who had an FHA loan it may be assumable - and in this market it could be at less than half the rate of current mortgage.

It does also have challenges.  1. it is a pre screening process and often dependent on the loan servicer.  2.  The difference between the loan and the purchase price has to be made up; typically with cash or a HELOC type of loan.    3.  Its not a process the majority of agents are familiar with.   We are committed to being able to give you ALL options and this may be an opportunity for YOU.

LAST but not least, what is happening with RATES?

March Rates FED HEADLINES The Drew Team market update REALTORs

The Federal Reserve chairman indicated in his address on March 6th that rates would be kept level but did signal 3 likely cuts to the rate this year - no indication of how much.   

Keep in mind that mortgage rates fluctuate almost daily.    So home prices continue to climb modestly and the FED sees the current economic indicators causing them to delay rate cuts.   Additionally we are looking at modest cuts - no one sees us getting back to 3s or 4s.

So what is the advice from a longtime REALTOR?   If you live in a house you love, great!   If you need to make a move, create a budget and connect with us so we can show you the possibilities.   There are more opportunities than many realize!   And with over 1,000 properties sold The Drew Team brings expertise, negotiating skills and a process to help reach YOUR goals.   Connect with us today and get on the path to the right home!

The Drew Team America's Best Real Estate Agent

The Drew Team is Robin & Steven Drew, Robin McAvoy, Tom Walton and our broker/transaction coordinator Lisa Fisher, ready to serve you with a great process, negotiation skills and                    experience that is unmatched!

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Posted in market update
March 5, 2024

Why There Won’t Be a Recession That Tanks the Housing Market




There’s been a lot of recession talk over the past couple of years. And that may leave you worried we’re headed for a repeat of what we saw back in 2008. Here’s a look at the latest expert projections to show you why that isn’t going to happen.  

According to Jacob Channel, Senior Economist at LendingTree, the economy’s pretty strong:

“At least right now, the fundamentals of the economy, despite some hiccups, are doing pretty good. While things are far from perfect, the economy is probably doing better than people want to give it credit for.”

That might be why a recent survey from the Wall Street Journal shows only 39% of economists think there’ll be a recession in the next year. That’s way down from 61% projecting a recession just one year ago (see graph below):

a graph of the economic growth of the economy

 

Most experts believe there won’t be a recession in the next 12 months. One reason why is the current unemployment rate. Let’s compare where we are now with historical data from Macrotrends, the Bureau of Labor Statistics (BLS), and Trading Economics. When we do, it’s clear the unemployment rate today is still very low (see graph below):

 a graph of a graph showing the number of employment rate

 

The orange bar shows the average unemployment rate since 1948 is about 5.7%. The red bar shows that right after the financial crisis in 2008, when the housing market crashed, the unemployment rate was up to 8.3%. Both of those numbers are much larger than the unemployment rate this January (shown in blue).

But will the unemployment rate go up? To answer that, look at the graph below. It uses data from that same Wall Street Journal survey to show what the experts are projecting for unemployment over the next three years compared to the long-term average (see graph below):

 a graph of blue bars

 

As you can see, economists don’t expect the unemployment rate to even come close to the long-term average over the next three years – much less the 8.3% we saw when the market last crashed.

Still, if these projections are correct, there will be people who lose their jobs next year. Anytime someone’s out of work, that’s a tough situation, not just for the individual, but also for their friends and loved ones. But the big question is: will enough people lose their jobs to create a flood of foreclosures that could crash the housing market?

Looking ahead, projections show the unemployment rate will likely stay below the 75-year average. That means you shouldn't expect a wave of foreclosures that would impact the housing market in a big way.

Bottom Line

Most experts now think we won't have a recession in the next year. They also don't expect a big jump in the unemployment rate. That means you don’t need to fear a flood of foreclosures that would cause the housing market to crash.

Posted in market update
Jan. 23, 2024

Buy Now or Wait for Rates to Drop?

Welcome to 2024 and a changing real estate market, easing mortgage rates and an increase of activity throughout central Arizona!

We will be looking at the forecast for 2024 rates and prices in real estate, but first, lets look at the market today:

January Real Estate Market Update from The Drew Team Rates Easing The Drew Team REALTORs Agents Arizona 

Simply put, we are seeing MORE homes coming to market and they are also being SOLD  MORE QUICKLY. This has been driven by easing rates from 8% in November to NOW they are in the mid-6s.  Thus our "less than 90 day" supply is moving us closer to a seller's market.   Currently most sellers are willing to participate in some concessions but that may change.

So what do we expect for mortgage rates and prices?   Here are the headlines:

Rate Cuts are coming per the Fed - The Drew Team Arizona Rates dropping - the Drew Team Arizona REALTORs

What we know:  The FED has indicated recently that with the easing of inflation they expect to make 3 rate cuts this year, a week later Goldman Sachs wrote that they expect 5 cuts this year.   Regardless of how many and even how much, it is widely accepted that there will be rate cuts.   

For some historical context, since 1971, the average mortgage rate has been 7.4%.    So today we are well below that mark and have seen that the lower rate is increasing activity in the real estate market.   Most experts are not predicting drastic rate cuts and most expect 6% and possibly into the 5s by the end of the year.   

AND, THE ELEPHANT IN THE ROOM...   unfortunately I can find no experts who think we will see 4s or 3s in the foreseeable future.  So with expected rate cuts what is expected of home prices?

Home Prices will continue to rise - The Drew Team REALTORs

The consensus is that home prices will continue to rise over the next 5 years.    So with rates likely to ease more, prices will continue to climb and we are already seeing increased activity in the real estate market.

BACK TO THE QUESTION:  Buy NOW or wait?

BUY NOW, if you can, here's why!

1. You will buy at a lower price

We know that experts are projecting home prices to rise nationally.  Locally Arizona has a higher influx of people and businesses, meaning we will likely outpace the national numbers.  Buying now saves on price!

2.  You retain flexibility to refinance and will build equity

Equity is built as you make payments, and accelerated when you buy sooner than later.  Additionally, instead of hoping to time it right you will have the flexibility of seeing what happens and you can take advantage if rates go lower by refinancing for a lower rate while also having the lower price locked in.

3.  You get to enjoy the benefits of a home that meets your needs/wants

Most importantly is that for many people needs have changed and making a move will give you a more comfortable home that accommodates your needs and enhances your daily life.  The longer you wait the more costly and more competitive the market will be.

 

How do you make the most of the market?  Contact us at The Drew Team, we have years of experience having served over 1000 clients in reaching their goals.  We also have great partners to help us put you in the best position.   Ready to reach YOUR goals, contact us today!

The Drew Team REALTORs America's Best Agents 7 years running

The Drew Team is Robin and Steven Drew, Robin McAvoy, Casey Hurlburt and Tom Walton.   7 years running we have been named to Real Trend's America's Best Small Agent Teams because our aim is only to reach YOUR goals!

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Posted in market update
Jan. 2, 2024

3 Keys To Hitting Your Homeownership Goals in 2024




If buying or selling a home is your goal for 2024, it’s important to understand today’s housing market, know your why, and work with industry experts to bring your homeownership vision for the new year into focus.

Over the last year, the economy had a big impact on the housing market, and likely on your wallet too. That’s why it’s critical to have a clear picture of not just the market today, but also on what you want out of it when you buy or sell a home. Danielle Hale, Chief Economist at Realtor.comexplains:

The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.

Here are a few things to think through as you define your goals for 2024.

1. Know Your Why

You’re dreaming about making a move for a reason – what is it? No matter what’s happening in the market, there are still many compelling reasons to buy a home today. Your needs may have changed in a way your current house can’t address, or you could be ready to step into homeownership for the first time. Use your why and your motivation as a guidepost in partnership with an expert advisor to make sure your move gives you a lasting sense of accomplishment.

2. Figure Out What Your Next Home Needs To Look Like

You know you want to move, but how would you describe your dream home? The number of homes for sale has grown recently, and that could mean more options to choose from when you buy. But overall housing supply is still lower than more normal years in the market, so you’ll have to work closely with a pro to find what you’re looking for. Just be sure to keep your budget in mind as you balance your wants and needs. The better you understand what’s essential and where you can be flexible, the easier it will be to find a home that’s right for you.

3. Determine if You’re Ready To Buy

Getting clear on your budget and available savings is essential before you get too far into the process. Partnering with a local agent and a lender early is the best way to make sure you’re in a good position to buy. This could include planning how much to save for a down payment, getting pre-approved for a home loan, and assessing your current home equity if you’re selling your existing house.

A Professional Will Guide You Through Every Step of the Process

Buying or selling a home takes expertise to navigate. If that feels a bit overwhelming, that’s normal. Don’t let uncertainty hold you back from your goals this year. A trusted expert will help you bridge that gap and give you the facts and advice you need about today’s housing market.

Bottom Line

Let’s connect to plan how to make your homeownership dreams a reality in 2024.

Dec. 19, 2023

Merry Christmas and Happy New Year!

From The Drew Team Family (Casey Hurlburt, Tom Walton, Robin McAvoy, Robin & Steven Drew) to yours, a Very Merry Christmas!

We are blessed to serve you and absolutely love impacting our community!   If you have questions about the market or your situation, we are here to help you reach YOUR goals...

Quick UPDATE on the Arizona Real Estate Market:

- The Phoenix Valley and surrounding area remains at a 90 day supply.

- Activity remains strong with buyers looking, likely inspired by RATES that have dropped over the last month.

- NOW is a great time time for both buyers and sellers who have less competition, although that is going to begin changing in the first quarter.

 

Posted in Merry Christmas
Dec. 18, 2023

Why Now Is Still a Great Time To Sell Your House




If you were worried buyer demand disappeared when mortgage rates went up, the data shows there are plenty of interested buyers still out there. The housing market isn't as frenzied as it was during the ‘unicorn’ years when buyer demand was through the roof, mortgage rates were historically low, and home values rose like we’ve never seen before. But that doesn’t mean the market is at a standstill.

Nationally, demand is still high compared to the last normal years in the housing market and plenty of buyers are making moves right now. Here’s the data to prove it.

Showing Traffic Is Up

The ShowingTime Showing Index is a measure of how frequently buyers are touring homes. The graph below uses that index to show buyer activity over the past eight Octobers:

 

 

In the graph, the ‘unicorn’ years are shown in pink. You can see demand has dipped some since then. That’s in response to higher mortgage rates. But, when you compare 2023 to the blue bars on the left that represent the last normal years in the market (2018-2019), you can tell buyers are still more active than the norm.

But showing traffic isn’t the only way to see buyer demand is still high. The number of offers other sellers are getting and the average days homes are on the market tell the same story.

Sellers Are Still Seeing Multiple Offers

According to the latest data from the National Association of Realtors (NAR), sellers are receiving an average of 2.5 offers on their houses. Let’s look at how that compares to recent years (see graph below):

 

 

It’s true that’s fewer than the number of offers sellers were receiving during the ‘unicorn’ years (shown in pink). But compared to last year, the number is up slightly. And it’s higher than it was in the more normal, pre-‘unicorn’ years in the housing market too.

Homes Priced Right Are Selling Fast

And it’s not just that sellers are still typically getting multiple offers more than the norm, they’re also seeing their homes sell fast. That’s a direct result of strong buyer demand. According to Zillow:

“. . . low inventory levels are spurring surprisingly strong competition . . . demand has remained resilient, and attractive, appropriately priced listings are moving quickly.”

To help showcase that homes for sale are still going quickly, let’s look at data from NAR on the median days on market for this same time of year from 2018 through now (see graph below):

  

 

As the graph shows, this year homes are sitting on the market only slightly longer than they were during the frenzy of the ‘unicorn’ years. And compared to the last normal years in the market, homes are still selling much faster than they did back then. That’s good news for sellers because it means there are eager buyers out there right now.

Bottom Line

You haven't missed your chance to sell at a time when sellers are receiving multiple offers, and homes are selling fast. When you’re ready to sell your house, let’s connect to get the ball rolling.

Nov. 22, 2023

Timing The Real Estate Market/Update

Timing the Market, Seasonality, Rates, Today's Real Estate Market AND what do we expect in 2024...   Let's talk about it!

Timing The Real Estate Market

Everyone has heard the old adage "Buy Low and Sell High."  Can you do that in real estate?   Yes, but for the typical homeowner it just doesn't make much sense.   Why? The market generally moves as a whole in residential real estate, if the market is up 5% over last year then you current $400K and future $600K home are both up in value.   

Buy Low Sell High Real Estate   Price Appreciation

Some people propose selling then waiting for values to come down HOWEVER you need somewhere to live and rent is like paying 100% interest. PLUS in the last 75+ years homes have steadily increased in value from 3-4% annually over the longterm.  So the best strategy is usually to buy a home that will meet your needs for 5+ years and allow the natural cycle of price appreciation to happen.  This is why owning a home has such impact on net worth!

      Net worth is greater for home owners The Drew Team REALTORs

Seasonality, Rates, Todays Real Estate Market

There are more homes on the market today than just a few months ago (up about 8%) however, compared to the number of homes available in 2019 and prior, we are STILL down nearly 50%.   Part of this is due to building less homes over the last decade.   So demand is still high, however Rates are impacting affordability (even though they did ease recently), so many would-be buyers are cautious.   These factors have combine to put us at about a 95 day supply, meaning buyers have a slight advantage and seller expect to be participating in concessions.

November Market Update The Drew Team REALTORs      The Drew Team REALTORs Market Update

The Future, What is Next?

While we have no crystal ball, we can look at history to give us some insights for what to expect in 2024.  Two happenings that would historically signal rates to begin coming down, one is that the inflation numbers have been dropping over the last six months AND another is that we will be in an election year.   Add to that the previously mentioned lack of inventory and it becomes clear that the market could turn quickly.  

Home Prices Could Explode The Drew Team The Drew Team Reaching YOUR goals in real estate

Every situation is different, if you want to make a move, need more space, are considering an investment property or just desire to explore your options that is what we do best:  Listening to your goals and helping you to reach them in real estate.  Give us a call today so we can get YOU moving towards YOUR goals. 

The Drew Team is Robin & Steven Drew, Robin McAvoy, Casey Hurlburt and Tom Walton.   We are grateful for the opportunity to have served in over 1,000 real estate transactions and the chance to be part of your lives!

 

Posted in market update
Nov. 20, 2023

Home Owners Net Worth Grows with Time

The Drew Team REALTORs Arizona

Nov. 16, 2023

The Latest 2024 Housing Market Forecast




The new year is right around the corner, and you might be wondering if 2024 will be the right time to buy or sell a home. If you want to make the most informed decision possible, it’s important to know what the experts have to say about what's ahead for the housing market. Spoiler alert: the projections may be better than you think. Here’s why.

Experts Forecast Ongoing Home Price Appreciation

Take a look at the latest home price forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR):

 

 

As you can see in the orange bars on the left, on average, experts forecast prices will end this year up about 2.8% overall, and increase by another 1.5% by the end of 2024. That’s big news, considering so many people thought prices would crash this year. The truth is, prices didn’t come tumbling way down in 2023, and that’s because there just weren’t enough homes for sale compared to the number of people who wanted or needed to buy them, and that inventory crunch is still very real. This is the general rule of supply and demand, and it continues to put upward pressure on prices as we move into the new year.

Looking forward, experts project home prices will continue to rise next year, but not quite as much as they did this year. Even though the expected rise in 2024 isn't as big as in 2023, it's important to understand home price appreciation is cumulative. In simpler terms, this means if the experts are right, according to the national average, after your home's value goes up by 2.8% this year, it should go up by another 1.5% next year. That ongoing price growth is a big part of why owning a home can be a smart decision in the long run.

Projections Show Sales Should Increase Slightly Next Year

While 2023 hasn’t seen a lot of home sales relative to more normal years in the housing market, experts are forecasting a bit more activity next year. Here’s what those same three organizations project for the rest of this year, and in 2024 (see graph below):

 

 

While expectations are for just a slight uptick in total sales, improved activity next year is a good thing for the housing market, and for buyers and sellers like you. As people continue to move, that opens up options for hopeful buyers who are looking for a home.

So, what do these forecasts show? The housing market is expected to be more active in 2024. That may be in part because there will always be people who need to move. People will get new jobs, have children, get married or divorced – these and other major life changes lead people to move regardless of housing market conditions. That will remain true next year, and for years to come. And if mortgage rates come down, we’ll see even more activity in the housing market.

Bottom Line

If you’re thinking about buying or selling, it’s important to know what the experts are forecasting for the future of the housing market. When you’re in the know about what’s ahead, you can make the most informed decision possible. Let's chat about the latest forecasts together, and craft a plan for your next move.

Posted in market update