You won’t find anyone who’s going to argue that mortgage rates have had a big impact on housing affordability over the past couple of years. But there is hope on the horizon. Rates have actually started to come down. And, recently they hit the lowest point we’ve seen in 2024, according to Freddie Mac (see graph below):

And if you’re thinking about buying a home, that may leave you wondering: how much lower are they going to go? Here’s some information that can help you know what to expect.

Expert Projections for Mortgage Rates

Experts say the overall downward trend should continue as long as inflation and the economy keeps cooling. But as new reports come out on those key indicators, there’s going to be some volatility here and there.

What you need to remember is it’s not wise to let those blips distract you from the larger trend. Rates are still down roughly a full percentage point from the recent peak compared to May.

And the general consensus is that rates in the low 6s are possible in the months ahead, it just depends on what happens with the economy and what the Federal Reserve decides to do moving forward.

Most experts are already starting to revise their 2024 mortgage rate forecasts to be more optimistic that lower rates are ahead. For example, Realtor.com says:

“Mortgage rates have been revised slightly lower as signals from the economy suggest that it will be appropriate for the Fed to begin to cut its Federal Funds rate in 2024. Our yearly mortgage rate average forecast is down to 6.7%, and we revised our year-end forecast to 6.3% from 6.5%.”

Know Your Number for Mortgage Rates

So, what does this mean for you and your plans to move? If you’ve been holding out and waiting for rates to come down, know that it’s already happening. You just have to decide, based on the expert projections and your own budget, when you’ll be willing to jump back in. As Sam Khater, Chief Economist at Freddie Mac, says:

“The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”

As a next step, ask yourself this: what number do I want to see rates hit before I’m ready to move?

Maybe it’s 6.25%. Maybe it’s 6.0%. Or maybe it’s once they hit 5.99%. The exact percentage where you feel comfortable kicking off your search again is personal. Once you have that number in mind, you don’t need to follow rates yourself and wait for it to become a reality.

Instead, connect with a local real estate professional. They’ll help you stay up to date on what’s happening and have a conversation about when to make your move. And once rates hit your target, they’ll be the first to let you know.

Bottom Line

If you’ve put your moving plans on hold because of higher mortgage rates, think about the number you want to see rates hit that would make you re-enter the market.

Once you have that number in mind, let’s connect so you have someone on your side to let you know when we get there.

Market and Industry Update for August 2024

Welcome to August 2024 where the landscape of real estate is changing!   The market has cooled as temps went up, rates have gotten significantly better over the last month and the NAR Settlement is creating some changes to the process of buying and selling a home.   As always let's start with a look at the market here in the Phoenix Valley.

August numbers: homes for sale decreased, leading to a decrease in homes under contract & completed sales over the summer.   The market has shifted from balanced to a buyer's market.   Less showings are happening and the home supply is over 3 months.  Need to sell now?  We can help you make the most of the market but it is taking a little longer.  Homes that sell are priced well, show well and are in great shape.  Next up, RATES may be a reason to hope for an uptick in traffic...  See below...

Interest rates have come down a full percentage point, that means payments will be less on the same price of a home today vs a few months ago! Thanks to our friend/lending partner Jason Wojtyna for providing the numbers in our example, more about Jason at this link.   Using our beautiful basement home listed in Queen Creek you can see that the 1% interest rate drop creates payment savings.   See the example home here.   Based on a 20% down payment on the homes $695K sales price and calculating the difference of payments at 6.5% vs 7.5%. = SAVING $475+/ month! See article  "Rate Tumble" here.

You may have heard about/seen headlines regarding the recent NAR Settlement...  the clickbate has been sensationalized to say the least - to see NARs info directly follow this link.  Here is what it means here in Arizona. 

1.  Commission remains completely negotiable, has always been the case in Arizona.   

2. Sellers/agents can no longer advertise compensation to buyers agents in the MLS.  It is still perfectly acceptable to offer buyer agent compensation and it remains negotiable.   

3. Agents have new forms that are required prior to showing a home.  The goal is to better educate buyers on costs associated with a home purchase, something good agents have always done.  Must me buyer signed BEFORE showing a home.   There are plenty more details but these demonstrate basics from the buyer/seller perspective.

Lastly in this months update we want to support the work of Phoenix Children's Hospital and more specifically promote Hansen's Heart Warriors that benefits PCH as well!   Next week is the annual "Give-a-thon week" to promote Phoenix Children's Hospital, so you'll likely be hearing about it.   At The Drew Team we have had the great privilege of supporting PCH in may ways over the last decade+ by decorating Christmas trees, delivering stuffed animals, donating supplies to One Cool School within PCH, gifting supplies for families AND being a banner sponsor for Jaxton's Heart Warriors Golf Tournament (Now Hansen's Heart Warriors).    So please consider joining us in supporting the great work of PCH through donating!  You can donate directly to the work of Heart Warrior supporting PCH here.   

As always we are here to reach YOUR goals!  If you have questions about this update, your situation or anything else please don't hesitate to reach out.  We are neighbors as much as REALTORs, as part of our community you are very important to us.    The Drew Team is Robin & Steven Drew, Robin McAvoy, Tom Walton and our broker/coordinator Lisa Fischer at Bliss Realty.  

The housing market is going through a transition. Higher mortgage rates are causing more moderate buyer activity at the same time the supply of homes for sale is growing.

And if you aren’t working with an agent, you may not realize that. Here’s the downside. If you’re not informed, you can’t adjust your strategy or expectations to today’s market. And that can lead to a number of costly mistakes.

Here’s a look at some of the most common ones – and how an agent will help you avoid them when you sell. 

1. Overpricing Your House

Many sellers set their asking price too high and that’s why there’s an uptick in homes with price reductions today. An unrealistic price will deter potential buyers, cause an appraisal issue, or lead to your house sitting on the market longer. An article from the National Association of Realtors (NAR) explains:

“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers and result in unapproved appraisals . . .”

To avoid falling into this trap, partner with a pro. An agent uses recent sales of similar homes, the condition of your house, local market trends, and so much more to find the price that’ll attract more buyers and open the door for multiple offers and a faster sale.

2. Skipping the Small Stuff

You may try to skip important repairs, thinking you can pass the task on to your buyer. But visible issues (even if they’re small) can turn off potential buyers and result in lower offers or demands for concessions. As Money Talks News says:

“Home shoppers like to turn on lights, flush toilets and run the water. If these basic things don’t work, they may assume you’ve skipped other maintenance. Homes that appear neglected aren’t likely to fetch top price.”

If you want to get your house ready to sell, the best place to turn to for advice is your agent. They’ll be able to do a walk-through with you and point out anything you’ll need to tackle before the photographer comes in.

3. Not Looking at Things Objectively

Buyers today are feeling the pinch of high home prices and mortgage rates. With affordability that tight, they may come in with an offer that’s lower than you’d want to see – especially if you didn’t stage, price, or market the house well.

It’s important you don’t take this personally. Getting overly emotional can put the sale at risk. As an article from Ramsey Solutions says:

“Remember, a buyer’s offer is not a reflection of their opinion of your home or your housekeeping abilities. . . The sale of your home is strictly a business transaction. If they start out with a low offer, don’t take it personally and get emotional. Instead, channel that energy toward negotiating. Work with your agent and make a counteroffer.”

4. Being Unwilling To Negotiate

The supply of homes for sale has grown. That means buyers have more options, and with that comes more negotiation power. As a seller, you may see more buyers getting an inspection, requesting repairs, or asking for help with closing costs today. You need to be prepared to have those conversations. As U.S. News Real Estate explains:

“If you've received an offer for your house that isn't quite what you'd hoped it would be, expect to negotiate . . . the only way to come to a successful deal is to make sure the buyer also feels like he or she benefits . . . consider offering to cover some of the buyer's closing costs or agree to a credit for a minor repair the inspector found.”

An agent will walk you through what levers you may want to pull based on your own goals, budget, and timeframe.

5. Not Using a Real Estate Agent

Notice anything? For each of these mistakes, partnering with an agent helps prevent them from happening in the first place. That makes trying to sell your house without an agent’s help the biggest mistake of all.

Real estate agents have experience and expertise in pricing, marketing, negotiating, and more. That knowledge streamlines the selling process and usually results in drumming up more interest and ultimately can get you a higher final price.

Bottom Line

If you want to avoid making mistakes like these, let’s connect to make sure you’re set up for success.

Everyone’s vision for the future is personal and unique. But for many, common goals include success, freedom, and prosperity — values closely tied to having your own home and the iconic feeling of achieving the American Dream.

A recent survey by Bankrate reveals exactly that: homeownership is still a part of the American Dream. The results show, at 78%, that owning a home tops the list, surpassing other significant milestones such as retirement, having a successful career, and more (see below):

So, why is buying a home important to so many today? One reason is the financial and physical security it provides. Many people see homeownership as a way to reduce stress because owning a home with a fixed-rate mortgage stabilizes what is likely their largest monthly expense.

Another factor is the potential for building wealth. That’s because, over time, homeowners gain equity as they pay down their mortgage and as home prices appreciate, leading to longer-term financial stability.

But what about the responsibilities that come with owning and maintaining a home? According to a survey by Entrata, only 23% of renters feel homeownership is too much work, indicating the majority are open to the commitments and obligations that come with being a homeowner.

What Does This Mean for You?

While buying a home today might seem daunting due to higher mortgage rates and rising home prices, the long-term benefits can make it worthwhile. If you’re considering homeownership, remember that it's more than just a financial investment — it's a step toward securing your future.

Bottom Line

Owning a home is a significant and powerful decision that represents a big part of the American Dream. If you’re ready to take this step, let’s connect so you have someone who can guide you through the process and help you make your homeownership goals a reality.

Winning in Arizona's Summer Real Estate Market!

Summer is in full swing here in Arizona, what does that mean for our real estate market?  That is the focus of today's market update.  Let's begin with the numbers.

It varies depending on area slightly, however overall the Valley is running just short of a 3 month supply of homes for sale.   That has average Days On Market just under 90 days...   meaning that homes in good condition and properly priced are selling between 1-180 days.

That represents a very balanced market where neither the seller nor the buyer has tremendous leverage and home values tend to hold steady.  Those steady prices are in line with typical appreciation.

How do Sellers & Buyers Win in this type of market?

For buyers and sellers the best decision is to work with a trusted professional that can help you navigate the details to make the most of the summer real estate market opportunity!

Finally for this market update is a huge "THANK YOU!" from all of us at The Drew Team! For the 8th consecutive year we have been named to Real Trends Verified's top agent teams in America - and specifically among small teams in Arizona!  This is only possible because so many of you have allowed us the privilege to serve in reaching YOUR goals!

The Drew Team, Robin & Steven Drew, Robin McAvoy, Tom Walton and our coordinator/broker Lisa Fischer are here to help reach YOUR goals!

It takes expertise to price a house right. Let’s connect to make sure you’re setting a price that attracts buyers and helps your house sell fast.

Click the thumbnail to see the May market update/Supporting Heart Warrior video. (3:15 begins Heart Warrior info)   Or keep reading... 

The greater Phoenix Valley real estate market has't changed much in the last month, however we are seeing a seasonal uptick in families shopping for a new home...  a trend that will continue with the end of the school year.  The current market:

Our AZ real estate market remains at less than 90 days on market (average).  Inventory has climbed slightly but remains historically low.  Home sales have ticked up along with inventory, which keeps us in a very steady, somewhat traditional balance, obviously this changes from city to city, neighborhood to neighborhood.

Where are the challenges & opportunities?   Both stem from mortgage rates hovering around 7%.   New Build inventory is filling the gap of homes available with many at or near completion (vs 8-10 months out).  Some builders are offering lower interest rates.  Thus many savvy sellers who want to compete are also offering concessions that buyers may use to buy down the rate.  Ready to consider a move?  Contact us a The Drew Team so we can craft a plan to reach YOUR goals!

I wanted to take a moment to draw your attention to a fantastic cause that we've supported for 6+ years!   Hansen's Heart Warriors Golf Tournament was started to pay forward the work done at Phoenix Children's Hospital in the relation to heart care.

Its been our privilege to serve the Hansen family for over a decade. When Justin & Chelsea had their son, Jaxton, he had a heart issue that required surgery.  Phoenix Children's Hospital was there for family and Grandpa Chuck became a driving force in creating Jaxton's Heart Warriors golf tournament to raise funds to support the focus on heart care at PCH.  Jaxton would have multiple surgeries and while he is doing well, will require another surgery this year.   Additionally his cousin was diagnosed with similar heart issues, thus the name change to Hansen's Heart Warriors.   This year was particularly tough as Chuck passed away (pictured in the golf cart).   I'm asking that you consider joining us in honoring his legacy and huge heart by donating to the work at PCH.

Donations can be made at the bottom of the main page for the golf tournament, there you can also get a bit more this family story.   Please visit: www.jaxtonsheartwarriors.com  to join us in supporting the amazing legacy of Chuck and the work of PCH.

here are a number of myths out there about the 2024 housing market. Need help separating fact from fiction? Let’s connect.

#realestatetips #realestateadvice #realestateexperts

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 American, says:

“. . . 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):

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.

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:

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...

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...

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?

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 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!