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Sept. 19, 2022

Will My House Still Sell in Today’s Market?

 

Will My House Still Sell in Today’s Market? | MyKCM

If recent headlines about the housing market cooling and buyer demand moderating have you worried you’ve missed your chance to sell, here’s what you need to know. Buyer demand hasn’t disappeared, it’s just eased from the peak intensity we saw over the past two years.

Buyer Demand Then and Now

During the pandemic, mortgage rates hit record lows, and that spurred a significant rise in buyer demand. This year, as rates increased due to factors like rising inflation, buyer demand pulled back or softened as a result. The latest data from ShowingTime confirms this trend (see graph below):

Will My House Still Sell in Today’s Market? | MyKCM

The orange bars in the graph above represent the last few months of data and the clear cooldown in the volume of home showings the market has seen since mortgage rates started to rise. But context is important. To get the full picture of where today's demand stands, let's look at the July data for the past six years (see graph below):

Will My House Still Sell in Today’s Market? | MyKCM

This second visual makes it clear that, while moderating compared to the frenzy in 2020 and 2021, showing activity is still beating pre-pandemic levels – and those pre-pandemic years were great years for the housing market. That goes to show there’s still demand if you sell your house today.

What That Means for You When You Sell

The key to selling in a changing market is understanding where the housing market is now. It’s not the same market we had last year or even earlier this year, but that doesn’t mean the opportunity to sell has passed.

While things have cooled a bit, it’s still a sellers’ market. If you work with a trusted local expert to price your house at the current market valuethe demand is still there, and it should sell quickly. According to a recent survey from realtor.com, 92% of homeowners who sold in August reported being satisfied with the outcome of their sale.

Bottom Line

Buyer demand hasn’t disappeared, it’s just moderated this year. If you’re ready to sell your house today, let’s connect so you have expert insights on how the market has shifted and how to plan accordingly for your sale.

Aug. 24, 2022

Opportunities in the NEW Arizona Real Estate Market

The real estate market has changed significantly over the last six months in Arizona.  Factors that lead to this change have also created opportunities for buyers, sellers & investors... opportunities that we have strategies to capitalize on!   The video will give you a market update and discuss some of the strategies. 

So what is the current real estate market in Arizona?   Here are the numbers:

Arizona Real Estate Market from the Drew Team August 2022

More homes available but the contracts (pending sales) remain steady.   What is traditionally considered a balanced market.  However the quick change from 3 years of massive competition make it feel like a buyers market. 

This change of market was likely accelerated by two major factors in Arizona:     1.   The rising interest rates at same time as  2.   School year was coming to an end

We entered summer, travel, holidays & traditional slowing all at the same time.   Most Arizona students just got back to school & college students are returning now.

Rates & payments (elephant in the room):  What Opportunity?

For buyers (especially first time) rates were daunting as it created more difficult in qualifying as well as cost.  However with the changing market we are once again seeing sellers giving concessions to buyers which creates opportunities for:

A.  Rate buy downs - reducing both rate and payment

B.   Closing cost assistance that allows less out of pocket expense for buyers

C.   Utilizing all financing options that could reduce the payment.

We have recently closed a few home purchases with buyers that were able to utilize 1 or more of the above strategies to find ways to fit their budget to avoid renting or move up to a better suited home.  We can connect you with a lender who has served many or our clients, giving you all the details related to YOUR unique financial situation.

Special Note RENTERS:  Rates holding you back? We can show you options, your current effective interest rate is 100% because none of it goes towards equity for yourself.

Seller Opportunities:   How to compete and win...

Proper expectations are a must - most homes will take 60-90 to sell IF they have:

Proper Pricing -- this is not a time to "push" the market

Proper Preparation -- the house needs to present well, have good photographs and be marketed correctly

Proper Timetable -- need to list, market, price and promote with the right timing

Someone is likely asking "how is this an opportunity?"  GOOD QUESTION, the answer is that many homes on the market are still trying to catch up to the changing market...   So if you employ the strategy above you will be at the top of the list for buyers that are in the market!  By having the right expectations and a team like us serving you, it will also reduce stress in the process while reaching your goals.

Ready to make a move?   Contact us to day to get moving towards your real estate goals!

The Drew Team Realtors Arizona's Best Real Estate Agent Teams

 

PS  If you know a First Responder serving in the community please pass along the thanks of The Drew Team and let them know we would like to honor them with a program to save them some money too!The Drew Team Arizona Realtors support our First Responders

This program is made possible by our great partners...

    

 

 

Aug. 16, 2022

Why Experts Say the Housing Market Won’t Crash [INFOGRAPHIC]

Why Experts Say the Housing Market Won’t Crash [INFOGRAPHIC] | MyKCM

Some Highlights

  • Many people remember the housing crash in 2008, but experts say today’s market is fundamentally different in many ways.
  • First, there isn’t an oversupply of homes for sale today. Plus, lending standards are much tighter, and homeowners have record levels of equity. That means signs say there won’t be a wave of foreclosures like the last time.
  • If you have questions about the housing market, let’s connect.
Posted in NOT a Bubble!
Aug. 12, 2022

Top 3 Tips for Selling Your House

Pricing your house based on current market conditions means it's more likely to sell quickly. Let's connect so you can have the best advice when you sell today. #priceitright #sellyourhouse #realestatetips #reachyourgoals #swmr #findmyhome #realestate #drewteam The Drew Team is Robin & Steven Drew, Robin McAvoy, Casey Hurlburt, Tom Walton and our amazing admin Nancy Horn. We have been name to America's Best Small Agent Teams each of the last 6 years because our aim is to reach YOUR goals in real estate.

Aug. 5, 2022

Housing Market Forecast for the Rest of 2022 [INFOGRAPHIC]

Housing Market Forecast for the Rest of 2022 [INFOGRAPHIC] | MyKCM

Some Highlights

  • The housing market is shifting away from the intensity of the past two years. Here’s what experts project for the remainder of 2022.
  • Home prices are forecast to rise more moderately than last year. Mortgage rates will respond to inflation, and home sales will be more in line with pre-pandemic years.
  • Let’s connect so you can make your best move this year.

The Drew Team has the experience and expertise to reach YOUR goals in this shifted market!   Having served in over 1,000 transaction over the past decade we know how to navigate any market to be sure your goals are met.   The Drew Team is Robin & Steven Drew, Robin McAvoy, Casey Hurlburt, Tom Walton and our amazing admin Nancy Horn.   

Posted in market update
Aug. 2, 2022

3 Graphs To Show This Isn’t a Housing Bubble

3 Graphs To Show This Isn’t a Housing Bubble | MyKCM

With all the headlines and buzz in the media, some consumers believe the market is in a housing bubble. As the housing market shifts, you may be wondering what’ll happen next. It’s only natural for concerns to creep in that it could be a repeat of what took place in 2008. The good news is, there’s concrete data to show why this is nothing like the last time.

There’s a Shortage of Homes on the Market Today, Not a Surplus

The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation.

For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to tumble. Today, supply is growing, but there’s still a shortage of inventory available.

The graph below uses data from the National Association of Realtors (NAR) to show how this time compares to the crash. Today, unsold inventory sits at just a 3.0-months’ supply at the current sales pace.

3 Graphs To Show This Isn’t a Housing Bubble | MyKCM

One of the reasons inventory is still low is because of sustained underbuilding. When you couple that with ongoing buyer demand as millennials age into their peak homebuying years, it continues to put upward pressure on home prices. That limited supply compared to buyer demand is why experts forecast home prices won’t fall this time.

Mortgage Standards Were Much More Relaxed During the Crash

During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. The graph below showcases data on the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA). The higher the number, the easier it is to get a mortgage.

3 Graphs To Show This Isn’t a Housing Bubble | MyKCM

Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home. Back then, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices.

Today, things are different, and purchasers face much higher standards from mortgage companies. Mark Fleming, Chief Economist at First Americansays:

Credit standards tightened in recent months due to increasing economic uncertainty and monetary policy tightening.” 

Stricter standards, like there are today, help prevent a risk of a rash of foreclosures like there was last time.

The Foreclosure Volume Is Nothing Like It Was During the Crash

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been on the way down since the crash because buyers today are more qualified and less likely to default on their loans. The graph below uses data from ATTOM Data Solutions to help tell the story:

3 Graphs To Show This Isn’t a Housing Bubble | MyKCM

In addition, homeowners today are equity rich, not tapped out. In the run-up to the housing bubble, some homeowners were using their homes as personal ATMs. Many immediately withdrew their equity once it built up. When home values began to fall, some homeowners found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home. Some of those households decided to walk away from their homes, and that led to a wave of distressed property listings (foreclosures and short sales), which sold at considerable discounts that lowered the value of other homes in the area.

Today, prices have risen nicely over the last few years, and that’s given homeowners an equity boost. According to Black Knight:

In total, mortgage holders gained $2.8 trillion in tappable equity over the past 12 months – a 34% increase that equates to more than $207,000 in equity available per borrower. . . .”

With the average home equity now standing at $207,000, homeowners are in a completely different position this time.

Bottom Line

If you’re worried we’re making the same mistakes that led to the housing crash, the graphs above should help alleviate your concerns. Concrete data and expert insights clearly show why this is nothing like the last time.

The Drew Team can show you how to make the most of this market, right now!  There are opportunities for buyers, sellers, investors, first time home buyers and anyone ready to make a move.  Having served in over 1000 real estate transactions we have the expertise to help you reach YOUR goals.

The Drew Team is Robin & Steven Drew, Robin McAvoy, Casey Hurlburt, Tom Walton and our amazing admin Nancy Horn.  Our passion is reaching YOUR goals in real estate.  That is why we have been named among America's Best Real Estate Small Agent Team for SIX straight years.  Contact us today to get you moving towards your goals.

Posted in NOT a Bubble!
July 29, 2022

Three Reasons To Buy a Home in Today’s Shifting Market [INFOGRAPHIC]

Three Reasons To Buy a Home in Today’s Shifting Market [INFOGRAPHIC] | MyKCM

Some Highlights

  • The housing market is moving away from the frenzy of the past year and it’s opening doors for you if you’re thinking about buying a home.
  • Housing inventory is increasing, which means more options for your search. Plus, the intensity of bidding wars may ease as buyer demand moderates, leading to fewer homes selling above asking price.
  • If you’re ready to buy a home, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.

Reason to work with The Drew Team

   *  Our Team has the experience of working with many types of markets in real estate, thus this is a shift           we can guide you through to not only reduce stress but also be sure you goals are reached! 

   *  Instead of a single agent who may be occupied, on vacation or simply too busy...  our small team is              always working together to be sure the details are handled in a timely manner and YOU are the focus!

   *   We have tools and partnerships to ensure you have the best information, experience and outcome.

The Drew Team is Robin & Steven Drew, Robin McAvoy, Casey Hurlburt, Tom Walton and our amazing admin Nancy Horn.   Our agents have a combined experience of over 40 years!   We also have the expertise gained from over 1,000 real estate transaction...  whether you are a first time home buyer, selling again, investing, looking to move up or downsize we can show your how to reach your goals.

July 21, 2022

SHIFTED - Arizona Real Estate Market Update

Summer is upon us in Arizona and so is the Real Estate Market Shift!   What does that mean for you, the market and the future of real estate in Arizona?  Watch the video or keep reading for answers!

 

              

60 days ago we told you the market was shifting, now it has shifted, so what does that mean moving forward?  Lets check the numbers for today (July 21,2022).

The Drew Team July 2022 Real Estate Market Update for Arizona Shifted

The biggest change is the number of homes available, up 30%+ recently!   However that does NOT mean a crash nor a massive drop in activity.  In fact our Pending home sales (contracts) are down about 15% which is typical of summer here.

To give you some perspective, in the last 60 days Arizona has seen the school year end, Memorial Day, summer vacations, 4th of July and over the next week most of the state will head back to school -- YES buyers have been distracted!

Summer

RESULT:  The Frenzy of the Spring has given way to what is technically a seller's market --  in fact we don't consider it a balanced market (sellers & buyers with equal leverage) until there is over 3 months of inventory, CURRENTLY we have only 2 months.    VERY different than spring but following the typical path of our Arizona real estate market.

CAN BOTH SELLERS & BUYERS BENEFIT?    YES, YES, YES!

How it benefits SELLERS:

1.   The Equity you gained in the last decade or year is yours, that value remains!

2.   With proper pricing and the right marketing strategy you can stand out.  

3.   If you are moving up, downsizing or just have different needs you have choices and it may be easier to find your forever home!

How to be prepare as a Seller?   Having a professional on your team with experience to properly price your home and build a strong market strategy will maximize your profit.   If you are updating or curious what makes the most impact, reach  out to us at The Drew Team so we can reduce your stress and help reach YOUR goals.

 

How it benefits BUYERS:

1.   Buyers have CHOICES!   Couldn't find what you wanted or it was sold before you got there?  NOW is your time to find a great home!

2.   Buyers who had difficulty competing with cash offers...   NOW very often you don't have to and that means keeping your contingencies in tact as well.

3.   Buyers, the rates actually eased over the last two weeks and sellers who tried to push the market have had to get realistic on price, even giving some small concessions at times.

How to be prepare as a Buyer?  Connect with us NOW so we can talk to you about options for both homes and financing that didn't exist just 3 months ago (including down payment assistance programs).  Get prequalified so you can take advantage of the new opportunities.   Let's talk about YOUR goals, then we can share some of the creative advantages that can help you win right now!

 

Many agents don't understand this market, that is why you need a team that has walked through all types of markets AND succeeded in reaching our clients goals!   To those of you who allowed us to serve you, THANK YOU as we have been named to America's Best AGAIN!

 

The Drew Team Ranked as Americas Best Agents Small Team in Arizona Real Estate for 6 years

 

 

Finally please pass along our First Responder program that can save those who serve our communities on both a home purchase or sale.   We are grateful for those that serve!

First Responder Real Estate Program from The Drew Team

Thanks to our partners in the First Responder Program

                       The Drew Team partner Jason Wojtyna JW Fairway       The Drew Team Partner Magnus Title  The Drew Team Partner Ability Home Inspection

 

The Drew Team is Robin & Steven Drew, Robin McAvoy, Casey Hurlburt, Tom Walton and our amazing admin Nancy Horn.   We are dedicated to the mission of reach YOUR goals!  We serve most of the Phoenix Valley and beyond with an expertise in single family homes, investment property, 2nd homes and also active adult living communities.  Additionally we have served hundred's of first time home buyers to moving from renting to owning.

July 18, 2022

Should I Rent or Should I Buy? [INFOGRAPHIC]

 

Should I Rent or Should I Buy? [INFOGRAPHIC] | MyKCM

Some Highlights

  • It’s worth considering the many benefits of homeownership before you make the decision to rent or buy a home.
  • When you buy, you can stabilize your housing costs, own a tangible asset, and grow your net worth as you gain equity. When you rent, you face rising housing costs, won’t see a return on your investment, and limit your ability to save.
  • If you want to learn more about the benefits of homeownership, let’s connect today.
July 8, 2022

Recession DOESN'T mean Housing Crisis

If you're following the news, you might be wondering what could happen to the housing market if there's a recession. Let's connect to discuss why history shows a recession doesn't equal a housing crisis. This video is just an intro, find more great information and details at FindMyHomeInAZ.com in our blog. The Drew Team is among the top 1% of Small Real Estate Teams NATIONWIDE as ranked by Real Trend's "America's Best Agents." Robin & Steven Drew, Robin McAvoy, Casey Hurlburt, Tom Walton and Nancy Horn are ready to reach YOUR goals!

Posted in NOT a Bubble!