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.
