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!
Opportunities in the 2024 Real Estate Market
