The Arizona Regional Multiple Listing Service (ARMLS) has released their latest market statistics, and the market looks steady an competitive. Let’s dive in to the data:
Starting with the overall monthly sales chart, while we do see a decline in total sales in the month of June, that is expected, and quite normal annually as we head into the Arizona summer. The total amount of sales was higher year over year, that’s good to see.
As you will see below, we are still in what is considered a “Low Inventory” situation. As homes sell, there are not enough new listings coming on the market, so total available homes are still dipping.
This is good news if you have been considering selling. The buyers are out there, but their choices are limited.
The analysts at ARMLS are beginning to view this as “The new normal”, which will keep the market competitive, and keep pricing steady.
One reason for the “New Normal” could be that many people purchased their homes when the market was at its lowest. They were able to get, in many cases perhaps, more home than they needed at the time and grow into it. For this reason, they don’t have a need to sell to upgrade so they are staying put.
Another contributing thought would be that new home builders have in recent years not been building entry level homes. The entry level buyer from 5-7 years ago, in what would have been smaller new homes, would now be looking to expand and move to something larger. Since those smaller homes simply do not exist, the inventory is not there, and first time home buyers have few choices for a home under $200,000.
But all is not lost! I’ll explain in the “Bottom Line”.
Before we get to the final thoughts, let’s see what pricing has been doing recently. If you recall, I was beating the “Bring your asking prices down” drum for quite a while (see previous blogs).
In mid-January early February, that happened. Sales were slowing, pricing was too high. Then, as you can see below, the asking prices started coming down. It wasn’t a huge drop, simply an adjustment looking for where the buyers were. When these points came closer together, sales grew drastically.
As you can see in the chart below, the asking prices have stayed steady, and the sale prices have actually gone up as buyers are more willing to compete for their purchase…within a reasonable margin.
This shows a healthy, steady market.
Sellers. If you want to sell…DO IT NOW! With interest rates as low as they have ever been (3.84% as of today) buyers are out and trying to make their purchase in order to lock that low rate for the next 30 years.
All you need to do is, get your home ready to show (make it stand out), price accurately for your neighborhood, and watch the offers roll in.
I happen to be pretty good at assisting with all the above, call me for a free market analysis and tips on how you can make the most money with your sale.
Buyers: Did you read above? 3.84%!! Wow! It doesn’t get better than that, and it cannot last much longer. If you have been even thinking about buying a home, having that LOW interest rate for 30 years equals THOUSANDS of dollars in savings!
If you have ever thought that the reason you haven’t purchased is because you wanted to be able to afford more home, like a pool, 3rd or 4th garage, extra bedroom, upgraded kitchen, etc. Now you can.
A 1% change in interest rate can equal roughly $20,000 – $30,000 in buying power while keeping your payments the same. So, if you wait for rates to grow to say 4.8%, you loose your pool (or come out of pocket with more cash up front, or in monthly payment.)
This is the time to buy, call me, I would love to earn your business.
I have an awesome team of professionals in our corner to ensure a smooth transaction.
If you’re not ready yet, we can help you set a plan to get there with free advice and guidance.
I would be honored to earn your trust, your business, and your referrals. Give me a call, let’s get started today! (602) 818-6065 or Kevin@GiantAgent.com