The True Story About the Post-Election Phoenix Market

 

We've started to see that many of the experts were wrong in their predictions about the Phoenix real estate market post-election. Here's the scoop on what our market is actually experiencing.

Buying a Phoenix Home? Search all Homes for Sale
Selling a Phoenix Home? Check out our FREE Home Value Report

Much like the election itself, most experts were wrong in their predictions about the real estate market post-election.

We predicted a slower market and less buyer demand due to rising interest rates, but the reality is that we're in a strong, exciting, and dynamic market here in Phoenix. Looking back, 2016 was a better year than 2015 and we're going to have an even better year this year.

A few particular numbers show why our market is so dynamic and strong.

The monthly number of sold homes in January was 7,000, which is a 4% year over year increase. New inventory went up 6% above last year's inventory levels, and total inventory is up to 22,000 homes.

“

Home values appreciated by 5.5% in 2016.

”

The number of months of supply in Phoenix is at three months, making it a strong seller's market. The average time it takes to sell a house is running at 77 days.

Experts agree that mortgage interest rates will fluctuate between 4% and 5%. Additionally, foreclosure activity in our county has declined for seven straight years since 2009, which is wonderful.

Finally, home prices have appreciated 5.5% in 2016.

If you have any questions about the Phoenix market or you're looking to buy or sell a home, I'm here to serve you. Just give me a call or send me an email. I look forward to hearing from you!

How Our Market Changed in the Wake of the Election

 

We're a few months out from the results of the election, so we can finally start to examine its impact on the real estate market. I'm joined by my preferred lender Tom Ross to help me explain.

Buying a Phoenix Home? Search all Homes for Sale
Selling a Phoenix Home? Check out our FREE Home Value Report

Now that the election has been over for a few months, I wanted to bring in my preferred lender Tom Ross with Nova Home Loans to update you on the state of the market and how it has been affected.

As traumatic as the election itself was, the traumatic reaction in the market was from interest rates. The new administration meant there would be increased spending on defense and infrastructure, which are inflationary concerns. Whenever the market is concerned about inflation, Tom says, interest rates go up. Rates spiked nearly a full 1% before settling down in the mid-4% range.

So what will happen with rates this year?

“

It doesn't make sense to wait to buy a home with rates going up.

”

Toms says it depends on who you talk to. He says most of the smart money seems to think rates will be in the mid to high 4% range for most of the year. As we both know right now, though, the market is hot and prices are increasing. That's why it doesn't make sense to wait to buy a home. That's especially true when you look historically at how affordable things are right now. Before rates dropped into the 3% range last year, 4% was the lowest rate we had seen in history.

If you have any questions for Tom or you're thinking about refinancing your mortgage, you can reach him at 602.791.5861 or email him at tom.ross@novahomeloans.com.

As always, if you have any questions about the Phoenix real estate market or you're thinking of buying or selling a home, give me a call or send me an email. I look forward to hearing from you!

What’s the Difference Between a Short & Traditional Sale?

 

Purchasing a home that’s a short sale is usually pretty similar to a traditional home sale; however, there are still key differences in how the process plays out.

Buying a Phoenix Home? Search all Homes for Sale
Selling a Phoenix Home? Check out our FREE Home Value Report

Today we’re answering a question from Allison, who replied to my inquiry about what topics or questions you’d like me to discuss. Allison asks, “Could you explain what happens if you purchase a home that’s a short sale?”

First off, what is a short sale? A short sale is when the home seller is selling their home for less than the actual loan amount and the bank agrees to assume the loss. Therefore, the decision maker in a short sale is the bank, and they are much more involved than they would be in a traditional sale.

The short sale process takes anywhere from four to six months. Once the bank approves a home to be sold as a short sale, the process of purchasing it is usually pretty similar to a traditional home sale. For example, you still have the pending inspection period, which allows you to cancel the transaction if the condition of the home.

“

The purchasing process is usually similar to that of a traditional home sale.

”

There are some key differences between a short sale and a traditional sale, though. With a short sale, sellers are going to be less likely to make any repairs, so buyers usually purchase the property in as-is condition. If the seller has already moved out, there may be more maintenance issues since the the house has been left empty. In my experience, the bank doesn’t get involved in making any repairs to the home, since the homeowner is still technically the owner.

The short sale process is complex, so when you interview an agent, be sure that you ask them how many short sales they’ve done from start to finish. I recommend choosing an agent that’s done at least 10. Our team has done more than 50 short sale transactions, so we would be more than happy to help you out in this regard.

A very special thanks to Allison for bringing this important topic to light. If you have any questions or are looking to buy or sell a home, please feel free to reach out to us. We’d be happy to help!