Phoenix Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Sept. 9, 2022

Why 2-1 Buydowns Are Perfect for This Market

Here’s what homebuyers need to know about interest rate buydowns.

 

What is a 2-1 mortgage rate buydown? Also known as an interest rate buydown, this is a financing option that gives a borrower a discounted rate on their mortgage either for the life of the loan or a shorter period. 

 

There are two common types of mortgage rate buydowns. The first is a standard rate buydown, where you pay a fee upfront to lower your rate for the entire length of the loan. The cost depends on the state of the current mortgage market. 

 

"2-1 buydowns have no risk, unlike adjustable-rate mortgages."

 

The other common type is a 2-1 buydown. With this option, your rate is discounted for the first two years. Then it rises to a regular, permanent rate. Typically, your rate is 2% lower in the first year, 1% lower in the second, and undiscounted for the rest of the loan. The cost of this option also depends on the current mortgage market. 

 

2-1 buydowns have many benefits. They’ll help you qualify for a loan and let you ease into homeownership. Unlike an adjustable-rate mortgage, your rate is fixed after two years, so you don’t have to worry about it increasing beyond what you can afford. 

 

This can be a complicated topic, so reach out if you have any questions. Also, if you have any questions about the market or real estate in general, don’t hesitate to reach out by phone, email, or click this link to submit a contact request. We look forward to hearing from you soon.

Posted in Buying
Aug. 11, 2022

How to Sell Safely in a Changing Market

              

The best decisions in a changing market start with accurate data.

 

Are you interested in finding out how to sell in a changing market? Today, we’ll walk you through what we do to help our clients determine the right time to sell and how to stay safe in a changing market. 

 

It has been a while since we experienced a shift like this. The market is moving from a strong seller’s market to a balanced one. A balanced market is when the buyer demand is equal to the available supply of homes for sale, and that happens at around six months’ worth of housing inventory.

 

What does it take to sell safely in a changing market? It all starts with accurate, relevant data, and there’s much more information needed during a market shift than in a hot seller’s market. We have to gather data and make decisions based on it and our clients’ needs. 

 

"The proper data drives safe decision-making."

 

Make no mistake, marketing, negotiation, and the right closing team still come into play, but it all starts with data. Although data can be boring for some people, it’s also the best tool to help you make fact-based decisions and ensure your judgment isn’t clouded by emotion.

 

What data do we keep a close watch on? Hyperlocal market trends, absorption rate, marketing trend response, showing activity, buyer feedback, mortgage rates, inflation, economic impacts, changing buyer demographics, and much more. 

 

If you’re interested in learning more, reach out to us by phone, email, or click this link to submit a contact request. We look forward to hearing from you soon.

 

Posted in Selling
June 28, 2022

Urgent News in the Market You Have To Know

The majority of homeowners will still have a great equity position.

 

Today we’ll be sharing some urgent news every buyer and seller should know in this quickly changing market:

 

1. Sales. Sales are down 5.1% month over month and down 9.3% compared to last year. 

 

2. Inventory levels. New listings added have a month-over-month increase of 13.4%, while the year-over-year comparison has increased by more than 21%. Total inventory has a month-over-month increase of 37.5%, while the year-over-year difference reflects a significant increase of 44.4%.

3. Active listings. The active listings are double what they were last year and up 100% year over year, and almost 40% of that is in the past 30 days. The increase in supply is due to the drop in demand. Listings under contract are down 15.6% year over year.

4. Pricing. Average new listing prices are up 24.3% year-over-year but are expected to change, and average sales price is up 16.7% year-over-year, while the year-over-year median sales price is also up 21.8%. 

“The majority of homeowners will still have a great equity position.”

 

Now buyers have more active listings to choose from every week. If this pace continues, a market balance, where there is an equal balance between buyers and sellers and neither have a clear advantage, is possible as soon as mid-August. There will also be more price reductions and an increase on days on market. 

 

We’ve shared with our clients that an adjustment is likely but we did not anticipate such a fast and dramatic change. The last time we saw a similar market cooldown was in 2005, but 2022 seems like a more striking reversal than we experienced back then. At 2:27 in the video, the chart illustrates this phenomenon.

 

Fortunately for sellers, even if we experience a normalization in values, the majority of homeowners will still have a great equity position due to the increase in home values over the past few years. If you plan on selling, the safest advice we can give you is to sell as soon as possible because we consider it an urgent real estate decision in this market. 


If you have more questions about the market or real estate in general, don’t hesitate to reach out at (602) 352-3600 or click this link to submit a contact request. We look forward to hearing from you soon.

Posted in Market Updates
May 27, 2022

How Does a Recession Affect Your Home Value?

Here’s why an economic recession isn’t all bad news for homeowners.

 

The one thing that every homeowner needs to understand about a recession is that it does not equal a housing crisis. Everywhere you look, experts are warning us of a recession and potential crash. Even if the market corrects, an economic slowdown doesn't mean homes will lose value. 

 

Take a look at the graph at 0:40. There have been six recessions in this country since 1980. However, home prices actually appreciated during four of those recessions. When the economy slows down, it doesn’t mean home values will depreciate. The only times they have depreciated were during the savings and loan crisis of 1991 and the housing crash of 2008.

“History has proven that a recession doesn't equal a housing crisis.”

 

Most people just remember the 2008 crash and think we’ll go through something similar if we have another recession. That's just not true. Today’s fundamentals are very different from what they were in 2008. Mortgage lending and banking practices are much more stable than they have been in the past.

 

History has proven that a recession doesn't equal a housing crisis, and even if one comes, we won’t necessarily see homes drop in value due to our current market conditions. If you have any questions about the market or real estate in general, don’t hesitate to reach out by phone, email, or click this link to submit a contact request. We look forward to hearing from you soon.

Posted in Homeowner Tips
May 19, 2022

What's on the Horizon for the Housing Market in the Second Half of 2022?

May 11, 2022

Is Now the Right Time To Make a Move?

 

Two market changes that could impact your decision to make a move.

 

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

 

Today we’ll answer your questions about the changing market and whether you should make a move right now. Here are the two main changes happening in our market that will impact your decision:

 

1. Interest rates are rising but are still low. If you're obtaining a loan, it will cost more than in recent years for the same mortgage. However, interest rates are still very low right now. Comparatively, they're half of what they were when I bought my first home. These are cheap rates even though they're not what you're used to.

 

2. Inventory has increased slightly. This has caused some slight price reductions and increased days on market. Buyer interest has subsided a bit but demand is still outpacing supply and we still see strong buyer competition and multiple offers on homes.

“We recommend making a move sooner rather than later.”

 

How does this affect your buying or selling decisions? If you're buying, there may be less competition. However, if the property is popular, you'll still see buyers compete and offer top dollar. If you're selling, there may be less buyer competition, but it's still a seller's market. We’ll pay careful attention to reading the market for your specific property.


If you're considering making a move in the next 12 months, we recommend doing it sooner rather than later. Rates are expected to rise and appreciation is expected to slow. Hopefully, this helps you decide whether it's a good time for you to make a move or not. If you have any questions about your specific scenario, reach out to us by phone or email. We're here to help.

Posted in Market Updates
April 28, 2022

Things To Consider When Moving This Spring


Here’s my advice for home sellers who are on the fence about list
ing.

 

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

Today we’re going to discuss things to consider if you’re on the fence about making a move this spring. If you’re thinking of selling this spring, it may be because you’ve heard that prices are rising, listings are going fast, and sellers are getting multiple offers on their homes. All of this is true. Why are conditions so good for sellers today, and what can you expect when you move? To help answer those questions, let’s turn to the data.

 

 


Today there are far more buyers looking for homes than sellers listing their houses. Look at the maps at 0:47 in the video above of the latest buyer and seller traffic from the National Association of Realtors. This should help paint the picture of what this looks like for you. Notice how much darker the blue colors are on the left. This shows buyer traffic is strong today. In contrast, the much lighter blues on the right indicate a weak or very weak seller traffic. In a nutshell, the demand for homes is significantly greater than what’s available to purchase.

 

 

"We know buyers will be competing for your home."

 

 

What does this mean for you? You have an incredible advantage when you sell your house under these conditions. Since buyer demand is so high at a time when seller traffic is so low, there’s a good chance that buyers will be competing for your house. In fact, we know that’s the case.

 

 

The NAR statistics show that the average sold home got 4.8 offers. Selling when demand is high and supply is low sets you up for the big win.

 

 

So what’s the bottom line? If you're ready to move, you have an incredible opportunity in front of you. Let’s connect. You can rely on our expertise, and we can help you win when you’re selling as well as when you’re buying.

 

 

If you have any questions, don’t hesitate to reach out via phone or email today. I look forward to hearing from you.

Posted in Selling
March 7, 2022

Why Real Estate Is Such a Secure Investment


Here is why real estate is a secure hedge against inflation.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

If you’ve been following the news lately, you know that inflation is on the rise. Fortunately, there’s a great way to hedge against it: investing in real estate! Today I want to talk about why investing in real estate is such a great hedge against inflation and how you can take advantage. 



If we look at the last eight years, real estate has appreciated more than stocks, savings, gold, and just about everything else, For example, stocks have only increased by 21% over the last eight years. During that same time, the average property appreciated by 41%.

 

"Even when the market crashes, home values come back stronger than before."

 

The truth is that real estate is an incredibly secure investment. Any home purchased 10 years ago is probably worth much more now. Even when the market crashes, it comes back stronger than it was before. 

 

 

The average sales price in our area is in the $450,000 to $500,000 range, but you don’t have to go that high to protect yourself against inflation. We’d love to help you find an investment that works for you. Once you finally win a house, you can start building equity and securing your finances against whatever comes next. 

 

If you want to discuss inflation, investment properties, or a personal residence, please reach out to us. We’d love to help! 

Posted in Investing
Jan. 24, 2022

Is Now the Right Time To Buy a Home?

Is now the right time for you to buy a home? Here’s what you should know.

 

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

In 2021, we experienced the lowest interest rates of all time. We’re currently seeing rates increase due to inflation, and that will continue.

You need to think carefully about whether you should buy now with the lower rates or hope home prices level out somewhat. We’ve done the math, and purchasing a home now, even with the present prices, is a better deal than purchasing later when rates rise 0.5% or more. If you’re considering making a move, look at the numbers, speak with your lender, and reach out to us if you want to discuss home prices or buying strategies. Though you’ll have to figure out whether it’s the right time for you to buy, it’s certainly an excellent time to sell.

 

   We’re currently seeing rates

increase due to inflation.  

 

 

A 30-year fixed mortgage is best, but if you can afford a 15-year and want to go that route, that’s fine. You can also get a 30-year mortgage and pay it as though it’s a 15-year without much risk. We don’t recommend adjustable-rate mortgages unless you can get a guarantee that it’ll be safe for you. About 90% of the time, it’s not a safe choice. 

 

If you’d like our input about whether now is the time for you to buy, we’re available to discuss what’s happening in our real estate market, where we see it heading, inventory levels, and how all that might affect you. If you have real estate questions or we can help you in any way, please reach out to us via phone or email. We’d love to speak with you.

Posted in Buying, Market Updates
Dec. 29, 2021

We’re Ready to Help You in 2022

We’re wishing you the best in 2022 no matter what your plans are.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

 

Welcome to 2022! We all have our New Year’s resolutions, and for many of you, buying or selling a home is on your list.

 

Since we’re in the first week of January and haven’t heard from you yet, we assume you aren’t planning on making a move right now. If you are and you’d like our help getting your home prepared to sell, getting prepared to buy, or anything else, we are here for you.

 

If you have any questions relating to real estate, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon. Happy New Year!

Posted in Team