Updated: Jun 14, 2022
It's so tempting to begin writing this by saying "The one question I get asked about all the time is "...............". But honestly, no one asks.
I sat here all month putting off deciding on what to write about for April and now it is May 2nd! The truth is, I want people to like what I write and even gain value from it. It would be so much easier to quick reference a list of questions that I ALWAYS get asked, just like you see people proclaim on TV or in their vlogs or social posts. If that happened, I could simply use my knowledge and experience to provide Feng Shui or Real Estate information that I knew people wanted to learn more about.
So, absent that giant feedback loop from the masses, here is some helpful information that while it does frequently come up in conversation, no one actually asked me for;
The Real Deal with the Real Estate Market in Arizona
We don't have a crystal ball, but what we do have is a lot of is speculation without facts. You keep hearing about a looming bubble burst, low inventory (not enough houses for sale) and people from California coming into our State to drive up home prices. People see posts online that say this, then they repeat the false narrative to one another and on social media without verifying if what they say, or share is true. Worse yet, they do believe the information and then they seek more of it. Here come the internet algorithms and now we have a hard case of confirmation bias that is spreading with vigor and creates a fearful disinformation campaign around selling or buying homes.
While Arizona has long been an economical place to live with great job opportunities arriving in the form of tech startups and manufacturing, (to name some) with progress comes change. Population growth in Maricopa County alone has continued far faster than available housing units.
If you have lived here a long time you might not like to see prices going up. But if you are from a State that has seen progress far faster and for much longer than Arizona, you probably aren't phased.
So what is happening ?
For some time, the interest rates were at historical lows and we saw a deluge of private equity investors making cash offers for houses. While that is still happening to a degree an experienced Realtor with excellent negotiation skills is your best option for getting your offer accepted. Sure, everyone knows a friend or family member who is an Agent or maybe even a Realtor but, do they know someone that does Real Estate full time and has what it takes to get the job done well for you ? Not necessarily. So click below to contact out resident Real Estate questions and get your questions answered with confidence.
Now interest rates are rising, and inflation has taken hold. Per Bloomberg news the Fed has indicated they will continue to raise the mortgage rate during 2022, the next hike expected in June.
As of today, per Bank Rate.com, the current rate of a 30 Year Fixed Mortgage is 5.41%. What we know from a recent article from the Cromford Report, as well as the Maricopa County Accessors office, is that not only are California buyers not new, they also make up only a small percentage of total buyers. Almost the same number of buyers were from Washington State. (No coincidence that my two closest neighbors are snow birds from Seattle). The Maricopa County Accessor points out that there were 25 times as many Arizona buyers as California buyers in 2021.
As for the so-called housing bubble, the factors that make up todays housing market are much different then they were in 2008. At that time there was an erroneous demand based on mortgage backed securities and in some cases predatory lending. It will no longer be the norm to have people with home loans they are upside down in (owe more than the house is worth in the market). Thanks to the Dodd Frank Wall Street Reform and Consumer Protection act, that situation should instead remain the exception.
Another misnomer is that first time buyers or people with a fair or below average credit score, cannot buy a home or, if you do wish to buy you will need 20% down or more. That is a broad generalization.
Having an excellent loan specialist is paramount. And we have some great connections that have served our clients well over the years.
While we may have no control over inflation or who decides to move here, we can control our own decision to list our home for sale or to buy a new one.
This is not a bad market, but it is a complex one and we have the expertise and experience to help you today or down the road when you are ready.
If you have questions about Real Estate, your homes current value, listing your home for sale or, how we can help you find and buy a home in today's market, please contact us.
If you want to be prepared to succeed quickly visit with Loan Specialist Tyler Hosler at Barrett Financial. He will share his expertise on mortgage programs and can confirm what you need to know and do in order to qualify for a home in today’s market. It is a lot easier than you might think!
On Tyler's website you will also find decision-making tools and calculators as well as a quick and easy online application. Just click the link below.