The real estate market continues to surge ahead.
| | | | Friends and Clients —
The real estate market continues to surge ahead. However, clouds might be forming on the horizon for sellers. Let me give you the details: 1. Ultra-low mortgage rates Throughout 2020, the popular 30-year fixed mortgage rate set 15 new record lows. It ended 2020 just one basis point higher than the latest record low and currently stands at 2.86%, a full percentage point lower than one year ago. These ultra-low mortgage rates are driving an increase in demand. Unfortunately, sales are restricted due to... 2. Record-low inventory There were just 1.28 million homes available for sale at the end of November, the last month for which we have full data. That is down 22% from a year earlier. It is also the lowest inventory count since the National Association of Realtors began tracking this metric in 1982. Unsurprisingly, home prices are shooting up thanks to strong demand and record low inventory. The median price of an existing home sold in November was a staggering 14.6% higher than in November 2019.
Specifically in Phoenix, there's just short of 1 month supply of homes for sale. A balanced market is a 4 month supply. This is the lowest number of homes for sale that I've seen in my 17 years of selling real estate. If you're worried this pace is unsustainable, you might be right: 3. A change in the market? Some experts warn that home prices are overheating and that affordability is suffering. They might have a point because, after five consecutive months of gains, closed sales of existing homes lowered in November. Similarly, after three straight months of record highs, homebuilder confidence in December dropped 4%. December mortgage applications also fell. So what does this all mean for you? Well, things might get harder soon for home sellers. Lower affordability could hurt demand, and the price growth we've seen over the past months might slow down, or prices might decrease like we started to see before the pandemic. Fortunately, nationwide trends haven't caught up to us yet in Phoenix. Demand is still very strong. If you were to list now, you could sell quickly and at top dollar. If you'd like to get an idea of what your home is worth right now, you can use the following home value calculator, which is based on recent Phoenix sales: Enter your address here to find out what your home is currently worth If you are considering selling while the current market lasts, give me a call at 602-413-8195. I've helped many people sell in these pandemic circumstances, and I'm here to answer your questions and help however I can. Have a great day,
Monique Walker
RE/MAX Excalibur
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Monique's Featured Listings: | | |  | 11156 E OCASO Avenue
Mesa, AZ 85212 | |
| | | |  | 21503 E EXCELSIOR Avenue, 41
Queen Creek, AZ 85142 | |
| | | |  | 903 W GLENDALE Avenue, 4
Phoenix, AZ 85021 | |
| | | |  | 24033 W ANTELOPE Trail
Buckeye, AZ 85326 | |
| | | |  | 6040 N 15TH Street, 47
Phoenix, AZ 85014 | |
| | | Call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions. | | |
Tom Ross Bay Equity Home Loans
Sincerely, Monique Walker RE/MAX Excalibur Phoenix, AZ Mobile: (602) 413-8195 Monique@MoniqueSells.com | | Monique Walker RE/MAX Excalibur 8510 E. Shea #100 Scottsdale, AZ 85260 | | |
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