How did our October 2017 market compare to what happened in October 2016?
Here are how the latest statistics stack up:
The number of homes that came on the market dropped from 10,026 to 9,842, which is a 1.8% decrease.
The number of total active listings dropped from 22,962 to 21,410—a 6.8% decrease.
The number of total homes sales rose from 7,097 to 7,393, which is a 4.1% increase.
Our supply of inventory dropped 11.5% from 3.24 months to 2.9 months. Remember—when you have a six-month supply or greater, you’re in a buyer’s market. Anything below six months generally constitutes a seller’s market.
Because there are more homes selling, fewer homes for sale, and fewer coming onto the market, we’re in a seller’s market in most neighborhoods in the greater Phoenix area.
If you or anyone you know are interested in buying or selling in this market, don’t hesitate to give me a call. I’d love to speak with you.
A lot of people think that the holidays are a bad time to sell a home because a lot of buyers who were in the market before are no longer purchasing. While there are fewer buyers on the market during this time of year, there are also a lot fewer homes for sale.
If a buyer needs a home in the fourth quarter of the year, it’s for a solid reason. Why would they put the stress of moving during the holidays on themselves and their families if they didn’t have to buy a home?
Many buyers are looking for a home around this time of year for tax reasons. For others, their lease is up and they’re finally ready to make the leap to homeownership. Some buyers are moving here on corporate relocation and need to wrap up their housing situation before they start their new job in January.
Serious buyers are plentiful this time of year.
I could give you six or seven more reasons why buyers purchase at this time of year, yet most sellers pull their homes off the market during these months. We’re in a seller’s market right now and in most cases, you’re better off selling in the fourth quarter rather than in the first quarter.
If you have any questions for me or are interested in taking advantage of the current market conditions, give me a call or send me an email. I look forward to hearing from you soon.
Let me get this full disclaimer out of the way—I’m not an attorney, I’m not a CPA, and I can’t predict the future.
If you’re still renting, you need to buy and start working on building equity for your future.
That being said, I’m sure you’ve read articles online or heard rumors that our market is headed for a recession. I will say that it’s definitely possible—we haven’t had a recession since 2008 and 2009, and we get a recession every eight to 10 years, so technically we’re overdue.
Should you sell your home now, though? I would definitely consider it if you don’t want to be in that home for the next five to 10 years. If that’s the case, it would probably be wise to sell the home, take the equity, and buy another house you see yourself living in for the next seven to 10 years so you can lock in the interest rates while they’re still below 4%.
Be happy where you’re at—that’s the key. If you’re not happy where you’re at, sell now. Don’t wait a year or two. Every year you wait, you increase your chances of selling in a buyers market with declining prices.
If you’re a buyer thinking you’d rather rent for the next five to seven years and wait this possible recession out, that’s fine, but renting at $1,500 per month for five years means you’d be throwing away $90,000 on rent. That’s $0 toward your financial future.
If you buy a home and make payments on it for the next five to seven years, it’s no big deal if the market adjusts. Just stay in the house and keep making your payments until the house is paid off and you’re mortgage and debt-free. When you retire, you want a home that’s paid for—you don’t want to be paying rent when you retire. The average mortgage lifespan is 30 years. Think about that. How old will you be in 30 years?
If you’re still renting, you need to buy and start working on building equity for your future.
I’d love to talk more with you about whether it makes sense for you to sell now, keep your house, or buy for the first time. If you have any questions or are thinking about making a move, just give me a call or send me an email and I’d be happy to help you.
The stock market has been hitting all-time highs lately, which has many people wondering, “Should I put my money into the stock market or into real estate?”
I am not a financial advisor, so I can’t give you any financial advice. What I can do is talk with you about real estate investing and how it’s been done in the past.
There are a few things to consider when deciding whether to invest in real estate or stocks.
For example, when you buy stock, you own a piece of a company. Theoretically speaking, can that company go to zero? Sure it can. It can go on the penny stocks, become delisted, or go down in value.
Real estate can go down in value. However, can you buy a piece of property, rent the property, let the tenant pay off the mortgage, and own a free and clear property to provide income for you during retirement? Of course you can.
When you invest in real estate, you can make money on the appreciation. Of course, the real estate market can be volatile as well.
When deciding whether to invest in real estate or not, it all depends on your long-term motives.
Do you want to own a property that pays you an income stream every month for retirement? Are you looking for a fairly stable income stream? Are you looking for an income stream that you can increase year over year to match inflation?
If you are still worried, consider it this way. Are rents higher now than they were in the 1970s, 1980s, 2000s, or even 2010? Of course.
Rental rates have gone up year over year in most cases. They can tick down sometimes if the real estate market gets really hot, but they have never dipped as low as they were 30 or 40 years ago.
Owning a rental property that has been completely paid off can provide great financial security for you during retirement.
Again, I am not a financial advisor. I am simply sharing what has worked for myself and my clients who invest in real estate.
If you have any questions or are interested in investment properties, just give me a call or send me an email. I would be happy to help you!
Today I’d like to take a look at our real estate market for August of 2017.
During the month of August, we had 9,780 homes come on the market, compared to the 9,333 that came on the market this time last year.
The difference between these numbers means an increase of 4.2% from 2016 until now in terms of new homes on the market.
Active listings, though, have gone down. This statistic saw a decrease of 8.8%, going from 21,787 active listings in 2016 to 19,877 in August of this year.
In terms of sold homes, we had 8,251 this year. This constitutes a 4% increase from the number of sold homes in August of 2016, which was 7,932.
The months' supply of inventory right now is sitting at about 2.41 months—a decrease of 13.4% from last year’s 2.75 months.
A reduction of homes coming on the market combined with an increased number of homes being sold has lead to this decreased supply. This means that we are still in a seller’s market.
Right now is a great time for buyers and sellers alike to make their move.
Demand is also still very strong, since interest rates are lower than they’ve been all year. Right now, the 30-year fixed interest rate is about 3.78% on average. The average for a 15-year fixed is just 3.08%. All of these factors have combined to create a very interesting market. We’ve got record-low interest rates, the lowest inventory we’ve seen in about 10 years, and a lot of demand.
Ultimately, now is a great time to move forward with a real estate transaction whether you’re looking to buy or sell.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
If you’re a first-time homebuyer, does it make more sense to rent now and wait for real estate prices to come down and buy a home at a lower price in the future?
There are a couple factors you need to consider. First, how long are you planning on renting the home? Second, how much would you pay monthly for rent?
If you’re paying $1,500 a month, that equates to $18,000 a year. If you’re going to wait—say—three years for prices to go down and you’re paying $18,000 a year in the meantime, you’d end up paying $54,000. That’s a lot of money! You’re banking on the hope that the home you intend to buy will decrease $54,000 in the next three years just to break even.
In most cases, it doesn’t make sense to wait and rent until prices go down because of all the money you’d throw away on rent. There’s no equity and there aren’t any tax write-offs when it comes to renting properties.
The sooner you buy, the sooner you’ll be able to pay off your home.
If you buy now, you start making payments on your home now. When you retire in 20 or 30 years, would it make more sense to have a home that’s paid for or would you rather still be renting? Whatever your age is now, add 30 years to it—is your home going to be paid off by then?
Only if you buy a home now. Think about it.
If you have any questions or are thinking about buying your first home, don’t hesitate to give me a call. I look forward to hearing from you.
It’s time for us to share the latest numbers for the Phoenix real estate market. We took the numbers through July of 2017 and compared them to what we saw in July of 2016 to see how the market has changed. Here’s what we found:
New listings are down slightly by 1.5%, going from 9,043 last year to 8,912 this year.
Active inventory is down by 10.8%, from 22,510 in July 2016 to 20,301 in July 2017.
Sold homes went up by 4.2%, from 7,761 to 8,016.
Inventory dropped from 2.9 months in July 2016 to just 2.59 months now. That’s a 13% decrease.
We’re still seeing a tightening of inventory and an uptick in home sales, showing that we are in a very strong seller's market with limited availability and strong buyer demand. A lot of that has to do with interest rates. Right now, the 30-year fixed average is around 3.75%. Buyers are buying now to lock in these low rates before they go up.
If you have any specific questions for us about the market or real estate in general, give me a call or send me an email. If you found this video helpful, go ahead and pass it onto someone you know. I look forward to hearing from you soon.
Outside of the property itself, you are often coming into possession of valuables and other things that were left behind within the home.
These extra belongings can make the task of inheriting a home seem daunting. So when you hire an agent to help you sell the home it is important that you hire one who specializes in probate.
I personally partner with many different people, including a probate attorney who is capable of handling some if not all of the paperwork associated with this process. Also on my team I have people able to come in and do an estate sale.
They will be able to come in and help sell off the inventory on the property for you outside of the things you set aside to keep, and the things that are leftover can then be donated or removed.
Our team consists of a number of individuals all qualified to get the home ready to sell.
However, if you are in a situation where you are ready to be done with the property immediately without going through any of the steps above, we do have cash investors who can come to the table and buy the property within 24 hours.
No matter what avenue you take, having a probate expert to help you out will be essential.
Whatever option you choose should be the one that will remove the most stress from your life.
But no matter what avenue you take, having a probate expert to help you out will be essential.
The latest Phoenix area market statistics are in for the month of June 2017. Here’s how they stack up against where we were in June 2016:
The number of homes that came on the market increased 2% from 9,934 to 10,143.
The number of active listings decreased 6.9% from 23,071 to 21,484.
The number of sold listings rose 7.1% from 8,959 to 9,596.
Our months of inventory decreased 13% from 2.58 months to 2.24 months.
As you can see, our market is experiencing a decline in the number of homes for sale, an increase in the number of homes sold, and a decrease in our month’s supply of inventory. These numbers indicate a strong seller’s market.
Along with the shortage of inventory and strong demand from buyers, interest rates are still below 4%. With prices going up, many buyers are entering the market with the intent of locking up a low interest rate before prices go any higher.
If you’re thinking about buying your first home or making a switch from your current home, give me a call so we can formulate a strategy. I look forward to hearing from you soon.