2015 is here!!
As predicted, our market is slowly starting to shift back in favor of Sellers. Considering that the Cromford Market Index today stands at 99.9 for the entire area (100 is balanced; below 90 is a Buyer's Market; above 110, it's a Seller's Market!), things are definitely looking up!
Here's why- There is still a relatively low supply of homes. According to the Cromford Report:
"January 15 - After 2 full weeks it is now possible to analyze the rate of new listings coming on to the market without distortions due to the highly weighted distribution by day of the week.
There have been a total of 4,353 new listings added since the start of the year (across all areas & types) which is 9.1% below 2014 and 1.3% below 2013. This is a low number and suggests that supply trends are weak despite the seasonal increase in active listings that we see in January every year. In fact it is a new record low for the 15 year period 2001-2015.
New supply is particularly weak at the bottom of the market under $200,000 while it is quite strong over $800,000.
Sellers of entry level homes are going to have less competition while sellers at the top end are going to have more competition compared with last year.
The new supply of short sales and REOs across greater Phoenix is much lower than in any of the years since 2008, but is higher than 2007 and all previous years since 2001. HUD homes are down to insignificant levels, lower than all years since 2001 except 2005 through 2007."
Look at supply trailing off...
And demand is picking up too. After the usual seasonal dip, demand is creeping back up.
So, back to the laws of supply and demand, if demand goes up and supply goes down... eventually we'll start to see upward pressure on home prices. That's probably several months out until there are are comps to substantiate the higher prices for new sales, but that's the direction most sellers are hoping the market will go.
Where are things looking the best?
For SELLERS, guess what? It's a "Seller's Market" for homes priced between $50-300K. The median sales price for our area stands at $195,000. That means that a good portion of The Valley falls into that range, so now may be the time to look at your options if you want to make a move.
Remember though, real estate is a hyper local animal. If you want to know exactly how YOUR neighborhood is shaping up, contact me and I can give you the run down of what's happening in your neighborhood.
We've got a lot of winter visitors and celebrities in the Valley of the Sun for the Barrett Jackson Auto Auction (WestWorld- North Scottsdale), Waste Management's Phoenix Open, (TPC- North Scottsdale) the Super Bowl XLIX & Pro Bowl, (Downtown & Glendale) Arabian Horse Show (WestWorld- North Scottsdale), MLB's Cactus League Spring Training (Valleywide) and many more events. A lot of these folks are coming from really cold places and may just want to have their own place to escape and enjoy our warm, sunny winters.
Buyers, if you need good representation to find your next home, call me to learn about what you might encounter in your price range and target area.There are some great options out there, but depending on your what and where, you may need to act fast. Have you heard about how low rates are now?? A client was recently quoted 3.75% for a 30-year fixed conventional loan!! Run that through a mortgage calculator to see what your monthly payment might look like!!
If you plan to sell, now may be the time. Let's talk about whether it is your time to sell, and what you can do to maximize your sales. If you're ready to pull the trigger, let's get a customized marketing plan set for you! Have I told you about my one-stop-shop to get your home market ready without all the hassle of chasing down 5 contractors to get everything done?
Enjoy your weekend!!