Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership: Down Payment, Credit, and Affordability,”which revealed that,

“Consumers often think they need to put more money down to purchase a home than is actually required. In a 2017 survey, 68% of renters cited saving for a down payment as an obstacle to homeownership. Thirty-nine percent of renters believe that more than 20% is needed for a down payment and many renters are unaware of low–down payment programs.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same report:

“Most potential homebuyers are largely unaware that there are low-down payment and no-down payment assistance programs available at the local, state, and federal levels to help eligible borrowers secure an affordable down payment.”  

These numbers do not differ much between non-owners and homeowners. For example, “30% of homeowners and 39% of renters believe that you need more than 20 percent for a down payment.”

While many believe that they need at least 20% down to buy their dream homes, they do not realize that there are programs available which allow them to put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with programs that have emerged allowing less cash out of pocket.

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Similar to the down payment, many either don’t know or are misinformed about what FICO® score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

As you can see in the chart above, 51.7% of approved mortgages had a credit score of 600-749.

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.

Just as understanding your mortgage options can simplify the home-buying process, knowing the right selling options can make the selling journey just as smooth. If you’re looking to sell your property quickly and without the usual complications, working with a cash buyer who buys houses as-is can be a great choice.

Whether your home needs repairs or you have a unique property like one with an unpermitted ADU, a cash buyer can offer you a fast and hassle-free transaction. With this option, you don’t need to worry about staging, inspections, or waiting for financing approval.

To get started, simply reach out to trusted cash buyers who specialize in purchasing homes in their current condition, and you could be on your way to closing in as little as a few days, freeing you from the stress and uncertainty of traditional real estate sales.

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If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here

Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening?

The market has definitely softened. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:

Dr. Svenja Gudell, Zillow Chief Economist:

“These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”

Danielle Hale, Chief Economist of realtor.com:

“The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.”

In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question:

“When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?”

Only 5% said the market has already shifted. Here are the rest of the survey results:

 

Bottom Line

The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘Z’ Report, best explained the current confusion:

“With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign.

In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here

Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

Every Hour in the US Housing Market: 

• 596 Homes Sell

• 278 Homes Regain Positive Equity

• Median Home Values Go Up $1.20

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If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

We have all seen the headlines that report that buying a home is less affordable today than it was at any other time in the last ten years, and those headlines are accurate. But, have you ever wondered why the headlines don’t say the last 25 years, the last 20 years, or even the last 11 years?

The reason is that homes were less affordable 25, 20, or even 11 years ago than they are today.

Obviously, buying a home is more expensive now than during the ten years immediately following one of the worst housing crashes in American history.

Over the past decade, the market was flooded with distressed properties (foreclosures and short sales) that were selling at 10-50% discounts. There were so many distressed properties that the prices of non-distressed properties in the same neighborhoods were lowered and mortgage rates were kept low to help the economy.

Low Prices + Low Mortgage Rates = High Affordability

Prices have since recovered and mortgage rates have increased as the economy has gained strength. This has and will continue to impact housing affordability moving forward.

However, let’s give affordability some historical context. The National Association of Realtors (NAR) issues their Affordability Indexeach month. According to NAR:

“The Monthly Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent monthly price and income data.”

NAR’s current index stands at 138.8. The index had been higher each of the last ten years, peaking at 197 in 2012 (the higher the index the more affordable houses are).

But, the average index between 1990 and 2007 was just 123 and there were no years with an index above 133. That means that homes are more affordable today than at any time during the eighteen years between 1990 and 2007.

Bottom Line

With home prices continuing to appreciate and mortgage rates increasing, home affordability will likely continue to slide. However, this does not mean that buying a house is not an attainable goal in most markets as it is less expensive today than during the eighteen-year stretch immediately preceding the housing bubble and crash.

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If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

Electric Desert at Desert Botanical Garden

November 1, 2018 to May 12, 2019

Cactus and desert become a living canvas in this nighttime experience, taking visitors on an immersive journey through the garden using light and original music. This is Klip’s second garden installation; the first was at Longwood Gardens in Pennsylvania.

dbg.org/events/electric-desert

 

Phoenix Public Market

Starting November 3, 2018

Recurring weekly on Saturday

At this local farmers market, expect to find local produce, grass fed meats, fresh eggs, baked breads and treats, jams and honey, peanut butter, flours and mixes, prepared foods, gluten free and vegan options, ready to eat meals, food trucks, local artisan wares and health and wellness products.

phxpublicmarket.com

 

Cynosport® World Games Dog Agility Championships

WestWorld of Scottsdale

November 1, 2018 to November 4, 2018

Nearly 750 canine athletes from nine different countries are headed to Scottsdale, Ariz., to compete.

cynosport.com

 

Carefree Fine Art and Wine Festival

Downtown Carefree

November 2, 2018 to November 4, 2018

Surround yourself with fine art, wine tasting, festival food and live music. The festival accommodates the return of Arizona’s largest wine-tasting event, providing a unique opportunity to sample an extensive collection of domestic and imported wines.

thunderbirdartists.com

 

AZ Barrels, Bottles and Brews

Salt River Fields at Talking Stick

November 3, 2018

Enjoy and celebrate craft beer, spirits and wine from around Arizona with over

25 local breweries, distilleries and

wineries from the state.

azbottlesandbrews.com

 

Bacon, Blues and Brews Festival

Queen Creek’s Founders Park

November 3, 2018

The family-friendly celebration of craft beer, blues music and everyone’s favorite pork product will feature an array of inventive bacon-based dishes from chefs from around Phoenix, as well as an assortment of additional offerings for those looking beyond bacon and beer (if such individuals exist).

baconbluesandbrewsaz.com

Dia de los Muertos Celebration at Desert Botanical Garden

November 3, 2018 to November 4, 2018

Recurring daily

Two-day family-oriented festival that uses music, dance and storytelling to explore the beauty and meaning of this special holiday.

dbg.org/events/dia-de-los-muertos/

 

azcentral Wine and Food Experience

Salt River Fields at Talking Stick

November 3, 2018 to November 4, 2018

Celebrate with the hearts and palates of chefs, vintners, distillers, restaurateurs and enthusiasts. In this rare culinary experience, you design your own culinary journey.

wineandfood.azcentral.com

 

Arizona Fall Festival

Hance Park

November 3, 2018

More than 200 vendors representing Arizona’s favorite local businesses; Food samples, food trucks, Arizona-produced wine, beer, and spirits. Live entertainment.

localfirstaz.com/fall-festival

 

Grape Arizona Wine Event

Heritage Square Phoenix

November 4, 2018

Head to Heritage Square in downtown Phoenix for an afternoon with great Arizona wine makers, favorite Valley eateries, local breweries and wine crafts. This year’s event will include an Arizona Reserve Wine Tasting where wine enthusiasts can explore Arizona wine history while sampling some special Arizona wines.

grapearizonawineevent.com

 

Chiles and Chocolate Festival

Desert Botanical Garden

November 9, 2018 to November 11, 2018

Recurring daily

Sample and shop your way through the top chile and chocolate vendors in Arizona.

dbg.org/events/chiles-chocolate-festival

Fountain Hills Festival of Arts and Crafts

Avenue of the Fountains

November 9, 2018 to November 11, 2018

Holiday shopping, purchase art and enjoy good food and live entertainment.

fountainhillschamber.com

 

Bentley’s Scottsdale Polo Championships

WestWorld of Scottsdale

November 10, 2018 to November 11, 2018

Live luxuriously and extravagantly at the Bentley Scottsdale Polo Championships.

thepoloparty.com

 

Illumination: Symphony of Light

November 14, 2018 to January 5, 2019

100-foot-wide nativity scene, along with an expanded Holiday Boulevard Marketplace. A winter wonderland designed for shopping, sipping hot cocoa and snacking.

worldofillumination.com

 

Goodguys Rod & Custom Association’s Southwest Nationals

WestWorld of Scottsdale

November 17, 2018 to November 18, 2018

Over 3,000 hot rods, customs and classic cars will be on display, swap meet, cars for sale corral, entertainment, Goodguys Autocross racing, kids zone, food booth and more.

good-guys.com

 

Fantasy of Lights Opening Night Parade

November 23, 2018

Nothing says the holidays like a parade! Kick off your holiday season right and join us in Downtown Tempe for the 24th Annual Fantasy of Lights Opening Night Parade.

downtowntempe.com

 

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

According to CoreLogic’s latest Home Price Insights Report, national home prices in August were up 5.5% from August 2017. This marks the first time since June 2016 that home prices did not appreciate by at least 6.0% year-over-year.

CoreLogic’s Chief Economist Frank Nothaft gave some insight into this change,

“The rise in mortgage rates this summer to their highest level in seven years has made it more difficult for potential buyers to afford a home. The slackening in demand is reflected in the slowing of national appreciation, as illustrated in the CoreLogic Home Price Index.  

National appreciation in August was the slowest in nearly two years, and we expect appreciation to slow further in the coming year.”

One of the major factors that has driven prices to accelerate at a pace of between 6-7% over the past two years was the lack of inventory available for sale in many areas of the country. This made houses a prized commodity which forced many buyers into bidding wars and drove prices even higher.

According to the National Association of Realtors’ (NAR) latest Existing Home Sales Report, we are starting to see more inventorycome to market over the last few months. This, paired with patient buyers who are willing to wait to find the right homes, is creating a natural environment for price growth to slow.

Historically, prices appreciated at a rate of 3.7% (from 1987-1999). CoreLogic predicts that prices will continue to rise over the next year at a rate of 4.7%.

Bottom Line

As the housing market moves closer to a ‘normal market’ with more inventory for buyers to choose from, home prices will start to appreciate at a more ‘normal’ level, and that’s ok! If you are curious about home prices in your area, let’s get together to chat about what’s going on!

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If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

Seller Concessions Spike on Listings Sold Between $200K-$250K

Price Reductions up 27% on Active Listings Between $250K-$400K

 

For Buyers:

October marks the 4th month in a row that supply has continued to rise between $200K – $400K, which is good news for many buyers as it provides them with more choice and fewer competing offers.  However, for those buyers with budgets under $200K, this trend in supply doesn’t apply to them and their choices are still extremely limited.  Last January, inventory under $200K made up 18% of all active listings.  Within that price range, single family homes made up 50%, condos and townhomes 30%, and mobile homes 20%.  As of this month, inventory under $200K only makes up 12% of actives and has declined 36% since January.  Single family homes make up 45%, condos and townhomes 36%, and mobile homes 19%.  This drop in supply equates to 591 fewer single family homes, 198 fewer condos and townhomes, and 229 fewer mobile homes available for sale under $200K since the beginning of 2018.

For Sellers:

When supply rises, sellers react in a number of ways to compete with one another for the existing buyer pool.  One option is a price reduction on their active listing prior to contract. This does not necessarily result in a decline in sale price, only a decline in sellers’ expectations for appreciation.  Sales price trends may still continue to rise, but perhaps only at 5% instead of 8%, for example.  Another option is to agree to a concession, such as paying a portion of closing costs or a home warranty; and finally to agree to a much lower sale price than what they were asking. Typically sellers agree to the first two options before submitting to a “low ball” contract, which is why sales price trends are the last measures to respond to a shift in supply and demand.  With that being said, weekly price reductions this month between $250K-$400K are up 27% compared to last year, while price reductions between $200K-$250K are only up 1.7%.  However, seller concessions on sales between $200K-$250K reached 41% so far this month compared to last quarter’s measure of 36%.  Only 21% of sales between $250K-$400K recorded a seller concession.  Which leads us to conclude that sellers below $250K are agreeing to more concessions than price reductions; while sellers over $250K are submitting to more price reductions.  Despite this slight weakening in sellers’ advantage, Greater Phoenix is not close to a balanced or buyer’s market so expect overall prices to continue rising over the next 3-6 months.

 

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If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here

Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise

• According to a study by GOBankingRates, it is cheaper to buy a home than rent in 38 states across the country.
• In six states the difference between buying & renting would account for less than a $50 monthly difference, leaving the choice up to the individual family.
• Nationwide, it is now 26.3% cheaper to buy.

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If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here

Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.