Selling Your Home Archives - Page 6 of 6 - All About Anthem, Arizona

Why Has Housing Supply Increased as Sales Have Slowed Down?

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the inventory of homes for sale this year compared to last year has increased for the last four months, all while sales of existing homes have slowed compared to last year’s numbers.

For over three years leading up to this point, the exact opposite was true; Inventory dropped as sales soared.

NAR’s Chief Economist Lawrence Yun shed some light on what could be contributing to this shift,

“This is the lowest existing home sales level since November 2015. A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”

Let’s take a deeper look:

Interest Rates

Since January, 30-year fixed mortgage interest rates have increased nearly a full percentage point (from 3.95% to 4.9%). Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association are all in agreement that rates will continue to increase to about 5.2% over the next 12 months.

“The rise in [mortgage] rates paired with this very strong price appreciation absolutely is slowing housing,” said Fannie Mae’s Chief Economist Doug Duncan.

Even though rates are higher than they’ve been in a decade, they still remain below the average for the 1970s, 80s, 90s, and 2000s!

Mismatch of Inventory

Elizabeth Mendenhall, President of NAR, said it best, “Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range.”

Prices of starter and trade-up homes have appreciated faster than their higher-priced counterparts. Over the last 5 years, the lowest-priced homes have appreciated by 47% while the highest-priced homes have appreciated by only 24%.

According to the Institute of Luxury Home Market’s Luxury Market Report, the $1M-and-up price range is now experiencing a buyer’s market. This means that supply (inventory) has finally caught up with demand and buyers are in the driver’s seat when it comes to negotiations. Additionally, many listings in this price range have experienced price cuts in order to entice buyers to put in offers.

Natural Disasters

Although not fully to blame for the national shortage in sales and inventory, natural disasters like Hurricane Florence, Hurricane Michael, and the wildfires on the West Coast have certainly had an impact.

Bottom Line

Additional inventory coming to market could help normalize the housing market and allow incomes to catch up to home prices. For more information about sales and inventory in our area, let’s get together so we can help you make the best decision for you and your family.

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.

December 2016 – Phoenix Real Estate Market Statistics

Listings Under Contract Up 2.6%

Monthly Closed Sales Up 19%

For Buyers:

There’s both good and bad news for first-time home buyers this month. The good news is that there’s been a 22% increase in single family active listings asking between $175,000-$200,000 over the last 10 weeks, going from 1,065 to 1,295. Current inventory is 10% higher than where it was in week 49 of last year, adding some much needed choice to a high demand price range. The added supply is not universal across the valley; increases have been marked specifically in Buckeye, Surprise, Sun City, Peoria and Mesa.

The bad news for home buyers is that supply overall is down 3.7% while the level of competing buyers is remaining seasonally consistent. The Southeast Valley specifically has not seen the typical increase in supply that happens this time of year. This indicates that the area will kick off 2017 with low supply just before the expected increase in buyer activity come February. In this case, the cost of waiting to purchase will be a lack of choice and possibly having to compromise on the condition or location of the property they choose to buy.

For Sellers:

Bad news for buyers usually translates into good news for sellers, especially after positive news reports of Realtor.com ranking Phoenix as the #1 projected real estate market in the country for 2017. However, it’s still not a market to be overpriced regardless of the strong demand for homes. Some price ranges have more competing listings than others, especially in areas such as North Phoenix, Mesa, Gilbert and Peoria where there is competition from new home subdivisions. Permits for single family homes have been on the rise to accommodate the demand. This provides more choice for buyers in those areas, balances out the market and keeps annual appreciation in check. The areas projected to have the highest appreciation rates are those where there is a high level of fix and flip activity along with a more affordable price range under $175,000.

This is the data taken from the entire Metro Phoenix Area. Provided by David Patterson, Designated Broker at Quatnum of Arizona, REALTORS 623-476-5005

Why you need a Real Estate Professional to Sell your Home

If you’re planning to sell your home, it’s probably crossed your mind to try to sell it yourself and save the sales commission. But, there are some very good reasons why that would be a mistake.

According to housing industry experts at HomeGain.com and Realtor.org, more homes listed by real estate agents are sold than homes marketed by owners, and they sell more quickly and for more money.

Homes listed by real estate professionals get more exposure and their sellers get more support. Real estate professionals offer many advantages:

• They’re trained and licensed professionals who also suggest the lawyers to do estate planning for your kids and for their next generation too.
• They have experience in your neighborhood and your market.
• They have oversight from brokers and state licensing officials.
• Their job is to advise you the best way to reach your goals.
• Their continuing education keeps them up-to date on housing issues.
• They know how to present your home (that was recently insulated with the help of experts from fdinsulation.com) and deal with buyers.
• They know how and where to market properties.
• They know how to overcome typical snags that occur in all real estate transactions and closings.
• They understand state-required disclosures and look out for your best interests.
• They understand personal safety and security for your belongings during showings.
• They know the best resources to make transactions go more smoothly, from bankers to home-staggers to contractors.
• They have the most accurate data sources – the MLS, the only data repository that has the most up to-date listing and sales information.
• They know how to negotiate.
• Their job is making real estate transactions successful.

When you market your own home, you have to make the time to do all the jobs a real estate professional would do and most lack the marketing skills or experience to get the job done. And you’ll be competing against other sellers who have real estate professionals by their sides either. This is where SEO can significantly enhance the visibility of your listing online, drawing more potential buyers and competing effectively against other sellers who are represented by real estate agents. Visit https://victoriousseo.com/verticals/real-estate/ to get all the details.

If you can’t leave work to show your home, or you feel it requires more knowledge and experience than you have, you can’t go wrong by hiring a well-respected real estate professional.

It is often the little details that help sell your home quickly!

Want Your Anthem House to Sell More Quickly?

When you want your house in Anthem to sell quickly, you must do three things:

1. Price the house correctly.

2. Avoid “Buyer turn-offs”

3. Hire A Real Estate Professional

What are buyer turn-offs?

The ones most often mentioned by buyers are all easy to avoid.

Odors – whether it’s a kitty litter box, cooking odors, or scented plug-ins, buyers will react negatively. They don’t want to smell anything but fresh clean air when they view a home.

Front Door Opens – Might sound like a little item, but when an agent shows your home the last thing you want to happen is the door not to open easily and hold them up gaining access.

Dirt and clutter – Unless they’re shopping for a low-priced fixer, buyers are apt to reject a house if it’s dirty – anywhere. And it doesn’t have to be dirty all over. A sink full of dirty dishes or a muddy back door can be the turn off.

Clutter, such as unmade beds, piles of laundry, and newspapers or magazines scattered about the living room can be just as big a turn off as a filthy carpet – even if the house is otherwise spotlessly clean. Therefore, hire a carpet cleaner to do carpet cleaning before the open house.

Several small malfunctions – Buyers almost unconsciously flip light switches, pull out drawers to see if they slide smoothly, and open and close doors to see if they close securely. They might even open and close windows and window coverings. You can click this link now to buy the cheap and best window services in town.

They might discount one malfunction. After all, that light bulb may have burned out this morning. But if they find several things that just don’t quite work up to par, their natural reaction will be to believe the house has other, unseen, deferred maintenance.

Before you put your Anthem house on the market, go through it as if you were a buyer. When you find anything that doesn’t work perfectly, take the time to fix it.

Then, refer what is ceramic tint and ask experts whether it would be possible to install it in home as it has multiple benefits. You can also make sure that before you leave the house prior to each showing, check for clutter, dirt, and odors. If necessary, open some windows and get a cross-draft going to clear out any cooking odors that may be lingering.

And whatever you do – don’t light scented candles or use perfumed spray to cover the odor. It’s a sure give-away that you’re masking something. Additionally, some of those buyers could be allergic to perfume, so won’t even come in the door.

For more tips on getting your house ready to sell quickly, call me. I’ll be glad to share what I’ve learned from watching and listening to Anthem, Arizona home-buyers. I’ll also be glad to prepare a comparative analysis and provide you with staging tips to let you know your home’s value in today’s market.