Real Estate News You Need
We’ve got lots of good real estate news to share with you this month and it's all about basic economic principals. Before you roll your eyes or think about taking a back seat in your 9th-grade econ class, this is DIFFERENT and it’s important - AND it might mean OPPORTUNITY for you. So, we all know the law of supply and demand, right? Basically, there is this interaction between how much people WANT something and how much of that same something is AVAILABLE and depending on how much or how little there is OF it compared to how much or how little people WANT of it - the price of it could be high (or low) and it could be hard (or easy) to actually get your hands on it.
So, what does that have to do with real estate in the Southeast Valley? Well, if you are looking to buy a home in Chandler - you’ve got 872 options in the WHOLE city but only a dozen are single level with a pool and a 3 car garage under $400K. Want to move to Gilbert? The average days a house is on the market is 52, so you better be ready to make a move when you find that dreamy abode. How about Mesa? What you might have sold for an average of $127 per square foot last year is now looking more like $136 per square foot this year - WOW. And, how about those new homes? Would you believe that new home sales are up more than 25% year over year and when you look at price ranges across the board, getting into a brand new home (think design center FUN) is a competitively priced option!
Really? YES. If you are looking to take advantage of being able to get a higher price for your home, now is a GREAT time. The Southeast Valley is one of the strongest Seller’s Market’s in the state with Chandler and Queen Creek seller’s seeing between 6-7% annual appreciation on their home, Gilbert sellers sitting right around 7%, and those in Mesa seeing north of 8% in many areas. Remember, the appreciation rate on YOUR home will vary depending on:
- When you bought it & what the market was like then (back to supply and demand).
- What home maintenance you’ve kept up with (or not) and upgrades you've put in.
- The overall size and makeup of your home - two story versus single story, pool or no pool, etc.
- The desirability of the location and availability in YOUR neighborhood for homes just like yours.
A low inventory market typically gives you the chance to sell with FEWER days on market (think less time to keep the house in perfect showing condition) and for a HIGHER price.
So, what's the difference between a HOT market and "THE BUBBLE”? Well, even with low inventory in the Southeast Valley - the available supply is MUCH higher than it was before the market crashed & the demand is MUCH lower now than it was then. The frenzy that was created by the mix of EXTREMELY low supply and VERY HIGH demand resulted in double-digit appreciation levels that simply were not sustainable! In comparison, we are seeing appreciation rates that ARE sustainable in this HOT market and coupled with an INCREASING interest rate you could actually end up spending 15% less a month for a house you buy NOW.
How is that even possible?! Well, if you are selling AND buying, you have the ability to get MORE equity out of your home today to use towards your down payment. With a higher down payment & a lower interest rate, your monthly payment on your new home may actually be LOWER now than it would be in a YEAR. You’ll need an agent to help you find the best properties, put together the strongest offer to compete, and act fast. Here's what we know:
- Interest rates are on the rise. Along with standard appreciation, the change in interest rates in the next year alone could cause a 15% increase in your monthly payment.
- If you are selling AND buying, you have the ability to get MORE equity out of your home today to use towards your down payment.
- With a higher down payment & a lower interest rate, your monthly payment on your new home may actually be LOWER now than it would be in a YEAR.
Ready to play? Give us a call.
June's Closing Shout Outs
#Congrats #Holla #Thanks to these hard working folks who just moved into their favorite find!
And... the same to these fun loving families who just sold one of their most valuable assets!
Looking for something fun to do? So are we! We live, work and play in the East Valley and this month we’ve got our eye on:
July 15, 2017 - Glow Party at the Splash Pad
July 22, 2017 - Downtown Summer Art Market
July 25, 2017 - Explore the Night Sky
Have somewhere you are looking to be this month or want us to feature YOUR event in a future issue? Send us the details via email to: [email protected]