– Hey guys, Happy New Year. Kristin LaVanway, here. What better way to kick off the new year, than a good, solid, market update for Phoenix
real estate, right? I can pretty much narrow down what’s ahead in two words: inventory and interest rates. Yes, I know that’s three words, but you get what I’m sayin’. Those are the two driving
factors right now, in Phoenix real estate. Let’s take a look at December. It was insane. There’s not enough houses to go around in Phoenix right now. There’s way more buyers
than homes on the market. It’s really starting to
get on people’s nerves, you know what I’m saying? Quick look at what happened in December. It was nuts. 2.5% increase in prices in Metro Phoenix, in just one month’s time. People were just saying,
“Okay dude, I’ll pay more.” It’s not gonna continue like that. It’s not gonna be 2.5%
increase every month. In fact, we’re probably gonna see a little bit of a correction in January. In January traditionally, we get a big upsurge in listings. Let’s hope that happens. Come on sellers, we’re counting on you. You know, that’ll help some. But we’re also gonna see those prices keep climbing up until finally either more sellers put
their homes on the market, ‘cuz their like, “Okay,
it’s time to cash in.”, or buyers are just gonna
decide to stay where they are. I can’t emphasize enough what
a critical situation it is. The hardest hit right now,
is the Southeast Valley. Tempe, Mesa, Chandler,
Gilbert, Queen Creek. It’s crisis time in many of those areas. You’re seeing less than
40 days of inventory; just a little bit over a months inventory. Insanity. Insanity! We also saw quite a few expired’s cash out at the end of the year, which made the problem even worse. So, let’s hope, lets hope that some of
those January sellers kick it into gear and help out. Some buyers are thinking, “Forget this, I’m gonna
move out to the desert.” They’re looking at areas like
Cape Creek and Gold Canyon. But the gig is up there. Gold Canyon’s inventory
dropped by over 50% compared to this time last year. Basically buyers: get it together. It’s just not gonna get easier. Especially if you throw in
the factor of interest rates. Interest rates did not go up in 2017, like many people thought they would. But they are going to go up this year. I mean, it’s inevitable, ’cause all the signs have been there, and we’ve got a pretty vibrant economy that’s getting stimulus
from the government and so it’s just gonna drive it higher and interest rates are gonna have to go up to kind of, keep things
from getting out of control. So, the Feds have already planned on doing three rate hikes next year. They’re gonna be tightening
the supply of money. So, overall, tighter money supply typically means higher interest rates. Yeah, so in a nut shell, below a million dollars
is very very competitive. If you’re a buyer, just know when you come to me and say, “Hey Kristin, how much
lower of an offer can I make compared to the listing price?”, that’s not the way
you’re gonna be thinking. You’re gonna be thinking, “Hey Kristin, how many offers am I gonna have to write, before I actually get to buy a home?” It could be like that. We haven’t seen an inventory
situation this serious since 2012, when it was
Multiple-Offer-ville, everywhere you go. It sounds scarier than it is, but if you have a good agent, they can totally deal with it, but yeah, you’re gonna wanna get ready for guerrilla warfare. If you think to yourself,
“Well, I’ll just wait.”, its going to cost you, okay? Let’s take for example, if you’re looking at a $250,000 house… If you can find one, just kidding they’re out there. But seriously, that price
point is disappearing fast. But, lets just say you
want a $250,000 house, right now, FHA loan,
maybe 4% interest rate, your payment’s gonna
be about $1341 a month. If that interest rate goes
up just a half a percent, to 4.5%, then your
payment goes up to $1413, a $72 increase. And if the price goes up just 6%, which at that price point
there’s a good chance its gonna go up a lot more, your price is now $265,000,
for that $250,000 house, and your payment goes
up to a whopping $1498, which is $157 more per month, than if you bought that house today. So, waiting is not gonna really help. Sellers, if you’re looking to sell, this is a really good time to do it, if you wanna avoid all the
pain and anguish of selling. You know, when the market’s hot like this, you really are calling the shots, and if you’re looking at doing anything like upsizing or downsizing, where you need to sell your
house to get another house, this is the perfect time to do it, because it’s very predictable on this end, if you’re working with a good agent, you don’t have to go
through months of marketing. You can usually market it
and sell it very very quickly and move on to the buy side. Which is challenging, but again, it makes it easier
if the selling portion of it is kind of a slam-dunker. So, if you have any questions or comments, if you’d like to, hey,
compare new years resolutions, well you know where to find me: [email protected], that’s where. Go out there and make it a fantastic 2018.

Phoenix Real Estate Market Update – Jan 2018
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4 thoughts on “Phoenix Real Estate Market Update – Jan 2018

  • January 5, 2018 at 2:01 pm
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    12 months left until Im there

    Reply
  • February 17, 2018 at 5:38 pm
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    Thank you for your advice. We are currently thinking about selling.

    Reply
  • April 3, 2018 at 6:36 pm
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    In other words, it's one of the worst possible times to buy.

    Reply
  • April 20, 2018 at 1:45 am
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    I can't stand Minnesota any longer. I want to sell my house by Halloween or so and move down there to Phoenix. I NEED heat! No more snow! No more cold! Please get me out of here!

    Reply

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