July Phoenix Metro Market Update
By LINDSAY FRICKS
Ahhh- the noise right now is so loud it’s tough to know if the headlines are real or if it’s just click-bait drama. I’m not going to sugar coat it, things have changed in Arizona real estate and the glory gains of the last few years are over… at least for the time being. You can sit in the chaos and confusion or you can start figuring out what’s next.
If you NEED TO SELL your home, then you’ll still be making some record high prices, but not as much as you would have a couple months back. It’s going to take much longer than the previous two years to sell and you’ll likely need to chip in for repairs or concessions for the buyer. You’ll also need to be in tip top condition to make sure you stand out amongst the over 16,000 available homes. This means making small maintenance repairs, deep cleaning, repainting if necessary and more than likely, staging the home so it inspires buyers who walk through the door.
If you DON’T NEED TO SELL then you absolutely shouldn’t sell right now. Adding your home to the already growing inventory of homes for sale will just further exacerbate the problem and add more inventory to the already plentiful supply of homes available today. Remember, you only risk “losing” money when you sell the home for less than you purchased it for. As long as you hold onto your asset, you can weather what’s expected to be a very short and mild storm for the next 6-12 months before we return to appreciating home values. Do not, I repeat do not, be an uninformed panic seller in this market.
If you NEED TO BUY there’s both good and bad news. Good news is there are lots of homes to choose from, you have the ability to actually negotiate terms with the seller and you’ll have more time to make an informed decision. However, your monthly payment is going to be higher than it used to be due to higher interest rates. There’s lots of options to help lower the monthly payment including getting a concession from the seller to help pay to buy your rate down, but remember you marry the house and just date the rate. In all recessions on record, interest rates have come down. This will give you the opportunity to refinance your home to lower your monthly payment and it typically costs much less than buying down your rate at the start of your loan.
If you DON’T NEED TO BUY, you should still consider the advantages of owning an asset that gives you the opportunity to build equity when owned long term (5+ years). All markets fluctuate, but on average homes increase 3-5% which is a pretty great return when compared to other investments. I don’t have a crystal ball, but I don’t think this reprieve is going to last long so it’s time to take advantage and get a great buy. The Greater Phoenix Valley is creating an enormous amount of jobs through some of the large capital projects like the Taiwan Semiconductor and Intel Semiconductor plant that will employ over 5,000 people. These are only two of the over 160 projects expecting to bring new jobs to the valley. At the rate we are building we will still be at a housing shortage as these jobs start to come online in the next couple years.
Now more than ever, it’s important that you have a true expert on your team as you make big financial decisions. The last two years you could have gotten away with hiring an agent without a proven track record of success, business acumen, professionalism, negotiation skills and emotional intelligence. Today you simply cannot. You need someone who is a creative problem solver to help coach you and protect you during the home selling and buying process. We certainly hope you’ll give us a chance to prove to you that we are the best qualified to help you with your real estate needs. Schedule your free, no obligation 30 minute consultation here.
Lindsay Fricks, Team Lead
Lindsay Fricks Group at NORTH&CO.
“It’s never just a house”
