How Is It Already November?
Many people are still experiencing the lingering effects of the economic downturn 7+ years ago, so it’s understandable to be apprehensive by the stock market fluctuations and fear that another downturn is on the horizon. But let me share with you, the Greater Phoenix housing market is stable and looking to climb. There is currently low inventory of homes and high demand. The combination of “boomerang” buyers and “tsunami” sellers alone should make for a steady and forward moving market.
The all-important monthly employment report will be released this week. As usual, this data on the number of jobs, the unemployment rate, and wage inflation will be the most highly anticipated economic data of the month. So far the fed has decided to keep rates where they are for now. This will mean buyers can still obtain very good rates on their mortgages and keep homes affordable. There is a possible rate hike coming in December that might cause a larger than usual reaction to this economic data. Make sure you are properly guided on rate locks if working with a lender.
Overall pricing for single family homes has been stable for the last 18 months, but moved higher during the spring of 2015 and then settled back during the summer and fall. This is a common pattern. We expect an upward momentum to be primarily driven by entry level homes and the lower ranges of the market up to $500,000. Much of the luxury market will probably tread water and some areas may even decline slightly, until confidence returns to the stock market.
All year long lenders have begun to loosen up their rules and regulations for loans. A step to help reduce the over tightening that occurred when the bubble burst. Yes “too loose of rules” is what got the real estate markets in trouble in the first place, but the rules are still strict, just not as strict as they have been in recent years. The good news is more buyers are now able to qualify for loans which is a great thing!
Please reach out to me if you’d like to buy or sell 602-402-2839.