LOCAL REAL ESTATE MARKET UPDATE
More often than not, after we get a snarky Instagram comment about how overpriced one of our listings is, we follow that up with a “Sold Over Asking!” post within a matter of days. The truth is, this happens for several reasons. One, we stay local. We know the neighborhood, we know every home for sale, we know the community, and sometimes we have even sold that same home previously.
We also have a large network of clients, investors, friends, and families within this community that has shared their needs with us. It’s rare for a home we list to last on the market for more than a few days, and almost unheard of for it to go more than a few weeks. Most people’s first thought is that we must be compromising on the price. Nothing could be further from the truth. In fact, our team consistently sets neighborhood, the price per square foot, and other records on the properties we list.
The real estate market in Phoenix is often at the edge of whatever national trends exist. Currently, our low inventory combined with Phoenix’s continued growth (4th fastest-growing metro in the US), is causing home prices to continue rising. Looking at home prices in Q2 of 2019 vs Q2 of 2020, home prices are up almost 11%. At the same time, interest rates are at their lowest point in more than 40 years. Last year’s homebuyer would have paid 11% less for their home but will pay $80,000 more over the life of their loan on a $400,000 30-year fixed mortgage due to the variance in interest rates.
In the current market, rising prices are great for sellers looking to upgrade or cash out on equity, but buyers are also benefiting from interest rates that will more than offset those increased prices over the long term. So if your goal is to cash out, upgrade, or you’re looking to take advantage of significant interest rate savings, we would love to hear from you.