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How Opendoor, Offerpad and ZillowOffers are changing the home selling experience.

The the recent entry of Zillow offers the Gilbert area has become flooded with iBuyers.  iBuyers are companies that are attempting to streamline the process of selling a home.  You may have heard radio commercials for Opendoor or Offerpad on your commute to work.  Or maybe you have seen Zillow advertising to purchase your home as you browse their site.  We at the Reeves team have been getting more and more questions about these services.  We will shed some light on the differences between iBuyers and the traditional home selling process.  We will also answer some of the most common questions are clients have been asking us. 

The most common question we get is “Will they offer me the same amount I would make if I sold my house myself?”.  The short answer to this question is No.  You will not make as much by selling your home to an iBuyer service as you will through a traditional sale.  The reason for this is simple.  Ibuyers such as Opendoor will need to resell your home at a higher price to make a profit.  If the companies broke even on the sale of the homes they would be losing money as they have to employ a employees to facilitate the transactions.  

So what is the benefit of using an iBuyer?  Offerpad and other similar companies are trying to make the process of selling your home as simple as possible and hope that buyers are willing to pay a premium for this simplified process.  One thing to note is if you are working with an experienced real estate professional that puts their clients needs first, such as The Reeves Team, the home selling process can be tailored to your needs without paying the premium that iBuyers will charge.

Another question we get is, do these iBuyers charge a fee?  The answer to that question is yes.  While the fees can vary from company to company, most iBuyers hover around the 7% mark which is higher than you would pay working with an experience real estate team. While many people look at these companies as home flippers the companies themselves are trying to distance themselves from that narrative and suggesting they make their money from the fees associated with the sale and not from price appreciation.  

So should you use an Ibuyer such as Zillow Offers or Offerpad?  While these companies do offer flexibility in the home selling process, we recommend using a licensed real estate professional that your trust.  If you are open and honest when communicating what you need from the home selling process you can recreate the ease of selling to an iBuyer without paying the extra fees they will charge for the convenience.  This is also a great time to remind you about The Reeves Team 90 day sale guarantee!

So what do you think of the new iBuyer startups?  Let us know in the comment section below. 

 

 

 

How Will The Looming Federal Reserve Rate Hikes Affect Gilbert Housing

We at The Reeves Team have been getting a number of questions regarding the upcoming interest rate hikes and how it may affect the Gilbert real estate market. The federal reserve has been raising the federal funds rate at a rapid pace over the last year. In the last year there have been 3 rate hikes of .25% and it looks like its poised for two more rate hikes by the end of the year. Depending on your view this can be seen as a positive or a negative. The optimistic view is that the federal reserve feels confident enough in the economy to continue raising rates without hurting the economy to badly. Its true that our economy has been doing well for nearly a decade at this point and it has not shown any signs of slowing down. The pessimistic view is that 5 rate hikes in a year is to much to fast and could cause a pullback in the housing market or could even cause the next recession. The Reeves Team will take you through a look at some of the possibilities and technical jargon you may hear over the coming months regarding the federal reserve rate hikes and how it could affect the Gilbert housing market.  If you have not read Troy Reeves State of the Phoenix Housing Market it is also a great place to get his take on where we stand. 

Why do people believe the Fed will raise interest rates twice by the end of the year?

The federal reserve used to keep its decisions on interest rates a tightly guarded secret.  Nobody besides the central bankers knew if the rate would go up, down or stay the same until the announcement was made.  This policy changed in the mid-70’s after the federal reserve raised rates quickly from 5.75% to 13% and then back down to 7.5% in a relatively short period of time.  This caused confusion among the banks and the businesses who kept prices high because they didn’t know what to expect.  This stop-go monetary policy was replaced by what we now know as forward guidance.  The forward guidance provided by the central bankers has economists convinced that two more rate hikes are coming before the year end.  The president views the increase in the rate to be harmful to the growth of the economy and has forcefully spoken out against multiple rate hikes by the year end.  Having the president attempting to influence the fed rate policy is a break from tradition and many believe may in fact force the federal reserve to raise rates twice to show its autonomy from the executive branch.  Unless things in the economy change drastically it is reasonable to expect the federal reserve will increase rates twice by the end of 2018.

Can it really cause a recession if the Federal Reserve raises interest rates to fast?

The short answer is Yes.  We have historical examples of economic downturns that were created because of the federal reserve misjudging the strength of the economy and raising interest rates to fast. The most recent example is the recession in the 1980’s when interest rates were raised rapidly from 6% to 10% and created a recession almost single handed.  The most famous example of over-tightening by the federal reserve is the great depression. In fact in 2002 Ben Bernanke who was on the Federal Reserve at the time apologized for the federal reserves role in the great depression saying “Regarding the Great Depression, … we did it. We’re very sorry. … We won’t do it again.” So as a Gilbert homeowner or a potential homeowner  it is important to pay attention when the federal reserve starts to increase interest rates at a rapid pace.  The question we have to ask is if the economy is strong enough to bear these increased interest rates.  Currently the unemployment rate is below 4% from a high of nearly 10% in 2009.  We are also seeing strong growth in the housing market and stock market even though the market expects another two rate increases.  These indicators give us hope that we may not be ready for another recession in the short term.

Is it possible that interest rate rises could actually help the real estate market?

When the Federal Reserve decides to increase interest rates it is generally seen as a negative for the housing market.  It is seen as a negative because higher interest rates mean that more of a borrowers monthly payment will go to interest.  When interest rates go up, potential homeowners purchasing power goes down.   As potential homeowners can afford less home, sellers will often need to lower their prices to accommodate the reduced purchasing power.  There are a couple of reasons why this is not always the case.  First off, the Federal Funds Rate is not always as closely tied to the aver 30 year mortgage rate as most people would assume. 

As you can see from the chart above the federal funds rate and the 30 year fixed mortgage are loosely correlated but they are no where near identical.  You can see the funds rate rose dramatically from 2004 to 2006 and then dropped substantially in 2008 all while the 30 year fixed interest rate remained relatively steady. The second reason that interest rate rises could actually increase home values is FOMO.  FOMO or fear of missing out is the phenomenon that occurs when buyers feel like if they do not get in now they may never be able to get in.  As you can see from 2004 to 2006 the Federal Funds Rate was actually increasing at a dramatic pace while the housing boom was occurring and home values were rapidly appreciating.  By now we all know that was not the only thing that caused the market to run up and subsequently crash but it does show that its possible to have price appreciation while the federal rate is increasing. 

If the rate hikes do cause a downturn in the housing market how bad could it get?

It is hard to believe that he housing crash and the great recession are nearly a decade old at this point.  While its been nearly 10 years it was such a big event that it is still fresh in most peoples memory.  So most home owners and home buyers are aware of just how bad prices can crash when they do go down.  While we remember how bad it was last time, it is important to remember that the circumstances have changed dramatically and we are not in the same place we were 10 years ago.  While interest rates were rising in 2008 when the financial crisis occurred, the crash can be attributed more to the subprime mortgage epidemic and the lack of solvency for major financial institutions.  Banks have been careful not to recreate the same issues that caused the crash last time.  If the federal reserve does raise rates to quickly and the economy and housing is negatively affected, it is unlikely to be as dramatic and can hopefully be corrected more quickly than the previous crash.  

Its also important to not that home prices had a dramatic spike before the crash in 2008.   As you can see from the chart above the price of homes went parabolic starting in 2004 and ending in 2006.  Then there was a huge sell off and over correction in the market that ended in 2009.  Since then the price of homes have normalized and are currently much closer to where they should have been if they continued the trend before the massive run up in 2004.  So while the rise looks dramatic from 2012 to 2018 it is important to keep in mind that home prices were dramatically oversold before they began to bounce back. 

What is the yield curve and what happens if it inverts?

Currently there is a lot of talk about the yield curve and how it can be an indicator or a potential recession.  It is important to note that just because the yield curve inverts does not mean we are due for a recession. With that being said an inverted yield curve has preceded the last 7 recessions so it is certainly something to keep your eye on.  So what is a yield curve? 

To put it simply, a yield curve is the return you get for purchasing bonds depending on the length of time before their maturity.  Typically if you purchase a bond for a shorter amount of time you would expect less return on that investment.  As you can see from the chart currently the yield curve is not inverted, you will “yield” more from purchasing a 30 year bond than you will for purchasing a 1 year bond.  However this curve is flattening and if interest rates continue to rise we could see an inversion of this curve.  This is something to keep an eye on as it has accurately predicted the past 7 recessions.  However, each time is different with a unique set of circumstances and history doesn’t always repeat itself, but it does tend to rhyme.

Conclusion

So we at The Reeves Team have thrown a bunch of information at you.  Hopefully you have learned a lot and will now be able to more accurately understand the relationship between the Federal Reserve Rate and the Gilbert Housing Market.  However, you may still be asking yourself what does it all mean?  Is now a good time to buy a home? Or sell my current home?   While there are headwinds that are coming for the housing market, we are in a much better position than we were before the crash in 2008.  If there is a pullback in the market it will likely be much smaller and shorter than the previous pullback.  It is also not certain that the market will pull back at all, we could continue to see sideways price movement or even sustained growth. It is unlikely we will continue to see the 12 to 15 percent increases year over year we have been seeing in the Gilbert market over the next year or two.   While there is sure to be a lot of news and information around the market in the next few months, take everything with a grain of salt.  We still have a great economy and more people than ever want to live in the Gilbert area.

Status Of The Phoenix Housing Market Heading Into 2019

The Phoenix housing market has seen stable growth over the last several years. This stability has been a welcome change from the turbulent times that are still fresh in everyone’s mind.   The housing market in the phoenix area started growing at unsustainable rates in 2005, this unsustainable growth eventually lead to a collapse in 2008 that caused the housing crisis and great recession.  The phoenix area was hit particularly hard during the recession. Since 2012, we have seen a very different picture, instead of huge rises and crashes the market has seen steady sustainable growth.

Recently however, Troy Reeves and “The Reeves Team” have started getting questions on whether or not we are starting to enter another bubble.  So, are we entering a bubble?   Or are we just suffering from a case of recency bias that is making homeowners, and potential buyers nervous that the past is doomed to repeat itself?

To answer these questions let’s start by taking a deep dive into some of the metrics that determine the health of the phoenix housing market.

We will start by looking at the Absorption rate of homes in the Phoenix metro area over the last 12 months.  Absorption rate is a very important statistic to measure the health of the overall housing market.  The absorption rate is calculated by looking at the current number of homes sold in a month versus the number of total homes on the market.  The result is the total amount of months it would take to sell out of the current inventory.  Three months is the ideal number for a healthy housing market.  We were around the 3-month mark in March of 2017 however we have been dipping under that number since that point.

So, what does it mean that our absorption rate has been steadily under 3 months?  The biggest takeaway is that there is not an ideal supply of homes on the market to meet the demand from the buyers looking to purchase a home.  This points to a rise in housing prices in the short to medium turn.  While the current absorption rate is not dramatically under the ideal mark if it continues lower look for even sharper price movement upwards.  If you are looking for additional insights into the absorption rate and what it means for your housing situation please reach out to “The Reeves Team” for an even further in-depth analysis.

Next let’s look at the most straight forward metric of them all, price.  While price may not give us as good of a gauge of what’s going to happen in the future as absorption rate, it gives us a great idea of what has happened in the past.  While the past in real estate doesn’t necessarily repeat itself, it does often rhyme.

So what does the price analysis over the last 12 months tell us?  The biggest take away is that we have a great deal of stability in the market.  Unlike from 2005 to 2012 these lines are fairly smooth instead of having huge spikes upwards and huge drops downward we have slow sustainable growth.  As you can see towards the end of the chart there has been a recent uptick in the median listing price and in the median sales price, this is to be expected as we continue to see an absorption rate of under 3 months.

As a side note this pricing graph demonstrates something we at “The Reeves Team” always explain to our clients.  If you want your home to sell quickly and for the highest possible value, it is important to price your home correctly when you put it on the market.  Look at how close the <strong>new median list price</strong> and the <strong>sold median list price</strong> are. This tells us that the homes that are priced correctly are selling and the homes that are overpriced are sitting on the market.  In the Phoenix housing market buyers have options so it’s important to be competitive if you want your home to sell for top dollar.  If you are interested in putting your home on the market or just want to have an idea of how much your home is worth, contact “The Reeves Team“.

Next up let’s look at inventory.  Inventory is a measure of how many homes are on the market, versus how many are being sold.   As with price you can see that the number of new listings and sold listings are very similar.

What is striking about inventory going into 2019 is how stable is has been since the housing market started recovering around 2012.  Take a look at this article written by “The Reeves Team” in July of 2012.  This was one of our most viewed articles ever as you can see by the over 30 comments that were posted when it was written.  Troy Reeves correctly predicted that the housing market was returning to normal and that normalcy has continued on until today.

The last item we are going to look at before we zoom out to the big picture overview is the Sold Days On Market.  This metric takes a look at all the homes that were sold during a given month and averages how long it took those homes to sell.  There are a couple of takeaways from this data over the past year.  The first takeaway is that the metric has been under 90 days for the entire last year.  The Sold DOM under 90 days for a span of an entire year reinforces what the absorption rate told us above, that buyers are wanting homes faster than sellers are listing them.  While the margin is not to wide at this point, it is something that could lead to a run up in prices in the short term if it continues to fall.

The second take away from the Sold Days On Market is that buyers want to buy homes during the summer.  As you can see the days on market dips dramatically during the summer months when kids are out of school.  You can expect this pattern to repeat for the foreseeable future.

After reviewing the detailed short term metrics we can see that prices and inventory seem very stable, and point to continued sustainable growth.  Now that we have looked at the short term lets take a look at the bigger picture and zoom out and look at prices before and after the run up and crash of the housing market.

 

Looking at this chart that began in 2000 and runs to today we can get a great perspective on just what happened and where we are today.  First you can see that we had sustainable growth from 2000 until 2005 when the housing boom, fueled by the rise in subprime mortgages, took off.  As you can see by the parabolic rise in prices from 2005 and peaking in 2007 these prices were not sustainable.  In 2008 the housing prices absolutely fell off a cliff and bounced around at the bottom until around 2012.  Its clear to see looking back that during the 2010 to 2012 time period we were clearly in oversold territory and a rebound back to normal prices was needed.  This rebound was accurately predicted by Troy Reeves” in November of 2012.  To give you some perspective “The Reeves Team” drew a red line that continued out from the original sustainable growth between the years of 2000 to 2005 up until today.  What is remarkable is, even with the parabolic run up and huge crash and recession that followed, the market has stabilized back to where it would have been if the slow sustainable growth had continued from the beginning.

Reasons to be optimistic.

There are many reasons to be optimistic about the housing market moving forward.   The biggest reason to be optimistic, is that it does not appear that we are in a bubble.  While housing prices have had growth at a slightly faster than average pace over the last few years, it is mainly fueled by the fact that prices previously were to low and we have been catching up to where we need to be all along. With that being said, it is always a good idea to keep an eye on prices in the future, and if you see another parabolic jump in prices be cautious.  However, looking at the data we have reviewed, including the absorption rate, prices, sold days on market and inventory a bubble does not appear to be an immediate threat.

Reasons to be concerned.

Wouldn’t it be great if there were no downside and everything was looking positive?  Unfortunately we are not that lucky.  Interest rates have been on the rise in recent years and the Fed Chairman Jerome Powell has indicated he plans on continuing to raise them, possibly even increasing the rate at which we see rates rise.  So what does this mean for the Phoenix Housing Market?  The biggest takeaway is that if rates go up, the amount of money home buyers will be able to finance will go down, as more of their monthly payments will be eaten up by interest.

Final Thoughts.

The effects on the rising interest rates may take time to play out, but for now “The Reeves Team” remains cautiously optimistic that we will continue seeing long term sustainable growth in the Phoenix Housing Market.  The market appears to have completed its return to normalcy and the deep dive that we did on the short term numbers appears to say the same thing.   If you want any additional analysis on the market or your home in particular please reach out to “The Reeves Team“.

Let us know what you think of the analysis below!

How The Government Shutdown Has Affected Arizona Housing

RE/MAX Alliance Group is typically a hive of activity. Buyers and sellers coming in to sign contracts. Sellers meeting with their agents to discuss their recent offer. But recently all that has changed. “It’s stopped cold right now,” said Troy Reeves, The owner of RE/MAX Alliance Group “The Premiere Office”. “I’m dumbfounded.” The government closure that has dragged on for more than two weeks is beginning to weigh on one of the most important parts of the U.S. economy — the housing market.

Its not just that prospective buyers and sellers are worried about the economy, the shutdown is making it nearly impossible to secure a loan. Housing lenders rely on a variety of government data, such as verification of borrowers’ income, which are unavailable with the partial closure of the Internal Revenue Service and other agencies. The shutdown is delaying loans around the country, and some experts warn that home lending could be even more severely disrupted if the political stalemate in Washington persists much longer.

The housing recover is already fragile and the longer the shutdown persists the more momentum will be taken out of the recovery. Troy Reeves said it best “The longer we’re shut down, the more it’ll negatively affect housing.”

The biggest effect so far has been on non-conventional loans. Many FHA-backed mortgages and property improvement loans have run into trouble. So have home loans in rural areas that are guaranteed by the U.S. Department of Agriculture.

Most providers are declining to write jumbo loans without IRS tax transcripts. Jumbos are loans that are too big to be backed by housing finance giants Fannie Mae and Freddie Mac or by the Federal Housing Administration. The availability of FHA loans, a key source of lending throughout Arizona, has been threatened because most agency workers have been furloughed.

As for income verification, any lender that is able to write mortgages is probably doing so without getting tax returns from the IRS. Instead, they have the borrowers show them the returns, which they plan to confirm with the IRS when the agency fully reopens. If a broker is not willing to take that risk it is nearly impossible to get a loan put together.

For the time being, banks are funding deals themselves. They can’t sell the loans to Fannie and Freddie, as they normally do. Lenders run the risk of being stuck with a bad loan if the borrowers lie about their income. If a loan turns out to be absolute fraud, then the brokerage will own the loan without any help.

If you need help navigating the sale or purchase of a home during the shutdown contact The Reeves Team to help you through the process.

Have you had any problems buying or selling a home during the government shutdown? Or have you decided to wait it out all together? Let us know in the comment section below.

Trying to Sell Gilbert Real Estate? Don’t Forget to Clean These Odd Places!

The summer is in full swing and the Gilbert Real Estate market is as hot as the Arizona sun right now. A major part of getting your Gilbert Real Estate ready for showing is taking out the time from your day, or week in some cases, to thoroughly clean the house from top to bottom, inside and out! Troy Reeves of the Troy Reeves Teams tells his clients to clean good for the best sell. So, what are the areas you might be missing? You’ll probably be surprised that you overlooked these five areas!

chandler neighborhood

Clean Your Mailbox

When interested Gilbert Real Estate buyers pull up to your property, the first thing they will see is literally your mailbox. Your mailbox is visible from pretty far down the road in most circumstances and can set the tone for the real of the viewing of the Gilbert Real Estate showing. Use all purpose cleaners and scrum away stubborn stains. If cleaning isn’t enough, repainting will be worth the little time it takes.

 

Doors on the Outside of the House

The doors on your Gilbert Real Estate property have a major impact on the look of the house, and also get rough pretty quick. Wash thoroughly and hand a wreath hide any dings on your Gilbert Real Estate homes’ doors.

 

Under the Microwave in Your Gilbert Real Estate Kitchen

You don’t think about it much but what do you think it looks like under your microwave? If someone moved it to see the conditions of the counters, do you think it would cause you to lose the sale of your Gilbert Real Estate? Simply move the microwave and wipe away any dirt, dust and grime to avoid any embarrassments during a showing. Scrub underneath with baking soda for any really stubborn microwave related stains.

 

Vents and Returns

Cleaning the vents and returns in your house isn’t hard, but most people overlook this area. A dirty air vent or a grimy return vent can make a room look filthy that’s otherwise clean. Vacuum away the dust and then wipe the slats with soapy water.

 

Appliances

Even if the appliances aren’t part of the sale of your Gilbert Real Estate, they still need to look showroom clean. Clean away any clutter sitting on top of them and clean until they are sparkling like new — but don’t worry if they aren’t actually all that new, clean matters over anything when it comes to how your appliances reflect on the home.

What to Look for as a First Time Gilbert Real Estate Renter

Troy Reeves of the Troy Reeves Team has noticed an uptake in the number of Gilbert Real Estate renters as of lately. Many are first time renters of Gilbert Real Estate and wonder what to be on the lookout for when selecting a new home. Below are the most important things to know about renting a house in the Gilbert Real Estate community.

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Septic Tanks in Gilbert Real Estate

Most modern homes are not equipped with septic systems and have traditional plumbing. A septic system leads to a tank which has been buried in the ground, usually in the backyard. If a property you’re thinking about renting in Gilbert Real Estate has a septic tank, there are certain things you’ll need to avoid flushing such as cooking greases, oil of any kind, and liquid soaps which are not septic tank friendly. Failing to follow septic guidelines could cause a very nasty overflow or backup.

 

Surrounding Amenities

When looking for Gilbert Real Estate to rent, make sure you note what amenities are and are not there. Take notice of nearby grocery stores, farmers markets, drug stores, auto parts stores, restaurants, and so on.  If you need to have walking distance access to certain stores, ensure those exist in your area.

 

Pet Friendly Gilbert Real Estate

If you will be living with a cat, dog, or other pet, make sure you get the ‘OK’ from your landlord beforehand. Never assume that your pets will be welcome into your Gilbert Real Estate property for rent, this could end badly for everyone. Many times, if pets are not allowed on the property, but renters bring them along anyways, the landlord will either evict the tenants or give them the option of getting rid of their animals — neither is a choice any pet owner wants to face.

 

Deposits

Once you view a Gilbert Real Estate rental, make sure you are clear about the required deposits before moving forward. The usually deposits for new renters include a security deposit, and a pet deposit for those who have animals — however, it is not unusual that the landlord collect additional cleaning deposits, credit risk deposits, and first and last months’ rent before allowing tenants to move in.

 

“by Troy Reeves” at Google

Could Rising Mortgage Rates Keep People from Buying Chandler Homes?

Over the last few weeks, there has been a sharp spike in the rates being offered on mortgage loans. Home mortgage rates are skimming dangerously close to the 4 percent mark. What this means is that the Chandler Homes sellers are not making any more on the sell, the buyer is not paying in less, and the lender is profiting more. This trend has some Chandler Homes buyers hesitant to make the investment in a home now — which may hinder the recent soaring number of Chandler Homes being bought in weeks prior to the rate spike. Troy Reeves of the Troy Reeves team advises buyers that now is still a good time to invest in Chandler Homes as the price of homes are still fairly low. Read more to learn about the rate spike.

 

Rate Spike in Chandler Homes Mortgage Loans

The sharp spike in loans for Chandler Homes mortgages may, first and foremost, indicate that it is a little too late for homeowners to refinance. Last week, refinancing dropped 12 percent. This rate hike comes just as many more people are becoming eligible for loans and as people started to regain lost equity in their house after the crash. However, rates on Chandler Homes mortgage loans are still very low and many people are jumping to buy now in fear that they will miss out on the best buying conditions for Chandler Homes in years.

 

Refinancing Down, Buying Still Up

Although this may be keeping people from buying Chandler Homes as aggressively, plenty of buyers are still eager to make their purchase. Mortgage loan applications across the country actually rose around 3 percent from last month and are up 14 percent from the same month in 2012. Higher rates are indicative of a stronger economy and positive data. The Federal Reserve has pumped in billions of American dollars to get the mortgage market back on track since the housing crash started. Many experts are speculating that the rate hike is an indicator that the help may soon end. These rising rates and the possibility of the Feds pulling their cash infusion comes as home prices jumped 10% in March. People buying homes for the first time are feeling the rising cost of buying a home the most.

 

“by Troy Reeves” at Google

Gilbert Homes Foreclosures on the Decline

During the foreclosure crisis, which began in September of 2008, around 4.4 million homes went into foreclosure across the United States. The Gilbert Homes community was impacted just like the rest of the nation and many houses in the area went into foreclosure as well. Most of the Gilbert Homes that foreclosures as a result of the housing crisis have since been bought by private homeowners and investors and far fewer are going into foreclosure, according to Troy Reeves of the Troy Reeves Team. This news is great for people looking to sell Gilbert Homes, people who want to refi or own Gilbert Homes, and new Gilbert Homes buyers. This also signals more positivity that the economy is on the rebound. Find out what’s going on in the market and what this all means for Gilbert Homes buyers and homeowners.

 

Fewer Foreclosures Across the Country 

In May of 2013, U.S. foreclosures, which includes homes that were in any stage of foreclosure, hovered around 1 million. Last year in May, that number was at 1.4 million. Over the past year, this country has seen almost a 30% decline in foreclosures nationwide. Also, around 2.3 million mortgage loans are considered to be seriously delinquent — that’s only 5.6% of mortgages in the United States. The number of seriously late mortgages in May is the lowest it has been since the end of 2008. In 42 different states in this country, the number of delinquent homes has decreased by double digit numbers. We also know that the current rate of problematic home loans is down to only 0.73% and will likely continue to drop.

 

What This Means When Selling or Buying Gilbert Homes 

If you are buying or selling Gilbert Homes, this is really good news for you. When there are fewer loans in delinquent statuses or going through foreclosure, lenders are far more willing to offer mortgage loans. Buyers can now more easily qualify for mortgages on Gilbert Homes — making it much easier to sell Gilbert Homes. This information also signals more stability in the economy and housing market, making buying a home a much safer investment now than it has been in quite some time.

Two Months Later – Was Troy Reeves Right on Housing Market Conditions?

Troy wrote an article just over 2 months ago telling you his thoughts on the current housing market conditions. It’s time to ask – was he right? Let’s take a look back at Don’t Wait: NOW is the Time to to Sell in the East Valley!

 

Due to an unusual shortage in inventory of homes for sale in East Valley, now is the perfect time to sell your home. The Reeves Teams has been watching the Arizona MLS very carefully and we can see that buyers are very active right now and houses are being snatched up. While Troy Reeves believes that the market will continue to grow in East Valley, it will do so at a more manageable rate and buyers will no longer be making knee jerk decisions based on low inventory.

 

Based on our expert projections and by gauging the current market, we do not anticipate there being a better time in the near future to list your property for sale.

 

Let’s take a look at Troy’s take aways from that April article:

  • New builds will have caught up to a more normal demand – 4th QTR 2013
  • Total inventory will increase by almost double in next 12 months (currently around 15,500 – used to carrying 32,000 – 34,000 at a healthy amount.)

 

Many Brokers have said this last 90 days has felt like 2005 all over again (when we had 5K homes on market – and homes almost 40% more.

 

Buyers: Watch the rates! 5,000 – 10,000 is not that hard to swallow, but 1-2% interest rates over the life of a loan certainly is!

 

Sellers: The multiple offers and 2 week selling timeframe will decrease dramatically (this is healthy for an overall real estate market, however Troy’s believes prices of home will be worth more next year this time (7-9% up) but you will be competing with more sellers (both new builds and resales) to get a buyer, you may have to spruce up more than in today’s low inventory when you can do less to your home in a faster sales market.

 

What’s in store?  More inventory means more to choose from, however a seller must do more to compete with more inventory.  Kitchen, bath, paint, yard (be more impressive than the others you are competing with.

 

Interest rates will go up by year end (Feds have told us this).

 

Josh, an agent with the team for over 9 years adds, “I believe that Troy hit the nail on the head with this article.  We are already starting to see an increase in inventory and fewer multiple offer on homes.  Interest rates have also jumped from about 3.5% last month to 4.5% today.  Even with a slight increase in interest rates now is a great time to buy as prices and interest rates will continue to rise over the next year.”

 

Here are some charts to review that we’ve been watching.

 

“by Troy Reeves” at Google

Get More Offers on Gilbert Homes

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Troy Reeves, founder of the Troy Reeves Team, frequently gets questions from sellers of Gilbert Homes about how to get multiple offers. Getting multiple offers on Gilbert Homes gives you more flexibility, more bargaining leverage, and will ultimately result in a better price on your sell. Here are some quick tips on how Gilbert Homes sellers can get multiple offers – as well as how buyers of Gilbert Homes can compete with other interested parties.

 

Sellers of Gilbert Homes

The first step on the road to getting multiple offers is making sure your Gilbert Homes are in the best condition possible. Spruce up the place and make sure all surfaces are free of clutter, dirt, debris, etc. Also, repainting helps on both the inside and outside as well as pressure washing the driveway & siding, and make sure the yard is well manicured.

 

Once that’s done, its time to build up interested parties. Use your personal networks to extend your reach to buyers and get the word out there about your Gilbert Homes for sale. Also, spread the word around the neighborhood about your home before it ever even goes on the market so neighbors can build anticipation amongst their friends and family who might want to live in the Chandler Homes community.

 

You’ll also want to get a professional agent on board like those who work for the Troy Reeves Team. Pros know all of the proven techniques in reeling in buyers and getting them to make an offer.

 

How Buyers Can Compete

Buyers in this market are definitely competing for certain Gilbert Homes properties because inventory has not yet exceeded demand. If you want to get the home of your dreams at an affordable price, you’ll need to be prepared.

 

Start off by saving a sizable deposit and pre-qualifying for a mortgage before you ever step foot in a home for sale. When you find the home you want, you’ll need to move quickly and make an offer fast. Some buyers will even take offers much lower than asking if you’re willing to start the buying process right away.

 

You’ll also want to keep your demands to a minimum. Sellers aren’t going to jump through hoops for buyers if there are multiple offers on the table.

 

“by Troy Reeves” at Google