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