I am of course jaded. I am a real estate broker living and working in Phoenix, AZ. We are the testing ground for all these new tech companies such as IBuyer's. They claim to give the seller a good deal and offer a fair price. I am hearing they usually knock off about 15% of the fair market value of the home when it's all said and done. Most sellers would profit more by selling with a broker.
The part that blows me away is that in a seller's market, Zillow isn't turning a profit on its IBuying program. What happens when the market turns?
July 31, 2019
It looks like lower mortgage interest rates are on the horizon. Mortgage rates have been at historic lows and with the news today that the Federal Reserve just lowered the rate 25 basis points. We hear daily that the health of the US economy is strong with good GDP numbers, record low unemployment and the DOW at record highs so I was concerned about what the Federal Reserve Chairman was looking at in the decision to lower the rates. The comments today signaled more concern of global economic slowdown.
So there is no better time to buy a home than when you need to and the low mortgage interest rates. Lower rates make the homes more affordable. In a competitive housing market, you must make you offer on a home your very best for it to be accepted. It takes teamwork, research, and professional negotiations.
Thank You All. We raised $2500 for the Food Bank! Last weekend Dominion Group Properties hosted the 8th Annual Bison Town Chili Cook-off. Twelve teams total participated in this annual event in Overgaard, AZ. Our world-famous Cincinnati Chili wasn't as famous as we had hoped! There is always next year.
The market continued its trend from June with inventory levels continuing to drop and pricing increasing. Homes under $300,000 in most markets are moving fast. Buyer demand for these homes remains very strong despite the summer heat. Lower interest rates are keeping buyers interested for now.
However, getting buyers a home is a difficult process and buyer fatigue is rampant. More than a few buyers have decided to go back into renting due to losing out on multiple properties. They might come to regret that decision in the future.
So the Phoenix Real Estate Market remains strong but as pricing continues to increase concerns for the future and pricing affordability are rising.
Consumers who are price-sensitive or rate-sensitive need to act sooner vs. later. There is no evidence at this time that pricing will plateau. There is simply not enough supply.
For investors, those who continue to buy despite higher valuations should be able to lock in long term tenants due to the housing shortage. I am still recommending single-family properties because of rental demand and price appreciation.
Here is the full report.
Until next month, stay cool!