Posted On: February 9th, 2024 5:49PM
What are the market dynamics in the Phoenix real estate in January 2024? The Valley population is nearly 37% higher than it was in 2008. However, 2023 saw the fewest number of home sales in the valley since then, making it a challenging year for both the industry and those looking to buy or sell. One significant factor contributing to last year's decline in sales was the surge in home mortgage rates, which reached a peak of 8% in mid-October - which is the first time we have seen rates that high since June 2000. Mortgage rates have decreased over the last few months, causing an expectation of increased buyer activity. We are seeing indeed increased buyer activity since the beginning of the year. Valley-wide the market currently favors Sellers, with a mild Seller's market due to decreased demand and even lower supply. Market conditions, however, vary across different parts of the Valley.
For instance, Chandler currently stands out as the market with the strongest Seller's advantage, with demand down over 47% and supply down over 71% from where we expect it to be.
Of the 17 largest cities in the Valley, other cities experiencing a Seller's market from strongest to the weakest are:
4 cities are in a balanced market: Surprise Goodyear Paradise Valley Cave Creek.
Cities where Buyers have strong advantage in negotiations are: Queen Creek Buckeye and Maricopa.
Understanding market conditions is crucial for Sellers pricing their homes and for Buyers determining how to make a competitive offer.
If you are ready to make a move in the near future, you have a trusted advisor here to help you take advantage of whatever conditions exist in your part of the Valley. And that's me - Steffy Hristova with HoemSmart Elite Group. Give me a call .
Posted On: November 17th, 2023 12:25AM
No matter what the market is – hot, slow, balanced – some properties will always receive multiple offers.
Do Sellers know if their agent is skilled in handling multiple offer situations? Do they ask their agent how they will handle a multiple offer situations, when interviewing them for the listing agreement? If you are a Seller, it’s good to have clarity on this subject.
We assume that Sellers will always want their property to sell for the highest possible price, in the shortest amount of time with the least amount of uncertainty. So the combination of these three become ingredients of the highest value of any offer:
- Length of escrow
- Certainty of closing the transaction
Multiple Counter Offers
When a Seller’s agent receives more than one offer, their skills in managing an auction situation should kick in. Besides, an agent versed in the auction techniques and psychology will create an atmosphere of desire to participate in the auction competition. When the Seller’s agent offers a guide and time-line for presenting offers, the process is much more palatable for all parties. In my experience, using the Arizona Association of Realtors Multiple Counter Offer Form helps the communication very much and I highly recommend using it. This communication tool allows Seller to make counter offers to one or more prospective Buyers on terms that may or may not be the same.
When I am taking a listing I show to the Seller the worksheets and tables which I use in order to present the content of all offers on one page format - easy to read and make a decision.
Seller’s agents, who are well-versed in negotiations and auction psychology will encourage Buyers to present their highest and best offers. Cognizance of the market conditions will prompt them never to underestimate any offer. For example, if the market is hot, Buyers may offer immediately their highest and best, but when the market is lethargic, some Buyers may want to test the market with a lower offer. This does not necessarily mean that they will not pay a higher price. If the Seller chooses an offer without countering all multiple offers, they are losing the opportunity to receive the highest amount of what the Buyers are willing to offer. Using the AAR Multiple Counter Offer Form is the solution for situations like these.
Should the Seller’s agent inform Buyers of the best price/ terms received or not? The answer is, it depends on the instructions the Seller gave. In my opinion, if the Seller allows disclosure of best price/terms, the most motivated Buyer will emerge, and this will produce the best results for all parties – the Sellers will not leave money on the table, and the Buyers will acquire an asset that they want.
If you are looking for an experienced listing agent in the Tempe, Phoenix, Scottsdale area, please reach out to me. I will be happy to provide you with a structured process and informative initial consultation, where we determine if we can work together.
Posted On: October 31st, 2023 5:44PM
The world of real estate is always evolving, and it's essential to stay informed about what's happening in the market.
As your Trusted Advisor, I am here with October's market update and valuable insights into the latest developments that may affect your real estate journey.
You may have seen news stories about challenges the National Association of Realtors is currently facing. It's important to know that these issues primarily impact the industry rather than consumers. Over the last few years we have seen changes that have increased transparency for consumers, and you'll continue to see consumer friendly changes in the industry.
One significant change in the real estate market is the continuing rise of mortgage interest rates, which haven't been this high in over 20 years. 8% mortgage rates impact affordability for homebuyers and this has dropped buyer activity. This in turn impacts sellers who want to sell their homes. It's crucial to remember that there are effective strategies for buying and selling in today's market and I am here to guide you through them. Please watch the video for more information on other news in the industry.
Posted On: October 1st, 2023 11:07PM
Affordability is an issue impacting today's real estate market. With over 50% home value appreciation over the last four years, and interest rates at over 7%, buying a home is a challenge for many people. But if you have the means, this is a good time to buy a home.
Home Prices are not going to come down in the Valley any time soon.
We are still the fastest growing county in America, and new home construction permits are down.As long as the population and the demand for housing continues to grow, prices will continue to rise. Simplistic observers believe that weak demand translates to weaker prices. It actually translates to weak sales. But for prices, suppy is just as important and remains drastically below normal. We will need supply to double for the market to achieve balance.
If you are thinking of buying a house, and can afford it, now is a great time. Please call me to discuss how you can achieve this goal.
Posted On: August 27th, 2023 11:50PM
There are changes happening in the real estate market.
Buyers and Sellers appear to be in a holding pattern. Interest rates have been hovering in the high 6% and low 7% for the last three months, keeping many Buyers on the sidelines and Sellers reluctant to give up the lower rates on their existing mortgages.
Buyer activity (measured by listings under contract) is down significantly from normal for this time of year and Seller activity (measured by new listings) is down even further below normal.
The good news for Buyers is that after June, Buyer competition declines until the end of the year. Despite of the doldrums, there are opportunities for both Sellers and Buyers. If you would like more information about your opportunities in today's market, please give me a call.