Mary Discher, REALTOR

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Housing prices are high, and this is not a bubble…

Posted by on Aug 12, 2021 in Real Estate Talk | 0 comments

Housing prices are high…and NO, it’s not a bubble.

The experts have said all along that this is not a “bubble” like we experienced before the last devastating housing crash over a decade ago. The link to the below Bloomberg article articulates the differences of the values now and then, and why these times are so different. Have a read…

https://www.bloomberg.com/news/articles/2021-06-10/real-estate-prices-are-soaring-but-there-s-no-sign-of-a-housing-bubble

You can another posts about predictions of continuing high and healthy value increases and why now IS a good time to buy.

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Financially, does it make sense to sell right now?

Posted by on May 12, 2021 in Real Estate Talk | 0 comments

Unless you’ve been living under a rock, you probably know what a crazy real estate market we’re in. It heavily favors a seller right now with inventory low and values high. So, most folks are tempted to sell when they see what they could net from a sale. Then, unless you plan to rent for a year or so, or won the lottery recently, your next thought is, “yeah, but then I have to buy something else at these high values.” That is true, however, most experts are predicting home prices to continue to appreciate for several years. A recent survey of over 100 economists, real estate experts and investment and market strategists, estimate that home values will continue to increase as follows:
2021 – 6%
2022 – 4.5%
2023 – 4%
2024 – 3.6%
2025 – 3.5%

Using these annual projections and a $350,000 home for example, your net worth could increase by over $80,000 in 5 years, for an average of $16,000 annually. A pretty good investment if you ask me.

Here’s a scenario…
You sell now, pocket a bunch of $$$, downsize or upsize to your perfect home, and then watch the value of that home continue to climb! Yes, inventory is still low, but it’s improving each day. However, it might be best to have an interim living plan just in case your perfect home isn’t available when your sale closes. Or, I can try to negotiate a lease for you after your sale, but this may or may not be acceptable to the Buyer. If you allow me to show you what your net looks like, you may determine that it’s well worth the hassle and patience! So, why wait to find out?

If you’re ready for a home change, connect with me and I can crunch YOUR numbers and define a strategy for you to take the leap to YOUR perfect home! Don’t wait, call me today!

Contact me if you or someone you knows needs assistance. 602-284-7781 or email.

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About our crazy, current housing market

Posted by on Jan 14, 2021 in Real Estate Talk | 1 comment

January 14, 2021

For those trying to understand the current real estate market for the Phoenix metro area, I have compiled some thoughts and information based on research and experiences I’m currently having while assisting clients buy and sell.

In short, we are in a market skewed strongly to advantage a seller. In my view, three things have driven this: extremely low inventory; historically low interest rates; and Covid. Let me explain…

Low Inventory…
The Real Estate Market measures inventory (the number of homes actively for sale,) in months. A balanced market that favors neither the seller or the buyer, is typically said to be 4.0 – 6.0 months of inventory.  Cities around metro Phoenix are ranging from 1.4 – 2.9 months of inventory. To help put this into perspective, we have 1/3 to 1/2 of the homes for sale that are needed for a more balanced market. Stats from the end of 2020, show a 63% decline in inventory and a 25% increase in sales. Everything I read projects sales not slowing down any time soon. So, as sales continue to ramp up, inventory levels will continue to shrink.

Low Interest Rates
We’ve seen interest rates on a 30-year fixed mortgage well below 3%. These rates are being called “historical lows.” Will they hold steady? My magic ball is broken, but my guess is that they probably won’t go much lower, but also won’t rise dramatically in the short term either. This is exciting to those looking to buy a home!

Covid
Here are my personal opinions about how Covid has affected our local real estate market: 1) Many folks that have been forced to work from home have realized that they need a larger or differently configured home to accommodate their new lifestyles; 2) Arizona has become an attractive place for relocation by states with higher costs of living, especially since remotely working is becoming more the norm. You simply don’t have to live and work in the same city or state now; and 3) Those anxious to make a home transition, i.e. sell and purchase another, became hesitant to sell last year when Covid hit. And now, they may be hesitant to sell because they wonder if they can find another home with so few homes on the market, i.e. low inventory.

In Summary…
The factors discussed above create a conundrum for many, because they fear that if they sell their home, they won’t be able to win a contract on another. The typical Buyer may need funds from their sale in order to use as down payment and closing costs for another home purchase. If they do need the funds from their sale, and do not have a plan for “interim housing,” they could only present a “contingent” offer. A contingent offer states that they must close the sale of their home in order to purchase the one they are offering on. In a more balanced market, this may not be a huge issue. But, in this market, a seller that has received multiple offers, probably many or all, over asking price, will not be tempted by one that has a contingency attached.

If you are in a position where you want to make a home change but need the funds from your sale to purchase another, my recommendation is to sell your home now for top dollar, then if needed, put your belongings in storage and move in somewhere temporarily to give yourself time to find and purchase your perfect home. With inventory this low, and the Buyer’s market this competitive, it is very difficult to do it any other way.

If you are in wonderful position where you don’t need the funds from your sale to purchase another home, then now is the time to take advantage of top dollar values and very low interest rates!

Regardless of your position, I am here, ready willing and able to help you navigate the market and help you achieve your home goals!

Contact me if you or someone you knows needs assistance. 602-284-7781 or email.

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