Friday, July 19, 2024 National news and local views

National Real Estate News Rent vs. Own Most analysis that compares the costs of renting versus buying ignores the significant long-term wealth gains from capital appreciation (the market price for the home rises), amortization (you're paying back principal monthly) and tax deductions. And no analysis can put a value on the peace of mind that owning your own place gives you. The condos are coming The pandemic spurred a multifamily construction boom (condos, apartments, townhomes etc.). A wave of MF completions is now swelling, with the industry on pace to deliver over 650,000 units nationwide over the next year. That's the fastest pace of MF construction since 1975! (BTW, over 50% of these units are being built in the South, which includes TX & FL.) [Source: Census Bureau] More 'doves' are cooing When it comes to interest rates, 'doves' are people who are more worried about the economy than inflation and would like to cut interest rates. With the recent string of favorable data (lower inflation, rising unemployment rate), several Fed members (including Chairman Jerome Powell) have sounded more dovish lately, and the market is convinced that rate cuts will start in September. Local Market Trends Area Median Price Active Listings New Listings - 5 days Median Days on Market Chandler, AZ $599,900 0% 413 0% 32 37 0% Gilbert, AZ $674,475 0% 582 0.1% 73 39 0% Queen Creek, AZ $697,707 0% 621 1.1% 45 64 0.1% Scottsdale, AZ $979,000 -0.2% 1769 0% 110 65 0% Local Market Trends (/) from Jun. to Jul. 2024.   Lorana Ellard Real Broker License #SA684219000   Questions about these articles or the state of your local market? Get in touch! 623-400-6657azhomerealestate1@gmail.com ©ListReports 2024, all rights reserved. This information is from third-party sources and its accuracy cannot be guaranteed.

Friday, July 12, 2024 National news and local views

National Real Estate News Unemployment rate rises The BLS jobs report showed that the US added 206,000 jobs in June, slightly above expectations. But the job gains reported for May and April were revised down by a combined 111,000! Also, the unemployment rate ("UR") unexpectedly rose to 4.1%. While that's still a low number, the UR has risen by half a percent in less than a year, which is often a recession red flag. [Source: BLS] CPI a very nice surprise Great news! The "headline" CPI (Consumer Price Index = inflation) for June declined 0.1% month-over-month, and the "core" CPI (excluding food & fuel) rose only 0.1% MoM. Both were better (that is, lower) than expected, meaning that annual "headline" inflation dropped to 3.0% YoY and annual "core" inflation eased to 3.3% YoY. [Source: BLS] Breaking below 7% Lower than expected May PCE + unemployment rate moving up to 4.1% + lower than expected June CPI = average mortgage rates have finally moved back below 7%! At the moment, the market is pricing in 1-2 rate cuts before year-end, with the first one expected at the September 18 Fed meeting. [Source: CME] Local Market Trends Area Median Price Active Listings New Listings - 5 days Median Days on Market Gilbert, AZ $670,000 0% 583 0.1% 63 39 0% Chandler, AZ $592,000 0% 437 0% 72 33 -0.1% Queen Creek, AZ $697,614 0% 609 1.1% 55 60 0.1% Scottsdale, AZ $975,000 -0.2% 1793 0.1% 122 64 0% Local Market Trends (/) from Jun. to Jul. 2024.   Lorana Ellard Real Broker License #SA684219000   Questions about these articles or the state of your local market? Get in touch! 623-400-6657azhomerealestate1@gmail.com ©ListReports 2024, all rights reserved. This information is from third-party sources and its accuracy cannot be guaranteed.

Friday, July 5, 2024 National news and local views

National Real Estate News Prices rise to new record The Case-Shiller index is the most accurate measure of true home price appreciation out there - and it continued to rise, climbing 0.3% month-over-month in April and hitting another new high. That said, price growth is definitely decelerating, and four of the Big 20 cities (Phoenix, Washington D.C., Dallas and Denver) did post small MoM declines in April. [Source: S&P Global Dow Jones] Relatively competitive Things aren't nearly as competitive as they were in 2021 and 2022 (5 offers per home sold!), but in areas of the country with low inventory levels (Northeast, Midwest), it's still definitely a seller's market. In May 2024, there were 2.8 offers for every home sold nationwide, and 67% of the properties sold were on the market less than a month. [Source: NAR] Mortgage rates steady Average 30-year mortgage rates have held steady at around 7% for the last few weeks. But with the Fed's preferred inflation measure (PCE) coming out Friday, June 27, that could change. Following a better than expected (that is, lower) CPI figure two weeks ago, the market is hopeful for similar good news from the PCE. [Source: Mortgage News Daily] Local Market Trends Area Median Price Active Listings New Listings - 5 days Median Days on Market Gilbert, AZ $675,000 0% 561 0.1% 42 40 0% Chandler, AZ $607,000 0% 395 -0.2% 39 33 -0.2% Queen Creek, AZ $699,032 0% 582 0.7% 23 58 0% Scottsdale, AZ $998,000 -0.2% 1781 -0.2% 79 63 -0.1% Local Market Trends (/) from May. to Jul. 2024.   Lorana Ellard Real Broker License #SA684219000   Questions about these articles or the state of your local market? Get in touch! 623-400-6657azhomerealestate1@gmail.com ©ListReports 2024, all rights reserved. This information is from third-party sources and its accuracy cannot be guaranteed.