Friday, June 21, 2024 National and local views

National Real Estate News Disinflationary Last week, CPI for May came in lower than expected (headline inflation was FLAT month-over-month). This week, retail sales for May grew only 0.1% MoM and the April figure was revised down from flat (previously) to -0.2% MoM. It's pretty clear that the economy (and price growth) is slowing, but the Fed still considers US economic growth as "strong" and inflation as "too high." [Source: Commerce Department] Steady at 7% The good news is that we seem to have left 7.5% behind. The bad news is that average 30-yr mortgage rates hovering near 7% is still having a negative impact on both existing (previously owned) and new home sales. At least there are more properties for buyers to choose from, with national inventory up +35% year-over-year. [Source: Realtor.com, Mortgage News Daily] Builder confidence slips After a big (6 point) drop in May, the National Association of Homebuilders' confidence index dropped an additional 2 points in June to 43. Anything less than 50 is considered bearish/contractionary. No prizes awarded for guessing why: 'persistently high' mortgage rates, which are keeping many would-be buyers on the sidelines. [Source: NAHB] Local Market Trends Area Median Price Active Listings New Listings - 5 days Median Days on Market Gilbert, AZ $694,950 0% 528 0% 48 39 0% Chandler, AZ $600,000 0% 369 -0.2% 36 38 -0.1% Queen Creek, AZ $699,000 0% 593 0.7% 31 56 0% Scottsdale, AZ $1,035,000 -0.2% 1881 -0.1% 82 62 -0.1% Local Market Trends (/) from May. to Jun. 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, June 14, 2024 National news and local views

National Real Estate News Inventory keeps climbing The inventory of homes for sale climbed to 788,000 in May 2024 - that's up 35% year-over-year and is the highest figure since July 2020. While that is certainly good news, it’s important to know that: 1) inventory is still DOWN 33% compared to pre-pandemic levels, and 2) most of the recent inventory gains have come from a few states (chiefly Florida and Texas). [Source: Realtor.com] Mixed jobs picture According to the latest BLS report, the US economy added 272,000 jobs in May - well above expectations. But the unemployment rate inched up to 4.0% (it was 3.5% in July 2023). With inflation still well above the Fed's 2% target, and the jobs market still (superficially?) strong, the Fed is feeling no urgency to begin cutting rates. [Source: BLS] Fed does nothing again Fed members voted to keep interest rates steady for the 7th straight meeting. The last time the Fed raised rates was July 2023! While average 30-yr mortgage rates eased slightly in May (from highs near 7.5%), they remain near 7%, which is clearly hampering affordability and transaction volumes during the critical spring/summer selling season. [Source: Federal Reserve, Mortgage News Daily] Local Market Trends Area Median Price Active Listings New Listings - 5 days Median Days on Market Mesa, AZ $515,000 0.1% 1000 0% 103 37 -0.2% Chandler, AZ $600,000 0% 374 -0.2% 57 31 -0.2% Gilbert, AZ $685,000 0% 523 0% 65 35 -0.1% Queen Creek, AZ $699,952 0% 600 0.8% 24 56 0% Local Market Trends (/) from May. to Jun. 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, June 7, 2024 National news and local

National Real Estate News Home sales slow Higher mortgage rates rained on Spring sales. Existing (previously owned) home sales dropped 1.9% month-over-month to 4.14 million units annualized in April. That was the 2nd-straight month of declines. However, the median sales prices rose 3.7% MoM to $407,600, as higher-end home sales rebounded. [Source: NAR] But competition rises Like it does every year at this time, buyer competition levels are rising. 68% of the homes sold in April were on the market less than a month (up from 60% in March). The average home sold in April received 3.2 offers (up from 3.1 in March and 2.7 in February). Defying high home prices and mortgage rates, first-timers made up 33% of the purchases in April. [Source: NAR] Rates hold around 7% The slower existing AND new home sales that we saw in April reflected 30-yr mortgage rates closer to 7.5%. But in the past few weeks, rates have dropped back closer to 7% on cooler inflation, employment, and retail sales data. Will these lower rates be enough to boost May sales and get the Spring selling season back on track? [Source: Mortgage News Daily] Local Market Trends As of Friday, June 7, 2024   Lorana Ellard Here you can enhance your area’s housing market data with your own insights and commentary! Area Median Price Active Listings New Listings - 5 days Median Days on Market Mesa, AZ $509,229 0% 969 -0.1% 98 35 -0.2% Chandler, AZ $624,000 0% 361 -0.2% 59 30 -0.3% Gilbert, AZ $688,250 0% 512 0% 62 34 -0.1% Queen Creek, AZ $694,900 0% 609 0.8% 30 50 -0.1% Local Market Trends (/) from May. to Jun. 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