Greater Phoenix Area Real Estate Agent: November 2018 Market Update

Greater Phoenix Area Real Estate Agent: November 2018 Market Update

– Hi, this is Jason Penrose,
with the Penrose Team at RE/MAX Excalibur, thanks for tuning in to Jason Penrose TV. Today we’re talking about
the real estate market, November 2018, what has
changed in the last 30 days. Phenomenal, I’m sure you felt it. Stay tuned, I’ll tell you more. (upbeat music) Thanks again for tuning
in to Jason Penrose TV. Today we’re looking at
the real estate market, November 2018, we have 8,521
homes come on the market this year, versus 8,554
last year, a .4% decrease in new homes coming on the
market, not a big deal. 21,145 active homes this
year versus 20,564 last year, a 2.8% increase in the
active homes for sale. Homes sold, 6,644 this year
versus 7,202 last year, that’s a 7.8% decrease in
the number of homes sold. Month’s supply of inventory
went up from 2.86 last year to 3.18 this year, a 11.1% increase in the month’s supply of inventory. So what’s going on here,
why is inventory starting to grow, why are sales down almost 8%, and why is the month’s supply of inventory up double digits, 11%. What we’re starting to
see here is housing prices have gone up to the
point where affordability is starting to become a problem. Interest rates have been
on the rise, mortgage rates are up, less buyers qualify
or the buyers can’t qualify for the payment they want for
the home they wanna purchase. So either buyers are a,
adjusting their sights down, or b, they’re sitting it out. Anyone who bought a
home between 2011, 2017 probably locked in a rate
better than today’s rates, which hover around 4.675. If you got a rate less
than 4.675, you’re happy where you live, why
would you sell your home to trade up for another
property at a higher rate. So a lot of sellers are sitting it out. Now that’s not saying that all
sellers are sitting it out. People need to move, job
transfers, the home’s too big, the home’s too small,
the family’s growing, there’s many of reasons
why people need to move, but there’s not as many
people electing to move, because they got a lower rate. So we’re seeing a softening in the market, we’re starting to see
more price improvements in the market. Does that mean that we’re
in a buyer’s market, not necessarily. Are homes selling at their
priced rate, absolutely they are. If you’re going for top
dollar, you don’t want to shoot for over top dollar, because
a lot of bidding wars have stopped in most price points. You wanna price the home right. If you’re thinking about
buying, great time to do it, because you wanna lock
the rate, you don’t wanna run the chance of it
going higher next year and getting priced out of
the home you really want. If you have questions, you
can call me on my cell phone, 602-738-9943 or you can text me. Please forward this video
to your friends and family, I look forward to hearing from you soon, make it a great day. (upbeat music)

One thought on “Greater Phoenix Area Real Estate Agent: November 2018 Market Update

  1. Great Video.

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