It's getting serious hot in Arizona... and I am not talking about the weather.
If you are a Seller, great news for you. If you are a Buyer, this is even greater news despite what you may think. Here's a super short read, easy-to-understand charts and 3 golden nuggets you will think about...diligently.
Week #32 (August 2nd-August 9th)
Cromford Market Index is officially the HIGHEST EVER RECORDED, and it's still increasing.
Contracts are up 9.9% over the same week last year. Despite our COVID situation, minimal inventory and the constant talk about unemployment and how all this is going to kill the real estate market, July 2020 is the BEST July in the history of all July's... and most of the purchases were owner-occupied financed purchases.
33% of all Sales closed last month were over list price.
Half of all contracts in the month of July were accepting within 7 days of the listing going live on MLS and syndicated to the thousand public sites.
33% of all sales in July closed over the listing price.
Aaaand... before you say it is all the cash buyers that are driving up the prices, that is not an accurate statement by any means. From 2004 until the market crashed, most of the speculators (notice I did not say investors) were using their line of credits, 100% financing and stated-income to buy homes in Arizona. As the market crashed, the REAL investors came out of the wood works and starting buying up the properties with cash for pennies on the dollar. As values started creeping up and the market became more competitive, it slowed down a little (2013 to 2109). And NOW, now that money is so cheap to borrow (in some cases less than 3%), even buyer's with liquidity are using financing to make the purchase.
Owner-occupied verses Non Owner-occupied chart looks very similar. Today, less than 10% of the purchases happening right now are not being bought to actually live in the home themselves.
Although annual appreciation is not a one-size fits all number, according to Tina Tamboer with The Cromford Market, homes between $200K-$250K are seeing a 12%-15% appreciation over the last 12 months.
If you were thinking about buying a $250,000 home one year ago today, it would now be worth closer to $287,500 ($37,500 in equity) and yet your payments would still be the same. If you rented a median-sized (1,500-2,00SF) home one year ago today, the median rent was $1.01/SF ($1,500-$2,000/month). That same home would now rent at $1.14/SF ($1,700-$2,300/month). Don't be surprised if your landlord does a big jump on you if you do not have a price increase cap clause in your lease.
SELLERS: NUGGET #1 - Read the fine print. If you REALLY want to pay less then 3% TOTAL to sell your home, at least HEAR ME OUT! Call me today, I promise I will not waste your time OR your money!
BUYERS: NUGGET #2 - The only thing that is keeping you from Buying a home today is the down payment and closing costs, right?! What if I told you there are Down Payment Assistance Loans that also have interest rates in the 3's? And if you live in the property for at least 3 years, the money is yours to KEEP. Don't assume this program will always be available at so affordable. STOP WASTING MONEY ON RENT. Call me today. I will at the very least get you started on planning to buy a home.
AGENTS: NUGGET #3 - I've only been with eXp 2 months and I already received my shares statement. On TOP of that, if you are looking for the most advanced technology, the cutting-edge forward-thinking resources and tools that it will take to survive in this industry with technology taking over (Zillow, Redfin, OpenDoor, OfferPad...and don't tell me they aren't hurting you in some way or some how), I'd love to invite you to a cup of coffee. My treat.
Sheryl (Shey) Willis, CNE
GOARIZONA REAL ESTATE
Maricopa County Real Estate Special Commissioner
Zillow Premier Agent
Redfin Partner Agent
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Sheryl Willis, Go Chandler and eXp Realty does not engage in or condone activities which illegally discriminate on the basis of race, color, religion, sex, age, national origin, disability, familial status or any other protected classification under federal or state law.