Realty Executives of Flagstaff

Serving Flagstaff, Arizona since 1977

Realty Executives of Flagstaff

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What Is The Silver Lining In Housing And Why Could It Go Away?

(Published on - 11/19/2021 3:54:24 PM)

Eventually, just about all homeowners get to the point where they think about moving. Some want to upsize, some want to downsize, while others just want a change.

No matter what the motivation, the decision isn’t always an easy one. There may be many reasons why it makes sense to stay with your current property. At the same time, there may be other compelling reasons to sell and find your next dream home.

Fortunately, you don’t have to make that decision alone.

As your real estate agents, We are always available when you have questions or need advice regarding home ownership. In fact, We are there when our clients need us even if it’s months or years before or after a transaction.

So, please don’t hesitate to give us a call. You don’t have to be serious about selling your home to talk to us. Even if you’re at the “wondering about it” stage, We are here to help.

A Brief Update to our Current Real Estate Market

In a Real Estate Market we currently have, it is extremely difficult to spin a positive for all sides. 
In this case, the positives are all on the Sellers side in one of, if not the best market for a seller to make the decision to sell.

Here is what the market is like in a nutshell

  • We have fewer homes on the market, as Renee researched yesterday, less than 40 homes under $1mil in price
    • There should be 300-400 hundred homes.
  • Homes coming to the market are 13% few over the past 3 months compared to the prior year
  • Sold listings are down 8.5% for the year and double digit % decreases over the past 4  months
  • Median price for homes in Flagstaff when grouping all home types together is $499,500, upwards of $300.00 sq. ft.
    • Single family homes have reached a median $605,000 +21.1%

None of this is sustaining, but to be honest, we do not know what the future holds.

On the Buyers Side, it is difficult at best.
It is time to Buckle-up, Hang-in there, and Call Us. There are few if any that understand the current market better.
If you need a home today,
First, call your lender, find out what your Lender limits are and also determine your personal limits, and then stick with them.

Once you have that, reach out to us and we will work as hard as ever to find you that home that fits.
If that home is not our there today, we will be upfront and honest with you.

On top of that, our job is to control the enthusiasm  once we find the right home. The final offer price is one you must be comfortable with. If you get the home great, and if you do not, you know you gave it your all and time to walk away.

 

Renee and I, thought we would invite one of the top lenders in Flagstaff, Chris Hallows with Wallick & Volk Mortgage to give us some insight into the direction the current home mortgage rates are trending and how this affects us in today's aggressive housing market.

 

Change Coming for the Housing Market Silver Lining

By Chris Hallows, Branch Manager at Wallick & Volk Mortgage

Many of you reading this hopefully have enjoyed historically low rates on either a purchase or a refinance within the last 24 months.


With rates in the 2’s and 3’s, we barely even remember the last two decades - National 30 yr fixed rate average from 2000-2010 was 6.29% and from 2010 up to 2020 was 4.09%. It is no secret that these rates exist due to billions of dollars of market subsidies as directed by the 2020 Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020.

This has truly made interest rates the silver lining in a very aggressively price appreciating market. However, this ‘new normal’ is not here to stay and we shouldn’t take that for granted. That silver lining is already under pressure as the FED announced in its meeting earlier this month that they are officially tapering this expenditure and this at a time with heavy inflation readings. Less subsidy and fear of inflation will likely drive interest rates up. Experts predict an overall increase in the next 12 months of around .375% but we could certainly experience some volatility in getting there. 

While we may not be in the “6’s” anytime soon it is a good reminder to make best use of the terms available in market and let your friends and neighbors know that while that house price may knock them off their feet, at least their rate will pick them back up for now!


Click on this to get a more in depth  reporting of  Mortgages in Todays Housing Market.

NMLS 306345 | AZ MLO 0914354 | BK 0018295 | Corp NMLS 2973 Equal Housing Lender

 

About the Authors:

 

Jeff Ross * Renee Gaun
Your 1st Choice in Real Estate®
Your Team for Success

928-607-5556  Jeff
Jeff@AllFlagstaffHomes.com
928-606-6232 Renee
Homes@ReneeGaun.com
www.AllFlagstaffHomes.com

 

15 E. Cherry Ave
Flagstaff, AZ. 86001

 

 

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