August 2014

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What’s the Buzz?

The number of metro Phoenix home sales has been falling steadily most of this year. During June, home sales fell 4 percent compared with May. But even though home-sales numbers have been slumping lately, that doesn’t mean prices have decreased. In fact, the area’s median sales price actually climbed to $211,000 in June, after hovering around $205,000 for the previous few months. That’s an 11.1 percent increase over June 2013, when the median sales price was $190,000. One reason for the price increase: A jump in luxury home sales.

Nationally, existing home sales reached highest peak in 8 months—due, at least in part, to an increase in inventory.

Here in greater Phoenix, we’ve seen an increase in inventory every month this year—until June, when new listings fell by nearly 6%.

In other news… real estate analysts have finally come to the conclusion that another housing bubble is NOT likely in the foreseeable future—something we’ve been saying for months now. Through most of 2012 and 2013, local and national house prices were rising at a pace that was nearly as extreme as that seen during the disastrous housing bubble of the last decade. But since the start of 2014, the pace of increase has slowed markedly. Assuming the slower pace sticks—and it looks as if it will—prices will remain affordable, if not exactly cheap. That means that the housing market will avoid becoming overvalued, allowing the recovery in sales activity and housing starts to continue.

The housing market is fundamentally sounder than it has been in years. The number of homes entering foreclosure is back down to the pre-crisis levels of 2005-2006.

All-in-all, we’re in a fairly well-balanced housing market right now. Interest rates remain at near historic lows, even though they have risen lately. Whether buying or selling, the timing is great!

Please keep us in mind with all your Real Estate needs. Referrals are the lifeblood of our business and we are always looking for new buyers and sellers, so if you know of anyone planning to buy or sell a home, we would appreciate you pointing them our way! 


In this edition:

  • Home Prices Climb, But Sales Slump
  • Existing Home Sales Reach Highest Peak in 8 Months
  • June 2014 New Monthly Listings Drop
  • The Re-Explosion of U.S. House Prices Is Over
  • How Much of a Down Payment Do You Actually Need?
  • Mortgage Rates

Home prices climb, but sales slump

Metro Phoenix’s median sales price climbed to $211,000 in June after hovering around $205,000 for the previous few months, according to Arizona State University. One reason for the price increase: A jump in luxury home sales. Click here for complete article.


Existing Home Sales Reach Highest Peak in 8 Months

Existing-home sales in June touched their highest level so far this year as the supply of available homes for sale continued to improve. Click here for complete article.


June 2014 New Monthly Listings Drop Below Last Year’s Level

For the first time this year, new monthly listings of existing single family homes dropped below last year’s level. The number of new listings of single family homes in June 2014 was 404 or 5.7% less than June 2013. Click here for complete article.


The Re-Explosion of U.S. House Prices Is Over

Call off the bubble alert. Through 2012 and 2013, U.S. house prices were rising at a pace that was as extreme as anything seen during the disastrous housing bubble of the last decade. But since the start of 2014, the pace of increase has slowed markedly. Click here for complete article.


How Much of a Down Payment Do You Actually Need?

A recent survey by Zelman & Associates revealed that 38% of those between the ages of 25-29 years old and 42% of those between the ages of 30-34 years old believe that a minimum of 15% is required as a down payment to purchase a home. Click here for complete article.


Mortgage Rates

U.S. averages as of August 1, 2014:

30 yr. fixed: 4.27%

15 yr. fixed: 3.22%

5/1 ARM: 3.31%

30 yr. jumbo: 4.62%

View current rates1408