It’s about that time when I like to tantalize all of you with some market statistics! How is the Phoenix real estate market so far in 2016? Well let’s take a look…
Supply is gradually increasing as it usually does this time of year, but demand has been a little sluggish in the price ranges below about $250-300K in most areas, and a lot sluggish in the upper price ranges. Sellers still call the shots below $250K in most geographic areas, but buyers and in hog heaven in those upper ranges. Hope you bought your lottery tickets because this is the year to buy that mansion.
Interest rates have decreased slightly since the Fed lowered the target funds rate in December. I know, wierd, huh? But investors are a little unhappy with the stock market these days are moving more funds into bonds, which tend to drive mortgage rates more so than the equity markets. The 10-year T-bill is one of the most popular indices for mortgage rates and T-bill yields are the lowest they have been since 2012. Hence, the lower interest rates.
The declining commodities market may affect real estate activity for out-of-state participants, but is expected to have very little direct impact on the Phoenix real estate market. The market segments that will feel the pinch the hardest are the luxury markets and those areas where folks from states such as Texas, North Dakota, Alaska, Oklahoma and New Mexico buy their vacation homes. The Canadian dollar is also impacting areas where our neighbors to the north buy their winter homes to get out of the snow for a few months. These areas will see listing rates increase faster than sales.
Overall, it should be a healthy year in the Phoenix real estate market. Modest equity gains are expected with fairly even sales volume compared to last year.
Looking for the elusive home in hot spot Mesa for under $250K? Give these homes a gander…
