In Phoenix we currently have a Seller's market and have had a similar market for the past year. The inventory has continued to decline and we have roughly half of the "normal" inventory level we expect of around 33,000 active listings. Currently we only have 17,000 homes on the market. With inventory levels so low, who you choose as your buyer's agent matters now more than ever. You need a strategy to help you win your dream home! Call Chelsea Anderson with Your Red Door Real Estate Team at (602) 748-6136 to schedule a consultation and come up with your personalized strategy to buy your dream home!
What does all this mean for Buyers?
You need to be decisive in today's market. You need to know what you are looking for and what to expect to realistically find within your budget when considering needs vs. wants. Lots of "needs" become "wants" for buyers in a Seller's market. You also need to be prepared to move quickly. Have your pre-qualification or proof of funds in hand BEFORE you begin looking at properties. You may think $300,000 is within the budget but when you break it down into your monthly payment and consider your personal debt vs. income, you may find a different story. When you find a home that works for you and your family, you need to be able to move FAST! Make an offer that same day to ensure that you are one of the buyers considered. If it's your favorite home, odds are it's somebody else's too.
Why should I buy now and not wait for a different market?
I get asked this a lot. The best time to buy a home is when it's right for you, outside of market statistics. So YES! Why else is today a good time to buy? We have seen 6-9% inflation by city over the last year which means that a home priced at $300,000 this year, may be as much as $330,000 next year which may bump that home outside of your budget. We also cannot predict where interest rates will be in a year but can say that at in the 4% range as they are now, we are still way below average there. Our average historical interest rate is actually 8%! If you are thinking of selling and moving into a larger home that better suits your family (a move-up buyer) today is definitely the right time for you. If you wait for the current value of your home to go up an additional 5% you could actually be damaging your future buying power. Say for example your home today is worth $200,000 and you are looking to buy a home in the $400,000 range. Now consider a 5% increase in values. Your current home would be $210,000 while your new home would be $440,000. So, in essence you are willing to wait to pay $30,000 more!!! Don't wait! Make your move now if you are looking to move-up this year.
Are you a move-up buyer? Call Chelsea Anderson today to help you with both your current listing and your new home - (602) 748-6136.
How do you as a buyer capitalize on today's market?
Plan to make your own improvements! You will not find as much competition on homes that need some updates and can often obtain them at more of a deal.
You will find fewer homes that fit your needs since inventory is so tight so be prepared to see homes when they come on the market and make an offer when it's right. If you're undecided, stay out of this market. This market is for serious buyers and sellers.
If you need a move-in ready home, be aggressive with your offer. Chances are, you'll be competing with other buyers to win the contract.
Have your financing squared away so a seller won't hesitate to choose you over other buyers.
If you aren't serious about your move, or waiting for a specific property to come up before you get into the market, you're too late! You need to have all your ducks in a row so that when that property does come on the market you are prepared. You need to have your pre-qualification in hand, your listing ready to go live tomorrow and you need to be prepared to write an aggressive offer on your dream home.
Call Chelsea - let's talk specifics as they relate to your situation! Don't wait for a different market and for prices to rise! Call Chelsea NOW! (602) 748-6136
Comments
Post a Comment