Market Snapshot – January 2020

     

    Active Supply is Down 32%
    Median Sale Price up 11% and Expected to Rise

    For Buyers:
    The urgency for buyers cannot be stressed enough; real estate prices are not projected to decline in the Greater Phoenix area in 2020.  There is not one measure from any angle that supports that theory.  Not only will they not decline, they will not stop rising this year at the current levels of supply and demand.

    On January 9th, active supply was counted at just over 12,000 listings for all of Greater Phoenix.  This is down 32% from this time last year and excruciatingly low.  To put it in perspective, a “normal” level of inventory should be at least 28,000 – 30,000 active listings in the MLS for a metropolis the size of Maricopa and Pinal County.  The last time inventory was recorded this low was in 2005 at 9,000 listings with a population of 3.8M.  Now Greater Phoenix has 4.8M people with less than 1% of existing housing available for sale.  With monthly sales up 17% over last year, fueled by population growth, job growth, income growth and low interest rates in the area, sellers have few reasons to sell below market value.  It’s not logical to expect prices to soften in this environment.

    Buyers who have been waiting for sales prices to decline before they purchase have nearly missed the boat.  This is because while they were watching prices rise, the payments for those same homes declined for a year with declining mortgage rates.  However, when mortgage rates stabilized 6 months ago, hovering around an average of 3.75%, payments started to creep up again.

    In short, if someone wants to purchase a home and they have the means, then they should lock into one.  They should expect competing offers, expect to lose some opportunities, and expect to do some upgrades.  They should also expect to live in their new home for at least 5 years to build up enough equity to mitigate the risk of ups and downs in the future.

    For Sellers:
    This is an exciting time for those who need to sell.  Anyone who owns property has probably been contacted multiple times by multiple means throughout the year by people wanting to buy their home.  While sellers are under much less pressure to perform repairs and upgrades in order to sell their home, it doesn’t mean that they will sell it as quickly or for as much as those that are move-in ready.  But, it will sell in this market.  Those who are considering selling to an internet investor buyer (aka iBuyers who offer some up-front certainty and convenience in the selling process), should know that they still have negotiating power in the transaction and have the option to be represented by a Realtor if they choose.

     

     

     

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    Carin Nguyen

    Carin Nguyen takes the business of real estate very seriously and she has the track record to prove it. She holds the recent prestigious title and ranking of the #1 realtor in AZ for sides as awarded by the Wall Street Journal. Carin is an Arizona native and fully understands the complexities and changing landscape of the Arizona market. She has been in the real estate industry for over 10 year’s full time and comes by her expertise honestly, having honed it during years in the finance and mortgage industries. Education and knowledge is key in getting her buyers and sellers what they what. A rich resume built with a tireless commitment to her clients, undeniable proven past success and an uncompromised vision for the future create the recipe for complete customer satisfaction. Carin understands the potential emotional stress and sometimes life altering experiences felt by clients during the real estate transaction process. Carin is unyielding in insisting on complete professionalism from herself and her team while understanding that real estate is a personal business. She thrives on managing the details and individuality of each transaction and client. Her clients know that having Carin on their side means they have an advocate who cares about them and their needs. Carin is convinced that building relationships will ensure continued satisfaction and be reflected in future success. There is no denying what provides Carin with her constant strength. Her family is “at the heart of my motivation to push myself to achieve my goals and to be forthright in all that I do. My husband, Son, is my biggest source of support, my coach and my best friend. I am truly blessed with a loving husband and four great children who collectively strengthen my resolve to be the best at all my endeavors. I can be a wife and mother and still be a successful Realtor because I tackle everything with all that I have. My motto is ‘Working Hard To Get Homes Sold’ for a reason. I am thrilled that so many families have made me their real estate consultant.” A commitment to professionalism, an empathetic and understanding approach to her clients and an unstoppable and dependable force from her family all ensures success for Carin and most importantly, her clients

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