By Mike Bodeen · 18 October 2021
Let’s face it, 2021 has been and still is a difficult year. Four close friends of mine have passed away in the last 4 months. And I’m quite certain that many of you, our readers, are experiencing similar life griefs and challenges.
But this is a real estate newsletter, right? To be honest, some Mondays are just tough to come up with anything meaningful to report. And yet Jonathan and I are committed to bring you something that’s of worth. Perhaps a chuckle, or a smile, or a “Hmm, not sure about that,” or a “Ya gotta be kiddin me!”
So, we move forward!
Congrats to the Phoenix Mercury for their great run that ended just short yesterday – what an amazing team and compliment to the Valley. Congrats also to the Cardinals – still undefeated (6-0) and super-exciting to watch. In other good news, Chamber of Commerce weather has returned, and with it the Snowbirds are returning – though I may get some push-back on that last one😉
Real-Estate wise, our seller’s market remains strong, but in a sloooow cooling trend – from a boil to a simmer. Listing inventory continues it’s rise and just surpassed 8,000 this last week. Keep in mind, however that we’re still about 1,000 less homes for sale than a year ago, and 6,000 less than two years ago. Days of Market for listings remains REALLY low, (26), but slightly improving for buyers compared to last month (24).
Listings under contract are slightly less than last month (11,848 vs 12,198) and less than last year (11,848 vs 13,264), but more than one year ago (11,848 vs 10,232).
In further evidence of a slow cooling trend, we see that closed sales are down from last month (9,165 vs 9,536) and last year (10,183).
Whereas the amount of homes for sale is now growing, favoring buyers, two major factors are working against them: Appreciation and mortgage rates.
* Monthly Appreciation, (based on closed sales) increased on a price per square foot basis (PSF) from $252 last month to $254 currently and $204 one year ago, which equates to a 25% YOY (year over year) increase.
* As inflation begins to gather steam, so do long term mortgage rates (duh). Having been consistently under 3% they’ve risen .25% in just 3 weeks. Now don’t get us wrong, rates are still phenomenal (3.2% current average), but inflationary pressures (rising oil prices) may very well continue aiding their upward climb.
And for many of our readership, like my son/business partner, you weren’t even born when mortgage rates were 17%-18%.
So 3.2% is a gift!
And on that note, catch you next week!
And as usual, thanks to the Cromford Report for their amazing data!
Market data referenced in this article comes from The Cromford Report.