Liz & Marie

How Rising Mortgage Rates will Impact Soaring Home Prices in Metro Phoenix

Here is your Phoenix metro area Real Estate Weekly Market Update! The following data was pulled from the Arizona MLS (ARMLS) on the date listed below:

Phoenix-Real-Estate-Weekly-Market-Update-Nov-23-2021-Phoenix-No-2-Things-to-know-when-Investing

Key points from this data:

    • In Maricopa County the number of active listings has increased by 541 this week. 
    • The median list price has increased slightly across Maricopa County, with $99,000 down in Scottsdale and $30,000 in Chandler.
    • Average days on market has decreased in almost every city above.
    • Number of active rentals has increased by 51 throughout Maricopa County. 
    • Rent pricing continues to remain stable.

BIG NEWS in Real Estate:

1. How rising mortgage rates will impact soaring home prices in metro Phoenix, for full article click here:

For the 33rd consecutive month, metro Phoenix led the nation in February home price growth — at a whopping 32.9% year-over-year gain, according to the latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index released April 26.  But rising mortgage interest rates could put a bit of a damper on this upward trajectory, analysts say.

    • “We expect home price appreciation to slow down due to the new environment in the mortgage industry,” said Steven Hensley, advisory manager for Zonda housing market research firm. “However, it is unlikely that home values will fall in the short term given low inventory levels. Given all the uncertainty in the housing market today, Phoenix home buyers are proving resilient.”
      • Months of supply currently sits at .07 months, meaning the greater Phoenix market is still undersupplied.”
      • In March, the average single family home in metro Phoenix sold for $569,800, which equates to an average mortgage monthly payment of $4,203, representing a 43% increase
      • The same time last year, the average sales price was $470,200, when average 30-year interest rates were 2.97%, equating to an average mortgage payment of $2,938, he said.
      • Between January and March, new home permit activity declined by 2.57% and new homes closed sale activity fell by 3.62%
      • “Fortunately for the Phoenix area, the demand for housing remains strong enough that the region will be less impacted than it might be in a weaker economic situation. It’s obvious that some potential homebuyers will be pushed toward lower-priced homes or rental homes, and builders will begin to find resistance at some point to their efforts to keep prices up with costs and preserve their planned profit margin.”
      • With interest rates at their highest levels in over 10 years coupled with record low for-sale inventory does not create the most favorable conditions for prospective buyers.
      • While these challenging conditions might be expected to drain the pool of buyers — and may still do so eventually — there are signs the market remains very competitive.
      • More inventory has hit the market in Phoenix in recent months, but it hasn’t been enough to dampen competition,” he said. “Home values continue to rise quickly, and homes are typically sold in a little over a week. Changes in inventory and affordability will remain key to the housing decisions of prospective buyers in the months ahead

2.Arizona ranks No. 4 among best states for business, for full article click here:

Arizona climbed the rankings of yet another economic survey this week, placing in the top 4 in Chief Executive Magazine’s list of “Best States For Business.” Arizona rose six spots from 2021 based on a survey of nearly 700 CEOs and business owners in all 50 states.  Last week, Arizona grabbed the no. 1 ranking for economic performance over the last ten years and the no. 3 ranking for economic outlook, a measure that predicts future economic growth, by the American Legislative Exchange Council’s Rich States, Poor States report. The 2022 survey represented the first time Arizona ranked no. 1 for economic performance.

    • Arizona’s economic strength is matched by its top-ranked and highly-skilled workforce.
    • Census data released in March showed Maricopa County led the nation last year in population growth, adding 58,246 people between July 2020 and July 2021. Among the ten most populous counties in the nation, Maricopa County was just one of two that gained residents last year.
    • “Arizona is a magnet for people and jobs because of our premier business environment and unbeatable quality of life,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “From our top tier universities and community colleges, to our modern infrastructure, low cost of doing business, and robust innovation ecosystem, Arizona means opportunity. We are grateful to Governor Ducey, Senate Leader Karen Fann, Speaker Rusty Bowers and all our legislators and state’s leaders for prioritizing policies that make Arizona the most welcoming state in the nation.”
    • Advanced manufacturing has taken off in Arizona as many of the world’s most advanced companies have announced expansions in recent years. Last week, LG Energy Solution announced an initial investment of $1.4 billion to build a battery manufacturing plant in Queen Creek, creating thousands of jobs. On Wednesday, Nikola celebrated the launch of production at its electric vehicle manufacturing facility in Coolidge.

Liz & Marie are purchasing properties all across Maricopa County as well as Gila County, Navajo County and Coconino County. If you would like to sell your house fast and are looking for a more personal interaction than an iBuyer like Opendoor, check out our quick free four minute video where we show you how to save $10,000 or more when selling your property!

This week’s LOCAL NEWS

Honor flight resumes veteran trips from Phoenix Sky Harbor, for the article click here:

    • Honor Flight Arizona resumed its long-held tradition of flying veterans to our nation’s capital Monday morning.
    • The program had been on hiatus for about two and a half years due to the pandemic.
    • The flight was an exclusive charter, flown and sponsored in part by American Airlines, from Phoenix Sky Harbor to Washington, D.C.
    • More than 100 veterans went on the trip Monday, including 12 World War II veterans, and more than 80 Korean veterans, some of whom had also served in the Vietnam War.
    • On Tuesday, May 3, the veterans will be joined by hundreds of dignitaries, volunteers, employees, supporters, and leadership of the Honor Flight Network at the World War II Memorial to celebrate and commemorate the organization’s milestone of bringing the 250,000th veteran on an honor flight during this trip.
    • Arizona Senator Kyrsten Sinema also joined them on the flight to Washington, D.C. “This is an incredible opportunity for them to see the memorials we’ve erected in their honor,” she said.
    • The group will return to Phoenix on Wednesday night..

The top spring 2022 events and festivals not to miss in Phoenix!

For the link click here

    • May 20-29 | Spring Arizona Restaurant Week
    • SUNS Playoff Schedule for this next week only!  Rally in the Valley
      • Dallas Mavericks best of 7 game series
      • Next Game is tonight, Wednesday May 4, 2022
      • Suns up 1-0 in the series so far!

About Liz & Marie

Liz & Marie are the area’s leading real estate solutions company. We successfully work with homeowners, buyers, sellers, real estate agents, and real estate investors, buying and selling all types of residential real estate. We are confident that we can find the right property or solution for you, whether you have a house to sell, are looking to buy your next investment property, or are looking for your family’s “forever home.” We can share our knowledge so that you can make the best decisions for your situation and we are dedicated to making everyone’s experience a smooth and successful process.

Liz & Marie specialize in buying and selling your home at the price, and on the timeline, that works for all of us. Our extensive knowledge of real estate investing and a large network of real estate investors nationwide allows us to offer more buying choices and a wide variety of selling options for all types of home buyers and sellers, including financially distressed homeowners. Our mission is to work hand in hand with all parties and to handle every situation with the utmost professionalism and care.

We are thrilled to be a part of this next chapter in your life.  Our commitment to excellence starts with treating you and your transaction with the utmost care and professionalism.  We know that buying and selling a home is one of the biggest decisions you’ll ever make and we are humbled that so many homeowners choose us to join them on their journey.  Let us lead the way and earn your business today.

We may be Crazy Liz and Wacky Marie but together we can do anything. Our combined experience in real estate has given us tons of lessons and has provided us the opportunity to help many homeowners! We are always striving to learn more and help others!

Let us know how we can help you today!