Liz & Marie

Phoenix Mortgage Costs Skyrocket 

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 448 this week. 
  • The median list price has decreased slightly across Maricopa County, with slight rises in Scottsdale and Chandler
  • Average days on market remain pretty consistent.
  • Number of active rentals has increased by 20 throughout Maricopa County. 
  • Rent pricing continues to remain stable.

BIG NEWS in Real Estate:

1. Phoenix Mortgage Costs Skyrocket 20% Already This Year, for full article click here:

Home shoppers are facing a one-two punch this spring: Quickly rising mortgage rates are compounding affordability challenges that have been brought on by record home value growth. The cost of a 30-year mortgage on the typical U.S. home is now 19.5% higher than it was just three months ago, according to the March Zillow® Real Estate Market Report and Phoenix mortgage costs skyrocketed an astonishing 20.4% just since the start of the year. Despite this, the pace and volume of sales picked up in March, showing the depth of the pool of home buyers willing and able to meet current asking prices.

    • In the Metro Phoenix area: 
    • The typical home is worth $453,110, up 30.2% year over year.
    • The monthly payment on a typical home is now $1,767 (assuming a 30-year mortgage with a 20% down payment). That’s 20.4% higher than the start of the year, and 48.9% higher than a year ago.
    • Inventory grew 6.4% from February but remains 9% lower than a year ago.
    • Newly pending sales are up 8.6% from February but down 5% from last year.
    • The typical monthly rent is $1,921. Rents are up 23.7% year over year.
    • The typical U.S. home is worth 20.6% more than it was a year ago, the 12th straight month in which a new record for annual home value growth has been set.
    • Mortgage rates, which were below 3% a year ago, entered March at 3.51% and rose as high as 4.54% during the month.
    • There will be a point when the cost of buying a home deters enough buyers to bring price growth back down to Earth, but for now, there is plenty of fuel in the tank as home shopping season kicks into gear.
    • One bright spot for home shoppers is that the long-awaited seasonal inventory boost finally came in March. After six consecutive months of dwindling inventory — a streak that lasted longer into the year than is typical — 11.6% more homes were available in March than in February, the largest one-month jump in Zillow’s records.
    • Still, inventory is 22.5% lower than it was a year ago.  The number of newly listed homes in March jumped 35.8% from February, but that remains 8.5% lower than last March’s pace of new listings.
    • Buyers proved they remain ready to gobble up any inventory that comes their way.

2. How Arizona Contractors Cope with Supply Chain and Labor Issues, for full article click here:

Finding good contractors and a steady stream of supplies is still a challenge for contractors across the Valley. Supply chain and labors shortages will continue to be an issue for the foreseeable future which means price increases and project delays will continue to affect contractors and their clients. The problem is putting Arizona contractor such as roofers, kitchen remodelers, and garage door installers in a bind and requires them to creatively overcome these issues.

    • Supply chain issues may be a concern for contractors, but they are finding proactive ways to deal with the issue.
    • “Some remodeling jobs are going to require you to wait for products to get in,” Carfield said. “If I am waiting for cabinets I cannot start the rest of the remodel. So instead of waiting we take on some jobs that aren’t dealing with the same supply chain constraints.”
    • Finding good talent has also been a struggle for many contractors.
    • “It is hard to hire experienced contractors and we don’t want to hire anyone new which means our main focus has been keeping the roofers we have,” Smyth said. “We want to keep the team we have and this means giving them frequent opportunities for raises, providing them with good benefits, and giving them a chance to educate themselves in their trade.”
    • “Some remodeling jobs are going to require you to wait for products to get in,” Carfield said. “If I am waiting for cabinets I cannot start the rest of the remodel. So instead of waiting we take on some jobs that aren’t dealing with the same supply chain constraints.”
    • A labor shortage and supply chain issues have been a constant challenge for contractors over the last year and a half. Despite these challenges contractors have responded and continued to see their business grow.

3. Arizona looks to establish sanctioned homeless encampments; for full article click here:

A state bill addressing homelessness made headway March 22 when it passed by a vote of 10-1 out of the Appropriations Committee of the Arizona House, providing cities an interim solution to an ongoing problem. Senate Bill 1581 would allocate $50 million from the American Rescue Plan Act  to cities across the state to set up sanctioned homeless encampments and create homeless outreach teams to overlook the facilities.

    • One of the bill’s main components is to help cities alleviate the problems they face managing homelessness. 
    • Livingston said the bill’s goal is to provide a safe place for the homeless to go.
    • Glow, who supports SB1581, said the bill would allow municipalities to decide how they want to create structured camping sites for homelessness.
    • The point, Glow said, is to get people who don’t have water, toilets, and other facilities into better places until they are able to find a more permanent home.
    • Residents and businesses agreed homelessness is a humanitarian crisis that needs to be addressed by the city.
    • Neighborhoods who are here to testify are overrun, as are businesses. We want to turn Arizona around, and with this bill, you can do that.

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

Valley 8th grade student raises money for Salvation Army, for the article click here:

    • A penny saved is a penny earned. One Valley school is putting that saying to the test thanks to an ambitious eighth grade student named Diego Salas.
    • “I intend to raise at least a hundred dollars,” said Diego.
    • For Diego’s eighth grade capstone project, a final assignment focused on service, he came to his teacher with a rather bold statement.
      • “When he walked in, the very first thing he said was I want to learn and be a selfless hero,” said Cheryl Johnson.
      • Together they came up with an idea for a campus wide penny drive. Pitting grade levels against each other to raise the most money.  Diego added a twist to help raise mStudents at Bennett Academy in Phoenix could sabotage other classrooms donations by putting in coins that aren’t pennies, and those would subtract from their total count. So a quarter would actually set the class’ total count back 25 pennies.ore money.
    • Diego chose the Salvation Army as the recipients.
    • When he arrived to pick up the donation, the school had raised more than $600. A donation not only making a real difference but proving the true power of a penny.
    • That’s 400 hundred meals for people we serve, over 20 nights of lodging.
    • Through it all, Diego showed himself and his classmates they can all be selfless heroes.

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!
      • Series is currently tied at 2-2 with a best of 7 game series
      • Next game is tonight, Tuesday, April 26 at 7:00 pm tipoff

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!