Market Snapshot March 2019

This information is from March 1, 2019…

This year got off to a slow start for Phoenix real estate. While January is always a slow month for closings, this year started slower than normal, thanks to the low number of contracts signed during the end of 2018. The slow start didn’t last long, though, and we saw listings under contract in the second half of January nearly 37% higher than the start of the year. Now, even though it’s still not a balanced market, both buyers are sellers are enjoying opportunities. 

January saw a significant increase in active listings, which has been great for buyers. With more inventory, higher FHA loan limits, and lower interest rates than in late 2018, buyers are certainly benefiting. For sellers, Phoenix is at a 5.2% appreciation, which is a normal year-over-year appreciation rate. Sellers need to be realistic in setting their listing prices as appreciation is moderating, but there’s no reason to think home prices have fallen. Well-presented homes up to $1M, in good condition, and priced well should have no difficulty selling. 

On the mortgage front, Guardian Mortgage VP, Steve Howard (NMLS # 997898) reports, “The most recent Federal Reserve minutes were interesting. Several of the members are now against future increases to short term rates.  Further comments from St. Louis Fed President James Bullard has led some to speculate that the Fed may even start reinvesting in Bonds and Treasuries once again. If this does in fact happen we could see a dip in interest rates, which could bring more new home buyers to market.”