In this 4 minute video, I talk about the 4 things that happened this week in real estate that you need to know about.
Supply. In past years, October usually sees a slight increase in new listings and then a decline in November and December. In October we had a 5% increase in new listings which basically kept up with the elevated levels of demand. In November we have had a decline in new listings, although not as large of as decline in past years. Despite that, demand continues to increase and the new listings are once again no longer keeping up with the demand and inventory is dropping. Demand is over 35% above normal and supply is 64% below normal. As of yesterday we only had about 7700 active listings available, excluding UCB. Low supply with high demand pushes prices higher, which is why we are looking at a potential appreciation of 20% this year. Normal is 3%!
The build to rent phenomenon continues to gain traction. Greater Phoenix is will soon be home to the largest build to rent community in the country. This year Christopher Todd Communities purchased and is developing 5 separate build to rent neighborhoods, totaling 943 homes.
Last week, CoStar, the nation’s largest commercial real estate data provider, agreed to purchase Homesnap for $250 million. This is part of an effort to enter the residential real estate space. It already owns apartments.com and purchased the company behind auctions.com earlier this year. CoStar is also a possible contender for the purchase of CoreLogic, the nation’s largest MLS data provider. CoStar founder and CEO, Andy Florance has his sights set on disrupting Zillow’s position as top residential real estate portal.
This year we have hit all-time lows for mortgage interest rates on a 30 year fixed mortgage 13 times!
2020 30-Year Fixed Mortgage Interest Rates
Sarah has been with Lawyers Title of Arizona since 2004. As an award-winning sales executive, Sarah’s role is to bring transactions to Lawyers Title. To do this, she focuses on supporting her clients and helping them navigate the ever-changing real estate space through thorough research and understanding of current trends impacting today’s home buyers and sellers.