Residential real estate continues moving at breakneck speeds. In April, nearly 75% of offers written by Redfin agents were for listings with multiple offers, nationwide. In greater Phoenix, it was 80.5%. Last week Tina Tamboer with the Cromford Report told us that 57.1% homes that closed in greater Phoenix in April, closed over asking. These exciting times of economic growth and massive home-price appreciation are being dampened by fear, not just of a bubble – which we are not in – but also by the threat of inflation. One of the ways the government is able to slow inflation, is by increasing rates (not mortgage), which then usually puts pressure on mortgage rates which would increase affordability challenges thus weakening homebuyer demand.
Category Archives: AZ Real Estate
AZ Forbearance Update 5/19/2021
Covering the latest in forbearance, delinquencies, employment, and loan servicing.
Greater Phoenix Real Estate Update 5/14/2021
On Wednesday, Lawyers Title hosted a presentation with Tina Tamboer with the Cromford Report. She always shares pertinent and timely information. Below I have combined a lot of her information from her presentation, along with additional information from my research.
This Week in Real Estate 5/10/2021
In economics, it all comes down to supply and demand. In real estate, it is about supply, demand, and equity. In 2005 we had a lack of supply, high demand, and no equity. Today, we have even lower inventory, solid demand, and tons of equity. Supply has started increasing slowly, but we are still about 77% below normal. Demand remains nearly 8% above normal.
AZ Forbearance Update 5/5/2021
In this 13 minute video, Lydia Wietsma and I discuss the latest in forbearance, delinquencies, servicing, and federal rulings. https://www.youtube.com/watch?v=XV9bPs9IurU Bull vs Bubble Market There is a lot of panic and tons of headlines about a bubble. Today’s market is a bull real estate market, not a bubble. Is it true or false demand? AreContinueContinue reading “AZ Forbearance Update 5/5/2021”
Greater Phoenix Real Estate Update 4/30/2021
Yesterday one of my clients excitedly called to tell me she had accepted an offer on her home for $1.2M more than she paid for it about two years ago. She then said, “Now what do we do? Rent, buy, flip?” I paused, gathered my thoughts, considered the numbers, and answered, “Don’t rent. Buy.”
AZ Forbearance Update 4/28/2021
After 2 weeks of large drops, we had a small drop in total loans in forbearance. As of April 18, about 4.49% of loans were in forbearance, a slight decline from 4.50%. This is a decline of nearly 5,000 borrowers to about 2.25 million.
Greater Phoenix Real Estate Update 4/23/2021
Despite movement towards normal, sales prices continue to grow. While yes, inventory has increased, locally it remains over 77% below normal and demand has decreased, it is still over 8% above normal. This supply/demand imbalance is so severe, it will take years to correct, and is why sales prices continue increasing at an appreciation rate of nearly 22%, year over year.
AZ Forbearance Update 4/21/2021
Two weeks ago, we had a big drop in total loans in forbearance, and last week we had another large drop. We are now down to 4.50% of loans or 2.3 million homeowners in a forbearance plan. Two weeks ago, it was 4.9% of loans.
This Week in (Greater Phoenix) Real Estate 4/19/21
Our market peaked on March 14th. What does that mean? It means that demand is falling faster than supply. What does that mean? It means that we are moving towards a more balanced, healthy market. Balance and healthy are good. Demand remains slightly elevated, at about 9% above normal. Supply is rising, so we are now only below normal by 77.4%!!! That is an increase from 78% below normal. Demand needs to fall below supply in order for prices to drop. That is not happening anytime soon.