Please check out the video and read the latest stats below- our biggest concern is the affordability for our entry level buyers or folks that have been renting… IF that is you or someone you know- PLEASE call us to help at 480-243-4242 or email Rebecca directly at Rebecca@IntegrityAllStars.com to get the home ownership process started right away, before rates increase any further!
The following is an excerpt from the “Recent News” published by Mike Orr of the Cromford Report:
Overall demand has returned to just above normal with little to no sign of further momentum beyond this point. Currently the supply situation is the most important thing to watch and this is what determines how much competition buyers will experience.
Basic stats for this past year for all areas & types:
- Active Listings (excluding UCB): 21,512 versus 26,205 last year - down 17.9% - and down 3.5% from 22,303 last month
- Under Contract Listings (including Pending & UCB): 12,276 versus 10,584 last year - up 15.8% - and up 2.4% from 11,988 last month
- Monthly Sales: 8,363 versus 7,572 last year - up 10.4% - and up 6.0% from 7,887 last month
- Monthly Average Sales Price per Sq. Ft.: $135.88 versus $130.27 last year - up 4.3% - and up 2.9% from $131.99 last month!
From a seller's perspective, there is a lot of encouragement in this batch of numbers, though buyers might be dismayed to see price per sq. ft. rise by almost 3% in a single month.
For the market as a whole we currently see 3.1 months of supply, which is significantly below normal, but not excessively so. However, when we look at the single-family market by price range we see certain price bands with much lower supply:
- $100K-$125K - 0.8 months (versus 1.8 on May 1, 2014)
- $125K-$150K - 0.9 months (versus 1.9)
- $150K-$175K - 1.1 months (versus 2.3)
- $175K-$200K - 1.3 months (versus 2.6)
A few years ago we had almost 7,000 active listings between $100K and $150K. Now we have just 909.
As we move upmarket from $250K, things become a little easier for buyers because supply is less scarce. Once we get above $400K there are more active listings than last year and most buyers are having a much easier time with less competition from other buyers. In other words, demand is good but supply is plentiful at these higher price points.
Although many are feeling more optimistic about the market, and justifiably so, the lack of supply of entry-level homes is a very troubling sign. This is good for current homeowners but bad for those currently renting and wanting to get started in home ownership. This could become even more of a problem if mortgage interest rates rise, adding to affordability problems for the first time home buyer.