Happy Hour – August 11

* Arizona will soon have the lowest state resident income tax out of all states that have a state income tax when the flat tax of 2.5% is fully implemented. This will drive more people and businesses to Arizona.

* The AZ Governor just signed a bill allocating $1 billion dollars to develop our water resources. This is important for the future of Arizona.

* The Arizona Department of Commerce reported that in Arizona there were 102,900 more people employed in May 2022 than May 2021. This equates to 282 people a day that got a job!

*The U.S. Census Bureau estimates the population of Arizona increased by 98,330 people. This amounts to the population increasing by 269 people per day. This was the second year in a row Arizona was number three out of all states for year-over-year population increase.

When it comes to the single-family resale home market in May 2022 the median purchase price for a single-family resale home in Greater Phoenix hit an all-time high of $540,000. In June, it was $529,000. As of July 21, it is $510,000.

Median monthly rent for a single-family resale home in Greater Phoenix also hit an all-time in May 2022 at $2,365. It went down to $2,315 in June. However, as of July 21 it is $2,395.

In June 2022, the number of sales of single-family resale homes was 22% lower than June 2021. The primary reason was the jump in the thirty-year fixed mortgage rate. This increase in the thirty-year fixed mortgage rate along with the year-over-year big increase in price appreciation slowed sales.

Since homes prices peaked in May – there is a great increase in inventory. There is now more competition amongst sellers to sell their homes.

What does this mean for buyers? Especially you buyers that have tried to buy but were beaten out time after time. Now may be your time. Inventory is increasing so you have more choices. Prices are dropping in some areas. Of course, the spike in interest rates and the increase in purchase prices eliminated many buyers because of a high principal and interest payment. But there may be a way for a buyer to reduce a principal and interest payment. How? Some sellers are giving a seller concession to the buyer. The buyer might use the seller concession to buy down their mortgage rate.

This is why it is so important for a buyer to meet with a lender and find out how much house they may qualify for including a discussion on using a seller credit to buy down the rate.

Overall, today with the market shifting BUYERS, NOW MAY BE YOUR OPPORTUNITY TO OWN.

Fletcher Wilcox
REALTOR Private Client Group
Russ Lyon Sotheby's International Real Estate