I got an email today from my Title / Escrow company with a graph showing the most recent sales stats in Scottsdale, AZ and thought it was worth sharing. It’s a little hard to read so I’ll translate (the graph image sent with the email was a little pixelated). Basically what this says is Scottsdale’s residential re-sales are at an absorption rate of 7%. So 7% of the homes on the market in Scottsdale are being sold.
I was just listening to NPR and they were telling the most recent stats from the National Association of Realtors®. Residential re-sales of both single family homes and condos were down in ’07 about 12% from ’06 but here’s some thing interesting; “For all of 2007 there were 5,652,000 existing-home sales, the fifth highest year on record; however, the total was 12.8 percent below the 6,478,000 transactions recorded in 2006.” [Link to original article on Realtor.org]
A little more about the graph: Sales of Single Family homes in Scottsdale, AZ and Fountain Hills, AZ is up to a 7% absorption rate this up from 6% from the last couple months of ’07. What do we owe the rise in sales to? Is it the low interest rates now around 5.6% for a 30 year conforming!!! Is it investors from countries with a stronger “dollar”? Is it that fact that the holidays are over and now we can get back to the day to day of buying real estate? Or is it a combination of all these things combined with the fact that in ’07 home values fell for the first time in history. The average cost for a single family home fell to about $217,000 for 2007 according to NAR.
What does all this information translate into for you?
That depends. Do you need to refinance? If the answer is yes call your lender and do your homework today!!! You will save BIG $$ in the long run. If you need a great loan advisor call Kristi Collins at Coldwell Banker Home Loans 480-951-1010.
Trading up in a down market.
Are you in the market to buy or sell? If you are selling it’s still a great time to sell. If you bought before the boom now is a great time to trade up. You purchased before prices went sky high so you have a good amount of equity in your home and you can still sell for a good price and get into a larger home to better suite your needs today. Here’s a little example of how trading up in a down market can work to your advantage. Let’s say you purchased your home in 2001 for 150,000. It appreciated in value and in 2006 you could sell for 250,000. In today’s market let’s say you could sell it for 13% less or $217,500. Using that same equation let’s look at a home that was valued at $450,000 in 2006. By today’s standards if we apply the same formula you will in theory be able to purchase that home for $391,500 or $58,500 less than in ’06. Then as home values appreciate as they do historically you will continue to increase your net worth as equity in your property increases. Here is a link to a great article in the New York times illustrating the same point.
This is by all means an OPPORTUNITY MARKET. If you’ve been watching and waiting the next 3 to 6 months is it!!! Selection is high, sales are still down and prices have and continue to fall. Sellers will negotiate with you to purchase their property. They want it SOLD!!! I continue to see homes for $100,000 and up that would make great rental properties or great possibilities for first time buyers. For up to the minute information on homes like these in your prefered area please call my direct line 480-381-3299 or email me chrisbakersopenhouse@gmail.com.
Filed under: "The Market", "Trading up in a Down Market", Scottsdale, What's Selling? | 1 Comment »