HOW'S THE MARKET? GOOD QUESTION!
Luxe Client Group and the industry look to the Cromford Report to shed a little light. The Cromford Index is a value system that provides a short-term forecast on the demand and supply of homes, and on whether we are in a buyer vs seller’s market for resale homes. A benchmark of 100 shows that there is a reasonable supply of homes currently on the market. This gives both buyers and sellers an equal opportunity to negotiate, depending on their individual needs.
SPOTTING OPPORTUNITIES
Currently, the Cromford Demand Index is 83.3 meaning that we are light on buyers. The Supply Index is 63.1 demonstrating that there are fewer homes available to meet those buyer needs in the Phoenix area. The Market Index displays the difference, sitting firmly in favor of sellers at 131.9. What does this mean for homebuyers in Phoenix? If you were waiting for a buyers’ market, you missed it. Most likely when you were preparing for the holidays mid-November to December. It also means a housing market crash in Phoenix is not going to happen anytime soon. In fact, you can look forward to a 2.84% month-over-month increase in home value appreciation.
DO THE MATH
The unpredictable changes in mortgage rates make it challenging for potential buyers and sellers in Phoenix to make decisions regarding their purchase or sale of a home. Although the cost of the property is a factor, mortgage rates play a much bigger role in terms of how affordable the home will be. For this reason, both buyers and sellers are treading carefully in the current market.
TAKE CONTROL
What to do? When you find your perfect home and you can manage the interest rate, don't hesitate to purchase it! If it's too expensive, consider a less pricey option, or save up more for a higher down payment. If interest rates drop, you can always refinance in the future or you can benefit from your home's appreciation and use it to boost your purchasing power. But even if the interest rates stay the same, you're already enjoying a home that fits your budget and will continue to grow in value.
Are you considering purchasing or refinancing a home? We've got some great news for you! Check out our mortgage rate forecast for the most up-to-date information and get a jump start on finding the best rates.
Reach out today for help to get started on your home-buying journey!
~ Susan Solliday, Jennifer Biffer & Taylor Look at Luxe Client Group
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