Mortgage Interest Rates are now on Average 3.94% and are expected to increase to 4.5% by the end of 2018
United States Real Estate Market
It is projected that there will be 5.67 million real estate transactions in 2018, an increase of 3.7% from 2017.
It is expected to be the healthiest market in 32 years!
Median price expected to be up 4%.
We are in a market re-capture, NOT A BUBBLE
New Construction up 9.4% in 2018
What does this mean for the Phoenix Metro Area? Our first time home buyer market (homes under $300,000) is off the charts hot. In some areas there is just 3 weeks of inventory! Appreciation each year is chugging along at a healthy 6-8%.
The FHA maximum loan limit for the Phoenix metro area is now $294,515 which is an $18,850 increase from years past. This increases buying power for first time home buyers. Also, The Federal Housing Finance Agency (FHFA) raised the maximum conforming loan limits for mortgages in Pinal and Maricopa Counties from $424,100 to $453,100 to be acquired by Fannie Mae and Freddie Mac.
In addition, new construction starts are up and some new builds are taking up to 10 months to be completed. Though we’ve been promissed a 5-6 month build for one of our clients so we’ll see…
December 2017, usually one the quietest months in terms of closings, saw nearly 7200 sales, matching November demand and up 0.8% from December 2016 units. This robust demand relative to shrinking active inventory (down 8.9% from a year ago) means homeowners are poised for another year of significant equity gain. In 2017 there were over 95,000 closed ARMLS residential sales and 117,000 new listings, an extremely high 82% absorption rate. 2016 and 2017 marked long stretches of supply and demand trends that favored sellers, with momentum pointing to more of the same.
All this means it’s going to be a great year if you’re looking to move. Whether you’re selling or buying it’s a healthy market. It’s a great time to invest, downsize, flip (LOTS of opportunity) move into a larger home or take the plunge for the first time!