Homie’s Greater Phoenix, AZ Housing Market Update January 2021

Phoenix January 2021 Market Report

2021 is already starting off strong for the Arizona housing market. Check out the January happenings!

Monthly Sales

According to data from the ARMLS ® from January 1, 2021 to January 31, 2021, the Phoenix metro area had 7,076 monthly sales, an +11.8% year-over-year increase, landing at 7,076. This number is a 26.8% drop from the previous month’s sales, however.

Monthly Sales

Data From ARMLS®

List Price

With a +10.8% increase from January of 2020, the average list price in Phoenix this January was $471.4K. Median prices also rose in January, landing at $347.7K, a +12.2% increase from December.

New List Prices

Data From ARMLS®

Sale Price

Sale prices continue to rise faster and faster. With an increase of +20.6% between January 2020 and January 2021, the average list price this month was $439.6K. Median sale prices also rose with +17.3% year-over-year increase. The January median sale price was $340.0K. This increase is 3% larger than the previous month’s increase in median sale price. Both median and average sale prices are expected to rise again in February.

Sales Prices

Data From ARMLS®

Days on Market (DOM)

The Average Cumulative Days on Market in January was 46. This is a three-day increase from the previous month, however, it’s an 18-day decrease from January 2020, showing the market is still quite hot, especially for this time of year.

Average Days on Market

Data From ARMLS®

A Message From Wayne Graham, Head of Real Estate

All indications point to the Phoenix market continuing to be strong in 2021. We have a strong start to the year coming off a record year in 2020. The demand for homes is high as interest rates are still low so we expect homes to continue to sell quickly. Now is the time to jump into the Phoenix market and take advantage of record sales and high demand.

Want to Know Your Home’s Value?

Are you thinking of selling soon? Are you wondering how these market trends affect your home? We can help you determine your home’s value. Click here to request your free home value report prepared by a Homie pro.

Turn to a Homie

Whether you’re buying or selling, our team of experienced professionals will help you make the most of your real estate experience. Click to start selling or buying with your dedicated Homie agent.

Source: homie.com

Homie’s Arizona Housing Market Update September 2020

The real estate market in the greater Phoenix metro area is booming. Prices continue to rise and homes continue to sell faster and faster. Here’s your monthly update on what’s happening.

Monthly Sales

According to data from the ARMLS® from September 1, 2020 to September 30, 2020 the Phoenix metro area saw 9,305 total sales in the month of September. This is a +4.8% from the previous month. Looking at the year-over-year comparison, the jump is even higher. September 2020’s monthly sales are +18.5% higher than monthly sales in September 2019.

chart showing monthly sales for 2020 at 9305 vs 7850 in 2019.

Data via ARMLS® September 2020.

List Price

September list prices saw a +11.1% year-over-year increase, landing at $458.8K. At 335K, an +11.7% increase from September 2019, median list prices are also high.

Chart showing list price for 2020 at 458.

Data via ARMLS® September 2020.

Sale Price

At $410.9K, sale prices are rising. This is a +23.1% increase from last September and a +3% increase from August of this year. At $329K, median sale prices also rose with +17.5% increase from September 2019.

Both the average and median sale prices are rising quicker and quicker. September’s +23.1% year-over-year increase in average sale price is a jump up from August’s +17.7% year-over-year comparison. Before that, July’s increase was +14.6%, while June only had a year-over-year increase of +1.4%. The median sale price is following a similar upward trend. If you’re looking to invest in a home in this market, buying sooner may be better than later.

sales price chart comparing 2020 average at 410.9k vs 329k in 2019

Data via ARMLS® September 2020.

Days on Market (DOM)

The Average Cumulative Days on Market continues to drop. Homes are selling faster and faster every month. The average DOM for September 2020 was 46, which is a 5-day decrease from August 2020 and a 13-day decrease from September 2019.

Average days on market 2020 46 vs. 59 in 2019.

Data via ARMLS® September 2020.

A Message From Sales and Operations Manager, Wayne Graham

There is no doubt about it, the Phoenix market is not slowing down. After another record-setting month of September and October is already shaping up to do the same. Despite our depressed economy due to Covid-19, the Phoenix real estate market will continue to surpass all expectations for 2020.

Want to Know Your Home’s Value?

Are you thinking about taking advantage of how hot the market is by selling your home? Click here to get your free home value report.

Turn to a Homie

Homie has local real estate agents with years of experience and an unrivaled knowledge of the local Arizona market. Click to start selling or buying with your dedicated Homie agent.

All data retrieved from ARMLS®.

Source: homie.com

Is a 2.25% 30-Year Fixed Mortgage Rate in the Cards?

One of the problems with refinancing a home loan right now is that mortgage rates keep falling.

As such, you might find the need to refinance again shortly after refinancing. Aside from being inconvenient, it’s also not very cost-effective.

Yes, it costs money to refinance, whether you pay for it out-of-pocket or via a higher interest rate, the latter being a no cost refinance.

So in a sense, mortgage rates moving even lower can be seen as a bit of a double-edged sword – sure, lower is better, but does it make your prior refinance worthless in the process?

Are More Record Lows on the Way?

  • Mortgage rates hit record lows for three weeks in a row
  • Then pulled back slightly in the latest week, per Freddie Mac data
  • The popular 30-year fixed currently averages about 3% flat
  • Could we see 2.75%, 2.5%, and eventually 2.25% at some point soon?

At the moment, mortgage rates are essentially at record lows, give or take a few basis points.

The 30-year fixed is hovering around 3%, which is basically its lowest point on record. Some borrowers are obtaining rates even lower than rate, say at 2.875%.

Over the past year, mortgage rates have defied expectations by marching lower and lower.

This has led to a surge in mortgage refinance activity for the past 12 months or longer. But it’s also led to questions like, “How soon can I refinance again?”

You see, while homeowners are locking in some truly impressive interest rates, it’s often not long before they have to reassess a subsequent refinance.

After all, if it made sense to refinance from 4% to 3.5%, why wouldn’t this same borrower entertain a refinance offer at 3%?

The answer is they likely would take a lender up on that offer, which explains the record volumes being enjoyed by just about every lender, big and small, right now.

The question now is could mortgage rates go even lower? The answer is probably YES.

Where Will Mortgage Rates Be in Late 2020?

  • It’s no secret the year 2020 has been a wild ride and it’s only July
  • We’ve still got a serious COVID-19 situation and a presidential election to deal with in November
  • Along with a stock market that is refusing to read the writing on the wall
  • That means there’s a good chance mortgage rates could be even lower later this year

Simply put, mortgage rates tend to do well when economic conditions are poor, or if there’s uncertainty in the air.

The same is true if the Fed is manipulating the market by agreeing to buy billions of mortgage bonds to keep rates cheap.

This powerful combination has led to the lowest mortgage rates on record – and with a lot of drama left to come this year, we could see even cheaper mortgage rates.

As mortgage rate watcher Matthew Graham recently pointed out, there’s a 2.25% mortgage bond coupon that was introduced in April of this year.

The mere fact that it exists means interest rates on the 30-year fixed could move as low as 2.25% at some point.

That’s essentially the start of the conversation, the real possibility that it could happen, as opposed to just throwing out arbitrary numbers.

It’s there and waiting for more turmoil in the financial markets. If it comes, we may indeed see a 30-year fixed priced just above 2%, which would be unheard of.

This may also explain why some lenders have already introduced 2.5% 30-year fixed mortgage rates. They know there’s a market for it.

At the same time, it would mean the millions of homeowners who purchased a home or refinanced a mortgage with an interest rate closer to 3% would have to pick up the phone and refi again.

That’d be more good news for lenders and loan officers, but could also lead to frustration from borrowers who repeatedly need to refinance.

It also calls into question the idea of paying points, or even closing costs, when taking out a mortgage these days, assuming your home loan only lasts months as opposed to years.

(photo: Steven Depolo)

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for nearly 15 years.

Source: thetruthaboutmortgage.com

Mortgage rates set new record low, falling below 3% as concerns rise about coronavirus second wave – CNBC

Prospective home buyers arrive with a realtor to a house for sale in Dunlap, Illinois.

Daniel Acker | Bloomberg | Getty Images

Barely a week ago it looked like mortgage rates were finally breaking higher, but in a sudden reversal, they just set a new record low.

The average rate on the popular 30-year fixed mortgage hit 2.97% Thursday, according to Mortgage News Daily, as the stock market sold off and investors rushed to the relative safety of the bond market. Mortgage rates loosely follow the yield on the 10-year U.S. Treasury. 

For top-tier borrowers, some lenders were quoting as low as 2.75%. Lower-tier borrowers would see higher rates.

“This is a very abrupt and arguably unexpected change given that last week looked like a potentially scary lift-off for rates after an extended stay near the previous all-time lows,” said Matthew Graham, chief operating officer at Mortgage News Daily. “It suggests we shouldn’t count out the ability of interest rates to maintain these levels (or improve upon them) even if the economy continues showing signs of healing.”

The market sell-off is being fueled by new concerns that there may be a second wave of the coronavirus, which already decimated the economy in April and May. Rates have been hovering above 3% for much of the past month and only broke higher last week, following a surprisingly more optimistic May employment report. That, on top of cities across the country reopening, fueled more selling in the bond market.

Interest rates also benefited from an announcement by the Federal Reserve on Wednesday that it would continue buying mortgage-backed bonds. That will keep liquidity in the lending market. 

 “I think rate levels will be directly tied to the ability of the economy to recover. If it goes better than expected, rates would rise, and vice versa if things remain sluggish. Either way, the Fed is committed to keeping shorter-term rates lower for longer, and that will help to anchor longer-term rates like mortgages to some extent,” added Graham.

Low rates have fueled a sharp and fast recovery in the housing market, especially for homebuilders. Mortgage applications to purchase a home were up 13% annually last week, according to the Mortgage Bankers Association. 

A new housing recovery index from realtor.com, which combines home search activity, prices and inventory, showed continued improvements in the market, even as social unrest erupted in several large cities.

“The general sentiment from consumer surveys is that now is not a good time to sell a home because of Covid, economic uncertainty, and social unrest, but the data is saying the opposite,” said Danielle Hale, chief economist for realtor.com. “Home prices are back to their pre-Covid pace and we’re seeing listings spend slightly less time on the market than last week.”

Mortgage rates are just one piece of the puzzle. Mortgage credit availability is still key, and it fell last month to the lowest level in nearly six years, according to an MBA survey.

“Under the current economic environment, low rates are having very little impact due to depleted mortgage availability and a decline in savings, which are putting potential buyers on the sidelines, unfortunately, just as mortgage rates are making homes more affordable,” said George Ratiu, senior economist at realtor.com.

Source: cnbc.com

Value Investing Strategy – What It Is & How to Find the Right Stocks

Value investing is one of the most popular investment strategies used on Wall Street today. There’s a good reason this investing strategy is so popular — it works!

Value investing is to the stock market what coupon clipping is to the grocery store. It’s the process of finding stocks that are essentially on sale, trading with lower valuations than their peers.

In the stock market, saving a little now could equate to earning massive returns that outperform the overall market later. The merits of the value investing strategy have been proven time and time again, even by investing greats like Warren Buffett and his mentor, Benjamin Graham.

So, what exactly is value investing and how do you go about being successful at it?

What Is Value Investing?

Value investing is an investment strategy that’s centered around finding quality stocks that are undervalued compared to their peers in the market. Value investors use a wide range of valuation metrics to determine the true value of a stock and look to purchase those that trade below their true value.

The idea is that undervalued stocks will eventually catch up to their peers. So, by investing in high-quality companies that have a discounted market price, the investor will see outsize gains when the stock begins to rise to its intrinsic value.

The most successful value investors have keen fundamental analysis abilities. Moreover, due to its long-term nature, the value investing strategy provides a margin of safety for investors looking to take advantage of a low-risk investment strategy.

Finally, value investing is often considered a contrarian investment strategy. That’s because the value investor believes that the overall market has it wrong, holding a view contrary to those held by the overall investing community.

Pro tip: Win up to $1,000 when you download the SoFi app and open a new Active Invest account. With SoFi, you can customize your portfolio with stocks and ETFs, plus you can invest in fractional shares.

Valuation Metrics Used by Successful Value Investors

Value investing is all about finding high-quality stocks that are trading at a discount to other stocks within their industries. But how do you go about gauging the value of a company?

Successful value investors use the following key valuation metrics:

  • Price-to-Earnings Ratio (P/E Ratio). The price-to-earnings ratio, or P/E ratio, compares the share price of a stock to the earnings per share produced by the stock over the past year. For example, if a company earned $1 per share over the past year, and the share price is $10, the P/E ratio for that stock would be 10, meaning that at the current rate it would take 10 years of earnings to produce the current market value of the stock.
  • Price-to-Book Ratio (P/B Ratio).The price-to-book ratio, or P/B ratio, compares the current price of the stock to the current book value of assets held by the company. This gives the investor an idea of the true value of the company based on its assets. For example, if a company has a total market capitalization — or market value — of $100 million and owns $50 million worth of assets, its price-to-book ratio works out to 2, meaning that investors pay twice the value of the company’s assets when purchasing shares.
  • Price-to-Sales Ratio (P/S Ratio). The price-to-sales ratio, or P/S ratio, compares the price of the stock to the revenue generated by the company on an annual basis. For example, if a stock trades with a market cap of $100 million and generates $20 million in revenue on an annual basis, it trades with a P/S ratio of 5.
  • Price-to-Cash-Flow Ratio. Finally, the price-to-cash-flow ratio compares the current price of the stock to the cash flow the company generates over the course of a year. For example, if the company generated cash flow of $25 million and trades with a market cap of $100 million, it’s price-to-cash-flow ratio works out to 4.

How to Use These Ratios to Determine if a Stock Is Undervalued

The valuation metrics above tell you a bit about the price of the company you’re looking into, but how do you know if that price is an undervaluation, overvaluation, or sitting right at fair market value? How do these valuation metrics tell you whether a stock is a good investment?

It all has to do with sector averages. For example, if you’re considering an energy stock, you would want to compare the valuation metrics above of the company you’re looking into to the valuation metrics of the energy sector as a whole.

It’s important to compare metrics to the sector you’re investing in because every sector is different. Due to the dramatic growth seen among successful technology stocks and relatively stable growth seen among utility stocks, technology stocks will generally trade with higher valuations than utility stocks. A utility stock with ratios much lower than some stocks in the technology sector may still be overvalued among its peers in the utilities sector.

What to Look For Beyond Valuation Metrics

Value investing is about finding stocks that are on sale. Although paying a good price is obviously important, it’s not the only important factor investors should consider before making an investment.

After all, a stock may look dramatically undervalued, but it also may have earned that low valuation. For example, a stock that produced $1 per share in earnings last year and is trading at $2 per share now has a P/E ratio of only 2, which usually screams undervaluation. However, if the company represented by that stock recently filed for bankruptcy, offloaded its assets, and is nothing more than a shell today, it’s still overvalued and will still lead to losses.

It’s important that you look deep into the companies you invest in, far beyond their current valuation metrics, to ensure you’re buying something of lasting value.

1. Look for a Competitive Advantage

Any good stock investment— be it a value stock, growth stock, or income stock — will have a competitive advantage. For example, Apple’s high-end cameras and cutting edge artificial intelligence, among other key technologies, help keep the company ahead of the curve in the smartphone industry.

Competitive advantages can come in all shapes and sizes. A biotechnology company’s competitive advantage may be a new method of delivery for a medication or a strong scientific advisory board, while an automobile manufacturer’s competitive advantage may be purely cosmetic.

No matter what it is, it’s important that any company you invest in has a competitive advantage that allows it to corner a meaningful percentage of its target market.

2. The Company’s Ability to Protect Its Competitive Advantage

Having a competitive advantage is one thing, protecting it is another. In order to protect intellectual property, companies must have a robust IP portfolio, filled with patents, trademarks, and copyrights that ensure the competition is incapable of selling what the company sells.

The question of whether a competitor will try to mimic a good idea isn’t an “if” question, it’s a “when” question. When a competitor does try to step on your company’s toes, it’s important that the company you’ve invested in has the IP protections and legal clout to defend itself in court.

3. Revenue and Earnings Growth

A stock with a low valuation may seem like a great investment. But what if the valuation is low because the company has had a history of stagnant revenue and earnings? Or worse, what if the company has seen revenue and earnings decline over the past several years?

In these cases, low valuations serve as a warning sign rather than a buying sign.

Before making an investment, look at the past four earnings reports at least. The more history you look into, the better off you are. When digging through the earnings reports, look for the company’s revenue and earnings growth, or lack thereof.

If you find that the company is relatively stagnant or going backward in terms of revenue and earnings, it’s time to go back to the drawing board to find another opportunity, because the stock of a stagnating or shrinking business is likely to produce losses over time.

4. Consistent Innovation

Regardless of the investing strategy you choose to follow, investing in companies that make an effort to stay at the forefront of innovation in their field is an absolute must. There’s no such thing as “too big to fail.” Even the world’s largest companies will fall victim to competition if they don’t continue to innovate and stay ahead of the masses.

Don’t believe me? Just look at BlackBerry.

If you ask your kids about BlackBerry, they’ll probably assume you’re talking about fruit, not about the technology company that largely led the way to the development of the smartphone as you know it today.

At one point, BlackBerry seemed like a great investment. Sales were incredible, profits were compelling, and growth seemed all but guaranteed.

Well, that growth wasn’t guaranteed.

The company failed to stay on the leading edge of innovation in the smartphone industry, ultimately giving up its leading position to Apple. Today, BlackBerry shares trade at a small fraction of what they did in the company’s heyday, and it continues to try and find a way to get back to the good ol’ days.

Even the best-looking company today could be tomorrow’s penny stock. To avoid investing in one of these duds, make sure any company you invest in is actively spending time and money on the development of innovative solutions to problems faced by its customers.

Where to Find Value Stocks

Value stocks can be found in just about any sector. So the real question isn’t “where do you find value stocks?” — it’s “when do you find value stocks?”

Buffett, Graham, and many other value investors would tell you the best time to buy is when pessimism is high.

The stock market tends to move in waves, with the bulls who believe prices will rise taking control in some cases, and the bears who believe share prices will fall taking control in others.

In bull markets, share prices tend to fly out of control, many times reaching incredible overvaluations. It’s at these points that the savvy value investor sells. While there will still be some value stocks on the market, finding strong investment opportunities will be difficult.

In bear markets, share prices fall and widespread pessimism across the stock market leads to widespread undervaluations. This is when the value investor strikes. As Wall Street maintains a “the sky is falling” mentality, discounts will appear across the market, making finding strong value stocks as easy as finding a gas station in the suburbs.

Although you shouldn’t wait for market declines to take place to become active in the stock market, you’ll find it far easier to find undervalued stocks in bear markets than in bull markets.

Pro tip: Before you add any stocks to your portfolio, make sure you’re choosing the best possible companies. Stock screeners like Trade Ideas can help you narrow down the choices to companies that meet your individual requirements. Learn more about our favorite stock screeners.

1. Small Hidden Gems

In his book “One Up On Wall Street,” Peter Lynch wrote, “Big companies have small moves, small companies have big moves.”

The idea here is simple; investing in companies that are in early stages of business and relatively small compared to their peers gives you the largest opportunity for momentous gains.

Although it’s easy to agree with this concept — and even though undervalued stocks are easier to find in smaller companies than for large, well-established companies — stocks with small market caps also come with increased risk.

So, if you’re going to invest in companies in early stages of business, it’s important to do extensive research into the market opportunity represented by the work the company is doing. Moreover, if you have a relatively low risk tolerance, it’s best to avoid stocks with a small market cap.

2. Popular Value-Focused Index Funds, ETFs, and Mutual Funds

Value investing takes quite a bit of work. Although many think of this type of investment as a more passive one, the most successful proponents of the value investing strategy perform some of the most detailed analyses performed by any investor.

If you’re not experienced in fundamental analysis and just learning the ropes of valuation metrics, it may be best to let the pros choose your investments for you.

No, that doesn’t mean you need to go hire an investment advisor; value-focused mutual funds and exchange-traded funds (ETFs) will do just fine. Some of the most popular value-focused investment-grade funds include:

  • Vanguard Value ETF (VTV)
  • Blackrock Basic Value Fund (MABAX)
  • DFA U.S. Large Cap Value Portfolio (DFLVX)

These funds and others like them include a variety of holdings that are selected for their value investment characteristics. Be aware that these funds carry a small expense ratio — a fee you pay for holding the fund rather than picking and buying individual stocks on your own.

Diversification Is Key to the Success of the Value Investing Strategy

As with any investment strategy, diversification is a key component of value investing. Diversification is a way to protect your portfolio from significant short-term losses should one of your investments take a nosedive.

By maintaining a portfolio of multiple value stocks, index funds, ETFs, and mutual funds, fluctuations — even significant fluctuations — in the price of a single asset in your investment portfolio won’t have a large impact on your overall holdings.

When getting started, beginners should follow the 5% rule. This is a general rule of thumb that suggests a properly diversified investment portfolio has no more than 5% of its value held up in any single investment and no more than 5% of the total portfolio value tied up in a group of high-risk investments.

For example, if you have $10,000 to invest, you should cap single investments at $500. Moreover, you should have no more than $500 invested across all high-risk investments in your portfolio.

Risks of the Value Investing Strategy

Any investment you make is going to come with risk; it’s just part of the dance. If you plan on following the value investing strategy, the most significant risks to consider are:

  • Small-Cap Risks. Many value investors focus solely on small-cap stocks to find hidden value. These stocks are known for heavy volatility, making timing your entrances and exits difficult. Moreover, most stocks in the small-cap category haven’t proven their business model and don’t generate profits. As such, if you’re going to look toward small caps for strong value plays, it’s important to do your research to understand what you’re getting into.
  • Valuations May Be Low for a Reason. Value investing is all about finding high-quality stocks with low valuations. However, stocks may be carrying low valuations for many reasons. Some, like bankruptcy filings, are easy to find. Others, like share agreements that leach off the company’s revenue, can be more difficult to pin down.
  • Lack of Liquidity. Often, low valuations are the result of a lack of investor awareness surrounding the stock. If investors don’t know the stock exists, there’s not much demand to buy it. This leads to a new issue: If nobody wants to buy the stock, what do you do when you want to sell it? When buying lesser-known value stocks, you may be left holding onto your positions longer than you intended simply because there’s nobody interested in buying your shares.

Some of the Most Widely Recognized Investors Are Value Investors

Value investing is no fad. The strategy has been used for decades by some of the world’s most successful and widely recognized investors, including Warren Buffett, Charlie Munger, and Peter Lynch.

The economist Benjamin Graham laid the groundwork for value investing as we know it, becoming one of the first investors to focus on valuation metrics as buying and selling signals. He was also Warren Buffett’s personal mentor.

As the father of value investing, Graham is one of the most highly regarded investors that has ever walked the face of the earth. He is also the author of the book, “The Intelligent Investor,” a must-read for beginner and expert investors alike.

One of the most important quotes from Benjamin Graham surrounding value investing is: “Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic.”

Final Word

Value investing is an exciting way to go about building wealth in the stock market. Not only will you be investing in your future, you’ll be bargain hunting. Bargain hunting is an enjoyable process. It’s why you’re willing to clip coupons or search online for the best deal on the products you’re interested in.

In many cases, coupon cutting and online searching costs more in time than the discount is worth, but for many it’s as much about the thrill of the chase as it is about catching the prey.

Bargain hunting in the stock market brings the thrill of the chase to a whole new level. Moreover, making the right moves in accordance with a solid value investing strategy will result in market-leading returns.

However, it’s also important to do your research. Making the wrong moves in search of a discount could result in significant losses.

Source: moneycrashers.com

Homie’s Greater Phoenix, AZ Housing Market Update December 2020

2020 was a year to remember for Arizona real estate. You might be wondering how the market finished the year in December. We’ve got your update!

Monthly Sales

According to data from the ARMLS ® from December 1, 2020 to December 31, 2020, monthly sales in the Phoenix metro area rose by +27.4% year-over-year, landing at 9,666. That’s an +8.8% increase from the previous month.

Monthly Sales

Data retrieved from ARMLS®.

List Price

At $442.2K, December saw a +10.8% year-over-year increase in average list price. With a +11.8% increase from December 2019 median prices also rose. The median list price for the Phoenix area in December was $329.9K.

New List Prices

Data retrieved from ARMLS®.

Sale Price

Sale prices in December rose by an even greater margin than list prices, showing that buyers are offering higher amounts than ever before. With an increase of +20.0% between December 2019 and December 2020, the average list price this month was $431.5K. Median sale prices also rose with +14.9% year-over-year increase. The December median sale price was $333.0K. These numbers are right on track with the previous month’s predictions.

Utah Monthly Sales

Data retrieved from ARMLS®.

Days on Market (DOM)

The Average Cumulative Days on Market in December was 43. While this is a 2-day increase from the previous month, it’s an 18-day decrease from December 2019, showing that the market is still experiencing a trend of homes selling faster and faster.

Average Days on Market

Data retrieved from ARMLS®.

Want to Know Your Home’s Value?

While keeping track of market trends is nice, it’s useful to know how these trends apply to your home. We can help you out with that! We offer a free home value report prepared by a Homie pro. Click here to request your free report.

A Message From Wayne Graham, Head of Real Estate

“2020 has exceeded all forecasts and expectations for the Phoenix market. All indications point to a continued strong market here locally, and we are excited for 2021!”

Turn to a Homie

If you’re looking to buy or sell in the Phoenix area this year, our team of dedicated and experienced professionals can help you get the best deal possible. Click to start selling or buying with your Homie agent.

Learn more about the Arizona Market!

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Top Upgrades to Make to Your Arizona Home
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Source: homie.com

‘It’s going to be ugly,’ analyst says as mortgage rates suddenly spike on shocking jobs report – CNBC

What’s good news for the U.S. economy is suddenly bad news for mortgage rates. A far-better-than-expected May employment report only added to a growing sell-off in the bond market, pushing yields to the highest level since March. Mortgage rates loosely follow the yield on the 10-year Treasury.

Rates have been rising this week, after sitting around a record low for the last two weeks. Friday, the average mortgage shopper may see rates on the 30-year fixed as much as a quarter point higher, according to Matthew Graham, COO of Mortgage News Daily, which runs daily averages from lenders.

For those with top-tier credit and financials, they may only see an eighth of a point increase, but for those with lower scores and down payments, the jump could be as much as 0.375%.

“It’s going to be ugly,” said Graham. “Today is the first time since the Covid-19 market reaction settled down in March that interest rates truly have a reason to panic. Until further notice, this looks like liftoff.”

This is not, of course, the last word in a mortgage market that has been on a rate roller-coaster ride fueled by a massive spike in mortgage delinquencies, an initially confusing and risk-ridden government bailout, and an overstressed loan servicing system. The mortgage bailout has been clarified, with parts rewritten to help servicers, the number of borrowers in forbearance plans is shrinking and mortgage companies are on a massive hiring spree.

“Our forecast was for Treasury rates to slowly rise over the medium term, but for mortgage rates to rise more slowly, as the spread between mortgage and Treasury rates has been abnormally wide,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association. “I expect mortgage lenders will price more aggressively as refinance volume tails off in response to even slightly higher mortgage rates.”

And the sell-off in the bond market could easily turn around for any number of reasons in an exceedingly precarious economy. Nothing is certain on either the health or economic recovery fronts, and both the stock and bond markets follow those.

“There are past examples that have looked similarly scary for rates that have ended up being more balanced. All we have to go on is what’s happening right now,” added Graham. “Things can change, but until and unless they do, you have to treat last week’s all-time low rates as the bottom of the market.

Source: cnbc.com