Monthly market tidbits:
- First ever cuts to water supplied by Lake Mead to take effect as water levels continue to drop. Arizona will see an 18% reduction in the state’s total Colorado River supply. Most affected will be farmers, especially in Pinal County. Pinal County is Arizona’s top producer of cotton, barley and livestock.
- Top three states growing/adding population are 1. Texas 2. Florida and 3. Arizona
- Top three states losing population are 1. New York, 2. Illinois and 3. California
- California is adding population by adding births faster than deaths, unlike Florida that loses population as deaths outpace births. While that is going on, Florida is adding population with migration into the state while California is losing citizens to migration.
- Home sellers are increasingly realizing that the housing market is no longer heating up. The share of homes for sale with a price drop rose for the fifteenth consecutive week to 4.9%, a level last seen in 2019. Buyers may also be starting to notice that homes are staying on the market a little longer—a median 17 days.
- NAR chief economist Lawrence Yun said, “We see inventory beginning to tick up, which will lessen the intensity of multiple offers. Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren’t seeing as much
growth because there are still too few starter homes available.” (quote from Mortgage News Daily)
Compare April’s 2021 Realtors Confidence Index Survey, to July 2021’s below. Most of the country has moved from Very Strong Demand to Moderately Strong. If you pulled out of the home market due to losing out on multiple bids, now could be a great time to re-enter the market and get your offer accepted.