National Association of Realtors forecast interest rates to continue to climb with 3.5% anticipated by mid-2022. This may slow down the market, but not to pre-pandemic levels.
Monthly home value growth slowed to a rate of 1.3% in October following slowdowns in September and August from the fast-paced market earlier this summer.
The Cromford Report is reporting that many local analysts agree the past rate of increase is indeed unsustainable. The payment for a 1,500-2,000 sq. ft. home has risen 33%, or $500/month since last November, and the median rent for the same sized home increased $372/month. At the rate prices have been increasing for the past 2 years, returning to a mere 7-10% annually would be considered a massive relief for buyers.
Home values didn’t drop in any of the 50 largest U.S. metros, but monthly home value growth decelerated in 42 of them. The slowest monthly growth was seen in Milwaukee (0.1%), San Francisco (0.3%), Buffalo (0.3%) and St. Louis (0.4%), while the fastest was in Raleigh (2.7%), Nashville (2.4%) and Atlanta (2.3%).
Good news for buyers: Lending practices have loosened up with the new $625,000 loan limit and more consideration of self-employed borrowers.
Per the Arizona Department of Economic Opportunity’s October Employment Report: • Jobs and the labor force have completely recovered from last year’s pandemic losses. • Unemployment claims have fallen to pre-pandemic levels. • W-2 Incomes have continued to rise and are up 3.4% YOY.