July market tidbits:
Has the Real Estate Market been hot? Yes, it has, no surprise.
Will it continue? The Cromford Report tracks the market in Maricopa County and change may be in the air:
- The Luxury market ($1M+) has really stepped up in this recent strong seller’s market. The luxury buyer is not spurred on by income or a job, but by the Stock Market performance, corporate earnings, and currency markets. Corporate profits were up in Q3 2020 and Q1 2021, and bitcoin hit a high in late April 2021. New millionaires were created and off to find a house they went!
- The Luxury buyer was not going to let a good interest rate go to waste, and 62% of luxury buyers chose to use financing.
- What is an indication that prices could possibly go down, and the frenzy might cool? Watch Days on Market. As they go up, the pressure on prices and urgency may slow. Days on Market are inching up. Part of this could also be attributed to seasonal slowing. Also, we have not seen as many vacant properties which indicate motivated sellers.
- Listings have started to go up, and contracts are going down.
- Is the market poised for a crash like what happened in 2008? To see that scenario, we would need to see supply exceed demand. Just the opposite is true. More likely to first see a more balanced market with the seller’s market moving weaker.
- Is it a good time to buy? With affordability still good as incomes are rising and homes are still predicted to appreciate at a rate faster than inflation. Pair that with low interest rates to set up affordable payments.