August 2022 Newsletter
Hello August
?"Rest is not idleness, and to lie sometimes on the grass under trees on a summer's day, listening to the murmur of the water, or watching the clouds float across the sky, is by no means a waste of time."
― John Lubbock
Real Estate Coaching and Real Estate School For The Price Of One?
Are you or anyone you know interested in becoming a real estate agent? The Baylon Group is now offering real estate coaching from Bryan AND FREE real estate pre licensing education to obtain your license. Now accepting applicants to determine if the program and real estate is right for you.
How To Buy A Home With Zero Credit
Do you have no credit score and debt free? You could be eligible for a zero credit loan!
This mortgage program offers zero credit loans. If you have no debt and a zero credit score (no credit history) you could be eligible for this program. You must have no missed payments on any rent for 12 months, 12-month history of deposits to checking or savings accounts, utilities, automobile insurance payments, cell phone payments, payments of medical bills, payments of school tuition, payments for childcare, and more.
Email us back for more information and to discuss if this program is right for you!
Seller & Buyer Highlight
August is here! And with that, a number of our clients have been making real estate moves. We would like to congratulate them!
Congratulations to our new construction home buyer who closed with over $100,000 in equity and gets to move into their completed, brand new home in Mesa!
Congratulations to our new construction home buyer! After touring a few communities, this buyer found a beautiful two- story floor plan in San Tan Valley!
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Congratulations to our home buyer who closed on a home for $15,000 under asking price in Central Phoenix!
Congratulations to our home buyers who are under contract on a beautifully remodeled, mid century home for $20,000 under asking price in Mesa!
We are grateful for your continued trust in our team to serve you in attaining your real estate goals!
A lot of people I talk to are asking if it is the right time to buy or sell their home. I have conversations like this daily and would be happy to share market insights and some tips for your specific situation.
If you would like to get signed up for a free valuation and report of your home sent to you monthly, please sign up below!
Market Update August 2022
There has been a slight let-up in the supply of new listings, but they are still arriving much faster than demand can cope with. This means an ever increasing number of active listings - the total without a contract having grown another 25% in the last month. This is for the market as a whole, but the high-end is not seeing the same increase.
Prices are reacting much more quickly to the poor market conditions than we expected. In 2005 and 2006, it took a long time for prices to change direction. In 2022, the change happened almost overnight. This is probably because people are primed to believe price drops are likely whereas in 2005 most people still believed that home prices never go down. Whatever the reason, sellers in 2022 have been willing to make quick and frequent cuts in their asking prices and accept offers well below those. The average percentage of list achieved has dropped from 99.81% on July 1 to 98.74% on August 1 and the trend is strongly downward.
Further falls in price are likely until a recovery in demand takes place. Pressures to sell at lower prices are coming from the sellers themselves. Low demand means they are competing with other sellers and a lower price is an obvious tool for them.
The listing success rate has dropped from over 91% on May 1 to under 73% on August 1. This is a crucial statistic and it is in free fall. The long term average stands at 67.5% and it looks as though we will drop below this percentage during August. If more than 1 out of 3 listings fail to sell, it creates an atmosphere of worry that is hard to escape. We are nowhere near the 20.4% that we experienced in January 2008, but the listing success rate is a reliable and crucial indicator that is flashing red. We need this to stabilize and start increasing if we are to be optimistic in our outlook.?
All in all, there are few reasons to expect an improvement in market conditions just around the corner. A large drop in interest rates would almost certainly help, but this is not something that is widely expected at the moment.
Market insights provided by the Cromford report.
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