JULY 2022 NEWSLETTER
Hello July
"For to be free is not merely to cast off one's chains, but to live in a way that respects and enhances the freedom of others." - Nelson Mandela
Seller & Buyer Highlight
July 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 first home buyer that didn’t give up and eventually purchased and closed on a home that he was excited about in Surprise!
Congratulations to our home first time investors who sold at a $130k gross profit in Phoenix! They are currently about to list their second one as well!
Congratulations to our out of state new construction home buyers! In two days we completed our tours and finalized on a great property in Surprise! These buyers received $30,000 in options upgrades and we negotiated 4% towards their closing cost and an additional $2,500 on top of the 4%!
Congratulations to our home buyer who is under contract on a home for $15,000 under asking price in Central Phoenix!
Congratulations to our out of state home buyer who after diligently looking for over a year is now under contract on their home!
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As we know these are changing times in the real estate market and the market as a whole. Having a trusted advisor and guide is crucial to have during these rapidly changing conditions. Thank you so much for trusting our team to serve you with your real estate goals!
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Market Update July 2022
The rise in supply has been faster than ever seen before. We recorded active listings up 53% in a single month and up 153% compared to this time last year. It is not the absolute numbers of listings that are records, but the percentage changes are far above anything we have previously experienced.
The change in demand was equally stunning. Listings under contract dropped 16% from last month and are down 24% compared with a year ago. Monthly sales are down 21% from June 2021 and down 8% compared with May 2022. These are normally fairly stable numbers that take their time to rise or fall.
June 25 saw the highest ever weekly total of new listings being added to ARMLS (3,169). A week later things have calmed down a bit, but this may just be because of Independence Day. The week before Independence Day tends to be relatively quiet every year. We will have to wait until the week after to know if the flood of new listings has really peaked. We presume that the supply of wealthy sellers will eventually die down, which would herald a return to something that more resembles normality.
As for demand, the weakening trend seems to have longer to run. Mortgage rates could go higher still and stay high for a long time, at least until the Federal Reserve has a change of heart. iBuyers have continued to buy homes, but how long can they afford to let their inventory grow when their sales are declining sharply? iBuyers create 2 transactions when they act as an intermediary, so their presence in the market makes transaction volumes artificially high. If they slow or stop their purchases, demand measurements will take another step down.
Market incites provided by the Cromford report.
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