November 2022 Newsletter
November 2022
“The month of November makes me feel that life is passing more quickly. In an effort to slow it down, I try to fill the hours more meaningfully.”
— Henry Rollins
Buyer Highlight
Congratulations to our first time homebuyers who closed on an amazing home is Queen Creek for under asking!
They had a closing celebration party at their new home with great BBQ and cakes!
Thank you for allowing us to be part of your journey in the home purchase and wish you many more great memories in your home.
Our Sellers Under Contract!
Fall season and the holidays are among us and we have had some big moves our clients made in October!
Congrats to our seller that got multiple offers on their home!! They got a short close, cash offer! They got these offers within a month of being listed on market.
Congrats to our seller that is under contract on their listing in just over a month on the market!
Congrats to our seller that got a full price offer on their house within 14 days of being on market!
We greatly appreciate you working with us and your trust in us to help you navigate these changing real estate market!
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!
领英推荐
Active Listing!
Gilbert, AZ : 3 Bedroom, 2.5 Bathroom, 2367 Square Feet, 10 Foot Ceilings, Open Concept, One Story, Price Adjusted to $670,000!
Market Update November 2022
Demand has been weak for several months but it got much weaker during October, driven down by the weight of continued large increases in mortgage interest rates. The count of listings under contract has been almost cut in half compared with this time last year, while closed sales are down more than 38%. The market is desperately short of buyers.
Things could be a lot worse however, because the high interest rates are almost as discouraging for sellers. Despite the abysmally low rate at which new contracts are being signed, active listing counts rose only 2.5% over the last month, due to the shortage of new sellers.
So with few new sellers and even fewer buyers we have an unusually inactive market with very low transaction counts. The downward pressure on prices is currently small and the monthly average price per square foot barely moved between October 1 and November 1. However there is no reason for prices to rise in the near term. The 5.6% annual home price per sq. ft. appreciation rate is likely to get down to zero sometime around year end, on its current trajectory.
Although seller optimism is a thing of the past, there are relatively few sellers with an urgent need to sell. Realistic pricing and patience is the order of the day. The iBuyers Opendoor and OfferPad still have large inventories of unsold and unoccupied homes, so this represents the distressed segment of the market. Foreclosures remain very scarce so anyone looking for unusually cheap bargains is most likely to find them among the iBuyer listings.
With the Federal Reserve still raising the Federal Funds Rate, the outlook for mortgage rates is biased to the upside. This means November is likely to be similar to October, only more so: extremely weak demand, unusually low number of new listings, poor negotiation power for most sellers, very low contract signings.
Conditions are very good for buyers who can still afford a home. They have little competition from other buyers and sellers will treat them with about 1,000 times more respect than they would have in 2021. Our problem is that "buyers who can still afford a home" are becoming an endangered species. Even existing homeowners are often unable to afford to move because this would mean giving up their current cheap mortgage and taking out a new very expensive one.
Market insights provided by the Cromford Report.
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