What's Going on in the Greater Mohave County Real Estate Market?

Many of you may be wondering how our current market is doing. Today, I’ll be bringing you the latest updates.

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Our market has been going through some interesting changes, so today I’d like to share a few important updates.

Right now, our inventory is probably as low as I have ever seen it, with just 175 single-family homes currently on the market. This is at least two-thirds lower than normal levels of inventory.

Builders have been taking advantage of this low inventory.

Moving on, it’s also important to note that our market is currently going through a shift. If you have been shopping around for homes recently, you’ve probably noticed a rise in interest rates. While rates are still at historic lows, they have risen to around 4.6% or 4.8%, making it more difficult for some buyers to afford homes.

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Right now is a great time to sell.

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The good news is that home values have risen by as much as 50% in some cases since 2010 and 2011, when prices were plummeting due to a surplus of inventory.

As a result, it’s currently an extremely good time to sell. Rising values and a lack of inventory mean sellers have a better chance of earning top dollar for their listing.

If you have any other questions, would like more information, or would like my team and me to help you determine your home’s true value, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What Does the Fed’s Recent Rate Hike Mean for the Real Estate Market?

The Fed’s recent rate hike shouldn’t have any significant impact on our market. In fact, it might actually stimulate it.

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On June 14th, the Federal Reserve increased its federal funds interest rate by 0.25%. They’re also widely expected to raise rates once or twice more over the course of 2017. What does this mean for the real estate market?

While any action by the Fed always garners a lot of attention, I believe these increases will not have any significant impact on our market.

First of all, mortgage rates have actually trended lower in the wake of the Fed’s recent announcement. The 30-year mortgage rate recently hit 3.9%, the lowest level in 2017. In fact, it’s a common pattern for the mortgage rate and the Fed rate to move in opposite directions, and the same thing has happened the last two times the Fed raised rates. 

Second, the economy continues to do well. The Fed decided to increase its rate because unemployment and inflation are low, household spending is picking up, and we’ve seen steady growth for the past nine years. This is good news for the real estate market. As expected, we continue to see strong demand and a corresponding increase in home prices. 

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These increases will not have any significant impact on our market.

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Third, while the Fed’s rate increase is normally meant to cool off the economy, it might actually stimulate it in this case. Because interest rates were so low for such a long period of time, experts believe the recent increases might ease pressure on the financial system and encourage lending. 

Case in point: since the Fed started raising its rate in December 2016, total mortgages are up 2.5% year over year. 

In conclusion, while any move by the Fed is likely to lead to a lot of hand-wringing, I believe the real estate market will not be affected and will continue on its own healthy course. Nonetheless, it’s clear that right now is a uniquely good moment for everyone in the real estate market. Today’s low mortgage rates are good for homebuyers because they make homes more affordable.

If you have any questions about our market or you’re thinking of buying or selling a home, give me a call at 928-753-5003 or send me an email at thelanderteam.com I’d love to help.

What Does a Balanced Market Mean for Buyers and Sellers in Our Area?

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What's going on in the greater Mohave County area marketplace? This is a question we get often and one we'll try to answer here today.

Many people want to know who our local market favors (buyers or sellers). To determine that, it's crucial to take a look at inventory. The market favors buyers when there is a lot of inventory for them to choose from. When inventory is scarce, the market favors sellers. Right now, inventory is right in the middle, leaving our market balanced and giving neither buyers nor sellers a distinct advantage.

There are currently 320 homes on the market, which is very stable. At the peak of the market we were around 700-800 and at the market's low we had about 250. Now that sellers are pushing up prices a bit, inventory is beginning to rise.

Right now, interest rates are still near historic lows. This is great news because in many areas of our market, you can buy a home for cheaper than what it would cost to rent. A lot of people are unaware of how great our current market is and of the many opportunities available to them.

As a whole, the Mohave County market is in excellent shape. If you would like to take advantage of current conditions, please don't hesitate to contact us. We're here to help you!