Because homeownership is credited with helping build wealth over time,  it’s concerning to read this article and learn how difficult some of our younger citizens are finding it is to save a down payment and make their first home purchase.   If this article applies to you, I will remind that FHA programs only require 3.5 percent in down payment, and there are other programs for 3 percent down.   Call or email for a referral to a helpful mortgage loan officer.

Millennial mortgage problem: Down payments and expensive cities

Tempe’s popular House of Tricks restaurant, with casual out door patio seating galore, turns 30.  Phoenix magazine profiles and provides some fun history in Tricky Business.

Quadrant, a luxury home builder in Seattle, builds in smart features and believes this increases value to consumers.  We will have to watch if this becomes standard over the next few years in new and renovated homes and what that does for values.

Market conditions vary between areas and price ranges, with the overall advantage weighted to sellers.   This situation is more extreme in the lower price ranges.   Entry level buyers, typically budgeting for something priced sub-$200k or $250k continue to experience an extreme lack of options and in many instances, multiple offer situations.   Compounding this scenario is that new home options are not resolving this dilemma- land, material, and labor expenses lead builders to offer homes at higher price points that entry level buyers can typically afford.

This is reflected in the September 2nd News and Commentary from The Cromford Report:

• Supply remains lower than last year, but the gap closed slightly compared with last month in terms of active listings with no contract. We are starting to see more new listings than last year. The third quarter is up 2.5% from last year and up 5.5% from 2015. So far the extra supply is not having much effect, but if it continues for several months finding a property could start to get a little easier for buyers.
• The monthly sales rate is up only 1.8% compared with a year ago.
• Growth in the annual sales rate has almost stopped with 95,000 proving to be a difficult line of resistance. All these point to a gradual fading of demand. The serious shortage of supply obscures that fade.
• We experienced a seasonal price drop between June and July, but prices have already bounced back during August and are likely to remain on an upward track for the rest of 2017 at least.
• We still have a seller’s market in most locations and price ranges, but the current trends means the seller’s advantage has very little momentum. Before buyer s get too excited, the trends are very mild in nature. As such we do not currently see major increases in buyer’s bargaining power coming anytime soon.

Markets fluctuate  and we could experience significant changes over the next few weeks and months.  If you would like an up to date look at  sales data applicable to your home, please email.  If you are thinking of purchasing – please call or email!