February 2014 Real Estate Market Update Phoenix AZ
FHA Lowers Loan Limits…
There are THREE MAIN ways to buy a home when it comes to financing:
- CONVENTIONAL LOANS require 5% to 20% for a down payment
- VA LOANS do not require any down payment for eligible Veterans
- FHA Loans only require a 3.5% down payment are represent a majority of home buyers today.
Home Selling Tips For 1st Quarter of 2014
If you plan to sell your home in 2014, be aware that buyers have changed since the economic downturn. They’re savvier than ever, and they’re not desperate. With rising inventory levels, buyers now have more homes to choose from.Take Your Photo Shoot Seriously! Today, many buyers get their first impression of your home online. Too often, listings go online with photos of a dark room, lights off or blinds closed.Have Your Home Inspected Before Listing Nothing is worse than getting an offer, only to have potential buyers discover that your HVAC system is on the fritz or that there is dry rot wood meaning your home will not pass a termite inspection. When that happens, you’re forced to reduce the price or give credits, or have costly repairs done. Even worse, you may scare off the buyer and be forced to go back on the market.Pay Attention To Buyers The most important thing to remember is that to be a smart seller, you need to put yourself in the buyer’s shoes. Remember that today’s buyers lived through one of the biggest housing and credit crises in generations. They’re motivated but cautious, and they have a wealth of information available to them online. Don’t take anything for granted. Let your real estate professional negotiate a win-win situation that is in your favor.
The number of homes for sale has RISEN by over 30% in the past 6 months.
As of January 2014 we had just over 27,000 homes for sale in the MLS representing 5.65 months of inventory. What this means is that we are in a BALANCED MARKET. We have about the same number of Sellers as Buyers and if another home did not come on the market it would take 5.65 months to clear out the inventory. Just 6 months ago in August we had 2.94 months supply of homes and Sellers were in control. If the inventory levels rise to 7 months or above, it will become a Buyers market again and home prices could level out or even drop slightly in th next 6 months.
To discuss your real estate needs (buying or selling) call Donald Keys REALTOR since 1997 at (602) 750-1744 today.