The 4th Quarter is historically the best time to be a buyer, and 2022 is no exception. YES, EVEN WITH THE LATEST INTEREST RATE HIKES! Date the Rate, Marry the House. Rates WILL come down. Talk to me about some of the ways you can negotiate rate buy-downs. There is more inventory and less competition right now. And we still have a serious housing shortage here. When interest rates drop, as they must, we expect a quick bounce back into a strong Seller's Market. Check out my 2-minute November update here. Missed it? Check out the most current market update here.
Sellers today do have a choice and those without an immediate need to sell have chosen to wait. This is reflected in some of the lowest counts of new listings coming on the market this time of year
. The key words for sellers in this market are condition (buyers are demanding full updates), price, concessions (such as rate buy-downs) and patience.
Regarding the effect of interest rates on the overall market, when mortgage rates hit 7% last week, 24% of all MLS listings in the greater Phoenix area had price reductions (over 4,400 listings).
Transfer of Wealth to a Younger Demographic
A new factor is coming into play, as over half of all homebuyers in 2022 were Generation X or millennials. Interestingly, a survey by Bank of America found that these young and wealthy consumers prefer assets like cryptocurrency, real estate, and private equity over investing in the stock market. "Individuals ages 21 to 42 with at least $3 million in assets have only a quarter of their portfolio in equities, compared with more than half for those who are older," according to the study. This is significant, as Baby Boomers are expected to transfer over $84 trillion of their wealth to Generation X and millennials between now and 2045, according to market research by Cerulli Associates. It is also contributing to our housing inventory shortage.
Gas Cooktops Toxicity being Replaced by Induction
As far back as 1930, the gas cooktop was glamorized to be sleek, sexy, and sophisticated. A new generation of homebuyers, focusing on more time at home raising young families are switching to induction as a healthier and safer option. Gas generates carbon monoxide, formaldehyde (a carcinogen), nitrogen dioxide (NO2, a respiratory irritant and asthmagen), and other nitrogen oxides into our homes, and our lungs. It also requires constant supervision (during which time toxins are the strongest). Induction is quicker, easier to clean, with the ability to set a precise temperature and no open flame risks for children, tenants, or the elderly. Full Article.
One thing remains constant and is even more true than ever: Your Home Equity is a significant asset in your portfolio and you deserve expert guidance. Is Now a Good Time to Buy or Sell a Home? Call Denise 602-980-0737, celebrating a nearly 40 year career in Metro-Phoenix Real Estate.
