Of course, our Queen Creek Real Estate market varies slightly from the July 2015 Housing Market Report for Phoenix AZ, but most of the data is still applicable for our local housing market. The Market Report for Queen Creek and the San Tan Valley Market Report provide a more detailed look at the numbers for our region. Thanks to my amazing colleague, Beth Cox, Lead Market Analyst for United Brokers Group, I am able to provide you with the following information regarding the Phoenix Arizona Housing Market Report. Home prices are rising and homes that are priced well and show well are in some cases generating multiple offers! This is exciting news for our local real estate market.
"Parachute pants, Goonies, and Pac Man. We can look back to the 1980's for some of the greatest music, fashion, movies, and culture in American history. But also for hints about what may happen to the real estate market if mortgage interest rates rise. In recorded history, interest rates haven't fluctuated as wildly as they did in the 1980's--ranging from 9% to a whopping 18% in order to curb inflation after the dollar became fiat currency in the 70's. High interest rates and lack of affordability did deter some buyers. But others didn't have a choice and simply made larger down payments to compensate, purchased with cash, or were motivated to pay off their loans as fast as possible. And somehow demand was high enough that prices during the decade followed a steady, typical, gentle upward trend. This is quite a contrast from the the bursting bubble we saw in 2005-2009. See the Freddie Mac Price Index history for Phoenix here.
So interest rates don't necessarily correlate to home prices, but they do affect monthly mortgage payments. The average sold price for a detached home in Metro Phoenix so far in 2015 has been $284,000 (source: ARMLS), with 30 year fixed interest rates right around 4%. Using these figures, the monthly principle and interest payment for a 30 year fixed loan is $1084. If rates creep up to 5%, the monthly payment for the same house would increase to $1270. And over the life of the loan that would correspond to an extra $48,590 in interest paid.
With the housing recovery now well established, the days of near-zero federal fund rates that have kept interest rates so low are likely coming to an end. It's a great time to act on a purchase or refinance."
Data Source: ARMLS.
- Beth Cox, Lead Market Analyst for United Brokers Group
For a detailed look at the Phoenix Arizona Housing Market Report July 2015, just click on the image:
For a detailed look at the Phoenix Arizona Housing Market Reports for the rest of the year in 2014 and 2015, just click on the link below.
As a full-time, experienced Realtor living and working in the areas of Queen Creek and San Tan Valley Arizona, I am always available to answer your real estate related questions. If you are interested in buying or selling a home in Queen Creek or San Tan Valley Arizona, or if you would simply like a FREE market analysis of your property, then please do not hesitate to contact Karen Berg at 602.919.2375.
Of course I’d love to help you any time you need to buy or sell, but I’m also here for you any time you have a question about the market. You can also feel free to call if you’re simply curious about the listed or sold price of a house down the street. I’m looking forward to hearing from you soon!