The proposed House and Senate tax reform bills have serious implications for our economy, and will affect current and future home owners. Both bills mandate that in order to access the capital gains profit from selling a home, owners must have lived there for at least five years. The National Association of Realtors® estimates that 54 percent of trade-up buyers use capital gains equity as a down payment for their new home, and 10-22 percent of owner occupied home sellers only lived at their residence for 2-5 years. Put into a broader perspective, more home owners will opt to hold out on trading up their homes, reducing real estate sales and lowering the gross national product that comes from new construction, remodeling, fees, and other associated factors. In the long run, home owners of all demographics will be hurt, including making it harder for millennials who are saving to purchase their first home. To read more, click here.
Yesterday the Northern Arizona Association of Realtors® had the pleasure of hosting the National Association of Realtors® chief economist, Lawrence Yun, to Flagstaff. Dr. Yun gave us an overview of what the Tax Reform could do to real estate sales. The way the current tax bill reads there are many things that could hurt your real estate investment. Homeowners may not be able to write off the interest and property taxes on their homes. There is also a chance that Capital Gains tax will have to be paid unless a seller has lived in the home 5 years or longer. Currently it is 2 years. We will all have to wait and see how this all pans out.
Dr. Yun gave us a very positive outlook for the next few years when it comes to real estate on the national and local levels. We have heard many people and clients say that they fear we are entering into another real estate bubble like we did in the early 2000’s. Dr. Yun gave a lot of great examples about how the market is so much different now than it was then. He believes that we are not in a bubble. A couple reasons why he feels this way is because the lending agencies have been more strict in giving loans, and, therefore, lending to more qualified buyers who are less likely to default. He also stated that our rate of price increase is very healthy economically compared to before. In the early 2000’s prices increased way too rapidly.
It was a wonderful presentation and a lot of positive perspective. You can see his slides by clicking here.
We, of course, are always happy to discuss what is happening in real estate here in Flagstaff and on the national level. Give us a call and we can grab coffee!
The market for single family homes in October remained strong with 97 sales for the month. Compare this to the 82 sales in October of 2016 and it is even more impressive. It is also important to note there are now 140 single family homes currently under contract and in escrow. Inventory remains low with less than 75 homes for sale under $400,000.
While interest rates remain historically low, many believe this will be changing in the months to come. There is also a growing concern with how the proposed new tax legislation, if passed, will affect home ownership. The National Association of REALTORS® is strongly opposed to The Tax Cut and Jobs Act and has issued a call to action for all its members to reach out to their Senators asking them to reform the plan. It is anticipated that the housing market will react negatively should the changes pass into law.
The average sales price for single family homes for August was $468,040 and the median price was $399,500. The average price per square foot was $209.65.
Due to lack of inventory there were only 3 condo sales for the month. Townhomes faired a little better with 29 townhome sales in the Flagstaff area for October.
Single Family Flagstaff Home Sales – October 2017
NOTE: ACR = ACTIVE CONTINGENCY REMOVAL, PBK = PENDING TAKING BACKUP. THE DATA REPORTED HERE ARE BASED ON HOME SALES IN THE FLAGSTAFF METRO AREA (THE CITY OF FLAGSTAFF AND IMMEDIATELY SURROUNDING COUNTY AREAS) AS REPORTED IN THE MULTIPLE-LISTING-SERVICE MAINTAINED BY THE NORTHERN ARIZONA ASSOCIATION OF REALTORS.® THE DATA MAY NOT REFLECT ALL SALES (BUT IT SURELY REFLECTS MOST OF THEM).
Nationally, the continued lack of inventory has caused a continued rise in home prices. The national median home price for existing single-family homes was $255,600 nationally in the second quarter of this year. This is up 6.2% from the second quarter of last year. This number surpasses the previous peak which was in the third quarter of last year. Nationally, the inventory levels are still low compare to this time last year.
Buyers are having a hard time affording the increase in home values even though mortgage rates have come down in the last couple months. The national family median income is still not enough to afford a home at the current median prices. Affordable housing has become a current theme in most of the country. Click here for the entire article from the National Association of Realtors®.
Locally Flagstaff isn’t following all of the trends the rest of the country is. As you saw in our previous newsletter the median price was down about 1.5%. The small reduction in price only shows that our market has self-corrected a bit. We are still seeing a lack of inventory in certain price ranges and home affordability is a constant problem. If you missed the newsletter you can click here to see all of our local second quarter numbers.
The Elite Team at Re/Max Peak Properties always tries to stay on top of national and local trends. Please never hesitate to contact us with questions about our market. We can be reached at (928) 714-0001 or firstname.lastname@example.org.
This week Fannie Mae, the country’s largest source of mortgage funds, announced that it would ease its debt-to-income ratios come July 29th of this year. It will raise the debt to income ceiling from 45 percent to 50 percent. Fannie Mae also made changes earlier this year to make it easier for buyers with significant student debt to purchase their first time homes.
This comes at a time when a lot of buyers are still afraid of the market. Having lived during our last recession many people are still nervous about another bubble. While none of us know what is going to happen, we can say that lenders are still qualifying buyers much more strictly than they did in the early 2000’s. Prices have gone up drastically but that is also because of the Nation’s low inventory levels.
The National Association of Realtors® has released the National sales data for January. January’s sales pace is 3.8 percent higher than a year ago and becomes the strongest growth in a decade. NAR chief economist, Lawrence Yun, still believes that the increase is due to buyer fear of interest rates going up. Please clink on the link to see the press conference held by Yun.
We are back to being a broken record, but inventory is low. Especially in homes under the $350,000 mark. If you are considering selling now may be the time. Please call us at (928) 714-0001 or click here to request a Market Analysis and Marketing Plan.
Each quarter we put together a newsletter for our previous, present and future clients. We focus on our Flagstaff community and our local Real Estate market. This quarter we really put our focus in the 2017 year in real estate and more specifically the interest rate forecast and projections. This topic has been on many of our minds with a new year upon us. As always we included our quarterly statistics for Flagstaff and a featured listing. We have also included some of our goals for 2017, we would love your help in achieving them!
Existing homes sales closed out 2016 as the best year in a decade. Existing homes include, single family, townhomes, condos, and co-ops. Lawrence Yun, NAR chief economist, says the housing market’s best year since the Great Recession ended on a healthy but somewhat softer note “Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” he said. “However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December.” 32 percent of these sales came from first-time home buyers. Click here to read the entire article.
If you are interested in buying or selling, contact us at email@example.com or call us @ 928-714-0001.
With home prices in Flagstaff continuing to be very competitive, FHA loans are a popular loan option. With the mortgage insurance premium dropping from .85% to .60% this is a fantastic time to take advantage! For more info click here and read the article on the Northern AZ Association of Realtors site.
If you are interested in buying or selling a home call us @928-714-0001 or email us at firstname.lastname@example.org.
Below is a very good video from Lawrence Yun, Chief Economist with the National Association of REALTORS®. He is giving his market predictions for the housing market for the Country. He believes we are looking at a 1-3% increase in the market. Interest rates have risen to just over 4% on average, up about 3.5% just a couple months ago. While still historically affordable, it does limit buyer’s purchase power. Lack of inventory and lower new home construction continues to push the prices of home sales. Look for our year-end sales report for the Flagstaff housing market in our next newsletter coming your way at the end of January.
Although sales across the nation remain strong this is the lowest inventory we’ve seen. Click here for the REMAX national housing report. We here in Flagstaff have seen a steady increase and it doesn’t appear to be slowing. If you have been thinking of selling now is the time!
If you are interested in selling your home and/or buying a new one contact us @ 928-714-0001 or email us at email@example.com.
With a 3.2% hike from last september, we saw some strong existing home sales. This includes Single Family, Townhomes, Condos and Co-Ops. These numbers are large in part due to the influx of first time home buyers and secondly buyers moving up. Homes listed remain extremely tight with buyers getting into bidding wars, if you are contemplating selling your home- Now is the time to do it! Click here for the most recent stats.
If you or someone you know is interested in buying or selling, give us a call @928-714-0001 or email us at firstname.lastname@example.org.
2017 is forecasted to be a hot year! National Association of REALTORS® as well as Freddie Mac and Fannie Mae are predicting some big climbs in homes sales. As Flagstaff continues to grow in population it drives our home prices up too- Whether investing, buying your first, second or third home or selling, now is the time to do so! Check out the article here to learn more about the housing market predictions for the upcoming year and how it may affect you and your home buying or selling experience.
If you have any questions or are interested in buying or selling your home, give us a call @928-714-0001 or email us at email@example.com
A couple of weeks ago the U.S. Senate passed the Housing Opportunity Through Modernization Act. This legislation includes reforms to current Federal Housing Administration restrictions on condominium financing. This will make it easier for first time home buyers, or anyone relying on FHA financing to purchase condos. This comes at a time where a lot of housing is unaffordable to most people. Condominiums will be a good option for people looking in the lower price range.
Not all condos will qualify, but the bill makes it easier for most. Previously FHA required a 50% or more owner-occupancy status of a development in order for it to qualify for FHA financing. They have lowered that number to 35%. To learn more about the bill and what the National Association of REALTORS® click here.
If you are wondering if you qualify and for how much check out our list of Preferred Lenders. As always contact us with any questions at (928) 714-0001.