Adorable home in a great Chandler location! This home is ideally located just north of the 202 and close to both Chandler Fashion Square and DT Chandler for all of your shopping, dining experiences, and easy commuting. This home features a light and bright den upon entry with large bay window. The great room style living area features beautiful stone flooring and a cozy fireplace perfect for relaxing evenings. Efficient galley style kitchen features a breakfast bar and eat-in area that overlooks the sparkling pool. Split floorplan gives the master added privacy plus both the master bath and secondary bath feature granite counters. Enjoy the lush back yard sitting under the covered patio or splashing around in your private play pool.
In the Phoenix market, our housing inventory fluctuates based on supply and demand. It will also fluctuate differently based on each different city within the Phoenix Metro Area (i.e., Chandler has a different inventory than Scottsdale, Gilbert from Tempe, and so on) and by price range within that as well.
The National Association of REALTORS® considers a “balanced” market to be around a six-month inventory of homes. If there is a larger supply, it is considered to be a buyer’s market, and if the supply is lower, it is considered a seller’s market. Housing inventory is calculated as the number of homes currently on the market within the last month, divided by the number of homes that sold within the last month.
The inventory of existing homes in the overall Phoenix Metro area has been reduced to approximately 3.15 month supply of homes. There were about 21,770 active homes for sale as of February 28, 2018, which is an increase of about 0.5% from January, but a drop of over 12% for the same time last year.
Housing inventory has a direct impact on price. When the number of people who need homes is constant, but the supply is reduced, prices tend to go up. This is because the same number of people are trying to buy a dwindling number of homes.
For the entire Phoenix Metro area, the average home sale price has increased over 7.9% since last year. That does compare a small condo selling with multiple offers and a luxurious mansion selling for below list price after being on the market for a long time in the same year, so for a more accurate feel of what the market is doing it’s better to use the median home sale price instead of the average. The median home sale price jumped 9.8% over that same period of time. That’s nearly a 1:1 relationship of a decrease in housing inventory to an increase in the price of homes! For someone looking to purchase a $275,000 home, that equates to an increase of $26,950 in one year of appreciation alone. If that person put off looking for a home for a year, they would have to increase their budget to $300,000 in order to afford the same home.
While I don’t have a crystal ball, it’s important to be able to tell my clients which direction prices will be moving. When not only prices, but mortgage rates are increasing, all buyers can be dramatically affected by either not being able to afford, or having to pay more for the same size of home they were looking at a few months ago.
If you’re considering selling and would like more specific local statistics on what the market is doing for your home, or if you need assistance navigating through these ever-changing markets, give me a call at 480-355-8645 or email me at Info@LocateArizonaHomes.com today!
Some buyers I have talked to have expressed concern about how the new tax laws will affect home ownership. However, looking at the 2017 Tax Cut and Jobs Act passed by Congress and signed by the President; we see that it continues to treat real estate as a favored investment.
Tax laws are in place whether you are considering a home to either live in as your primary residence or to use as a rental property. There are other dynamics to be concerned about that are not, like rising mortgage rates and home prices.
Reasons to consider buying now…
Mortgage interest deductions remain intact for most taxpayers. Capital gain exclusion for principal residences up to $500K for married couples, $250k for singles also remains in place. Taxpayers can elect annually to take a newly increased standard deduction or itemize deductions depending on which will benefit them the most. Therefore you can see what fits your financial situation best.
Most studies in the Phoenix area show that a house payment, including taxes and insurance, will likely be cheaper than paying rent. Rental rates have continued to skyrocket, so in the future that difference will be even greater.
If you’re thinking about renting vs. purchasing, keep in mind that with a 30 year fixed rate mortgage (which most borrowers are eligible for) the interest rate will lock in your principal and interest payment for the term of the mortgage. That means that your monthly payment will not increase for the term of the mortgage versus renting with a lease that will potentially increase every year. It’s better to lock in a fixed payment sooner rather than later. I have seen our home prices go up following a decrease in housing inventory levels over the last four years. Coupled with interest rates continually rising over the last six weeks, this will drastically change how much home you can afford in the near future.
Under the new tax law, there were no changes towards rental properties. You can still take depreciation and write off expenses, or do a Section 1031 exchange to defer capital gains. I’ve used a 1031-exchange in the sale of one rental property to purchase two rental properties instead of just one. It’s still a great way to build wealth and increase passive income.
Let us know if you are considering buying or selling and if you have any questions on the new tax laws. We have tax consultants we would be happy to refer you to. Contact us today! 480-355-8645 or Info@LocateArizonaHomes.com
Beautiful home! Slate tile flooring throughout! Tiled bathrooms. Granite tops in both bathrooms with new fixtures! Formal dining room or den,big eat in kitchen with breakfast bar and room. Vaulted ceilings! Fireplace in large great room. Covered patio fenced! Sparkling play pool, beautiful back yard! Ac/heat installed march 2013 with 10 year warranty! Incredible floor plan!
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