Mark Sloat, Real Estate Advisor and CFP®
Update for Buyers and Sellers on the Current Housing Market
Highlights from the interview:
Recent housing inventory in the Phoenix area has been about 2 months of home inventory and nationally there may be closer to 3 months of home inventory. During more normal times we would see 4-6 months of inventory available in the housing market.
Currently, the seller’s market continues as reflected in the fewer number of days homes are on the market and as multiple offers have become more common. With that environment, sellers may be encouraged not to sell too soon to help assure they are not leaving dollars on the table.
Given the uncertainty around some employment situations due to the pandemic, buyers should be thinking long term about their ability to swing a mortgage payment before making an offer. Virtual tours, video conferences, and other increased marketing efforts can help buyers get quite a bit of information even without going into a property first.
ibuyers like Offer Pad, Open Door, 72Hours, etc. continue to have a small presence (around 5%) in the housing market and typically offer up to 20% less on the purchase price for the trade off of convenience and control of closing, no showing, and moving out dates.
Those currently owning a home have likely heard about the forbearance programs to help homeowners having difficulty paying their present mortgage. Typically those allow 3-5 months of no payment but then the details around where that unpaid amount gets added back (at the end of the mortgage, as a balloon payment, etc) as well as the potential impacts on a credit score need to be well understood before signing up for a forbearance program.
Depending on the area of Phoenix, homes selling in the $150,000-$250,000 range are still in high demand and are often sold quickly. In other areas, like Gilbert for example, the $300,000-$400,000 range is also in high demand.