Three Reasons Now Is a Great Time to List Your Home for Sale

Housing market conditions are challenging for buyers in many parts of the country; sellers, meanwhile, are finding the market favorable. Inventory levels are low and sales prices are high. In some markets, multiple offers have become prevalent. And in a blow to first-time buyers everywhere, fewer affordable homes are coming onto the market. Despite all this, existing-home sales climbed in the month of May; every region except the Midwest posted month-over-month and year-over-year sales increases.

1. Low Inventory

According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), “Current demand levels indicate sales should be stronger, but it’s clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions.” In May, 1.96 million existing homes were available for sale, an inventory increase of 2.1 percent from a month earlier. However, for the past 24 months, inventory has fallen year over year, and May was no exception: inventory was 8.4 percent lower than last year. At the current sales pace, the current housing stock could last only 4.2 months, down from 4.7 months a year ago.

2. Selling Quickly

Due to the inventory shortages, homes are not sitting on the market for long. In May, the time it took for a home to go from listed to sold was on average 27 days. This is the shortest time frame recorded since NAR began tracking the number of days on the market in May 2011. Of all the homes sold in May, 55 percent were on the market for less than 30 days, another all-time-high record.

3. Prices Up

With high demand and low inventory, home prices climbed to a record-breaking high. In May, the median existing-home price reached $252,800, a 5.8 percent increase from a year ago. This is the highest recorded median sales price, overtaking June 2016’s peak of $247,600. What’s more, this is the 63rd month in a row of year-over-year sales gains. According to Yun, “Home prices keep chugging along at a pace that is not sustainable in the long run.” Unless the market sees an increase in the number of listings in the affordable price range, housing affordability may be affected. 
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If you are interested in selling your home in Arizona, contact Silver Alliance Realty!

Mary Platt • Designated Broker

(602) 618-6764 • Mary@PlattTeamAZ.com

www.SilverAllianceRealtyAZ.com

www.SilverAllianceAZHomeSearch.com

Planning for Solar? Follow These Steps

Residential solar panel installations are on the rise in the United States—according to the US Department of Energy, more than one million American homes have had solar panels installed as of May 2016. However, utilizing solar energy for your home only makes financial sense if the panels can generate electricity for less than what you are paying your utility company. That means that while living in a sunny location is key, your state’s utility costs are also a factor. Before you schedule a solar installation assessment, answer these basic questions to help you determine if solar is a good fit for your home:

• Does your roof have unobstructed, clear access to sunlight for most of every day?
• Is there ample roof space or an area large enough to mount the system? 

• Is the investment worth it?
• Can you meet requirements for local permits?

Selecting the Right System

Evaluate your energy consumption patterns before selecting your solar system components, so you can choose the appropriate photovocaic (PV) system size for your home, and help reduce your overall electrical use. Begin by performing a load analysis, which should include:

• Recognizing your current consumption trends
• Examining your utility bills for the past year
• Calculating your energy consumption

A Grid-Connected or Stand-Alone System?

A grid-connected PV system uses power from your utility’s grid when it does not produce enough energy. When your system produces excess electricity, your utility provider is required to buy it. With net metering, your provider pays retail price for excess power that you send back through the grid.

Choose a stand-alone PV system if:
• You live in a remote location and it would be more cost-effective.
• You are planning to install a hybrid electric system that also uses a small wind electric system.
• You have minimal power needs.

Before purchasing a system, research city or county permit requirements. These will include an electrical permit, building permit, or both. Most PV providers will roll the permit prices into the complete system price.

For more information about solar installation in your community, contact the North American Board of Certified Energy Practitioners to locate a certified solar installation professional. 
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www.SilverAllianceRealtyAZ.com

www.SilverAllianceAZHomeSearch.com

Mary Platt 
Designated Broker
(602) 618-6764
Mary@PlattTeamAZ.com

What's Up With Mortgage Rates?

Mortgage rates nationwide are starting to rise after several years of record-low rates. What does this mean for home buyers and sellers? Here are a few points to consider:

The Real Estate Market Remains Strong

Real estate remains an excellent investment, and real estate markets across the country are consistently strong. In many local markets there is high demand but low inventory, and buyers are quickly snapping up homes despite rising rates. While buyers may have plenty of competition, it also means they can feel confident in their real estate investment, especially when buying in a part of the country where housing is in demand.

Mortgage Rates Are Still Affordable, Historically Speaking

While current rates are higher than they were at this time last year, they’re still considered quite affordable from a historical perspective. Rates are expected to remain under 5 percent for the foreseeable future, as they have been for the past ten years. Compare today’s average mortgage rates to the average rate of 5.67 percent in 1996, or the whopping 10.13 percent average in 1990, and you can easily see that current and projected rates are still quite affordable by most objective standards.

Rates Are Expected to Rise in 2017

Most experts expect that rates will either rise slightly in 2017 or fluctuate slightly over the course of the year. Many experts think mortgage rate averages in 2017 will hit the 4.5 percent mark, with some predicting average rates inching up closer to 5 percent. If you plan to buy a home later in the year, you may want to keep these ballpark estimates in mind when figuring out your home budget. And remember these are just guesstimates; nothing is set in stone.

Buyers Can Still Get Great Rates

Although mortgage rates are rising, it’s still possible for individual buyers to negotiate and find lower rates. This sometimes involves “buying down” your mortgage, which means paying additional money upfront to take points off your mortgage rate. The general idea is to pay more money now to save money on your mortgage over time. This can make a lot of sense if you have extra cash on hand and plan to hold on to your home for a long time. Keep in mind that if mortgage rates go down in the future, you can always refinance your loan to get a lower rate and reduce your payments or get more favorable loan terms. 
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Strong Home Sales in 2016, but a Lack of Inventory in 2017

Despite affordability issues and low inventory, 2016 had the best existing-home sales in a decade. At 5.45 million sales, existing-home sales haven't set a pace this fast since 2006, when sales reached 6.48 million; in comparison, sales in 2015 topped out at 5.25 million. According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), "Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market."

In Demand, but Low Supply
Sales in the last month of the year were soft. Existing-home sales fell in December to 5.49 million, dropping 2.8 percent, but sales were still 0.7 percent higher than a year earlier. Low inventory combined with high mortgage rates and home prices took their toll on December's sales. Inventory in the last month of the year fell by 10.8 percent to 1.65 million existing-homes available for sale; at the current sales pace, this is enough inventory to last only 3.6 months. A year ago, supply levels would have lasted 3.9 months. This is the 19th month inventory has fallen year over year. What's more, this is the lowest inventory level recorded since NAR began tracking the housing supply in 1999. Unfortunately, housing construction is still stuck at recessionary levels. Unless more is done to address regulatory issues, new home construction will not be able to address the demand that will arise from current population and economic growth trends. As a result, housing affordability for both buyers and renters will continue to be a concern.

What You Don't Know Can Cost You
Many home buyers are in the dark when it comes to down payments. NAR's Profile of Home Buyers and Sellers recently asked non-owners how much of a down payment was needed to purchase a home. A surprising 87 percent believed more than 10 percent of the purchase price was needed; in reality, down payments for first-time buyers have come in at 6 percent for the past three years. Repeat buyers typically have a down payment of 14 percent. This disconnect between the actual down payment required and the amount buyers think they need may lead to a lack of confidence among first-time buyers. "There are mortgage options available for creditworthy borrowers with manageable levels of debt and smaller down payments," according to William E. Brown, president of NAR. This is good news for the 87 percent of non-homeowners who would one day like to buy their own home. While low inventory and high home prices have made home buying a challenging goal, it's not as far out of reach as first-time buyers believe.

Regional Breakdown

Northeast - Existing-home sales annual rate of 760,000; a decrease of 6.2 percent from November but an increase of 2.7 percent from December 2015.

Midwest - Existing-home sales annual rate of 1.28 million; a decrease of 3.8 percent from November but an increase of 2.4 percent from December 2015.

South - Existing-home sales annual rate of 2.25 million; while unchanged from November, it is an increase of 0.4 percent from December 2015.

West - Existing-home sales annual rate of 1.2 million; a decrease of 4.8 percent from November but an increase of 1.6 percent from December 2015.

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When you are ready to buy or sell real estate in Arizona give Silver Alliance Realty a call - We make buying and selling your home simple.

Mary Platt • (602) 6186764 • Mary@PlattTeamAZ.com

www.SilverAllianceRealtyAZ.com

www.SilverAllianceAZHomeSearch.com

www.Facebook.com/Platt.Team.AZ