Every Hour in the US Housing Market:
- 596 Homes Sell
- 278 Homes Regain Positive Equity
- Median Home Values Go Up $1.20
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Prescott Ranch-Style Retreat located on 5 acres provides a setting in which to embrace a gentler pace of life. The home, nearly 2400 square feet with an open plan & renovated interior features T&G ceilings, tile flooring and extensive windows that drench the home with natural light. The kitchen which flows nicely into the family room offers new appliances, granite counters & wood burning stove. The living area and formal dining are perfect for larger gatherings. A master suite features access to a private patio area, snail glass shower & large walk-in closet. Additional bedrooms offer their own individual character plus a den. Garage/Barn/Workshop is perfect for the hobbyist with exterior access to a Loft Art Studio. This home was formerly off-grid with solar. Good well production with catch system. MLS #1015438 Located at 4701 Sunshine Trail, Prescott, AZ 86305
ANNUAL WEATHER SUMMARY
NOVEMBER 2018 TO OCTOBER 2019
According to Old Farmer’s Almanac, here’s the forecast for Prescott Arizona:
Winter will be colder than normal, with above-normal precipitation. The coldest periods will be in mid- and late December, early and late January, and mid-February. Snowfall will be below normal in the east and above normal in other places that receive snow, with the snowiest periods in late December, early January, and mid-February. April and May will be warmer and slightly drier than normal. Summer will be slightly hotter than normal in most of the region, with slightly below-normal rainfall. The hottest periods will occur in much of June, mid-July, and early to mid-August. September and October will be rainier than normal, with near- or below-normal temperatures.
When it comes to buying or selling a home there are many factors you should consider. Where you want to live, why you want to buy or sell, and who will help you along your journey are just some of those factors. When it comes to today’s real estate market, though, the top two factors to consider are what’s happening with interest rates & inventory.
Mortgage interest rates have been on the rise and are now over three-quarters of a percentage point higher than they were at the beginning of the year. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates climbed to 4.72% for a 30-year fixed rate mortgage last week.
The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a $400,000 home while keeping your principal and interest payments between $2,020-$2,050 a month.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be over 5% by this time next year.
A ‘normal’ real estate market requires there to be a 6-month supply of homes for sale in order for prices to increase only with inflation. According to the National Association of Realtors (NAR), listing inventory is currently at a 4.3-month supply (still well below the 6-months needed), which has put upward pressure on home prices. Home prices have increased year-over-year for the last 78 straight months.
The inventory of homes for sale in the real estate market had been on a steady decline and experienced year-over-year drops for 36 straight months (from July 2015 to May 2018), but we are starting to see a shift in inventory over the last three months.
The chart below shows the change in housing supply over the last 12 months compared to the previous 12 months. As you can see, in June, July, and August, inventory levels have started to increase as compared to the same time last year.
This is a trend to watch as we move further into the fall and winter months. If we continue to see an increase in homes for sale, we could start moving further away from a seller’s market and closer to a normal market.
If you are planning to enter the housing market, either as a buyer or a seller, let’s get together to discuss the changes in mortgage interest rates and inventory and what they could mean for you.
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Mortgage interest rates, as reported by Freddie Mac, have increased by close to a quarter of a percent over the last several weeks. Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors are all calling for mortgage rates to rise another quarter of a percent by next year.
In addition to the predictions from the four major reporting agencies mentioned above, the Federal Open Market Committee recently voted “unanimously to approve a 1/4 percentage point increase in the primary credit rate to 2.75 percent.” Historically, an increase in the primary credit rate has translated to an overall jump in mortgage interest rates as well.
This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 4%. However, we must realize that current rates are still at historic lows.
Here is a chart showing the average mortgage interest rate over the last several decades:
Though you may have missed the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.
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September 22nd | 5pm-10pm | 21 and Up Event
Fireworks @ 9PM
Mile High Middle School
Goodwin Street 1/2 Block West of the Courthouse Square!
Online Pre-Sale: $30 for 10 Sample Tickets
Week of Event: $40 for 10 Sample Tickets
VIP (Online Only Limited to 300 Tickets): $50
Includes 20 Sample Tickets, Early Entry from 4pm-5pm
120 Beers on Tap! Fireworks Show!
Hensley Select German Beer & Craft Beers
Craft Breweries | Wineries
Live Music | Food Vendors | Brauts
Prescott Brewing Company – Mayor’s Toast
JJ’s Lousiana BBQ
Round-Up Mini-Donut Truck
Gringo Taco Truck
Zeitz Sister City Pretzels
Zeitz Sister City Oom Pah Pah Band – 5pm
Funk Frequency – 7pm
Chairs and blankets welcomed. Sealed bottles of water (1 per person).
A portion of the proceeds benefit Zeitz Sister Cities
2017 (Last Year) Brewery Line-Up
Modern Times | 10 Barrel | Golden Road
Weinstephan | Franziskaner | Spaten
St Kil Bit Burger | Hangar 24 | Lumberyard
Sierra Nevada | Stone | Victory | Granite Mountain Brewing
Shock Top | Hoeggarden | Veltins
Goose Island | Elysian | Kona
Mudshark | Barrio | Mother Road
Prescott Brewing | Widmer | Rogue
Homes for sale in Diamond Valley with a minimum of 2 bedrooms, 2 baths, and 2+ car garage