Despite the flood of bad news for the housing market last week, there was some good news. The supply of new listings is falling. 2,589 new listings were added to the ARMLS database during the week of July 24 - 31, which is up only 5.8% from a year ago. It is also well below the peak of 3,169 we reached on June 25. While weekly new listings are still considerably more than the market needs, but at least we are not seeing new weekly listings establishing an increasing trend.
Demand remains poor and appears to be weakening still.
• We have only 7,887 listings under contract - down 28% from this time last year and the lowest total for the end of July since 2007. Since 2007 was our worst year ever, that is not a good place to be.
• We are seeing a monthly sales rate of only 6,707 - down 25% from this time last year and the lowest for the end of July since 2014.
Despite weakening demand, the average list price per sq. ft. of homes under contract is staying remarkably strong, hardly moving over the past 3 months. However, sellers are granting concessions resulting in a far lower percentage of list price. In the past three months the closed price per square foot has dropped from 101.76% of list price to 98.74% of list price, down a whopping 302 basis points. This is by far the fastest decline in achieved price percentage of list we have ever seen. The monthly average sales price per square foot is down 5.3% in the last month. The average sales price is down an astonishing 9.6% since the end of June, though the median sales price is down a more modest 4.8%. That is still a loss of $23,000 value in one month.
Mortgage rates made the headline news last week. The average rate on the popular 30-year fixed mortgage fell to 5.22% on Thursday from 5.54% on Wednesday, when the Fed announced its latest rate hike, according to Mortgage News Daily. The rate fell even further Friday to 5.13%. The slide in mortgage rates came after a negative GDP report and the Fed’s latest interest rate hike. If economic data continues to be gloomy and inflation moderates, mortgaged rates could continue to decline.
The takeaway from last week’s performance are:
· Inventory levels are up but appear to be slowing. Â
· Demand is weak and getting weaker.
· Mortgage rates are dropping. Â
Wrapping up, we are getting closer to a great time to buy and that’s not sales hype. Multiple offers are rare, listing prices remain high but Sellers concessions are increasing bringing closing prices down below our recent highs, and mortgage rates are declining. If you tried to buy in the last two years but were unsuccessful, now may be the time to get serious; especially as we approach the winter holidays.
*Credit The Cromford Report
I am a year-round Corte Bella resident and I put 100% of my effort into Corte Bella sales transactions although on occasion, I will assist my sales clients relocating to another area in Arizona. As the market changes it is important you have clear picture of the value of your home should you decide to sell. No one knows Corte Bella than I do. I sell Premier Properties with Premier Service.
The information contained herein is believed to be accurate however you are encouraged to confirm this information before relying upon it.
ACTIVE LISTINGS AS OF 07/31/22:
· 22425 N Los Gatos Dr., Quinta Model, 1,283/sf., 2/1.75, Corner Lot - $419,000***
· 22516 N San Ramon Dr., Quinta Model, 1,283/sf., 2/2, Golf Lot - $459,999
· 13105 W Junipero Dr. Arcada Model, 1,684/sf., 2/2 - $489,900
· 12812 W Junipero Dr., Arcada Model, 1,660/sf., 2/2, vacant - $500,000
· 13432 W Los Bancos Dr., Encanto Model, 2,095/sf/. 2/2, - $599,000
· 12959 W. Rincon Dr., San Marco Model, 1,904/sf., 3/2 - $600,000
· 12839 La Vina Dr., Encanto Model, 2,095/sf., 3/2, Casita - $625,000
· 22823 N Los Gatos Dr., Encanto Model, 2,095/sf., 3/2, Casita - $649,900
· 22931 N. Padaro Dr., Encanto Model, 2,095/sf., 3/2, Casita - $649,900
· 12832 W Rincon Ct., Cambria Model, 2,470/sf., 2/2, Pool – $799,925
· 23109 N Hank Ramon Dr., Figueroa Model, 2,840, 3/3.5, Casita, Golf Course - $810,0000
· 23023 N Pederegosa Dr., Mirada Model, 2,593/sf., 2/2.5,3 car garage, Pool - $875,000
* New listing this week
** Temporarily off market
*** Price reduction
COMING SOON
· 22111 N Giovota Dr., Mirada Model, 2,840/sf., 3/2.5, Golf Course - $888,000
UNDER CONTACT ACCEPTING BACKUPS
· 22713 N Pico Dr., Arcada Model, 1,636/sf., 2/2, Remodeled - $549,000
· 12847 W Panchita Dr., Alameda Model, 2,726/sf., 3/2.5, Nicely updated - $699,000
UNDER CONTRACT CONTINGENT ON BUYER SALE:
· 13510 Nogales Dr., Arcada Model, 1,684/sf., Private lot - $505,000
· 13005 W Panchita Dr., Cambria Model, 2,690/sf., 3/2, Casita - $699,995
· 23215 N Cardenas Dr., Mirada Model, 2,805/sf., 3/3.5, Casita, Putting Green - $729,950
PENDING LISTINGS:
· 22718 N San Ramon Dr., Arcada Model, 1,684/sf., 2/2, Golf Course, Pool - $625,000
· 13232 W Los Bancos, Figueroa Model, 2,784/sf., 2/2.5,3 car garage - $795,000
· 13307 W Rincon Dr., Figueroa Model, 2,784/sf., 2/2.5, Golf Course, Pool - $897,000
· 22410 N Del Monte Ct., Mirada Model, 2,559/sf, 3/2.5, Golf Course, Water - $925,000
SOLD LISTINGS (07/01/22 – 07/31/22):
· 22719 N Arrellaga Dr., Arcada Model, 1,636, 2/1.75 - $460,000
· 12930 W Micheltorena Dr., Arcada Model, 1,612/sf., 2/2, Recent remodel - $550,000
· 13354 W Junipero Dr., Arcada Model, 1,931/sf., Casita, Private lot - $599,000
· 13544 W Figueroa Dr., Encanto Model, 2,095/sf., 2/2, MBR Remodel - $629,500
· 23325 N De La Guerra Dr., San Marco Model, 1,904/sf., 2/2, Private lot, Pool - $620,000
· 22516 N Padaro Dr., San Marco Model, 1,904/sf., 2/2, 2.5 car garage, Pool - $635,000
· 23227 N Cardenas Dr., Mirada Model, 2,840/sf., 3/3.5, Casita - $700,000
I am a Corte Bella resident. I may not be the listing agent on the above properties. If you or someone you know is interested in touring one of these properties, I would be happy to arrange a showing.
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