I would like to say that 2021 started off with a bang but really it is more like a crawl, at least in terms of available homes for sale in the city of Maricopa. Our inventory remains painfully low and homes that do come on the market are gone in a minute. It is very common for sellers to have multiple offers with a purchase price over list price.
Of course, if an offer is over list price, the appraisal could be in jeopardy. We are seeing offers where the appraisal is waived and if it comes in lower, the buyer is willing to pay the difference out of pocket. This may not be a time to sell your home to brokerages that buy your home for a set amount up front and then resell it for a higher price. You very well could be leaving tens of thousands of dollars in their pocket without realizing it.
We currently have 69 active listings on the MLS in an HOA subdivision. If I remove listings from Maricopa’s active adult community Province and I remove listings from builders advertising homes to be built, that leaves 27 active listings in the city of Maricopa. That is a less than a 30-day inventory and really could be defined as a severe housing shortage.
So what does this market look like for buyers? The key is positioning yourself in the best possible way to be ready to buy. I asked Kurt McClearen, VP/Senior Loan Officer with Nova Home Loans, his opinion on rates and where they are headed.
Here is what Kurt had to say: “Rates are hovering around all-time lows, and buyers are advised to strike while the iron is hot, so to speak. Even though values are up, rates are 7/8th lower than they were this time last year, which is keeping affordability in check. Mortgage backed securities (MBS) and rates have an inverse relationship. When MBS perform well, rates fall. When MBS perform poorly, rates rise. Right now there has been a dip in the MBS coupon average, which is putting an upward pressure on rates, especially if MBS continue downward. The Fed is eventually going to taper their aggressive purchasing of MBS, and when that happens we’ll surely see rates rise. The only question is, when will it happen? So again, if you are thinking of buying now may very well be a great time to do so!”
Whether you are buying or selling, this market requires a Realtor that is willing to educate you and help you make the best choice for your long term goals of whether to buy or sell your home.