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REAL ESTATE
THE CHANDLER ARIZONAN | WWW.CHANDLERNEWS.COM | NOVEMBER 28, 2021
From Uptown to Downtown, we cover Chandler like the sun
Realtors group sees more homes going on market ARIZONAN NEWS STAFF
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he official website of the National Association of Realtors foresees an increase in for-sale homes in the near – and, not surprisingly, other experts also see an increase in their price. Based on a nationwide survey of 1,200 homeowners, Realtor.com last week said, 26 percent of the respondents “plan to sell their home in the next 12 months.” “Younger generations seem to be more eager to sell as 34 percent of Gen Z homeowners and 49 percent of millennial homeowners plan to sell, while only 26 percent of Gen X homeowners, 11 percent of baby boomers and 8 percent of the Silent Generation plan to do the same,” it said, adding that younger homeowners in urban areas were especially inclined to put their houses up for sale. But buyers who might be salivating at the prospect of more choices also need to be prepared to pay higher prices. “Buyers should be ready for high asking prices,” said George Ratiu, manager of economic research for Realtor.com. “But an increase in new sellers could mean some relief from the inventory crunch.” The Cromford Report, which closely watches the Phoenix Metro market, offered an even blunter assessment, noting that “despite some observers speculating that a market top has taken place, the data emphatically suggests otherwise.” “The short-term outlook is for prices to move higher into record territory,” it later said. Sales of existing homes increased by 6.6 percent in October over October 2020, Cromford said, even though total home sales year-over-year were down 8.5 percent. But that was because new home sales plunged 22 percent from October 2020 to last month as a result of “the inability of the builders to complete home construction (shortage of components, sup-
increases, many properties just don’t feel like such a good deal anymore.” Forbes said buyers waiting on the sidelines should start getting their finances in order now lest they miss out on a good deal. It suggests would-be buyers work on their credit score now, noting people can get weekly credit reports from all three ratings agencies for free until April 20. “Keep in mind that as home prices rise, so does your down payment requirement. What was a 5 percent down payment on a house last year is much higher this year as home This 3,118-square-foot house on W. Coconino Drive in Chandler recently sold for $1.1 million. The prices continue to tick up, so four-bedroom, three-bath single-story house, built in 2007, boasts private guest quarters with a keep saving and explore downprivate entrance and a number of high-end amenities. (Special to the Arizonan) payment assistance options,” it said. ply chain delays, labor shortages), not be- spree, consumers also flocked to the real The Arizona Housing Fiestate market last year,” it said. “As de- nance Authority (Home Plus Procause of lack of demand,” Cromford said. Ratiu offered a cautious assessment of mand for houses picked up, interested gram helps qualified homebuyers get the prospects for a larger inventory, not- buyers have pulled out all the stops to down payment assistance via a deferred ing that that many sellers are also buyers. outbid the competition. no-interest second mortgage. The down “This caused all sorts of strange and payment assistance second mortgage is “Once they sell their properties, they have to compete for somewhere else to live,” he perhaps reckless behavior, including forgiven after three years, as long as the said. “That’s tough in this turbo-charged buyers forgoing contingencies in the homeowner lives in the home. If the bormarket, where there isn’t even much new sales contract meant to protect them rower sells or refinances the mortgage and their earnest money, which can within the first three years the down payconstruction for move-up buyers. “The main challenge many may have amount to thousands of dollars. Some ment assistance loan must be repaid. is finding a suitable replacement home, buyers were using their retirement savEligibility requirements include: the given the still very tight number of ings, while others were getting loans so borrower’s annual income qualification they could appear to be all-cash buyers.” is partly determined by your lender but homes for sale,” Ratiu said. But Forbes reported “this going-for- typically must not exceed $112,785; one Meanwhile, Fannie Mae recently said that median home prices would to rise broke approach could be declining,” borrower must complete a homebuyer 7.9 percent over the next and that mort- quoting a Colorado broker who sees education course before closing; a minigage rates will likely climb next year, buyers are realizing “that they might be mum credit score of 640 or better. with the average 30-year fixed rate ris- putting too much on the line and are takIt also suggests less experienced buying from 3.1 percent to 3.4 percent. ing the power position back once they ers find a housing counselor. The U.S. And Forbes Magazine said buyers are go under contract.” Department of Housing and Urban Debecoming more risk-averse. “I do not see the same level of desper- velopment has a directory of free, HUD“Similar to how the pandemic trig- ation and urgency we saw a few months approved housing counselors at apps. gered a sanitizer and toilet paper buying ago,” the broker said. “After large price hud.gov/offices/hsg/sfh/hcc/hcs.cfm.
