By Frank May, Real Estate Agent
This year is flying by, as I am already seeing Christmas lights going up! Although I am a huge fan of Christmas, I like the idea of celebrating what is happening next, so I’m really looking forward to Thanksgiving! It is a time to reflect on where we live and what we are thankful for, which really is so much.
I’m thankful for the friends I’ve made over the years working in this business of real estate. It’s been just over 20 years and I still talk to clients I helped in the beginning. Some have moved multiple times, and some have even moved out of state, but I am thankful that we stay in touch. I hope you can all take some time this month to reflect on some good things in life.
When I look at the real estate market and see rising interest rates, I’m thankful that I’ve been around long enough to know everything cycles through and we will see interest rates drop again (and please let that be soon!). The ‘experts’ keep tossing around the idea that interest rates will be lower by the summer, and I think we all hope they are right. As soon as rates drop a little and stay down for even a few weeks, I believe we will see a rush of buyers who previously couldn’t make the numbers work and they will be jumping on homes that are available.
This past month I wrote that interest rates had gone up over 6% and that would probably mean inventory would go up a little more and homes going under contract would go down, and that is exactly what happened. We got to just over 20,000 homes currently for sale on MLS with pending homes at about 7,000.
The thing I am thankful for regarding these numbers is the fact that the increase in inventory and the decrease in pending homes is still at a much slower pace than we were over the past six months. On my graph it looks like a bell curve where we went up (inventory) fast and now we are towards the slow down at the top of the curve.
Looking forward, the Federal Reserve is still talking about another rate increase, so it should mean the same thing, inventory will still go up some more and pending sales will decrease. This is one of those times I would love to be wrong when I write next month’s article. I will let you know if I am!
Another great thing about our market is the number of jobs coming to Arizona. On a recent call, we were reminded of many of the companies that are building in the West Valley and how that will be great for our housing market. Unless you have been living under a rock, you’ve heard about the Taiwan Semiconductor Manufacturing Company Limited and that will be providing some high paid jobs only minutes away from the Upper Westside.
I know I am a broken record about this being one of the best places to live, but I truly believe that. And I want to give a shout out to a place you should all stop in and try (if you like wine) and that is Turquoise Wine Cellar & Tasting Room. They recently opened and the owners and staff have been so friendly! They will take the time to stop and explain all the wines and answer any questions you have. And this is just one of many wonderful places we have in the area that we can support. Thanks to all the business owners who are working hard to make the Upper Westside a special place!
Remember, if you ever have any real estate questions (or need restaurant recommendations), give me a call (my number is on the back page). Happy Thanksgiving to you all!
Frank May grew up in the Valley, graduating from Northwest Christian School and Northern Arizona University. He is a real estate agent with RE/MAX Fine Properties and has been helping both buyers and sellers for over 20 years. He has been a Dave Ramsey Endorsed Local Provider (ELP) since 2003. Learn more at mayteam.com.