By Frank May, Real Estate Agent
May has arrived and, as we all know, the higher temperatures are here as well. That’s okay, we’ve all been told that it’s a dry heat!
It isn’t usually a correlation, but this year as the temperatures were rising so were the interest rates. The good news is the home values have been as hot as an Arizona summer. One article I saw referenced homeowners who made more in equity than they did at their job this past year. That is incredible, but it is also unsustainable.
Just about all real estate experts whose articles I read or interviews I listen to believe that the increases are going to slow. I believe the same thing. We have had such high increases in prices that it can’t continue.
I just had a smaller home that I listed and sold and the increase in that one subdivision was over 20% in less than 60 days. It’s not hard to figure out that it can’t continue. The increases will slow down. That 20% in two months will get to 8% in a month and then 5% and then 3% and so on. Compared to the increases we have been experiencing it sounds horrible if your home increases only 1% a month but that would still be a fantastic 12% in equity in a year! So, the moral of the story? It is a great time to be a homeowner! If you would like to be on my monthly list to notify you of any changes in the local real estate market, please reach out to me at Frank@MayTeam.com.
I want to mention that as our temperatures increase, we will see the number of calls to the HVAC companies increase as well. With costs going up I want to highlight the benefit of having a home warranty. The savings can be incredible if your HVAC system goes out and you have a home warranty. I’ve known my home warranty representative for over a decade, and she has offered a first-year discount price to anyone who would like to sign up through me. Give me a call at 623-203-1800 or email me if you are interested. The savings would be around $100 for your first-year price. They have always done a great job for my clients and myself over the years and I’m happy to recommend them.
I hope you all enjoy the start to your summer!
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.