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Market Updates | Elite Results Realty Blog

Monday, March 29, 2021   /   by Vyral Marketing

Why We’re Seeing Both High Demand and High Prices for Homes

There are a number of reasons why both demand and home prices are continuing to rise. Here’s what’s happening.

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Many of my clients have been wondering why demand is staying strong even though prices continue to skyrocket. There’s not really a simple answer; instead, this phenomenon is occurring for a variety of reasons, including low interest rates, an influx of people moving into the Phoenix area, and the ongoing pandemic.
Interest rates are at their lowest in history, which has made homes more affordable in spite of increasing prices. On top of this, many homebuyers are moving in from different areas of the country. Arizona has been an affordable place to live in for years, and since so many people are now able to work remotely, more and more have taken the opportunity to move to our great state.
"Interest rates are at their lowest in history, which has made homes more a. ...

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Monday, November 9, 2020   /   by Vyral Marketing

I Hate to Burst Doomsayers’ Bubbles, but the Bubble Isn’t Nigh

If you’re afraid of an impending housing bubble, ponder these three points.

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There are three main factors to look at when determining whether or not we’re heading toward another real estate bubble, the first of which are vacant homes. Before the burst of the 2000s bubble, there were tens of thousands of homes sitting vacant. Many homes were purchased on speculation, meaning that folks would buy houses and do nothing with them simply in the hope that prices would rise dramatically, allowing them to sell for top dollar later down the road. That strategy worked well for maybe a year at best, then it completely fell apart.
Thankfully, unlike in 2006, there are very few homes sitting vacant at the moment, and here’s why that matters: If we did experience a sudden downturn, the market wouldn’t immediately be flooded with these ‘speculation’ properties. In today&. ...

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  real estate market, market updates

Tuesday, October 13, 2020   /   by Vyral Marketing

What Would It Take for Prices to Drop?

Here’s a look at the market index that may show the future of our real estate market.

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It’s no secret we’re entrenched in a seller’s market, but lately many people have been asking, “What would it take for housing prices to drop?” To answer this question, let's take a look at some of the factors that will play a huge part in determining the future of our Phoenix area real estate market.
At 0:46 in the video above, you’ll see a chart that’s probably the best indicator of what we can expect for future pricing—the “Cromford Market Index as a Predictor of Future Annual Price Appreciation” model. On this chart, the black line represents the leading indicator (the Cromford Market Index itself), while the blue lines represent the actual appreciation rate (i.e., the percentage by which housing prices changed from year to year or month. ...

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  real estate market, seller's market, market updates

Wednesday, June 10, 2020   /   by Vyral Marketing

How Mortgage Rates Are Calculated

Here’s why current mortgages rates hover around 3.5%, not 0.5% or 2.5%.

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Oftentimes, people will wonder why mortgage rates don’t follow suit when the fed funds rate drops significantly—as was the case at the onset of the COVID-19 pandemic and our current recession. The truth is, in today’s market, mortgage rates are not determined by the fed funds rate.
Though not calculated on the fed funds rate, mortgage rates do align closely with the 10-year Treasury yield. If you look at the history of the 10-year Treasury, you’ll notice that that yield tends to be about 2% lower than mortgage rates.
Back in 2007, when we saw the market crashing, mortgage rates were at 6.5% to 7%, and the Treasury yield was at 4.5% to 5%. It took a couple of years for the Fed to step in and start buying Treasury bonds, which caused the rates to go down.
 

The 10-year Treasury ! ...

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Friday, May 15, 2020   /   by Vyral Marketing

Are We Headed for Another Great Recession?

Here are my thoughts on how our current recession relates to 2008.

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What would it take for us to have prices go down during this recession like they did in the Great Recession of 2008? During the Great Recession, lending essentially stopped and out-of-work homeowners were simply out of luck.
During this recession, however, the government has allowed mortgage forbearance, thereby allowing people to stay in their homes. The government has also lowered interest rates and foreclosures in Arizona are near all-time lows. ...

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