Seeing a slow down in price decreases over the last few weeks. The low inventory is keeping prices steady and we may see a shift back to a Sellers market.
Inflation moves lower
CPI (Consumer Price Index = inflation for consumers) dropped more than expected, from +4.0% YoY in May to +3.0% YoY in June. And PPI (Producer Price Index = inflation for businesses) fell from +0.9% YoY in May to +0.1% YoY (basically flat!) in June. Both CPI and PPI are down massively from their peaks, but the Fed is still expected to raise rates by another +25 bps (one-quarter of 1%) on July 26.
Back into the sixes
Bond prices rocketed higher this week in reaction to the lower inflation (CPI & PPI) numbers. This allowed average 30-yr mortgage rates (no points purchased) to move below 7% for the first time since mid-June. Make no mistake, homebuyer demand remains robust. It’s just affordability (mortgage rates) and availability (supply of homes for sale) that have constrained sales.
3 reasons to own a home
A home is more than just a great investment. Homeownership also gives you Stability, Predictability & Freedom. Stability: you don’t have to move if your landlord decides to sell the house. Predictability: your monthly mortgage payment won’t change (but your rent sure will!) Flexibility: it’s YOUR home, so you don’t have to ask permission to paint the walls crimson or add an above-ground pool.
Local Market Trends
As of Friday, July 14, 2023
| Area | Median Price | Active Listings | New Listings – 5 days | Median Days on Market |
|---|---|---|---|---|
| Scottsdale, AZ |
$995,000
|
1480
|
103 |
53
|
