While it’s disappointing to see average mortgage rates back near 7%, the rate cuts will come eventually, and the increase in the national inventory of homes available for sale is encouraging. PSA: If you’re thinking about buying a home in the next 1-2 years, make sure you’re on top of your credit.
Where’s Waldo?
The national inventory of homes for sale is improving, although it’s not easy to see that in the chart above. Usually, inventory levels start to seasonally fall in Sept/Oct and decline until Jan/Feb. But in 2023, inventory kept rising until Dec! The net result is that the inventory in Jan 2024 was up 8% year-over-year. More homes for sale = more options for buyers & more transactions.
Fed in Grinch mode
Jerome Powell and his fellow Fed members have done everything they could to ‘push out’ rate cut expectations. The market is now only putting an 17% probability on a rate cut on March 20, and average 30-yr mortgage rates have climbed back to near 7%. Let’s just hope that the Fed’s ‘higher for longer’ chatter doesn’t lead to a repeat of 2023’s very disappointing spring selling season.
Protect your (financial) rep
You’re going to want to move house someday, and when you do, you’ll want a credit score that says “Lend to me! I’m responsible!” Stay on top of your credit score (most credit card companies and many banks offer free monthly reports), always pay your bills on time (autopay is your friend), and try to keep your credit utilization (your balance divided by your credit limit) modest.
Local Market Trends
As of Friday, February 9, 2024
| Area | Median Price | Active Listings | New Listings – 5 days | Median Days on Market |
|---|---|---|---|---|
| Scottsdale, AZ |
$1,139,500
0.1%
|
1916
0.3%
|
129 |
53
-0.2%
|
| Gilbert, AZ |
$675,000
0.1%
|
392
0.1%
|
35 |
30
-0.4%
|
| Phoenix, AZ |
$520,000
0%
|
2367
-0.1%
|
222 |
38
-0.3%
|
| Mesa, AZ |
$495,079
0.1%
|
932
0.1%
|
101 |
35
-0.3%
|
/) from Jan. to Feb. 2024.
