Real news on real estate
By Jay McCall, GRI, SFR, SGSB
The median price in August of homes sold was $315,560, this is an increase of 15% over August, 2016 and an increase of 12% over prior month. (The median price is based on the value mix of homes sold in comparable time periods and may or may not show a trend.) Active inventory was 254 in August of this year, down 6% from 2016. Oro Valley had 68 properties under contract in August of 2017, down 12% compared to a year ago. The majority of Oro Valley price ranges continue as a seller’s market with homes priced above $600,000 continuing as a buyer’s market.
A recent survey just released by First American provides indications of why the low housing inventory is a challenge to buyers: 47% of existing homeowners are concerned they will not be able to find a home to buy; 5% are first-time homebuyers; 3% have mortgage rates lower than current rate; 6% still have negative equity and 6% are foreign buyers taking a large share of homes available for sale. The survey asked title and real estate agents to identify the top reasons for lack of inventory.
According to Corelogic’s latest Home Price Index, home prices have appreciated 6.7% over the last 12 months. The report predicts that prices will continue to increase at 5% over the next year. Additionally, a recent survey by Freddie Mac, supported by Fannie Mae and both the Mortgage Bankers and National Realtors Association predicts that mortgage interest rates will increase by this time next year. This provides an increased demand to buy now as increased rates increase the monthly mortgage payment and restricts what buyers can afford.
Certain trends appear to be emerging for seniors retiring today. (1) Independent living is evolving for aging-in-place to creative co-housing options. These include sharing certain expenses of home maintenance, yard care within a neighborhood or taking roommates to share expenses and provide more companionship. A healthy option for single retirees. (2) Co-housing by builders offers clustered homes around a central facility providing resources and amenities. (3) More retirees are moving close to housing built for seniors near colleges and universities that provide activities such as the arts, classes and sports entertainment.
The first real estate investment is a home. Consider it the springboard to future real estate purchases to build a cash flow and equity growth portfolio. Visit the monthly Tucson Real Estate Investment Forum, at Viscount Hotel, 4855 N. Broadway, 6-7:30 pm on the first Tuesday. $5.00 a visit or $35.00 annual fee. Contact: 520-909-9375 or firstname.lastname@example.org.
Jay McCall is a real estate consultant at Real Property Solutions. Jay’s experience spans banking, mortgages and real estate which offers knowledgeable & professional service. Contact: email@example.com