The median price in November of homes sold in the Northwest was $230,000, up 4% from 2015. For the Dove Mountain area the median price was $287,500, down 26% from a year ago. In Oro Valley the median price was $270,000 in November 2016, a decrease of 4% from 2015. In the Foothills the median price was $333.000 a decrease of 5% year-to-date. Current price ranges in all areas offer a seller’s market because of low inventory for buyers.
According to (NAR) National Association of Realtors, the inventory of homes tends to dramatically increase in the first five months of the year. Listing your home now before spring may make sense for a faster sale. Also winter visitors are here and may be motivated to finally buy rather than rent as they see the low inventory and realize they may be in a better position to negotiate.
Here are people and institutions to consider for notification of your move to save hassle: (1) family & friends, (2) current employer, (3) landlord, (4) Postal Service, (5) DMV, (6) utilities, (7) governmental agencies, (8) financial institutions, (9) IRS, (10) Insurance companies, (11) doctors and medical, (12) educational institutions, (13) subscriptions, (14) clubs, (15) internet profiles on social media and business sites.
Where will home prices be in five years? The current Home Price Expectation Survey by Pulsenomics, a nationwide panel of 100 economists, real estate experts, investment and market strategists predict where prices will be and then the individual projections are averaged to one number for each year. The results are 4% for 2017, 3.2 % for 2018 and 3% for each of the next three years. Within areas of the US, States, areas of Tucson and local communities, appreciation will vary. Increases of 3% provide stability.
The Tucson area is in the top ten of the strongest housing markets of 2017. Phoenix takes top place with Los Angeles, Boston, Sacramento and Riverside in the top five. In the same projection by Realtor.com, new home sales are estimated to increase 10% over 2016. The housing forecast projects slower growth with the current and potential interest rate hikes. Also projected is that the recent national election will not have a direct impact on housing. Predicting as well is a 3.9% gain in home prices for 2017.
The Census Bureau recently released the median rent numbers for the third quarter of 2016. In 1988 the median rent was $340. In 2016 the median price now stands at $850. This is a 250% increase over the 28 year period. Rents continue to increase. The best way to control this living expense is to purchase a home with a set monthly mortgage payment. When renewing a lease you might be surprised that the new rent would cover a mortgage payment and allow you to build equity and not the landlord.
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 Denny’s Diner, River & Oracle, 6-7:30 pm on the first Tuesday. Visits are $5.00 or $35.00 annual fee. Info: 520-909-9375.
Jay McCall is a real estate consultant at Berkshire Hathaway HomeServices Arizona Properties. His career experience spanning banking, mortgages and real estate offers knowledgeable and professional service. He is reached at: firstname.lastname@example.org