KCM and DPR Realty January 2024 National and Local AZ Housing Market Update, Shambreskis and Howard

Page 1

January 2024

DPR Realty


CONTACT US TO DISCUSS YOUR LOCAL ARIZONA REAL ESTATE MARKET

Peter Shambreskis, REALTOR®, ABR, CRS, GRI, SFR 480-229-6468 Corinne Howard, REALTOR®, ePRO, GRI, SFR, SRS 480-229-6467 info@ShambreskisAndHoward.com www.ShowScottsdaleHomes.com


Most agents know what’s happening. Good agents understand what’s happening. Great agents can explain what’s happening.


2024 KCM Forecast


The Year of “Fives”

 ‘5’ Will Be the Handle (first number) on Mortgage Rates by May  5.5 Million in Total Home Sales  5% Will Be the Approximate Home Price Appreciation Rate


The Year of “Fives”

 ‘5’ Will Be the Handle (first number) on Mortgage Rates by May  5.5 Million in Total Home Sales  5% Will Be the Approximate Home Price Appreciation Rate


Mortgage Rates


Heading into the New Year, Mortgage Rates Remain on a Downward Trend

September 2023–Today

9/7/2023

9/28/2023

10/19/2023

11/9/2023

11/30/2023

6.61

6.67

6.95

7.03

7.22

7.29

7.44

7.5

7.76

7.79

7.63

7.57

7.49

7.31

7.19

7.18

7.12

U.S. Weekly Averages as of 12/28/2023

12/21/2023

Source: Freddie Mac


It also appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.

- Dean Baker, Senior Economist, Center for Economic Research


A marked turn can be expected as mortgage rates have plunged in recent weeks.

- Lawrence Yun, Chief Economist, NAR


The Year of “Fives”

 ‘5’ Will Be the Handle (first number) on Mortgage Rates by May  5.5 Million in Total Home Sales  5% Will Be the Approximate Home Price Appreciation Rate


78.7% of Mortgage Rates Less Than 5% Current FHFA Loans with Mortgage Rate at Time of Origination

36.8%

22.6%

19.3% 9.8%

≤ 3%

3.01-4%

4.01-5%

5.01-6%

11.5%

> 6% Source: FHFA


“Lock-In Rates” Limit New Inventory Current FHFA Loans with Mortgage Rate at Time of Origination >6% 5.01-6% Yes

Probably Yes

4.01-5%

<3% Not Selling

Must Think Before Selling

3.01-4% Probably Not Selling

Source: FHFA


We might be at peak “lock-in effect”. Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon. . . . If the “lock-in effect” eases up further in 2024 . . . it could help boost existing home sales from the very low levels experienced at the end of 2023. - Lance Lambert, Founder, ResiClub


Homeowners who are selling aren’t influenced by rates, with 90.5% of successful November sellers stating they were going to sell regardless of what rates were.

- Erica Plemmons, Housing Analyst, Bright MLS


Roughly half (50.6%) of November buyers were going to buy regardless of interest rates and another quarter (23.9%) purchased with cash. Cash will continue to be king even as rates ease next year. And no matter the direction of rates, households buying out of necessity will continue to find a way to purchase.

- Erica Plemmons, Housing Analyst, Bright MLS


Top 3 Reasons Buyers Paused Decision Reasons Given for Pausing Their Purchase (Multiple Could Be Chosen)

72.1%

34.4% 17.4% Mortgage Rates

Inventory

Affordability/Home Prices Source: Bright MLS


We now forecast three consecutive 25bp cuts in March, May, and June to reset the policy rate from a level that Powell has recently taken to describing as “well into restrictive territory” rather than just “restrictive”. - Goldman Sachs, December FOMC Recap


For over 50 Years, the 30-Year Mortgage Rate Has Moved in Unison with the 10-year Treasury Yield 18

10-Year Treasury Yield 30-Year Fixed Mortgage Rate

16

Average Spread: 1.72

14 12 10 8

Current Spread

6

2.78

4 2 0

1972

1980

1990

2000

2010

2023 Source: Freddie Mac, Macrotrends


New Construction


The market currently requires a higher level of new construction inventory due to a persistent lack of resale inventory. Newly built homes available for sale accounted for 31% of total homes available for sale in November, compared to an approximate 12% historical average. - National Association of Home Builders


Home Prices


49-Year Average Monthly Price Movement Month-Over-Month, 1973–2022 (Not Seasonally Adjusted)

0.86

0.88 0.79

0.64

0.64

0.44

0.25

0.25 0.15

0.12

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

0.10

0.12

Nov

Dec

Source: Case-Shiller


49-Year Average vs. 2023 Price Movement Month-Over-Month, 1973–2022 and 2023 (Not Seasonally Adjusted)

49-Year Average 2023

1.5 1.3

1.2 0.86

0.88

0.79

0.9

0.64 0.30 0.10

0.64 0.6 0.44 0.4 0.25

0.2

0.3 0.15

0.2

-0.5

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Source: Case-Shiller


2024 Home Price Forecasts Percent Appreciation/Depreciation as of 11/30/2023

4.1 2.8

2.7

1.5

2.2

1.9 0.7 -0.2 -1.7

Average of All 8

MBA

Fannie Mae Freddie Mac

HPES

Goldman Sachs

NAR

Zillow

Realtor.com


Home Price Expectation Survey

Fannie Mae's Home Price Expectations Survey (HPES), produced in partnership with Pulsenomics, LLC, polls over 100 housing experts across the industry and academia for forecasts of national home price percentage changes in each of the coming five calendar years.

Source: HPES


Estimated Home Price Performance December to December, as Forecast in Q4 2023

5.92%

3.67% Pre-Bubble

4.06%

Recovery To Date

Bubble

2.35%

4.15%

2.70% Bust

2023

2024

2025

2026

2027

2028 Source: HPES


$72,405 $400,000

$409,400

Pre-Bubble

Potential growth in household wealth over the next 5 years based solely on increased home equity if you purchase a $400K home in January 2024

$420,454

$435,884

$453,581

$472,405

Recovery To Date

Bubble

Bust Based on price appreciation projected by the Home Price Expectation Survey 2024

2025

2026

2027

2028

2029 Source: HPES


The Year of “Fives”

 ‘5’ Will Be the Handle (first number) on Mortgage Rates by May  5.5 Million in Total Home Sales  5% Will Be the Approximate Home Price Appreciation Rate


Percent Change in Home Values Month-Over-Month

Case-Shiller 0.9 0.7 0.4

0.7

0.5

0.7

0.6

0.6

0.2

-0.2

FHFA 0.5

0.6

0.8

0.8

0.8 0.5

0.7

0.6 0.3

0.1

Jan '23

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct


Freddie Mac: Prices Month-Over-Month Percent Change in Home Values (Seasonally Adjusted) 0.8 0.7

0.7

0.8

0.7 0.6

0.5

0.3

0.3

0.3

0.3

Jan '23

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Source: Freddie Mac


Home price gains in the CoreLogic S&P Case-Shiller Index have increased by [about] 7% since the beginning of the year and are 1% higher than at the peak in 2022, recovering all losses recorded in the second half of 2022. - Selma Hepp, Chief Economist, CoreLogic


Percent of Annual Home Appreciation 1980–2022, Seasonally Adjusted, Rounded To Nearest Full Number 20%

15%

10%

4.92%

42-Year Average

5%

0%

-5%

Each December as compared to previous December

-10%

-15%

1980

1990

2000

2010

2022 Source: Freddie Mac


With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023 . . . Most markets will continue to reach new home price highs over the course of 2024.

- Selma Hepp, Chief Economist, CoreLogic


Resources Slide(s)

Description

Link(s)

8

Mortgage Rate Trend Graph

https://freddiemac.gcs-web.com/node/28181/pdf

9

Dean Baker Quote

https://cepr.net/contrary-to-what-the-washington-post-tellsyou-homeownership-rates-for-young-people-are-above-thepre-pandemic-level/

10

Lawrence Yun Quote

https://www.usatoday.com/story/money/2024/01/01/housing -market-projection-real-estate-2024/72046015007/

12, 13

Mortgage Rate Spread Graph

https://www.fhfa.gov/DataTools/Downloads/Pages/NationalMortgage-Database-Aggregate-Data.aspx

Lance Lambert Quote

https://www.resiclubanalytics.com/p/lockin-effect-told-2maps?utm_source=www.resiclubanalytics.com&utm_mediu m=newsletter&utm_campaign=the-lock-in-effect-as-told-by2maps&jwt_token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ 9.eyJzdWJzY3JpYmVyX2lkIjoiZTFhYmVkNWYtMjMwOC00 ZDlhLWEzY2YtMmNiNmJkNzg0YTc0IiwiZXhwIjoxNzA0MjI5 Njg4LCJpc3MiOiJodHRwczovL2FwcC5iZWVoaWl2LmNvb SIsImlhdCI6MTcwNDA1Njg4OH0.kgtTWNpT6CQaG3sypDr 0uRJAnyMH9ozLhjjxYVWTThI

14


Resources Slide(s)

Description

Link(s)

15, 16, 17

Erica Plemmons Quotes and Graph

https://brightmls.com/article/market-survey-winds-ofchange-expected-for-2024

18

Goldman Sachs Quote

https://www.gspublishing.com/content/research/en/reports/2 023/12/14/05d5d1d1-8b22-41af-917ecd5862923c9e.html?chl=em&plt=briefings&cid=1215&plc=b ody

19

50 Year Mortgage Rate Graph

https://www.freddiemac.com/pmms/pmms_archives https://www.macrotrends.net/2016/10-year-treasury-bondrate-yield-chart

21

NAHB Quote

https://www.nahb.org/news-and-economics/pressreleases/2023/12/new-home-sales-down-in-november-butshould-improve-moving-forward

23, 24

49-Year Average Monthly Price Graphs

https://www.spglobal.com/spdji/en/indices/indicators/spcorelogic-case-shiller-us-national-home-price-nsaindex/#overview


Resources Slide(s)

Description

Link(s)

25

Home Price Forecasts Graph

https://www.zillow.com/research/2024-housing-predictions33447/ https://www.realtor.com/research/2024-national-housingforecast/ https://twitter.com/NewsLambert/status/1730642488346472 787 https://www.mba.org/docs/default-source/research-andforecasts/forecasts/2023/mortgage-finance-forecast-nov2023.pdf?sfvrsn=acef26ff_1 https://pulsenomics.com/surveys/ https://www.fanniemae.com/media/49661/display https://www.freddiemac.com/research/forecast/20231220us-economy-expanded-in-2023

26

HPES Slide

https://www.fanniemae.com/research-and-insights/surveysindices/home-price-expectations-survey-hpes

27, 28

Home Price Graphs

https://pulsenomics.com/surveys/#home-price-expectations


Resources Slide(s)

Description

Link(s)

30

Home Values Percent Change Graph

https://www.spglobal.com/spdji/en/indices/indicators/spcorelogic-case-shiller-us-national-home-price-nsaindex/#news-research https://www.fhfa.gov/DataTools/Downloads/Pages/HousePrice-Index.aspx https://www.corelogic.com/category/intelligence/reports/ho me-price-insights/

31

Freddie Mac Prices Graph

https://www.freddiemac.com/research/indices/house-priceindex

32, 34

Selma Hepp Quotes

https://www.cnn.com/2023/12/26/business/us-home-pricesrecord-high-october/index.html

33

Home Appreciation Graph

https://www.freddiemac.com/research/indices/house-priceindex


Updates


Resources Slide(s)

Description

Link(s)

43

Confidence Index

https://www.nar.realtor/research-and-statistics/researchreports/realtors-confidence-index

44-46, 53, 55, 57, Existing Home Sales 63-66

https://www.nar.realtor/topics/existing-home-sales

47-49

New Home Sales

http://www.census.gov/construction/nrs/pdf/newressales.pdf http://www.census.gov/newhomesales

50

Total Home Sales

http://www.census.gov/construction/nrs/pdf/newressales.pdf https://www.nar.realtor/topics/existing-home-sales

51-52

Pending Home Sales

https://www.nar.realtor/research-and-statistics/housingstatistics/pending-home-sales

57-59

Case Shiller

https://www.spglobal.com/spdji/en/indices/indicators/spcorelogic-case-shiller-20-city-composite-home-price-nsaindex/#news-research

60

CoreLogic Price Forecast

https://www.corelogic.com/intelligence/u-s-home-priceinsights/


Resources Slide(s)

Description

Link(s)

62-68

Inventory

https://www.nar.realtor/topics/existing-home-sales http://www.census.gov/construction/nrs/pdf/newressales.pdf https://www.realtor.com/research/data/

70

Showing Activity

https://www.showingtime.com/blog/

Mortgage Rates

http://www.freddiemac.com/pmms/pmms_archives.html http://www.freddiemac.com/research/forecast/ https://www.mba.org/news-research-andresources/research-and-economics/forecasts-andcommentary

Mortgage Rate Projections

http://www.fanniemae.com/portal/researchinsights/forecast.html https://www.mba.org/news-research-andresources/research-and-economics/forecasts-andcommentary https://www.nar.realtor/research-and-statistics

78, 79

Mortgage Credit Availability

https://www.mba.org/news-research-andresources/newsroom https://www.mba.org/news-research-andresources/research-and-economics/single-familyresearch/mortgage-credit-availability-index

81-84

NE Valley of the Sun Stats

ARMLS

2, 85

Contact Us

480-229-6468, https://www.ShowScottsdaleHomes.com

72, 73, 75, 76

74


Home Sales


Jan-19 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-20 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-21 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-22 Feb Mar Apr May June July Aug Sept Nov Dec Jan-23 Feb Mar Apr May June July Aug Sept Oct Nov

Average Days on the Market November 2023 49

46 44 4141

38

36 36

29

26

24 27 36 33

29 27 26 24 2222 21212121 20 18 171717171717 1818 1919 18 19

1717 16 34

3131 29

26

24 25

22 23

2020 21

1818

16

1414

Source: NAR


Existing Home Sales Since January 2014 6,800,000

6,300,000

5,800,000

5,300,000

4,800,000

4,300,000

3,800,000

Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Jan 2020

Jan 2021

Jan 2022

Jan 2023 Source: NAR


Existing Home Sales Year-Over-Year, by Region U.S.

Northeast

Midwest

South

West

-4.3%

-7.3% -8.7%

-8.6%

-13.0%

Source: NAR


Existing Home Sales In Thousands 2021

2022

January

February

2023

600

500

400

300

200

100

0

March

April

May

June

July

August

September

October

November December Source: NAR


New Home Sales Annualized in Thousands 1060

960

860

760

660

560

460

360

jun-14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23 Source: Census


New Home Sales Percent of Distribution by Price Range * Less Than 500 Units or Less Than 0.5 Percent

9%

10%

11%

6%

*

*

0% Under $150K

$150-$199K

3% $200-299K

$300-$399K

$400-$499K

$500-$749K

Over $750K Source: Census


Jan-19 Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan-20 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-21 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-22 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-23 Feb Mar Apr May June July Aug Sept Oct Nov 1.5 1.5 1.7 1.9

1.9

2.4 2.6 2.7 2.5 2.8 2.6 2.3 2.3 2.3 2.4 2.7

2.4

2.8 2.9

3.2

3.1 2.9 2.8 2.7

2.5

3.2

3.5 3.5

3.6

3.7

3.6

3.6 3.6 3.4 3.5 3.6 3.4 3.2 3.5 3.1 3.2 3.0 3.4 3.4 3.4 3.3 3.6

3.2

4.1 4.5

4.5

4.2 4.3 4.5 4.5 4.2 4.0

5.1 4.9

New Homes Selling Fast Median Months from Completion to Sold

Source: Census


Total Home Sales In Thousands 2021

2022

2023

676 593

587

567 524

557

517 475

443 422

436 423

421

646

631

604

575

577

528 491

495 432

453

477 403

397

574

557

419 383

325

372 341

374

286

January

February

March

April

May

June

July

August

September

October

November December Source: Census


Pending Home Sales 140 130 120 110 100

100 = Historically Healthy Level 90 80 70 60January 2012

January 2013

January 2014

January 2015

January 2016

January 2017

January 2018

January 2019

January 2020

January 2021

January 2022

January 2023

Source: NAR


Pending Home Sales Year-Over-Year by Region U.S.

Northeast

Midwest

South

West

-2.2%

100 = Historically Healthy Level -4.9%

-5.2% -6.4%

-6.5%

Source: NAR


Percentage of Distressed Property Sales Distressed Sales (Foreclosures and Short Sales) Represented 1% of sales in November. 35%

30%

25%

20%

15%

10%

5%

0%

Jan 2012

4%

Jan 2013

Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Jan 2020

Jan 2021

Jan 2022

Jan 2023

Source: NAR


Home Prices


Sales Price of Existing Homes Year-Over-Year, by Region 5.3% 4.8%

4.9%

4.0%

U.S.

3.4%

Northeast

Midwest

South

West Source: NAR


% Change in Sales Year-Over-Year, by Price Range 13.4%

5.7% -2.0% -5.1%

-5.6%

-15.3%

% change in sales

$0-100K -5.1%

$100-250K -15.3%

$250-500K -5.6%

$500-750K -2.0%

$750K-1M 5.7%

$1M+ 13.4% Source: NAR


Change in Home Prices Year-Over-Year 20%

15%

10%

5%

0%

Jun 2012

Jan 2013

Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Jan 2020

Jan 2021

Jan 2022

Jan 2023

Source: S&P Case-Shiller


Change in Home Prices Year-Over-Year, 20 City Composite 20%

15%

10%

5%

0%

Source: S&P Case-Shiller


Change in Home Prices Year-Over-Year, 20 City Composite 21.1%21.2% 20.5% 18.7% 16.0%

13.1% 10.4% 8.6% 6.8% 4.6% 2.6% 1.0% Mar

Apr

May June

July

Aug

Sept

Oct

Nov

DecJan 2023Feb

1.6% 1.7% 1.5%

Mar

Apr

0.9% 0.6%

May June

July

0.4% 0.2% 0.1% Aug

Sept

Oct

Source: S&P Case-Shiller


Year-Over-Year % Change in Price US Home Price Insights – October 2023

4.7%

2.9%

Current

Forecast Source: CoreLogic


Housing Inventory


Change in Inventory

Month-Over-Month, November 2023

Source: Realtor.com


Months Inventory of Homes for Sale 2011 - Today 9.5

8.5

7.5

6.5

5.5

4.5

3.5

2.5

1.5January 2011

January 2012

January 2013

January 2014

January 2015

January 2016

January 2017

January 2018

January 2019

January 2020

January 2021

January 2022

January 2023

Source: NAR


2.7

2.6 2.6

2.6

2.5 2.5 2.6 2.6 2.4 2.4

2.3

2.3

2.1 1.7 1.6 1.7 1.9 2.2

1.9 1.9 2.0 2.1

2.0 3.6 3.5

3.3 3.3 3.4

3.2 3.2 3.2 3.3 3.3

2.9 3.0 3.1

2.9 2.9

2.9

3.1 3.0

3.3

3.7

3.9

4.0

4.0 4.0 3.9

4.2 4.3 4.3 4.2

4.6

4.5

2.5

2.5 3.8

4.0

3.0 3.1 3.1

3.0 3.8

3.5 3.6

Months Inventory of Homes for Sale Since 2019 6.0

5.5

5.0

1.5 Source: NAR


Year-Over-Year Inventory Levels 30%

20%

10%

0%

-10%

-20%

-30%

January 2014

January 2015

January 2016

January 2017

January 2018

January 2019

January 2020

January 2021

January 2022

January 2023

Source: NAR


Year-Over-Year Inventory Levels Last 12 Months

15.3%

15.3%

10.2% 5.4% 1.0% Dec

Jan-23

Feb

Mar

May

June

July

Aug

Sept

Oct

0.9% Nov

Apr

-5.7%

-6.1% -8.1%

-13.6%

-14.6%

-14.1%

Source: NAR


New Home Monthly Inventory Seasonally Adjusted, Last 13 Months

9.7

9.4

9.2 8.5

8.1

8.4

8.1 7.6

Oct

Nov

Dec

Jan 23

Feb

Mar

Apr

7.2

May

7.5

June

7.9 7.4

7.1

July

7.9

Aug

Sept

Oct

Nov

Source: Census


New Home Monthly Inventory Non-Seasonally Adjusted 2022 2023

11.4 11.3 10.9

10.7

10.4

9.7

9.5

9.2 8.8 8.4

7.9

7.6

7.6 6.9

7.9

7.6

7.5

7

7.2

6.3 5.6

Jan

5.9 5.5

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec Source: Census


Buyer Demand


Home Showings Declined Compared to August Numbers, but Still Remain Above Pre-Pandemic Levels Year-Over-Year Increase in Showing Activity, September 2023

Michael Lane, Vice President & General Manager, Showing Time “Buyers and sellers remain active in every economic environment, including when mortgage rates are high. . . . Buyers determined to find a home they love will continue visiting homes with their agents, and as we mentioned previously, some sellers are reducing prices, which presents an opportunity for those buyers.” 9.1%

9.7%

5.5% 3.3% 0.7% U.S.

Northeast

Midwest

South

West Source: ShowingTime


Mortgage Rates


2.0 1/4/2018 2/1/2018 3/1/2018 3/29/2018 4/26/2018 5/24/2018 6/21/2018 7/19/2018 8/16/2018 9/13/2018 10/11/2018 11/8/2018 12/6/2018 1/3/2019 1/31/2019 2/28/2019 3/28/2019 4/25/2019 5/23/2019 6/20/2019 7/18/2019 8/15/2019 9/12/2019 10/10/2019 11/7/2019 12/5/2019 1/2/2020 1/30/2020 2/27/2020 3/26/2020 4/23/2020 5/21/2020 6/18/2020 7/16/2020 8/13/2020 9/10/2020 10/8/2020 11/5/2020 12/3/2020 12/31/2020 1/28/2021 2/25/2021 3/25/2021 4/22/2021 5/20/2021 6/17/2021 7/15/2021 8/12/2021 9/9/2021 10/7/2021 11/4/2021 12/2/2021 12/30/2021 1/27/2022 2/24/2022 3/24/2022 4/21/2022 5/19/2022 6/16/2022 7/14/2022 8/11/2022 9/8/2022 10/6/2022 11/3/2022 12/1/2022 12/29/2022 1/26/2023 2/23/2023 3/23/2023 4/20/2023 5/18/2023 6/15/2023 7/13/2023 8/10/2023 9/7/2023 10/5/2023 11/02/2023 11/30/2023 12/28/2023

Mortgage Rates 30-Year Fixed Rate, January 2018–Today 6.61%

8.0

7.5

7.0

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

Source: Freddie Mac


Mortgage Rates 30-Year Fixed Rate, January 2016–Today 8.0

6.61%

7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0

Source: Freddie Mac


Mortgage Rate Projections January 2023

Quarter

Fannie Mae

MBA

NAR

Average of All Three

2023 Q4

7.40%

7.40%

7.80%

7.53%

2024 Q1

7.00%

7.00%

7.50%

7.17%

2024 Q2

6.80%

6.60%

6.90%

6.77%

2024 Q3

6.60%

6.30%

6.50%

6.47%


2.0 2019 1/31 3/7 4/4 5/2 6/6 7/3 8/1 9/5 10/3 11/7 12/5 2020 2/6 3/5 4/2 5/7 6/4 7/2 8/6 9/3 10/1 11/5 12/3 2021 2/4 3/4 4/1 5/6 6/3 7/1 8/5 9/2 10/7 11/4 12/2 2022 2/3 3/3 4/7 5/5 6/2 7/7 8/4 9/1 10/6 11/3 12/1 1/5 2/2 3/2 4/6 5/4 6/1 7/6 8/3 9/7 10/5 11/9 12/7

Mortgage Rates 30-Year Fixed Rate 8.0

7.0

7.5 7.1 6.6

6.0

4.0

2023 Q4 2024 Q1 2024 Q2

6.3

5.0

Where Are They Going?

3.0

January 2019 – Today Actual Interest Rates

2024 Q3

Source: Freddie Mac, MBA


Mortgage Rates 30-Year Fixed Rate

- Actual - Projected

7.5

2023

7 6.5 6

2024

5.5 5

2019

4.5 4

2022

2018

2020

3.5

2021

3 2.5 Rate

2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 4.3

4.5

4.6

4.8

4.4

4

3.7

3.7

3.5

3.2

3.0

2.8

2.9

3.0

2.9

3.1

3.9

5.3

5.7

6.6

6.4

6.5

7.0

7.4

7

6.6

6.3

6.1

Source: MBA


Mortgage Credit Availability


Mortgage Credit Availability Index (MCAI) November 2023 190 180 170 160 150 140 130 120 110 100 90

Apr 2013

Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Jan 2020

Jan 2021

Jan 2022

Jan 2023 Source: MBA


Lending Standards Still Under Control Historic Data for the Mortgage Credit Availability Index (MCAI) 900

Housing Bubble: 868.7

800

700

600

500

400

300

200

96.5 100

0

June 2004

June 2006

June 2008

June 2010

June 2012

June 2014

June 2016

June 2018

June 2020

June 2022

November 2023

Source: MBA


Housing Market Statistics for Northeast Valley Single Family Homes in Carefree, Cave Creek, Fort McDowell, Fountain Hills, Paradise Valley, Rio Verde and Scottsdale, Arizona


Average Price per Sq Ft

for Sold Northeast Valley Single Family Homes

Source: ARMLS


Average Days on Market

for Sold Northeast Valley Single Family Homes

Source: ARMLS


Number of Active Listings for Northeast Valley Single Family Homes

Source: ARMLS


Average Price per Sq Ft

for Active Northeast Valley Single Family Listings

Source: ARMLS


CONTACT US TO DISCUSS YOUR LOCAL ARIZONA REAL ESTATE MARKET

Peter Shambreskis, REALTOR®, ABR, CRS, GRI, SFR 480-229-6468 Corinne Howard, REALTOR®, ePRO, GRI, SFR, SRS 480-229-6467 info@ShambreskisAndHoward.com www.ShowScottsdaleHomes.com


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