Jeff shares with Sharon his 2022 Real Estate Prediction that average home prices in Arizona will go down, while your home value will go up…How is this possible? Listen, read along, and watch Jeff explain how!
Sharon: Hey Jeff how’s it going?
Jeff: Hi Sharon, I was so excited for you to get the you top agent award this year, you did a great job! So, what were you saying?
S: I was just meeting with a client of mine and he was saying, “Sharon, you know I just got done reading that Fortune magazine article that says prices are coming down this year,” so I was telling him “No, you know we were just in a team meeting and prices are going to go up next year, they’re not going to come down.” It’s very confusing to people – How can they go up and come down?
J: I know it’s hard when prices are actually going to rise, but the average price is going to go down. I think we’re going to need something special. I think we’re going to reach into the bag. I think we’re going to pull out cup theory 21.0!
J: Oh my God Sharon, we’re here, cup theory 21.0!
S: That’s exciting, also known as the 2022 Real Estate Market Prediction.
J: All right, so what are we going to cover here, Sharon?
S: You’re going to tell us how exactly the market can go up and down at the same time.
J: Right, I’m going to show that there’s no magic to it. But, I think we should first explain the values so that everybody’s on the same page. Each cup represents a home at $500,000. So Sharon, what is that?
S: In this example, this home is five hundred thousand.
J:Right, so we got five sales at five hundred thousand. So these stacks here are too high, so they’re worth how much? They make a million, so we got two sales at a million and then we got the stack here with three so that’s a million and a half. And the last one that is four stacks high is a two million dollar home. And don’t forget about these.
S: What are those weird things?
J: These are appreciations, because homes are going to appreciate.
S: That’s awesome!
J: At the current value, we have 10 sales at an average of one million dollars in front of us. Again, this is just this is an example of 2021.
J: So, now it’s what?…Did you like my time machine?
S: Now we’re at the end of 2022.
J: Another great year! You know what they don’t know? The Suns and the Cardinals both won the championships, and all the house values went up even though the average went down! Let’s explain how exactly.
S: Okay, we have appreciation here for every home.
J: Right, so the lower price homes are gonna appreciate by a hundred thousand dollars, so almost like twenty percent, and each of these are still going to appreciate about a hundred thousand dollars. So, all the homes went up in value, although the average went down because we have ten sales. We just took away one two million dollar sale and we added one five hundred thousand dollar sale, so now the average is nine hundred fifty thousand where it used to be a million. So the average price went down while home values went up!
If you want to know the price that you can get for your home, if you want the highest price and you want a guaranteed offer, if you want to stay for six months, cut out the gimmicks and call the Sibbach Team at 480-500-1738!