How Does Appreciation Affect The Health of A Market
When Appreciation gets too high and “on fire” I get nervous. On fire is NOT stable, and not sustainable.
Phoenix was just ranked 12th in the country on the Case-Shiller index, for year-over-year appreciation at 5.6%. The number one market in the country is Seattle, which is at 12.6% city-wide average. I would say 12.6% appreciation is not healthy…and definitely unstable.
A year-over-year appreciation rate of 5.6% Valley-wide is balanced. As a result it is likely maintainable for the coming future. I don’t know about you, but a balanced and maintainable market that is growing, gets me excited!
With the national real estate market Improving, this comes with increases in lending rates. What this means is, we’re seeing buyers make decisions faster on which houses they want to make offers on. With the low amount of supply, the best houses that are priced well, get multiple offers. Sellers typically win a little more money when more than one person is interested in buying their house at the same time.
Overall it’s a good time to Buy because we don’t know how far interest rates will rise, and home values are still going up.
And it’s a good time to SELL because when inventory is low, we have a better chance of getting multiple buyers interested in your house. Chances are the value of your property has most likely increased in the last 8 years. So the with all of these factors, it is a great time for sellers to get top dollar!