Where Is Our Real Estate Market Now and Where Is It Headed in 2017?

2017 Chandler and Gilbert, AZ Market Predictions for Real Estate

As we begin a new year, I thought I would send out the numbers for the last month of 2016 and give a little insight on where the experts are looking for 2017 market and interest rates.
January 3 – How does December 2016 compare to all the other Decembers we have measured over the years?
Monthly Sales Count = 7,191 – 5th highest (after 2010, 2004, 2011 and 2009)
Annual Sales Count = 90,027 – 3rd highest (after 2005 and 2004)
Average Sales Price = $282,067 – 4th highest (after 2006, 2005 and 2007)
Median Sales Price = $225,000 – 4th highest (after 2006, 2005 and 2007)
Monthly Average Price per Square Foot = $144.79 – 4th highest (after 2005, 2006 and 2007)
Annual Average Price per Square Foot = $141.43 – 4th highest (after 2006, 2007 and 2005)
Dollar Volume = $2.028B – 2nd highest (after 2005)

So, thanks to the 5th strongest sales count and the 4th strongest pricing, we just had the second best December for dollar volume in the last 16 years.

So, This leads us to our next question…what are interest rates doing and what do we think they will do into the middle of 2017? As of 1/11/17 a 30 year conventional fixed rate is 4.250%, 30 year fixed FHA is 4.250% and VA 30 year fixed is 3.875%. Mortgage Lenders are saying they expect the rates to increase 2 more times this year. With that being said, interest rates are still low, but you will want to start making a move now to get in before they jump again.

On another positive note:

The Federal Housing Administration (FHA) announced today that Mortgage Insurance Premiums (MIP) have been lowered by 25 basis points. Effective January 27th, the premium reduction can save  FHA homebuyers up to $500 this year.

This means there are now more eligible homebuyers for FHA loan options who may not have qualified for prior to the premium cut.

If you have any questions about what these numbers mean for you, please don’t hesitate to contact me. Betsie Melter Realty ONE Group 480.734.3644 realtorbetsie@gmail.com or facebook.com/homesbybetsie

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