Rena Chavez Real Estate

Come see us at our open house Friday and Saturday! Great Queen Creek location! 🤩

What are you doing to get yourself ready for retirement? Let's chat about it.

𝗪𝗵𝘆 𝗗𝗼𝗲𝘀 𝗕𝗮𝗹𝗮𝗻𝗰𝗲𝗱 𝗠𝗮𝗿𝗸𝗲𝘁 𝗙𝗲𝗲𝗹 𝗨𝗻𝗯𝗮𝗹𝗮𝗻𝗰𝗲𝗱?

The valley’s real estate market has been stuck in neutral for a while. Both buyers and sellers have largely been staying on the sidelines and often for the same reason – interest rates. Sellers wanting to move, swallow hard when considering giving up their 3% mortgage for a 7+% replacement rate. Buyers look at their decreased buying power when rates are elevated. This results in a low volume market (i.e. fewer transactions). Finally, August 5th, the long awaited drop in interest rates happened when rates fell to the 6.5% range. While that won’t impress sellers holding 3% mortgages – it is a full percent below April’s rates of 7.5%. Buyers should know that a 1% drop in rates affects their payment comparable to a 10% drop in the home price. But the psychology of money is a funny thing – the drop in rates increased the number of mortgage applications only by a measly 1%. Why? When rates drop, buyers don’t always act immediately – in hopes they will fall further. 🙄 Let's talk about it. state