The Mortgage rates defied the expectations of the industry and rose from 5.99% to 7.1%, between February and March. Sales prices have also continued to creep up 3.5% since December and we currently have 9,001 contracts, which is the 4th lowest count since 2005. Buyers and Seller are both holding back putting new listings recorded on Arizona Regional MLS the lowest amount recorded in 23 years. This may seem shocking since supply year-over-year has continued to increase but the truth is, the amount of listings has decreased 27% and is settled around 14,772 listings, and normally active listing sit between 20,000 – 24,000.
Higher mortgage rates have stunted the demand, but it’s not expected to stay high forever. In the meantime, FHA announced a reduction in the mandatory mortgage insurance premium (MIP), effective this month. FHA mortgage rates typically run about a half-point lower than conventional rates and this further reduction in the MIP could equate to an additional $100 off the monthly payment for borrowers. Combine that with the higher FHA loan limit of $530,150 for 2023, and many first-time homebuyers may still find ownership within their reach. The best advice for buyers is to become educated on all the incentives available, from seller-paid rate buydowns to down payment assistance, while the sellers remain open-minded.
We’re still within a seller’s market, and sales price measures have stopped dropping but sellers continued to pay for buyer’s closing costs on 48% of MLS closings in March, with half paying $9,000 or more. Since there is less supply, sellers have much less pressure to reduce their listing prices. Only 13-14% of inventory issued a price reduction. The average negotiation is 97.4% of the last list price this month, which is an improvement. The Phoenix Valley is predominantly a sellers’ market, except for 5 cities: Queen Creek, Maricopa, Buckeye, Casa Grande, and Sun City West. These 5 remain in the buyer’s market.
Waddell, The Gateway to the White Tank Mountains is known to be the safest, most peaceful place in the NW Valley, according to FBI crime data. If you’re looking for a small-town atmosphere with easy access to big city amenities, and beautiful mountain views, then Waddell may be for you!
Waddell is an unincorporated community that is fully integrated with Surprise, AZ. Giving residents city life just 10 miles away for jobs, major retail centers, seven golf courses, and of course, White Tank Regional Park with canyons and ridges for walking and hiking up to a waterfall. The city of Phoenix is only a 30-minute drive. The population of Waddell is 11,369, with a median age of 34.7 of its residents.
Again, if you’re looking to be in a safe area that has small town and big city amenities then Waddell is the place for you. Whether you’re interested in New Build options or buying an established home in Waddell, The Garcia Group has your back!