The market in the East Valley continues to be a buyer’s market, since supply is bigger than demand. With interest rates still low, real estate priced healthy, mortgage payments lower than comparable rent payments, and plenty of inventory to choose from, the expectation would be fore more buyers to hit the market. However, we continue to see fewer buyers than the market would like to see.
Why is this? There are quite a few reasons, and though we generally don’t like to speak in generalities, there are some trends that can explain the lower-than-optimal level of buyer activity.
Millennials seem to like renting. Where past generations find community in the neighborhood they live in, Millennials find community online. Millennials like the flexibility of renting, which allows them the spontaneity to pick up and move across town or across the country. Unlike previous generations, Millennials will often move to a new area BEFORE they find a job, since security isn’t as important as previous generations. Even though it is more expensive to rent than to buy in the East Valley if you plan to stay at least seven years, Millennials often don’t want to be tied down to any more than a one-year lease.
Massive Student Loan Debt. With more and more buyers finding themselves emerging from academia and into the workplace only to be crippled with massive student loan debt, fewer are able to qualify for mortgages.
First Time Homebuyers Are Not Eager. First time homebuyers are making up a smaller and smaller percentage of home purchasers. Where they made up about half of homebuyers in 2009, since mid 2010 the first-time homeowners have made up about 30% of purchases of previously owned homes.
Many Are Still Unable or Unwilling to Purchase Again. While there are many, many former homeowners who lost their homes to foreclosure or short sale that are still waiting out the timeframes and repairing their credit, the foreclosure wave has shown to make many who have been through the foreclosure process as well as those who have only observed it from the sidelines to become more hesitant to own in light of the risk.
The Kids Won’t Leave Home! Part of the problem of having less buyers is the hesitancy of Millennials to leave home. More and more younger people in their 20s and 30s are content in staying home and sharing in the costs with their parents.
Many Would-Be Buyers Don’t Trust the Economy. Fannie Mae released a survey that shows that many are not entering home ownership because they think the economy is heading in the wrong direction. National data shows that concerns about economic conditions are holding back many consumers from buying.
Regardless of the issues, it is a wonderful time to be a buyer! There are many properties to choose from, and competition is lower than in past years. To see what homes are on the market and to meet with a lender to see how you might be able to qualify, visit www.AZHomeChoice.com.
Especially when it comes to major decisions like buying or selling your home, human nature seems to tilt toward delaying action until it’s the end result is absolutely certain. After all, nobody wants to make a life-changing move that turns out to be anything short of fantastic!
So even when you’ve outgrown your current home…or found yourself in a daily long-distance commute to Surprise because work has moved…or any number of other reasons why you know you should be looking for a new house…it can be difficult to commit to such a looming decision. Adding to that is one of the most common assumptions many Mesa homeowners believe: that they have to spend a boatload of money to increase their home value.
The truth is: it ain’t so! You can strategically update your Mesa house before you put it on the market without cratering your bank account.
Items that only seem to require costly fixes:
Adding space to a room increases any Mesa home value. Tearing out walls isn’t necessary when there are so many other ways to achieve the same thing. Simple options include removing built-in shelves, enlarging windows, or (the simplest) just removing “stuff” that’s hogging perceived space.
More and more, you can improve your Mesa home value by installing modest “green” upgrades. Today’s buyers may not necessarily be eco-focused—they may simply have a good sense of the increasing cost of water and power. “Going green” as a way to add home value to your area property can be no more costly than switching to low-flow toilets, adding a wifi thermostat with “smart” technology, or putting in a low cost drip watering system.
Have a room that comes across as outdated…or just plain ‘blah’? Consider how much extra home value a new window treatment might add. It could be as simple as installing a stylish valence over a window or two.
Remember your first apartment with its flimsy, hollow doors? A quality door can make a disproportionate difference to a property’s perceived home value. Changing out your front or back doors for more a more weighty or modern selection can be well worth the expense.
Paint is the number one way to alter the look of a room inexpensively. Instead of painting the entire room one color, another option is to make a “statement wall” in its own neutral color that compliments a painting’s or picture frame’s palate.
These are just a few suggestions that can increase the value of your home in Mesa without a straining the family finances. Even in an older home, many times it’s the little touches that can make the greatest difference.
Looking for specific suggestions to improve the value of your Mesa home before listing it for sale? Call us today for an in-home custom market evaluation!