Last week’s economic news was abundant with releases on home builder sentiment, housing starts, building permits, sales of previously owned homes. The Federal Open Market Committee of the Federal Reserve released its customary statement at the conclusion of its meeting; Fed Chair Janet Yellen also gave a press conference. Weekly readings on new jobless claims and mortgage rates were released as usual.
NAHB: Builder Sentiment Increases in September
Home builder confidence in housing market conditions increased in September according to the National Association of Home Builders Housing Market Index. Builder confidence rose five points to 65; analysts expected a reading of 60 based on August’s reading of 59. NAHB said that September’s reading was boosted by more “serious” buyers entering housing markets.
Components used to determine NAHB HMI readings were also higher. Builder confidence in current market conditions rose six points to 71; builder confidence in housing market conditions over the next six months rose by five points to 71. Builder confidence in buyer traffic in new housing developments rose four points to 48. Buyer traffic readings have not reached 50 since 2005; 50 is a neutral benchmark for NAHB HMI readings.
Home prices continue rising at a higher pace than wages; this is pressuring first-time and moderate income buyers out of the market. An ongoing shortage of available homes is pressing prices higher as demand increases. Analysts pay close attention to the NAHB HMI as building more new homes is a key factor in easing the shortage of homes for sale.
Housing Starts, Building Permits Lower
Commerce Department readings on housing starts and permits issued were lower for August Housing starts were lower in August at 1.142 million starts on a seasonally-adjusted annual pace. Analysts expected 1.182 million housing starts based on July’s reading of 1.212 million starts. Regional readings showed a dip in starts in the South. Severe flooding in Louisiana contributed to the lower reading for housing starts. August’s reading for housing starts was 5.80 percent lower than July’s reading and 0.90 percent lower than for July 2015.
Building permits issued were nearly flat in August; this was likely due to the prime building season winding down 1.139 million permits were issued as compared to 1.144 million permits issued in July. Single-family starts were six percent lower than for July and were 1.20 percent lower year-over-year.
Existing Home Sales Dip: High Demand, Low Supply Cited
Sales of pre-owned homes fell by 0.90 percent in August to a seasonally-adjusted annual rate of 5.33 million sales. Analysts expected a reading of 5.48 million sales; July’s reading for sales of pre-owned homes was 5.38 million sales.
Low inventory of available homes continues to impact housing markets as demand for homes increased and prices rose; the national average home price was $240,000 in August. Rising home prices continued to be driven by high demand and low supplies. These conditions also impacted first-time and moderate income home buyers who were pressured to keep up with rapidly rising home prices.
While mortgage rates remain relatively low, higher home prices and tight mortgage credit requirements remain obstacles for first-time buyers.
Mortgage Rates, Weekly Jobless Claims Lower
Freddie Mac reported lower mortgage rates last week. The average rate for a 30-year fixed rate mortgage fell by two basis points to 3.48 percent; the average rate for a15-year fixed rate mortgage fell on one basis point to 2.76 percent. The average rate for a 5/1 adjustable rate mortgage was lower by two basis points at 2.80 percent.
Analysts expected new jobless claims to remain flat at the prior week’s reading of 260,000 new claims, but 252,000 new claims were filed for the lowest reading since July. The four-week rolling average of new jobless claims fell by 22250 claims to 258,500. The four-week reading is considered a less volatile reading than week-to-week readings.
Federal Reserve: No Increase in Fed Rate
The Federal Open Market Committee said in its post-meeting statement that the target federal funds rate would not be raised. In a press conference given after the FOMC statement, Fed Chair Janet Yellen said that although the economy continued to improve, the Fed had concerns over the labor market and decided not to raise rates. Any increase in Federal Reserve rates triggers increases in consumer lending rates.
What’s Ahead
This week’s readings include Case-Shiller Home Price Indices, readings on new and pending home sales and weekly readings on mortgage rates and new jobless claims.
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1844 W Virginia Avenue
Phoenix, AZ 85007
$575,000
3
Beds
2
Baths
1,750
SqFt
Status
Active
MLS #
6770895
Property Type
Single Family Residence
Price Type
--
Charming 3-bed, 2-bath Home backed up to the beautiful Encanto Golf Course, this home offers breathtaking views! With new Anderson windows and a sliding door, plus custom stonework inside and out, this house blends elegance with durability. The AC system is only 2-3 years old and comes with a premium dust-collecting filter, an upgrade valued at $1,250. The kitchen floor is finished with luxurious Colorado stone, New dishwasher and washer ready to go. The property features beautiful landscaping, a large garage that fits both a sedan and a truck. New electrical box. All the fascia and soffits are covered, so you'll never need to repaint. Enjoy energy efficiency with awnings on all windows, and the monthly electric bill is just $168 for this all-electric home. Don't miss this opportunity!!!
2749 E Bellerive Drive
Gilbert, AZ 85298
$575,000
4
Beds
2
Baths
1,759
SqFt
Status
Active
MLS #
6759037
Property Type
Single Family Residence
Price Type
--
Discover this METICULOUSLY maintained north/south facing 4-bedroom, 2-bath home. Located on a quiet street in the highly sought-after community of Adora Trails in South Gilbert. Featuring the popular Lily floor plan, this home boasts an UPGRADED kitchen with granite countertops, stainless steel appliances, a gas stove, and a pantry. The spacious dining area and large breakfast bar make mealtimes a delight. This split floor plan showcases wood-look tile in all main living areas and neutral paint throughout, creating a warm and inviting atmosphere. The upgraded 9' ceilings throughout and impressive 12' vaulted ceilings in the family room add to the sense of space and elegance. Enjoy the beautiful Arizona weather from your front porch with a lovely sitting area or retreat to your backyard covered pavered patio equipped with an outdoor TV, perfect for entertaining. The low-maintenance backyard is ideal for those who prefer relaxation over upkeep. Storage is plentiful with upgraded full cabinets in the laundry room, Monkey Bar shelving, and two large suspended ceiling racks in the garage, ensuring you have space for all your belongings. This home is move-in ready with washer, dryer and refrigerator. Have peace of mind knowing that the AC and heating have been under an annual inspection and service contract. All this nestled in the highly sought-after Adora Trails community, residents are treated to an exceptional lifestyle enriched by a variety of amenities. Enjoy beautifully maintained parks, scenic walking trails, and state-of-the-art recreational facilities, perfect for both relaxation and active living. The community clubhouse is a hub of activity, featuring a fully equipped gym, spacious meeting rooms, and a modern kitchen for gatherings. Residents can also take advantage of the inviting pool, which boasts lap lanes, a wading area with a splash pad, and is heated during the winter months for year-round enjoyment. With an on-site elementary school and a calendar full of community events, Adora Trails fosters a vibrant, active lifestyle that brings neighbors together. Discover the perfect blend of convenience, community, and fun in this desirable neighborhood!
1580 Calle Simpatico Drive
Wickenburg, AZ 85390
$575,000
3
Beds
2
Baths
2,004
SqFt
Status
Active
MLS #
6761470
Property Type
Single Family Residence
Price Type
--
This PRISTINE CUSTOM ''JEB'' home is located in the desirable PUEBLO CASSANDRA Village, where luxury meets comfort and security featuring a HEATED POOL and spa to enjoy year-round ARIZONA living. Step through the front door to be wowed by vaulted ceilings, open floorplan, plantation shutters, ambiance lighting, a gorgeous chandelier and a cozy gas fireplace. Not a detail left behind in the kitchen with stainless appliances, beveled edge GRANITE countertops, spacious island, and extensive Knotty-Alder soft touch CUSTOM cabinetry. Hide-a-way to the PRIMARY SUITE through PRIVATE DOUBLE ENTRY doors complete with a HUGE walk-in closet and separate exit to the expansive COVERED PATIO surrounded by a stucco finished wall. WOW! This EXQUISIT home with resort living is IN WICKENBURG!
3512 N Citrus Cove
Mesa, AZ 85213
$575,000
5
Beds
3
Baths
2,294
SqFt
Status
Active
MLS #
6776608
Property Type
Single Family Residence
Price Type
--
Stunning 5-bedroom, 3-bathroom home nestled in a serene, gated community! Fully updated and move-in ready, this home shines with fresh interior paint, brand new carpet, a new water softener, water heater, and AC system. The gorgeous kitchen is a showstopper with upgraded cabinets, sleek granite countertops, and a spacious island that flows effortlessly into the dining and great room—perfect for entertaining! A full bedroom and bathroom on the first floor provide the ideal setup for guests or multigenerational living. Upstairs, unwind in the luxurious master suite, complete with an en suite bathroom and a huge walk-in closet. The community offers beautiful walking paths, play areas, and is just minutes from the Red Mountain 202 Freeway and a quick 20-minute drive to Sky Harbor Airport!
10015 E Mountain View Road Unit 1004
Scottsdale, AZ 85258
$575,000
2
Beds
2.5
Baths
1,792
SqFt
Status
Active
MLS #
6749416
Property Type
Townhouse
Price Type
--
Welcome to a charming oasis in the heart of Scottsdale Ranch, where elegance meets comfort. This exceptional home offers a spacious living area perfect for relaxation and entertaining, highlighted by a cozy fireplace that invites warmth and charm. The gourmet kitchen is a chef's dream, featuring custom cabinetry, gleaming quartz countertops, and state-of-the-art stainless steel appliances. Unwind in the expansive Primary Suite, your personal retreat, complete with a spa-like bath designed for ultimate relaxation. Discover luxury living at its finest in one of Scottsdale's most sought-after neighborhoods!
6202 E Mckellips Road Unit 42
Mesa, AZ 85215
$575,000
2
Beds
2
Baths
1,587
SqFt
Status
Active
MLS #
6762857
Property Type
Single Family Residence
Price Type
--
Welcome to your dream home in the gorgeous, gated community of Tuscany Villas! This beautiful detached home comes **FURNISHED** and offers a prime location right on the **golf course,** perfect for enjoying peaceful mornings or sunset views. Whether you're looking for a full-time residence, a personal vacation getaway, or a lock-and-leave option, this property delivers versatility and luxury. Inside, you'll find an open kitchen, granite countertops and high-quality furnishings throughout. Recent updates include a new HVAC system and water heater. Please see documents tab regarding items that do not convey as well as HOA information.
6012 E Vernon Avenue
Scottsdale, AZ 85257
$575,000
3
Beds
2
Baths
1,860
SqFt
Status
Active
MLS #
6770543
Property Type
Single Family Residence
Price Type
--
Step outside to panoramic views of the Papago Mountains from your front courtyard and Camelback Mountain as the perfect backdrop from your private back patio. This 3-bedroom, 2-bath home offers privacy along a lush greenbelt and features a BRAND NEW ROOF with all new plywood decking ($44k), w/warranty, and the A/C unit has been replaced so you can chill out. Enjoy an oversized patio and yard, a wood-burning fireplace, and access to a hillside pool. Similar remodeled homes have sold for $800,000—this one is full of potential. Located minutes from Old Town, Tempe, ASU, SkySong, and the airport, it's a hidden gem in the heart of the city.
9238 E Diamond Drive
Sun Lakes, AZ 85248
$575,000
2
Beds
2
Baths
1,763
SqFt
Status
Active
MLS #
6768385
Property Type
Single Family Residence
Price Type
--
BEAUTIFULLY UPDATED! Light and open single-level home with vaulted ceilings. Completely new modern kitchen with white cabinetry and stainless-steel appliances including new gas oven/range. New plank flooring throughout. 2 bedrooms plus a den/study (could be 3rd BR). 2 recently updated bathrooms. Extended 2 car garage with GOLF CART SPACE, extra storage and new epoxy floor. Home water purification system. Covered patio & spacious back yard. Brand new roof (new tiles too)!) --- Oakwood Country Club is one of Arizona's premier Active Adult communities. Guard-gated entry. 45 holes of beautifully maintained championship golf. 2 community restaurants. 7 community pools. Fitness Center. Tennis & Pickleball. Walking trails & much more! - Just move in and enjoy the Oakwood Country Club lifestyle!
21093 E Pecan Lane
Queen Creek, AZ 85142
$575,000
4
Beds
2.5
Baths
2,105
SqFt
Status
Active
MLS #
6772321
Property Type
Single Family Residence
Price Type
--
SPECTACULAR HOME with PICTURESQUE views of the San Tan Mountains on a premium lot that backs to the greenbelt. This open floor plan is an entertainers DREAM for both inside/outside living! You will love the fully remodeled, exquisitely designed kitchen with massive island, quartz countertops and tons of cabinet space. CUSTOM touches throughout including accent walls and barn door. Huge master suite on east wing features MASSIVE closet and large walk in shower. Low maintenance resort style backyard with a salt water pool. This coveted community features soccer fields, sand volley court, basketball courts and multiple play areas. Close to so many new entertainment and dining options and the new 24 freeway. This is the one you have been waiting for to move in and make YOURS!
8215 E Cypress Street
Scottsdale, AZ 85257
$575,000
4
Beds
3
Baths
1,832
SqFt
Status
Active Under Contract
MLS #
6773904
Property Type
Single Family Residence
Price Type
--
Attention investors: This is your next dream project! Located in a highly desirable Scottsdale neighborhood, this single family home has been temporarily transformed into a duplex-like property. A wall has been put up that turns this 4 bedroom, 3 bath, 2-kitchen home into two different living spaces- the front home has 3 bedrooms and 2 bathrooms, and the back home has a large primary bedroom and bathroom. Continue to treat this as an income producing property by renting out one or both sides, or take advantage of the larger square footage by converting this back into a single family home! This property has a solar lease that is completely paid-in-full, a 1-car garage up front, plus a detached 1 car garage or workshop in the back. So much potential in this South Scottsdale home!
24506 S Lakewood Drive
Sun Lakes, AZ 85248
$575,000
3
Beds
2.5
Baths
2,165
SqFt
Status
Active
MLS #
6773401
Property Type
Single Family Residence
Price Type
--
METICULOUSLY MAINTAINED Rialto model w/ 3 Bedrooms, 2.5 Baths & 2 Car + GOLF CART GARAGE on a MASSIVE 13,360sf LOT in the GATED, ADULT COMMUNITY of OAKWOOD! Enter into the GREAT ROOM w/ VAULTED CEILINGS, big picture windows & HALF BATH. The kitchen features MAPLE Cabinets, RO water system, Corian Counters, BUTLER'S PANTRY & BREAKFAST NOOK that can be used as an OFFICE. The Primary suite has DOUBLE WALK-IN CLOSETS, 2 sinks & SEPARATE TUB/SHOWER. There are TWO MORE BEDROOMS & ANOTHER FULL BATHROOM. The NW-Facing COVERED PATIO overlooks the EXPANSIVE, LOW-MAINTENANCE BACKYARD w/ NO NEIGHBORS BEHIND! SO MUCH LAND, you can add a CASITA, POOL or BOTH! Don't miss this amazing opportunity in SUN LAKES w/Community amenities like: golf, tennis, pickleball, pools/spas, fitness center & restaurants!
11520 E Kiva Avenue
Mesa, AZ 85209
$575,000
2
Beds
2.5
Baths
1,993
SqFt
Status
Active
MLS #
6776202
Property Type
Single Family Residence
Price Type
--
Welcome to the highly desirable Adult Community of Sunland Spring Village, where your retirement home becomes a reality! Discover this gorgeous home, boasting stone accents, a desert front yard, a 2-car plus a golf cart garage, and an inviting front patio. The lovely interior impresses you with a spacious living/dining room, vaulted ceilings, designer paint, a kitchen hutch, and wood-look tile flooring. Kitchen is fully equipped with ample counter space, panel lighting, wood cabinetry, and a breakfast nook with a bay window. The primary retreat has tray ceilings, plush carpeting, an immaculate ensuite with dual sinks, and a walk-in closet. Attached workshop for your creativity! Unwind under the covered patio in the tranquil backyard with artificial turf and colorful vegetation. Act NOW!!