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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1018 N 25th Street
Phoenix, AZ 85008
$575,000
5
Beds
3
Baths
2,287
SqFt
Status
Active
MLS #
6665438
Property Type
Single Family Residence
Price Type
--
Hard to find New Construction Home in 85008. 5 Bedroom 3 Bath with 2 car garage. 10 foot ceilings. Quartz Counters, Shaker Style Cabinets. New Stainless appliances. Could be Flex Home, as room for second kitchen with bonus room in back. Huge walk in shower in Master. Dramatic front Iron Gate Door. Drive way is gated and both side gates match. Back yard is large enough for a pool. Hard to get quality new construction in this area so close to Downtown Phoenix, Freeway access, Roosevelt District, Hospital walking distance. Close to new Valley Wise Hospital Wing just opened. Nice eclectic mix of older homes and newer builds, Beautiful paver walkway and front patio. Extended 2 car garage. NEW NEW NEW, Tired of looking at old homes with deferred maintenance. Zoned R-3 Multi Family
1560 Vista Drive
Wickenburg, AZ 85390
$575,000
3
Beds
3
Baths
1,952
SqFt
Status
Active
MLS #
6642660
Property Type
Single Family Residence
Price Type
--
Great investment opportunity!! This two-story home boasts 1,952 square feet of living space on a sprawling 3.6-acre corner lot, offering privacy and panoramic sunset views. Step inside to discover a warm and inviting atmosphere with a large family room, creating the perfect space for gatherings and relaxation. The well-designed layout features ample natural light, highlighting the beauty of the desert landscape that surrounds your home. The heart of this residence lies in its open concept kitchen, seamlessly flowing into the dining and living areas. Picture yourself preparing meals in the well-appointed kitchen while enjoying the company of family and friends. Sliding glass doors lead to multiple patios, creating an indoor-outdoor living experience that is perfect for entertaining or simply enjoying the tranquility of your expansive backyard. Venture outside to discover a private oasis that includes a sparkling pool, perfect for cooling off during warm Arizona days. The vast 3.6-acre corner lot provides plenty of room for your horses to roam, and there's ample space for RVs and toys, making this property a haven for outdoor enthusiasts.
5661 Valley Road
Snowflake, AZ 85937
$575,000
3
Beds
3.5
Baths
3,864
SqFt
Status
Active
MLS #
6584475
Property Type
Single Family Residence
Price Type
--
Spacious home on 89.44 acres overlooking rolling hills and Mountains to the South. Remodel includes: kitchen w/large center island , Thor Range w/6 burners, 2 ovens, lots of cabinet storage, dishwasher. Bathroom vanities & mirrors. Solar system w/4 Lithium Ion batteries (the seller was planning on moving the old system down to the shop/garage, it is still in place). New: water tank w/solar auto fill, water well pump, garage door & opener, extra large ceiling fans, light fixtures inside and out, canned lighting in kitchen, washer & dryer. The property also benefits from being fully fenced, w/multiple access areas. A large 80x40x21' Quonset style shop/storage w/2x14' roll up doors & 2 access doors. 2 x lofts. 3 Master Beds, plus 1 x 1/2 Bath. State land to the South. Possibilities abound!
9571 W Fossil Creek Road
Strawberry, AZ 85544
$575,000
4
Beds
2
Baths
2,208
SqFt
Status
Active
MLS #
6661672
Property Type
Single Family Residence
Price Type
--
MASSIVE $25K PRICE IMPROVEMENT!! LOOKING FOR A HIGH-COUNTRY PROPERTY THAT WILL FIT THE WHOLE FAMILY, A FEW HORSES AND ROOM TO SPARE? THIS IS IT! THIS SPACIOUS 4 BEDROOM, 2 BATHROOM HOME SITS ON AN ACRE OF AMAZINGNESS. LOCATED IN STRAWBERRY AT AN ELEVATION OF 6000 FT. IN 2020 THE HOME HAD A COMPLETE TOP TO BOTTOM REMODEL INCLUDING A NEW KITCHEN, BATHS, FLOORING, FIXTURES ETC. THIS HOME HAS EASY YEAR-ROUND ACCESS WITH TONS OF FLAT PARKING, A HUGE YARD TO ENTERTAIN, FRONT AND REAR YARD FIREPITS AND SPECTACULAR VIEWS OF THE PONDEROSA FOREST FROM EVERY ANGLE. THIS CABIN COULD BE USED FOR FULL TIME LIVING, A SECOND HOME OR IT HAS A PROVEN TRACK RECORD AS A SUCCESSFUL AIRBNB. THE HORSE FACILITIES ARE SPLIT/FENCED FROM THE MAIN PROPERTY AND INCLUDE MULTIPLE TACK ROOMS AND COVERED HAY STORAGE.
11145 E Posada Avenue
Mesa, AZ 85212
$575,000
3
Beds
2
Baths
1,775
SqFt
Status
Active
MLS #
6660177
Property Type
Single Family Residence
Price Type
--
Beautiful upgrades throughout with oversized lot. Back yard is an entertainers dream with paver walkways and seating area. Patio has roll down screen to enclose the porch. Kitchen cabinets upgraded with nice granite and tasteful colors. Furnished with desireable modern furniture. His & her closets and sinks in master bath. The owner will be taking golf cart, tools, work benches, fire pit out back and storage container out back. buyer to pay $2212.5 capital improvement fee
4335 N Holly Drive
Pine, AZ 85544
$575,000
3
Beds
2
Baths
1,508
SqFt
Status
Active
MLS #
6674878
Property Type
Single Family Residence
Price Type
--
Welcome to this gorgeous 3 bed, 2 bath, 1508 square foot cabin in lovely Pine, Arizona. Situated on a 15K lot, this property features a wraparound porch, mountain views, an enclosed yard, gorgeous wood vaulted ceilings, and plenty of space to spread out and watch all the wildlife this area boasts. Whether you love hiking or fishing or exploring the charming town of Pine just 100 miles north of Phoenix, this home has everything you need for a weekend getaway or a primary residence.
19234 N 268th Drive
Buckeye, AZ 85396
$575,000
3
Beds
2.5
Baths
2,341
SqFt
Status
Active
MLS #
6672585
Property Type
Single Family Residence
Price Type
--
Impeccable turnkey oasis! NEW BUILD in May 2023! EXTENDED Refuge model offers 2 master bdrms + 3rd bdrm & den. An open floor plan seamlessly connects the kitchen to the breakfast room w/slider & Great Room featuring a tiled gas fireplace wall & a double slider leading to the extended travertine patio w/pergola, rolling shades on sliders, & gas bib. The extd master suite impresses with a tray ceiling, tiled shower, double sinks, & lg closet. Kitchen has granite counters & sink, tile backsplash, staggered cabinets w/pull-out drawers, SS appliances, gas stove, RO, & a walk-in pantry. Other features include landscaped yard, paver driveway, leaders & gutters w/French drain, water softener, tankless water heater, & laundry w/cabinets. LG. EXTENDED 2-car garage + A SEPARATE GOLF CART GARAGE!
5689 S Mir Way
Hereford, AZ 85615
$575,000
5
Beds
2
Baths
2,710
SqFt
Status
Active
MLS #
6674101
Property Type
Single Family Residence
Price Type
--
Big, Bold, and Beautiful with Gorgeous Mountain Views! Amazing 5 bed, 2 bath, custom home nestled on 2.289 acres in the Executive Acres community of Hereford, AZ. The primary bedroom features a generous walk-in closet and the lovely primary bathroom has a large, jetted tub, separate shower, and private water closet. The remaining 4 bedrooms are larger than average and the guest bath features dual sinks! The kitchen comes complete with updated appliances, two pantry closets and plant shelves between the kitchen and formal living room. Kitchen and baths have stunning tile work. Tile floors throughout, except for the primary closet which has carpet. Washer, dryer, and water softener will remain, (water softener is not currently hooked up for use). This property also has a private well with two (2) water storage tanks located in an oversized storage room within the home. There is a deep, 2+ car garage with 8' garage door, huge RV cover, and an additional carport. RV hook ups including septic connection, lots of space for your projects, and a finished shed give you ample space for all your projects. Home has a private well!
15213 N Cameo Drive
Sun City, AZ 85351
$575,000
3
Beds
3
Baths
2,800
SqFt
Status
Active
MLS #
6682424
Property Type
Single Family Residence
Price Type
--
SHORT SALE OPPORTUNITY- Welcome to your dream home nestled in the desirable community of Sun City! This stunning property at 15213 N Cameo Dr offers the perfect blend of elegance and relaxation with its prime location overlooking the golf course and serene lake views. Boasting 3 bedrooms and 3 bathrooms, this premium lot home features a spacious layout designed for comfortable living. Step inside to discover a light-filled living space with picturesque views of the lush greenery and tranquil waters. The kitchen is a chef's delight, equipped with modern appliances and ample counter space. Retreat to the master suite, complete with a private en-suite bath and scenic vistas. Enjoy Arizona's outdoor living at its finest in the expansive backyard oasis, where you can soak in the breathtaking sunsets from your Arizona Room/ patio. With its proximity to shopping, dining, and recreation, this home offers the ultimate lifestyle experience. Don't miss your chance to own this piece of paradise - schedule your showing today!'
23500 W Galpin Road
Buckeye, AZ 85326
$575,000
3
Beds
2
Baths
2,240
SqFt
Status
Active
MLS #
6693853
Property Type
Single Family Residence
Price Type
--
** Motivated seller. Ranch style home on nearly an acre lot with beautiful mountain views on a quiet cul-de-sac! Irrigated lot with your own private well! No water shortages here! Home features granite counter tops in both Kitchen & bathrooms. Huge laundry room with plenty of storage, and a large game room/ workout room with brick fireplace. Come check out this property today and see all the space you can have for your animals, toys & more!! No HOA, possibilities are endless!!
17830 W Columbine Drive
Surprise, AZ 85388
$575,000
5
Beds
3.5
Baths
3,799
SqFt
Status
Active
MLS #
6699865
Property Type
Single Family Residence
Price Type
--
As you step into this home you will see pride of ownership throughout. With upgrades through out the down stairs. This sprawling 5-bed, 3.5-bath with a 4-car tandem garage 39'x19'. This home boasts charm and functionality throughout. There is a large office downstairs that is ideal for remote work. The farmhouse kitchen exudes warmth, with the living area off the kitchen. The large living room has a built-in fireplace with shelves and a cabinet with a large remote animal door. Walking upstairs, you see that a large loft offers endless possibilities. An RV gate on the side of the house leads to a great backyard space. The backyard is also plumbed for a gas grill. This is a must-see home in the West Valley.
5526 S Grenoble Street
Mesa, AZ 85212
$575,000
3
Beds
2
Baths
2,020
SqFt
Status
Active
MLS #
6700408
Property Type
Single Family Residence
Price Type
--
The things this home has to offer!!! From the 3 Beds, 2 baths, the Glass Doors Studio/DEN to the Tankless Gas Water Heater, the water Softener and water Filter, to the hidden Safe, extended cabinets at kitchen, the quartz countertops, Murphy Bed for your guests, to the surround system in the great room and the TV on the patio, colorful outdoor Jacuzzi to relax under the pergola, the outdoor lightening, Variety of Fruit Trees, and top it off with the separate doggy play area. Come see it and you will fall in love!