Here is a list of homes for sale, homes under contract and homes recently sold in the neighborhood Deer Valley Estate located in Peoria Arizona. Click to learn more information, see pictures and prices! Contact Sean with any questions or to schedule an appointment to see these homes! (602) 361-6047
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Home sales numbers are leveling off, the rate of price appreciation has slowed to more historically normal averages, and inventory is finally increasing. We are headed into a more normal housing market.
However, some are seeing these adjustments as red flags and are suggesting that we are headed back to the same challenges we experienced in 2008. Today, let’s look at one set of statistics that prove the current market is nothing like the one that preceded the housing crash last decade.
The previous bubble was partially caused by unhealthy levels of mortgage debt. New purchasers were putting down the minimum down payment, resulting in them having little if any equity in their homes.
Existing homeowners were using their homes as ATMs by refinancing and swapping their equity for cash. When prices started to fall, many homeowners found themselves in a negative equity situation (where their mortgage was higher than the value of their home) so they walked away which caused prices to fall even further. When this happened, even more homeowners found themselves in negative equity situations which caused them to walk away as well, and so a vicious cycle formed.
Today, the equity situation is totally different. According to a new report from ATTOM Data Solutions more than 1-in-4 homes with a mortgage have at least 50% equity. The report explains:
“…nearly 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value…The 14.5 million equity rich properties in Q3 2018 represented 25.7 percent of all properties with a mortgage.”
In addition, according to the U.S. Census Bureau, 30.3% of homes in the country have no mortgage on them.
Almost 50% of all homes have at least 50% equity.
If we take both numbers, the 30.3% of all homes without a mortgage and the 17.9% with at least 50% equity (25.7% of the 69.3% of homes with a mortgage), we realize that 48.2% of all homes in the country have at least 50% equity.
Unlike 2008, almost half of the homeowners in the country are sitting on massive amounts of home equity. They will not be walking away from their homes if the housing market begins to soften.
Over the last six years, we have experienced strong price appreciation which has increased home equity levels dramatically. As the number of “cash-out” refinances begins to approach numbers last seen during the crash, some are afraid that we may be repeating last decade’s mistake.
However, a closer look at the numbers shows that homeowners are being much more responsible with their home equity this time around.
What happened then…
When real estate values began to surge last decade, people started using their homes as personal ATMs. Homeowners would refinance their houses and convert their equity into instant cash (known as “cash-out” refinances). Because homes were appreciating so rapidly, many homeowners tapped into their equity multiple times.
This left homeowners with little-or-no equity left in their homes, so when prices started to fall many homeowners found their houses in a negative equity situation (where the mortgage amount was greater than the value of the home). When some of these homeowners saw that there was no value left in their houses, they just stopped paying their mortgages altogether.
Banks eventually foreclosed on those homes and the foreclosures drove prices down even further and put more homes in the negative equity category. This cycle continued, leading to the worst housing crash in almost one hundred years.
What’s happening now…
Again, Americans are seeing their home equity grow. Today, over 48% of all single-family homes in the country have over 50% equity, and yes, some families are tapping into that equity. However, this time around, homeowners are not making irresponsible decisions. According to the latest information from Freddie Mac, the total equity being “cashed out” is a fraction of what it was leading up to the crash. Here are the numbers:
The recklessness that accompanied the build-up in equity prior to the last crash does not exist today. That makes this housing market much more secure than the one we had heading into 2008.
The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily throughout 2019.
How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. But don’t let the prediction that rates will increase stop you from purchasing your dream home this year!
Let’s take a look at a historical view of interest rates over the last 45 years.
Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.
Solid block-built PHOENIX MOUNTAINS PRESERVE estate perfectly situated on a private oversized 14561 square foot cul-de-sac lot in the North Valley’s coveted Desert Vista subdivision! Showcasing an open floor plan with vaulted ceilings and 2346 light-filled square feet! Gourmet kitchen remodel just finished with birch cabinetry, stainless steel appliances (including refrigerator) & concrete counters! 3 bedrooms, 2 baths and loft with balcony! Enormous master suite with huge walk-in closet! Large tile, hardwood and stained concrete flooring, fireplace, skylight, French doors, dimensional shingle roof and owned $20k solar for low utilities (averaging $60/mo)! Diving pool with ABSOLUTELY the most amazing backyard with full-length red brick covered patio and LUSH landscaping! Super close to Christy Cove Park, fine dining/shopping, freeway access and superb hiking/biking trails!
INCREDIBLY GORGEOUS KHovnanian home in the sought-after GATED PROVENCE subdivision close to great schools & all the incredible shopping & dining opportunities of the popular Westgate Entertainment District with easy freeway access! Open & bright split floor plan with gorgeous island kitchen appointed with maple cabinets, crown molding, granite counters, stainless steel appliances with built-in microwave, refrigerator & Impressive large tile flooring in all the right places! Three bedrooms with den, 2 baths & 1678 square feet to spread out! MASSIVE custom $5k iron front door, dual pane windows, upgraded lighting, surround sound, 2” wood blinds, water softener, alarm system, etc! Master suite has great bay window, walk-in closet, (2) sinks & luxurious walk-in snail shower! HUGE 3-panel telescoping sliding door to rear covered patio! Immaculate neighborhood with HUGE grassy common areas, community pool & children’s play area! Call Sean Hahn today at 602-361-6047 for a private showing today!
IMMACULATE BLOCK-BUILT COVENTRY HOME with red brick trim & relaxing front porch in Glendale’s cherished HICKORY SHADOWS! Situated on an oversized interior lot offering seclusion & privacy! This well-designed & thoughtfully laid out split floor plan boasts 2314 square feet with 4 bedrooms, 2.5 baths & gorgeous wood floors! Large updated gourmet kitchen appointed with crown molding, cherry wood raised-panel cabinetry, granite counters, a pantry & stainless steel appliances with microwave & refrigerator! Two sizable living areas with formal dining, travertine fireplace, dual pane windows, updated light fixtures, 2” blinds, updated roof & A/C, etc. Incredible master retreat & bath featuring 2 sinks & tub/shower with walk-in closet! Updated guest bath! Home also boasts fresh exterior paint! Outdoors, a covered patio, sizable grassy areas with huge shade trees, red brick patios & Peb-Tec pool with cabana and fire pit! Neighborhood park down the street! HOME IS UNBELIVEABLE!!