It’s June 2018, and the real estate market is crazy. This is a crazy market!
Check out the Real Estate Report Card below, and let me just point out a few interesting tidbits.
Median Home Price
Our Median Home Price in Yuma is currently $152,110. Now, when you sort out the manufactured homes, our average sale price year-to-date (Jan – May 2018) is actually $180,742. That’s up a bit (3.1%) from last year at this time.
Over the last 43 years, homes in Yuma county have gone up in value an average of 3.96% per year. The “forecasted” appreciation rate for this year is 9.78%. That’s a high number! To put it in perspective, prices rose just 3.8% last year, 2.9% the year before that and 3.6% the year before that. Nice, even increases in the 3% to 4% range, I believe, are sustainable levels. When you start to see 9%+, that’s something else! It will be interesting to see if the forecast is correct.
The consensus is the current price gains are due to low inventory levels. That means # of homes in the market for sale currently, and we are down 14% from a year ago. Homes are selling but not enough new ones are coming on the market to keep up with demand, especially in the lower price ranges (under $200,000). Also due to the steep competition, homes are tending to sell for right around 97% of asking price on average.
Employment levels are up, unemployment is down. When people are making money, they can afford to buy houses. Even though mortgage rates are up around 0.75% since the start of the year (The current average 30 year fixed rate is 4.62%), Yuma is still a very affordable place to own a home. Our “affordability index” number is 155.33. That means a family earning the median income has about 1.5 times enough income needed to make the house payment based on our median sales price and current interest rates. That’s pretty good, especially when compared to some of the markets around us (Maricopa County: 134, Tucson: 143, Flagstaff: 107, Las Vegas: 121, Imperial County: 115, San Diego: 67)!
Buy Now or Wait??
Overall, this is not a bad time to be buying a home. Since both interest rates and home prices are forecasted to continue to rise, if you are on the fence about buying, TODAY is definitely more affordable than TOMORROW is likely to be.