Are you feeling like you are on a merry-go-round? That’s because you are. The same scenario just keeps circling around, week after week. The Federal Reserve met this month, and once again the much-anticipated cut to the Federal Funds Rate didn’t materialize; the rate has now been steady for 12 consecutive months. In what should be good news for consumers, the Consumer Price Index is showing the annual inflation rate declined to 3.3%. As a result, the conventional mortgage rates dropped from an average of 7.16% to 6.98% in one day. Keep your fingers crossed, because the Federal Reserve Board announced they anticipate one rate cut this year, maybe in September, which could clear the way for a late summer drop in mortgage rates.
A drop in rates is positive for buyers, but unfortunately, rates are still too high to really cause a surge in demand. Supply in Fountain Hills 68% higher than last year, with 113 Active Listings (excluding under-contract listings) as of June 13, 2024, compared with 67 last year. With more homes on the market, but few buyers, with more seller accommodations becoming the norm, although there are some variations depending on the price range. With buyers of mid-range homes focusing on cash flow rather than final selling price, sellers are providing creative options to help buyers afford the monthly payments, such as closing cost assistance, rate buydowns, etc. At the higher price points (over $1M), buyers are less concerned with interest rates and are negotiating price reductions, with the average sale-to-list ratio at 97.93% in Fountain Hills.
For sellers who want to ensure that they get a maximum return on their home sale, it’s important to pay attention to the details. In an environment where sellers are competing for a limited pool of buyers, things like delayed maintenance, excessive repair needs, and homes that show poorly will struggle to gain buyer interest, as opposed to those homes that have been well-maintained and are in good repair. If you are planning to sell this year, look at your home with a critical eye. This is a business transaction, and now is not the time to let sentimentality or wishful thinking overcome objectivity. The Pellegrini Group can help you evaluate your home’s present condition and identify those repairs or updates that will help ensure the highest return. But even perfect listings should expect some negotiation, and sellers will need to be flexible in the current market, until more buyers venture back into the market.
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Whether you are a buyer or seller, The Pellegrini Group prides itself on its track record of highly successful negotiations on behalf of both buyers and sellers, with proven expertise in the Fountain Hills luxury market. Susan Pellegrini and Tony Pellegrini are ready to put their care and expertise to work for you. Buying or selling, our first-class service comes with a wealth of experience and eye for detail, ready to focus on you. Visit our website to learn more and contact us or give us a call at (480)- 315-1575, we’re here for you.
