As we move into 2025, I often hear the question, ‘How is the market doing?’ I have to ask what specifically they are asking about. Interest rates? Prices going up or down? How long is it taking to sell? Most people have to stop and think about it as they don’t really know what they are asking. So, let me talk a little about each one.
Over the past year we saw what looks like a roller coaster as interest rates went up, back down below where we started 2024 and then right back up to just about where we started! So, a lot happened with rates but we ended up close to where we started 2024.
If your interest rate is high then let me know and we can set you up with our preferred lender to let you know when it is worth refinancing if they drop again. A lot of people missed out this past year as they were waiting for rates to drop more and then they went back up.
When I talk to most agents, it was a rough year. I can understand as most people thought we would see a bigger drop in interest rates that would stay lower and that would help buyers qualify for homes and in turn sellers would have someone to sell to. Interest rates did go down for a bit during 2024 but then went right back up and we are just about to the same place we were 12 months ago! Each time we saw rates drop, we saw a quick increase in the number of sales as buyers were locking in on those dropped rates. But as they go up, things would slow back down.
About the only thing all of the experts agree on is if we can get the mortgage rates down, then we will see sales go up.
I looked at the average sale price a year ago for 85383 vs. now and our average started at $784,430 and we are now at an average sale price of $752,448. That’s a drop in the average of $31,982. That looks really bad, but our average had dropped to $683,716 in July and August., so we are heading back up. Springtime is a good time for the Valley of the Sun, so we will probably see prices increase over the next few months.
The last thing is how long it is taking to sell a home in our area. A year ago we averaged 81 days on the market and now we are at 77. That is not much of a difference but I’m happy it is fewer days on market and not more.
I drove up through Vistancia to see how the building is going and they are clearing a lot of land in between Vistancia and the 74. It is going to be an incredible place to live with the amazing views back there. They are calling it Saddleback and they are estimating another 6,500 homes to be built. Like most people, I have mixed feelings as I will miss the open desert areas but I also understand we are growing and need places for people to live. A friend of mine once said, ‘There are always new friends to make” so I like to think of it that way when I picture all of these new homes being built.
I hope your 2025 is off to a great start and keep getting better!
Frank May grew up in the Valley, graduating from Northwest Christian School and Northern Arizona University. He is a real estate agent with RE/MAX Fine Properties and has been helping both buyers and sellers for over 20 years. He has been a Dave Ramsey Endorsed Local Provider (ELP) since 2003. Learn more at mayteam.com.
