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Desert Ridge Inventory, Phoenix Economic News and the Latest Mortgage Update

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Blog by Doug Ingersoll | November 2nd, 2015

From October 23rd to October 31st there were 13 new single family home listings in Desert Ridge. There are currently 75 single family homes for sale in Desert Ridge.

From Elliott D Pollack & Company Monday Morning Quarterback:
The homeownership rate in the state continued to fall in the third quarter. The rate is now 60.5% compared to 63.2% a year ago and 62.8% in the second quarter of 2015. In Greater Phoenix, the homeownership rate seems to be stabilizing. The rate was 60.5% in the third quarter compared to 60.9% a year ago and in the second quarter of 2015. Rental vacancy rates continue to decline in the state. In the third quarter, rental vacancies were 8.1% compared to 10.1% a year ago.
According to the Case-Shiller home price index, home prices in Greater Phoenix were up 4.9% for the year ended August. The index was up 0.6% compared to July.

And from Stuart Crawford at VIP Mortgage Inc:
"Last week was not great for mortgage rates.  The statement released following Wednesday’s Fed Meeting was the catalyst for negative rate movement, and as a result rates ended the week higher. 
Central banks around the world have had a heavy influence on mortgage rates recently.  In the prior week, the increased willingness of the European Central Bank (ECB) to expand its bond buying program had a favorable effect, while China's policy changes had an offsetting effect.  This past week it was the U.S. Fed causing movement.  Even though many recent economic reports in the U.S. contained signs of a slowing economy, the Fed statement explicitly kept the door open for a federal funds rate hike at its December meeting.  The hawkish tone surprised investors and caused an unfavorable reaction in mortgage rates.
In the U.S., the first reading for third quarter GDP was 1.5%, down from 3.9% in the second quarter.  The weakness in the third quarter was mostly due to changes in inventories, which are volatile from quarter to quarter.  A decline in inventories offset 1.4% of growth during the third quarter, meaning that GDP would have increased nearly 3.0% if inventory levels had simply held steady.  So far this year, GDP growth has averaged 2.0%.  For the full year, the consensus is that GDP will grow a little above 2.0%, similar to the 2.4% growth seen in 2014. 
This week, the all-important monthly Employment report will be released on Friday. As usual, this data on the number of jobs, the unemployment rate, and wage inflation will be the most highly anticipated economic data of the month.  With a possible rate hike in December, there might be a larger than usual reaction to incoming economic data."

Stuart can be reached at 480.776.2954