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September 2013 Dear Frank, Phoenix new home inventories and mortgage rates are climbing. For realtors, it's the perfect storm. Phoenix new home inventories are steadily climbing and that's good news for realtors. As of September 16th of this year, there were 17,877 single family and condo homes listed for sale in Phoenix. When compared with the seven-year low of 14,547 homes in inventory in July 2012, it's clear that a recovery in the housing market is occurring. New Home Inventories, Rising but Still Low However, sales rates of new homes are still less than one third of what's necessary to keep pace with the Valley's current population growth. That's because construction companies who survived the painful recession are being cautious about overproducing or overestimating the demand for their homes. Photo from activerain.com Currently the region has 208 subdivisions with more than 10 available plots, according to CRA, a Scottsdale-based real estate brokerage firm. By comparison, the area had 710 similar subdivisions in 2007-three times as much.   With the lingering pessimism among the construction companies who managed to hold on during the painful recession of the last few years, and the potential for another market collapse has made them more strategic in their thinking and less apt to saturate the market again.     With less supply and more demand, new housing prices are continuing to rise. The median Listing Price in September is $254, 833, up significantly from its 7-year low of $139,960 in January 2011. So how do today's mortgage rates play into this? Interest Rates are on the Comeback Trail Mortgage rates have been on a sharp increase, rising from historic lows of 3.5 in May of this year to a national average of about 4.71 today, according to Bankrate.com. Although not great news for home buyers, it's great news for realtors, because climbing rates increase buyers' determination to buy a home now before rates go even higher. Customer service is our #1 priority, so you can trust us to handle your clients with absolute integrity and professionalism. Talk to us at the Eddie Mortgage Team and we'll get your client into the loan program that is right for them. Call us today! Sincerely, Eddie Knoell -Vice President- Signature Home Loans LLC Office: 602-248-4200 Mobile: 602-677-3105 Fax: 602-680-5184 Email: eddie@eddiemortgage.com Apply Online: www.EddieMortgage.com NMLS# 210917   -Equal Housing Opportunity-