Jan 1 - March 16 / Catalina Foothills single family home sales
| YEAR | # SOLD | MSP | DOM |
| 2023 | 106 | $737,000 | 22 |
| 2022 | 151 | $730,000 | 5 |
| 2021 | 192 | $631,500 | 7 |
| 2020 | 168 | $533,250 | 32 |
| 2019 | 134 | $470,000 | 64 |
If it wasn't for the big drop in the # of homes sold so far this year 2023 would look like it's off to a pretty good start.
But because they are affecting both buyers and sellers high mortgage interest rates are the primary cause of slumping sales. Slumping eh? - down 30% from 2022 // down 44% from 2021
First, high rates are preventing many would-be sellers from listing their homes for sale - thereby contributing greatly to the continuing low inventory - because they are unwilling, and reasonably so, to trade their current +/-3% rate for a +/-6% or higher rate to purchase another home. So many sellers are staying put, resulting in fewer homes being listed for sale resulting in an ongoing ".... not much to pick from" market for foothills buyers.
Next, if they do find a home to buy high rates are making mortgages unaffordable for many buyers.
Let's look at some round numbers.
MSP in the foothills is currently $737,000 -20% down that's $147,400 leaving a mortgage of $589,600.
**Not including taxes, Insurance, HOA fees, assorted closing costs, etc.
At 3% a 30 year interest/principal/only mortgage payment is $2,485/month
At 6% a 30 year interest/principal/only mortgage payment is $3,922, +57% or $1,437 more $$/month.
Of course if you're a cash buyer you're sitting pretty. No mortgage rates to get in the way and a pretty good chance to make a better deal than a mortgage buyer. 38 of the 106 sold this year were cash sales.
On the outskirts of reality I've heard talk, not from buyers but from others with a vested interest, that the jump from 3% to 6% or so is no big deal, it's just a mindset adjustment, kind of a just think about it differently and it'll go away.
Yah sure, tell it to those struggling to afford a mortgage, see what they say, "&XX**SSZ*&^^%T&$$@!!"
John Schneider /Realtor®
Tierra Antigua Realty
Catalina Foothills Homes
[email protected]
520 271-4164
TheFoothillsToday.com
to see all the homes for sale in the Catalina Foothills
(and only in the Catalina Foothills)
