We are back and sweeter than ever!

Welcome to the latest edition of the Agave Home Loans Newsletter.

We took a bit of a hiatus to build and grow our team, but now we are back bigger and stronger than ever! The last 10 months had its fair share of challenges from market swings and volatility to increasing home prices. Regardless of market conditions, our team members have stayed solution-focused helping clients achieve their goals, save for the future, and find their forever homes.

• We closed 663 home loans over the last 10 months

• $218,015,731 in total funded loans over the last 10 months

• 827 5-Star Google reviews from happily closed clients
  

Super Bowl and Arizona Housing

If you didn’t watch the Super Bowl this year, you missed a great game between the Eagles and the Chiefs, alongside a killer halftime performance from Rihanna. The Phoenix Stadium was a proud host of this year’s Super Bowl which brought thousands of fans from across the country to witness history in the making. With all the attraction and influx of travelers into the valley, brought upwards of $700+ Million into the Phoenix ecosystem which has had effects on the housing market and may continue to do so for the upcoming years.

There is limited research available on the specific impacts of hosting the Super Bowl and the housing market, but here are a few examples of statistical trends that have been observed:

Increase in short-term rental rates: According to a report by AirDNA, which analyzed data from Airbnb and other short-term rental platforms, the average nightly rate for rentals in Phoenix increased by 34% during the week of Super Bowl LVII, compared to the same period the previous year. Owners were renting out properties for over $7k a night in some cases which is pretty amazing if you got booked. Some short-term property owners had difficulty filling occupancy days before game day which may be a telltale sign of market sentiment and demand. If owners continue to see struggles of filling occupancy, there’s a possibility that they may be forced to list homes on the market to recoup their investments in the short-term.

Positive impact on property values: A study by the University of Mississippi found that hosting a Super Bowl can have a positive impact on property values in the host city. The study analyzed housing data from six cities that had hosted a Super Bowl between 1992 and 2011 and found that property values increased by an average of 3.1% in the year following the event.

Other studies, such as the Economic Report from Super Bowl LVI, report similar findings with increases in housing prices, new jobs, and financial benefits to the surrounding cities.

In an article by CNBC, institutional investors have not slowed down with buying rental properties since the great recession. In fact, it's estimated by 2030 that institutional investors may control more than 40% of single family homes. With low housing inventory, particularly in the Phoenix area, home prices may follow this positive uptrend in the future.

Overall, the impact of hosting the Super Bowl on the housing market appears to be mixed, with some short-term benefits for owners such as increased rental rates and potential long-term benefits such as improved property values. However, the effects may be limited and vary depending on a variety of factors, including the state of the housing market at the time of the event.

Lender vs Broker: What’s the difference?

So you’ve decided to enter the housing market, either to purchase your first home, refinance or buy an investment property, congratulations! Now what? Well, you have options on the table and you should explore each one to fit your needs. You’re going to need funding and if you don’t have the cash to buy upfront, you’ll need a mortgage loan. Most people know they need to find a lender but oftentimes don’t realize there’s more than one solution. We’ll briefly explain the difference between going straight to a lender and why you should consider using a broker.

P.S: We are a broker!

A lender is a financial institution or individual that provides funds to a borrower in the form of a loan or credit. Lenders typically offer a variety of loan options, such as personal loans, mortgage loans, and business loans, and set the terms and conditions for repayment, including interest rates and fees.

A broker, on the other hand, is an intermediary between a borrower and a lender. Brokers help borrowers find and compare loan options from various lenders and assist with the loan application process. They typically charge a fee or commission for their services, which can be paid by either the borrower or the lender.

In summary, while lenders directly provide funds to borrowers, brokers help connect borrowers with lenders, assist with negotiating the best prices for clients and facilitate the loan process.

Here at Agave Home Loans, we shop on the wholesale side of the market for you, oftentimes saving thousands of dollars compared to going straight to a lender. We help our clients find the best deal for their financial goals and tailor a plan that perfectly fits their situation.

Interested in diving more into the home buying process? Learn more here

AGAVE HOME LOANS

MORTGAGE BROKERAGE

PHONE 888.300.3440
EMAIL [email protected]
WEB www.agavehomeloans.com
AGAVE NMLS #1951574

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