Phoenix Market Update February 2017

Phoenix Market Update courtesy of Craig and Stacey Akers at NextHome Valleywide.  Contact 480-621-6828 or info@nexthomevalleywide.com for a Seller Solution book that will give you selling tips, pricing, and comparable home sales in your area.

 

More Qualified Buyers Expected in 2017
Supply is Down 9.3%, Buyer Demand is Up 4.5%!

Phoenix Metro Infographic - 2017-02

 

For Buyers:
Buyers be prepared for another year of increased competition for ex-isting active listings in the Phoenix Metropolitan Area, partly because of over 50,000 more foreclosures due to be removed from credit reports in 2017. That’s in addition to the nearly 50,000 foreclosures that were re-moved from credit reports in 2016. A foreclosure can suppress a credit score by 100 points in many cases, so their removal is resulting in a high-er number of qualified buyers and a 20% increase in the rate of approved mortgage applications over the past 2 years. Increases in buyer activity are expected across all price points under $1,000,000.
For Sellers:
It’s starting off very good for existing sellers thus far, as January was the 3rd slowest month for new listings on the market dating back to 2001. This, combined with increases in demand, is resulting in active listings remaining very low when it typically rises in the first quarter just before spring buyer season. New home builders have been creating new supply for buyers, mostly in the $300,000 to $500,000 price range, especially in North Phoenix, South Phoenix, Mesa, Gilbert, Peoria and Buck-eye. With the supply and demand imbalance giving sellers a negotiating advantage, it’s reasonable to expect more appraisals coming in lower than negotiated sales price and buyers who are either unwilling or unable to cover the difference.

Contact the real estate experts at NextHome Valleywide in Chandler, AZ at 480-621-6828 for more information.  If you are currently looking at buying or selling a home in the Phoenix, Scottsdale or East Valley area and are not sure where to turn, search for homes at ChandlerAreaHomeSearch.com, where you can find single family homes, golf and lakefront properties, 55+ communities, townhomes and much more. Visit our blog at NextHomeValleywide for a monthly Phoenix Market Update.
Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2017 Cromford Associates LLC and Tamboer Consulting LLC

 

Phoenix Market Update January 2017

Phoenix Market Update courtesy of Craig and Stacey Akers at NextHome Valleywide.  Contact 480-621-6828 or info@nexthomevalleywide.com for a Seller Solution book that will give you selling tips, pricing, and comparable home sales in your area.

2016 Sales up 7% over 2015
2016 Median Sales Price 7.7% Higher than 2015

Welcome 2017!  The headlines these days are full of projections and reflections for the Phoenix Metropolitan Area residential real estate market.  To complement our monthly measures here are some year-end numbers to reflect on.

2016 MLS Sales – Up 7.0% overall compared to 2015
·        72.9% of sales were under $300,000 (# of sales up 3.4%)
·        19.6% of sales were between $300,000 and $500,000 (# of sales up 20.2%)
·        6.1% of sales were between $500,000 and $1,000,000 (# of sales up 15.4%)
·        1.4% of sales were over $1,000,000 (# of sales up 8.1%)

2016 New Listings – up 4.6% overall compared to 2015
·        65.8% of new listings were under $300,000 (# of new listings up 0.8%)
·        22.0% of new listings were between $300,000 and $500,000 (# of new listings up 13.5%)
·        9.2% of new listings were between $500,000 and $1,000,000 (# of new listings up 13.6%)
·        3.0% of new listings were over $1,000,000 (# of new listings up 5.7%)

2016 Appreciation based on Annual Sales Price per Square Foot – up 5.4% from 2015
·        Under $300,000 – up 7.6%
·        $300,000 – $500,000 – up 2.0%
·        $500,000 – $1,000,000 – Less than 1% change
·        Over $1,000,000 – Less than 1% change

It’s been a good news/bad news year for sellers over $500,000.  The good news is that more buyers purchased in the higher price ranges in 2016 than in 2015.  The bad news is the neighbors also noticed increased demand and listed their homes too, increasing the number of new listings on the market simultaneously.  This increased supply, combined with builders getting in on the action over $250,000, created a more competitive and balanced market and put price increases in check.

It’s been good news/bad news for buyers under $300,000.  The good news is their homes have appreciated nicely over the past year.  The bad news, finding move-in ready homes and winning the bid was more stressful and competitive than many expected.  Especially for single family homes under $200,000.  (Yes, they do exist.)

Looking forward in the short term, the market can expect more buyers emerging with improved credit scores as we move farther away in time from the foreclosure and short sale crisis.  Recent announcements regarding FHA loan limit increases and lower mortgage insurance premium fees signify a loosening up in lending that will contribute to more demand for listings under $300,000. Higher interest rates will cause some buyers to purchase smaller homes than they anticipated, putting even more pressure on the market under $300,000; which is already short of supply for existing demand.  With nearly 73% of all sales in this price point, it’s reasonable to expect appreciation to continue to be positive for the Phoenix Metropolitan Area overall.

Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2016 Cromford Associates LLC and Tamboer Consulting LLC

Phoenix Market Update December 2016

Phoenix Market Update courtesy of Craig and Stacey Akers at NextHome Valleywide.  Contact 480-621-6828 or info@nexthomevalleywide.com for a Seller Solution book that will give you selling tips, pricing, and comparable home sales in your area.

 

Listings Under Contract Up 2.6%

Monthly Closed Sales Up 19%

Phoenix Metro Infographic - 2016-12 (1)

For Buyers: There’s both good and bad news for first-time home buyers this month. The good news is that there’s been a 22% increase in single family active listings asking between $175,000- $200,000 over the last 10 weeks, going from 1,065 to 1,295. Current inventory is 10% higher than where it was in week 49 of last year, adding some much needed choice to a high demand price range. The added supply is not universal across the valley; increases have been marked specifically in Buckeye, Surprise, Sun City, Peoria and Mesa. The bad news for home buyers is that supply overall is down 3.7% while the level of competing buyers is remaining seasonally consistent. The Southeast Valley specifically has not seen the typical increase in supply that happens this time of year. This indicates that the area will kick off 2017 with low supply just before the expected increase in buyer activity come February. In this case, the cost of waiting to purchase will be a lack of choice and possibly having to compromise on the condition or location of the property they choose to buy.

For Sellers: Bad news for buyers usually translates into good news for sellers, especially after positive news reports of Realtor.com ranking Phoenix as the #1 projected real estate market in the country for 2017. However, it’s still not a market to be overpriced regardless of the strong demand for homes. Some price ranges have more competing listings than others, especially in areas such as North Phoenix, Mesa, Gilbert and Peoria where there is competition from new home subdivisions. Permits for single family homes have been on the rise to accommodate the demand. This provides more choice for buyers in those areas, balances out the market and keeps annual appreciation in check. The areas projected to have the highest appreciation rates are those where there is a high level of fix and flip activity along with a more affordable price range under $175,000.

Contact the real estate experts at NextHome Valleywide in Chandler, AZ at 480-621-6828 for more information.  If you are currently looking at buying or selling a home in the Phoenix, Scottsdale or East Valley area and are not sure where to turn, search for homes at ChandlerAreaHomeSearch.com, where you can find single family homes, golf and lakefront properties, 55+ communities, townhomes and much more. Visit our blog at NextHomeValleywide for a monthly Phoenix Market Update.

Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2016 Cromford Associates LLC and Tamboer Consulting LLC

Your Retirement Home: Why You Want to Buy Before You Retire

Many people dream of buying their ideal retirement home AFTER their career has come to a conclusion.  However many real estate professionals strongly recommend that their clients find a retirement property

retirement home
Don’t wait til you retire to buy your retirement home!

BEFORE they’re off the payroll. While it may seem like a big time commitment to find a new home while you’re still busy with your work there are several significant financial benefits to purchasing your retirement home before you actually do retire.  Here are our top reasons why.

It Makes Your Mortgage Easy

When you are employed it is easier to get approved for a mortgage. If you wait until after you retire to buy your retirement home, you may not have the income require to qualify for the mortgage that you need. Don’t limit yourself! Buy while you’re still employed to keep your options open.

It Leaves You With More Spending Money

Buying a new home while you have an income provides you with more security with your expenses, such as mortgage payments and planned upgrades or renovations. Having an income can also mitigate financial stress should you run into any unexpected expenses after closing.

It Leaves You Ready For Reality

You may think you can accurately predict the expenses of your new home, but if you buy the property before retiring it gives you time to get to know the true amounts of your monthly payments. This can help ensure that you have enough saved to retire and live comfortably in your new property, with no surprises for your budget. You’ll be in a better position to create a financial plan once you know the reality of owning your new home.

An Added Bonus: It Can Be An Income Property

If you decide to purchase your retirement home before you retire you don’t have to move into it right away. You can rent it out as an income property until you’re ready to settle in, which will not only help cover mortgage payments but will also allow you to see firsthand what the monthly expenses are for the property.  This will also prevent you from having to deal with a move while working; you can wait until you do finally retire before packing up your current home and moving into your new one.

Ready to find the perfect retirement property?  Contact the real estate experts at NextHome Valleywide in Chandler, AZ at 480-621-6828 for more information.  If you are currently looking at buying or selling a home in the Phoenix, Scottsdale or East Valley area and are not sure where to turn, look for homes at ChandlerAreaHomeSearch.com.  Here you can search for golf and lakefront properties, 55+ communities, and much more.

How to Differentiate Your Home (from the Neighbors) for a Faster Sale

3 Ways to Differentiate your Home and Sell Quicker!
3 Ways to Differentiate your Home and Sell Quicker!

When it comes to selling your home, there are a lot of options on the market, and nothing is quite so competitive as having your house listed right alongside the home of your neighbor. If you’re struggling with how to highlight or differentiate your home and make it more appealing to potential home buyers, here are three things you can do to ensure it gets the attention it deserves.

Engage All The Marketing Options

First and foremost, make sure you hire a real estate agent with a proven sales track record.  This agent should have extensive knowledge of the area and should be willing to go above and beyond the typical measures to get potential home buyers interested in your home.  While full color flyers are nice, your agent should also utilize social media, blogs, and online community groups as a resource for getting the word out.  Another method is creating a Facebook page or website for your home that will highlight your home features and show off those professional photos.

Real estate franchise NextHome Inc. has taken it a step further and has implemented sign “riders” which enable drive-by buyers the ability to send a text (to a specific property number) and receive back detailed information and photos about your listing on their mobile device.

Emphasize The Special Details

You may not think that the small things matter when it comes to selling your home, but the little details add up and they can actually make your home quite memorable to someone who’s seen a lot of open houses. Whether you’ve installed them or they were there already, your house probably has a special feature like brightly cultured kitchen tiles or an interesting light fixture; just ensure it’s effectively displayed and your home will stand out from the pack!

Clean Up The Curb

It’s possible that you have a stunning panoramic shot of your home from the outside, but if your house looks nothing like this when potential home buyers arrive they’ll immediately be reconsidering the visit. Instead of leaving this to chance, make sure that you’ve done any minor repairs to the exterior of the house, cleaned up the lawn and organized everything so nothing looks messy or disheveled from the street. Your exterior will provide the initial impression, and nothing will make your home stand out from your neighbors like an immaculate facade.

It can be a struggle to know how to best display your house so it stands out, but by organizing the exterior and highlighting your home’s special features, you may be on your way to an ideal offer. If you’re currently looking at buying or selling a home in the Phoenix, Scottsdale or East Valley area and are not sure where to turn, contact the real estate experts at NextHome Valleywide in Chandler, AZ at 480-621-6828 for more information.