March Market Update

March 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.

Median Sale Price up $20,000 over March 2017

17% of Sales are Closing Over Asking Price

2018-03 Infographic

For Buyers:

The percentage of seller concessions awarded to buyers has dropped down to 24% in the first quarter of 2018 after 2.5 years of consistently landing between 26%-28%, yet another indicator of dwindling buyer negotiating power in a prolonged supply shortage. The highest percentage of closings with seller concessions in the last 30 days were sale prices between $150K-$250K at 30-36%. Buyers were most likely to get closing costs in Youngtown at 54%, followed by Buckeye at 52%. Cities with the smallest percentage of closing costs were in affluent and retirement areas such as Paradise Valley, Sun City West and Sun Lakes at 2-3%.

For Sellers:

The percentage of successful sales over asking price is increasing. So far in March, 17% of sales closed over list price, last March it was 14%. Properties sold between $100K-$200K had the highest percentage at 24%, followed by the $200K-$300K range at 18%. The market between $300K-$1M is the most improved with 12% sold over list compared to only 7% last March. There were zero sales over list in the market over $1M. Areas with the highest percentage are El Mirage and Youngtown, both at 50%, followed by Tolleson with 45.5% of sales closing over asking price.

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.comwhere you can find single family homes, golf and lakefront properties, 55+ communities, townhomes and much more. Visit our blog at NextHome Valleywide for a monthly Phoenix Market Update.

 Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2018 Cromford Associates LLC and Tamboer Consulting LLC

January Market Update 2018

January 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.

2017 MLS Sales up 6% over 2016
Over 50% of 2017 Sales Were in this Price Range….

January Market Update

For Buyers:

2018 is not going to be any less competitive for buyers in general. The market is starting out with 14% fewer listings compared to 2017, however there are 35% fewer listings under $200K, a price range that commands 34% market share of all MLS resales in Greater Phoenix. 51% of MLS sales were between $200K-$400K in 2017, and supply in this range is down just 7%. 14% of sales were between $400-$1M and supply is down nearly 9%. Only the market over $1M is starting 2018 with 4% more for sale, 2017 sales over $1M were less than 2% of the market.

For Sellers:

Over 51% of newly constructed condominiums, townhomes and single family residences sold in 2017 were between $275K-$500K as of November and approved single family permits are up nearly 12% going into 2018. Added inventory from new construction continues to keep mid-range property appreciation at sustainable levels at the current level of demand. The last wave of boomerang buyers are expected to rejoin the masses in homeownership this year after waitng 7 long years to qualify for conventional financing after foreclosure. These buyers span all price ranges and their return combined with positive inbound relocation and employment keep Greater Phoenix a positve environment for sellers.

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.comwhere you can find single family homes, golf and lakefront properties, 55+ communities, townhomes and much more. Visit our blog at NextHome Valleywide for a monthly Phoenix Market Update.

Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2018 Cromford Associates LLC and Tamboer Consulting LLC

Getting prepared to purchase a home

Congratulations on deciding to purchase a home! It is a very exciting time and the process might seem like a roller coaster of emotions and sometimes overwhelming but hopefully this guide will help to get you prepared for what is to come.

 

What do you want your new home to look like?

There are many things that will affect the final decision when it comes to a new home. Some of the questions you should ask yourself are: how many floors would I like, what kind of architecture style do I want, How many rooms and bathrooms would be comfortable for me, does it have a pool, how big is the backyard, how old is the house, how close is it to work, is it in a part of the city I want to live in, what is my budget, ETC. Knowing this can knock considerable time off of the home buying process and help you get an idea of what you want to spend your hard earned money on.

 

How much you should have saved up to start the process?

There are two separate amounts, one for the home buying period and the other for the closing of your new home.

For the period while the house is under contract to be purchased, it is a good practice to have at least $2,000 saved. $1,000 to be used as earnest money and the other $1,000 for inspections. You may need more for the home buying process however, $2,000 would be a safe estimate to start off with.  

It is possible that you will need to bring additional funds to the final signing or “closing”  but this amount is usually known at the beginning when you contact your lender (the bank you will be using to finance your new home). For more information please feel free to contact me and I can get you in touch with a home loan specialist.

 

How long does the home buying process take?

This can vary wildly depending on special circumstances however, a good timeframe someone could expect from start to finish would be about 2-3 months. The search for a home depends on how the market is in the area you are looking at and your specific needs. If you are looking for a home with very specific features in a particular part of town, it may take some time until one comes up for sale that meets all of your criteria. For most people you could expect anywhere from 2-4 weeks to search for a home. People can sometimes get lucky and get the first home they tour but most often it takes a few homes to find the one for you.

The rest of the time is when the contract is in “Escrow”.  Escrow is the period when the person buying the home is getting everything prepared for them by the bank and the title company. Banks and title companies will often want to verify as much information as possible to protect both the seller and the person buying the home.

 

What should your credit score be to qualify for a home loan?

If you need a loan to purchase your home, I recommended to have a credit score of at least 630. This will vary from bank to bank however, that is a good starting point. Of course the lower your credit score the higher your interest rate and your payments will be. This is the same concept as buying a car, if you have a high credit score your payments will be lower and you may qualify for bigger discounts because your less of a risk to the credit companies. If you do not know your credit score I recommend checking www.creditkarma.com or getting your credit report directly from www.Equifax.com or www.Transunion.com.

 

Things you should not do while looking for a new home

If you are getting a loan to purchase a home you will want to make sure there are no changes to your credit report. This means no new car purchases, no closing credit card accounts, no new credit card accounts, and no big purchases on your credit cards that could affect your credit score. If your credit score goes lower because of what I have mentioned it may affect your chances of actually getting the loan or getting the payments that you agreed upon with the bank. Remember, just because you are in process of buying a home it doesn’t mean it is yours until you have signed for everything and you have the keys in your hands. This does happen sometimes where people are no longer eligible to purchase their homes, so be careful and plan your finances accordingly.

 

What does a person that is ready to buy a home look like?

A person that is ready to go will have a credit score of at least 630. They will have contacted a bank to see how much they qualify for. They will have at least $2,000 in their checking or savings accounts as well as other funds needed to close. Lastly, they will need to contact their real estate agent to schedule times to look at the homes that peak their interest. After that it’s happy hunting. Purchasing a new home can often times feel overwhelming. Even Though there are many things that have to come together to finalise your purchase, you should not let it take away the fun and excitement that comes when searching for a place to call home. Once you have everything done and you turn the key for the first time,  you can feel excited because you have a new place to hang your hat and you now have an investment. If you need more information feel free to reach out to me, I’d love to help you out.

 

Resources

Creditkarma.com –gets credit info from both equifax and transunion

Equifax.com –a credit reporting company

Transunion.com – another credit reporting company

Downpayment assistance programs – information on assistance programs for first time home buyers

Popular architecture styles in the phoenix area

NextHome Valleywide Market Update December 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.

23% of Listings Under $200K Sell Over List Price

Greater Phoenix Appreciation on 6.2% Overall, But Varies

2017-12 Infographic

For Buyers:

There are currently 1,399 normal* single family listings between $100K-$200K in Greater Phoenix and supply levels are not expected to rise in this price range going into 2018. In the last half of 2017, an average of 1,396 normal single family new listings were added each month while 1,375 per month were sold in this price range. In November, 23% sold over list price compared to 27% last June and 28% closed with full price offers compared to 28% in June.

*A normal listing is one that is not a short sale or foreclosure.

For Sellers:

The overall appreciation on rate based on annual sale price per square foot in Greater Phoenix is 6.2%. However, supply and demand are not the same by price range. The greatest appreciation on rates are under $200K due to a lack of new construction on that would typically balance out the supply shortage. Sales under $200K are 33% of all sales this year, so their rate has a large effect on the overall average. New multi-family and single family homes are being added to the $200K-$500K price range to accommodate increased demand, but it’s still not quite enough. The market is balanced between $500K-$1M, while supply is still higher than demand over $1M despite a 10% rise in 4th quarter contracts. As a result, appreciation on rates are as follows by price range:

  • Under $200K: 7.7%
  • $200K-$500K: 3.5%
  • $500K-$1M: 1.7%
  • Over $1M: 0.1%

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.comwhere you can find single family homes, golf and lakefront properties, 55+ communities, townhomes and much more. Visit our blog at NextHome Valleywide 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