Real Estate Market Report for Surprise Subdivisions- October 2017

November 22nd, 2017

Hows the Real Estate Market in Surprise, AZ? Median home prices have seen double digit increases over last year. Inventory levels remain low and new listings continue low, 2017 should finish strong for homeowners in Surprise. Click below to enlarge a detailed report on all Surprise Subdivisions. 

Feel free to contact your Surprise Area Specialist, selling Surprise since 2003.

Phoenix West Valley Real Estate Market Report by City for October 2017

November 8th, 2017

How’s the Market? Here is the October 2017 West Valley Market Report. Happy Fall Y’all!! Cooler Temps have heated up our Market! Maricopa County had an increase in sales over last year of 4.3% with a median sales price increase of 6.57%. West Valley cities that had the largest increase was Buckeye at 43% increase over last year, Litchfield Park 33.3%, Peoria 6.7%, Goodyear 6.3% and Phoenix 3.9%. All other cities reported slight decreases were Avondale -16%, Surprise -7.3% and Glendale -4.1%. 

Inventory levels remain low as New listings taken are much less compared to 2016 numbers in Avondale, Glendale, Peoria, Goodyear and Surprise. Although Litchfield Park 23.5%, Buckeye 15.7% and Phoenix 2.4% reported an increase over last year.
 
As we head in to the Holidays it will be interesting to see how this Real Estae market ends in 2017. Typically the last quarter of the year is a strong selling season, with the increase in winter visitors however pending sales are down significantly in all west valley cities compared to last year. Avondale -26.9%, Buckeye -12%, Glendale -23.3% Goodyear -27.4%, Litchfield Park —28%, Peoria -16.8%, Phoenix -25.6%, Surprise -12.4% and Maricopa County -26.1%. It will be interesting to see how November pans out. Will we see home prices drop? Will the Pending sales increase to hold prices steady? Stay tuned.
 
Thinking about selling? Give us a call for a Free Market Analysis. Thinking about buying? We have a dedicated team of Buyer Specialists ready to help you step by step find your dream home.

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Ways Landlords Fail

November 8th, 2017

As you may know we have a property management division within our team, www.AZPropertyManagementGroup.com to help our investment property owners manage their properties and maximize the overall return. There are a few things that commonly pop up as we take on properties that I thought I would discuss here. This is not written to poke fun of anyone, it’s to shed light on the problem areas we are commonly seeing so that you can perhaps make an informed decision on whether you need a property manager to help or not. So here are three very common fails we are seeing…

  1. Not running it like a business. Real estate is valuable, it can be the single best investment you will make in your life. Don’t run your business on a whim or gut feeling, run it on sound business principals and proven models to ensure success. I’m surprised how many people that own an investment property decide to handle it on their own without any experience whatsoever. There are huge consequences to doing things wrong in this business so be aware!
  2. Running on emotion. Making decisions on gut feelings or emotions is not the way to operate. You MUST follow a business model to have success. This is very common because the owner may lease the former family home, or has become too emotionally attached to the home while purchasing. Or very commonly we see landlords lease to friend, family or even become friends with the tenants. This can lead to Landlord Tenant violations and other issues like not increasing rent according to market rent or spending too much or too little on maintenance to keep your buddy happy. You need someone to be the buffer, someone to be the bad guy when rent needs to be increased after the lease term. Yes, spending a little on property management will pay for itself over time by avoiding these fails.
  3. Lease poorly written. We see this one all the time, and perhaps can be the most damaging if ever challenged in court. We take countless classes and attend seminars and meeting with attorneys to learn how to properly write a lease to protect the owner. I’m surprised how many people out there simply write their own without any education on the matter. Be very careful here, you can end up massively in debt and have very serious charges brought against you for simply writing something wrong. And most the pre-printed leases available out there contain provisions that should NOT be used. There are very strict laws out there be very careful.

If you need assistance with property we are happy to help, please let us know.

City of Surprise Subdivision Real Estate Report September 2017

October 10th, 2017

Hows the Real Estate Market in Surprise? City of Surprise Median Home prices are up 7.14% over last year. Click below to enlarge a detailed report on all Surprise Subdivisions. Feel free to contact us with questions or to get a detailed report on your specific property.

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Phoenix West Valley Market Report by City September 2017

October 7th, 2017

How’s the Market? Here is the September 2017 West Valley Market Report. Inventory levels once again held steady in most west valley cities. A few dropped a couple of percentages while a few went up a tick. Only Surprise and Peoria saw increase values in the Median sales price, all other cities reported a decrease in median home prices. As you can see from August Market report, they were not significant price decreases, but with low inventory supply, we expect to see prices trending up. In case you missed, be sure to check out last weeks blog “Whats Up with this Market” where I shared what our team, and other agents are experiencing in this market.

 

Now to give an accurate picture when looking at these numbers, you need to keep in mind 30-45 day average closing time for real estate transactions, this means most of the homes that closed in September, actually sold in August. So with that said, another number I pay close attention to is the Pending Sales. Not sure if its a “sign of a shift” or higher than normal temperatures, but the winter visitors and influx of home buyers that usually see in September just weren’t there. Pending Sales in September in just about all west valley cities showed double digits decreases over the same month last year. Avondale -27.6%, Glendale -33.4%, Goodyear -32.5%, Litchfield Park -31.2% Peoria -17.8%, Phoenix -25%, Surprise -30.3%, Maricopa County -28%, the only city to increase sales over last year was Buckeye with 7.5% increase over last year. 

Along with Pending sales, I watch “New Listings taken.” Buckeye reported 18.8% increase over last year, that was followed by Peoria 4.2% and Surprise 1.1%. All other cities were in the negative for listing taken this year versus last year. Litchfield Park -22.7%, Avondale, -15.4% is where we saw the least amount of listings, other cities averaged -4% decrease. 
 
We shall see soon what October has in store for our West Valley Real Estate Market.

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5 Trends we are Seeing in our Real Estate Market

September 25th, 2017

Many of you have been following our “How’s the Market?” monthly reports that detail pertinent numbers for the West Valley cities, but I am hoping to enlighten you with even more… “Whats up with this Market!?!”  Looking at the numbers doesn’t always tell you what the market is actually experiencing. There is still a “Market of the Moment” and that is something active real estate agents experience by following the patterns in their own experiences and transactions and masterminding with other agents and lenders to figure out these patterns.

So thats exactly what I have been doing, not just following but feeling the market and seeing what other agents are feeling as well. So here are the top 5 things we are experiencing and things you should know if you are thinking of buying or selling.

First lets recap the number trends for the year in the West Valley. One of the most pertinent numbers we look at is the Months of Inventory. This number indicates supply, real estate is still a commodity so supply and demand still have a tremendous effect on the values. Lower supply, greater demand, drives values in a positive direction. Maricopa County has been in extremely low supply of homes on the market. We have held steady with low inventory all year, some cities much lower than others. Now this isn’t because buyers are not buying of sellers are not listing, the past few months, the number remains steadily low, because we seem to sell nearly the same amount of homes each month that were newly listed, while others sit on the market increasing the average days on market.

BOOMER-RANG BUYER
So that leads me to our first trend we are seeing with the Home Buyers in the market. First of all, there has been a phrase coined by the Lending institutions “Boomer-rang Buyer.”  These are the homeowners that lost homes during the real estate market BUST. Many people lost homes either to foreclosure or short sale, and those folks are now through their waiting period and back in the looking for homes. Realty Tract estimates nearly 3.5 million Americans will be eligibles to buy over the next 3 years and we are seeing our fair share in the market already. My best description of this buyer is “Once bitten, twice shy,” they are not willing to over pay, get into a bidding war or willing to settle for less. Therefore, they will wait, and wait and wait, until the right house, at the right price becomes available. So we are not seeing bidding wars like we did in 2003-2006, its just not happening. We are seeing Multiple offers, yes, but 10, 15, 20,0000 over asking price, not happening. This is also due to stricter regulations on the appraisal industry. Government guidelines put in place have help to suppress property values from sky-rocketing, instead we are maintaining steady increasing home values that fall in line with the economy, job wages and affordability, creating stability for the Market and securing the American Dream of Home ownership.

To further back the above mentioned, is the first time home buyer. We have lots of loan programs, grant money and affordable financing programs available for first time home buyers. We are seeing a lot of first time home buyers. Perhaps not as many as we could use, we will discuss this later, but the typical first time home buyer in todays market, was greatly impacting by the real estate housing crash too. They either saw their parents loose their home, someone in their family or an immediate friend. They are very aware of the repercussions of paying too much for a home and to me, they are some of the most conservative first time home buyers we have ever seen enter the market. They seem to stick more to a budget of that feel the are comfortable paying even though the lender may have qualified them for more.

CONTINGENCY TRAIN
Next trend we see is what I call the “contingency train,” which is where a sale of a home is contingent upon the sale of that buyers home. This is very common in todays market. In fact, just on our team this month we saw this contingency train go 3-4 houses deep. Which was why I said we need first time home buyers in the market place more than ever. We are currently working a transaction that depicts the real estate cycle of life beautifully. First time home buyer purchases a 1400sq ft home using county Bond program for down payment assistance. Those folks selling that have now out grown that home are moving to a much larger home, using the equity to put 20% down on a 3000sq ft home for their growing family. The current sellers of that home are now empty nesters and looking to down size, the use their 20% down equity to move to a smaller home 1800sq ft and enjoy their retirement years. These are trickier transactions for the agents involved, but we track all the homes through out the escrow process and aline up the closings and everyone moves in and continues the American Dream.

PRICE IT RIGHT
Third trend, and you may have already figured where this is headed, PRICE IT RIGHT. We are seeing overpriced homes come on the market everyday. By over priced, I mean the home is so far out of comps, it wont even appraise. Its obvious that the sellers have read the news “Sellers Market LOW Inventory” and flashed back to 2005 when homes were jumping 10-30-50K for each new listing.  Well these homes are sitting and we see price reduction after price reduction, and many eventually just cancel or expire. Watching the market month after month, so many homes are selling in the first week or two of being listed, we list and sell almost the same amount each month, yet average days on market in Maricopa is 67 days. I ran several searches and in any given city in the West Valley, a quarter of the homes in that area had been listed over 90 days. The new listing sell quickly are averaging out those days on market. So if you want to sell, Price it Right.

STAGE TO SELL
Fourth, and this goes hand in hand with the aforementioned, Stage to Sell. In todays market staging has never been more important. In fact, my favorite part of listing a home is staging it to sell. I have always staged our properties, using the homeowners items, this was always a complimentary service I offered to my sellers. However in todays market it has been such a pivotal part of selling, I recently obtained my ASP® Accredited Staging Professional to further my knowledge and be able to help clients whom want to complete more in depth staging and remodeling projects. We are definitely seeing a large return on investment when a home is staged  to sell. We are seeing a tremendous decrease in sold price on homes that were not staged to sell. Here are a couple samples:

Before

After

Before

After

 

MARKET GOING TO TANK
Last but not least the fifth thing I am hearing quite often from buyers, “Well I think the market is going to tank again, and thats what I am waiting for!”  I am not sure what is driving this thought in the consumers head, but nothing in the data, Arizona economic state or the Federal Reserve reports would lead this to be true. The real estate market collapsed, basically for many reasons, but to put it in a nut shell, we had to low of regulations with home loans, putting a surplus of buyers in the market, cause the demand to increase and the values started skyrocketing, even passing up inflation. The bubble that was created needed to burst, the economic balance in our country was way out of balance. As previously mentioned, now that we have a more structured appraisal industry, and home loans require more than “breathing on a mirror” and pick a number any number and tells us how much you make, the market is much more secure and stable now. Market trends are right back on track with were we should have been on a normal 30 year trajectory, had we not have had that BLURP in the market. Market values are steadily increasing, so todays home prices will be much less than next years home prices.

If you have questions or if we can help you buy or sell please contact us.

City of Surprise Subdivision Report August 2017

September 14th, 2017

Here is the August 2017 Market Report for subdivisions in Surprise, AZ. Something to keep in mind when you are looking at the Real Estate Market, real estate transaction on average take to 30 days to close, so the August Market report is really reflecting homes that went under contract and sold in July. Another important number to pay attention to is the Months of Inventory, real estate is a still a commodity and values are driven by supply and demand. “MONTHS OF INVENTORY”, this number shows how long the current inventory of properties would last at the current rate of sales. 5-6 months of Inventory would be considered a flat or “Normal Market.” Less than 4 months would be considered a “Seller’s Market” while levels above 6months would be considered a “Buyer’s Market”. Absorption Rate is calculated by dividing the average number of available homes by the number of sales per month.

August in Surprise, AZ closed sales were up by 5.2%. Pending Sales are currently down -13.7% compared to last year. New listings taken are also down -4.6% compared to last year.  Inventory level has remained low and  year as we List and Sell nearly the same amount of homes each month. In August, 374 New homes listed on the market and Sold 344. July Surprise was at 2.66 months of Inventory and August dropped 2.07 months. Good news is that Median home price in Surprise is up 7.14% over last year.

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Phoenix West Valley Monthly Real Estate Market Report- August 2017

September 7th, 2017
How’s the Market? Here is the August 2017 West Valley Market Report. Record heat didn’t scare the Buyers out of the Market. Glendale proving to be the hottest market reporting 413 closed sales versus 377 in 2016. Other cities with an increase in closed sales last month, Peoria, Surprise and Phoenix. All other West Valley were not to far off from their Aug 2016 transactions.
 
Inventory levels held steady, as we continue to List and Sell nearly the same amount of houses each month. Properties hitting the Market priced right, staged to sell are selling quickly, while we see others just sit on the Market. Once again confirming my opinion from last month that Buyers are not willing to “settle for something” or “over-bid values.”  We continue to see steady increases in property values Median homes prices in Maricopa County are up 5.90 over last year. 
 
Buying, Selling or Investing? Call our Team of Specialist today for any of your Real Estate needs.

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City of Surprise Subdivision Report for July 2017

August 14th, 2017

Hows the Market in Surprise, AZ? Is it a Buyer’s or Seller’s Market? See which neighborhoods and the largest increase in Median Price. Who is selling the most homes? Take a look at a break down by each subdivision in Surprise. Follow us on Facebook for monthly updates on your neighborhood.

Thinking of Selling? Contact us for a complete Current Market Analysis on your home.
Thinking of Buying? Our Team has over 14 years experience in the Surprise market, call today and we will help you find your Dream home, with no cost to you!

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Phoenix West Valley Real Estate Market Report by City July 2017

August 8th, 2017
How’s the Market? Here is the July 2017 West Valley Market Report. Inventory levels continue at all time lows, Maricopa County dropped from 2.77 months to 2.66 months in July. Pending Sales for July were down by 30%, although closed transactions were up by 3.2%. Some West Valley cities took a hit in the number of transactions sold in July versus the same month last year.  Glendale down -1.1%, Phoenix down -1.6%, Goodyear was down -2.2% and the slowest market seemed to be Avondale where sales were down -12.4% over last year. I always like to share the good with the bad, so where were people buying?  Buckeye reported a 21% increase, Surprise came in next 9.7%, Peoria 8.3% and Litchfield Park had 3.2% increase over last year sales. 
 
Something else interesting happened in the market last month, all west valley cities saw a decrease in the average sold price, however the average days on market decreased, so homes sold quicker than in June.
 
What is keeping this market “stagnate” as it seems we sell the same amount of homes we list each month? In my opinion it can be attributed to a few things. There are definitely more buyers than listings and as buyers agents we are having to get very creative and present strong offers to sellers, by the way this doesn’t always mean the highest offer, just creative in order to get our buyers the home they want. We also have many homeowners who would love to take advantage of this “move up” market, but they can’t sell until they find a home and that also is leaving the market in a stalemate.
 
As far as listing homes for sale, this is not 2005 either, when you could stick a sign in the yard and it was sold before you got into your car. Inventory levels in July 2005 had dropped to 1.84 months versus July 2017 at 2.66 months. Buyers do still have some choices and they are not willing to “settle.” They still want a good deal, they want a nice home, move in ready. It has never been more important for homes to be staged, professional photos and priced right. Those are the homes that are selling, fast and with multiple offers.
 
Buying, Selling or Investing? Call our Team of Specialist today for any of your Real Estate needs.

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