Well, Real Estate in Phoenix AZ never fails to be interesting!
In the Spring of last year, housing prices were rebounding after sinking to record lows. Yes, there were alot of foreclosures, but the banks were releasing them at a measured pace, and investors were snapping them up as soon as they appeared. In fact, in most cases, there were multiple bids on many foreclosures. As a result, with steady or declining inventory, and multiple bids for many homes, the housing indeces turned around. Prices were finally going up! And not just a little bit....prices rose by close to 10% (sometimes more) in most parts of the Valley.
THEN.....the First Time Homebuyer Tax Credit expired. And with it, the housing market cooled. First time buying dried up, prices started to stagnate, and investors held back as prices weakened again. By August, the indicators had again turned negative. Prices were dropping. In fact, by December, we dropped even further than the original bottom. We officially had "Double dip" in our housing market.
BUT....it's beginning to feel alot like last spring again. We've had our busiest Dec-Jan in 5 years. According to our broker, most of the other agents are busier than ever as well. Foreclosures? Still plenty of em...but once again, they are getting multiple bids.
Buyers are returning, but this time it is not just first time buyers....people moving up into larger homes, and moving into Phoenix for jobs, are buying. Investors, sensing a bottom, are jumping in again.
If I don't miss my guess, the one thing we haven't seen that would mimic last Spring...a reasonable increase in home prices.....will start showing up in the statistics soon. And that will probably mark the beginning of an ongoing recovery, in our opinion.
Thursday, January 27, 2011
Monday, January 10, 2011
Update to 2011 Forecast for Real Estate In Phoenix
We're still being asked alot what will 2011 bring in Real Estate in Phoenix AZ???? While we don't have a crystal ball, we do have the advantage of spending our days in the world of buying and selling homes. Our experience is an interesting addition to what we discussed in our last blog post.
We will say that we have had the busiest December since 2005. We have had alot of leads come from the Internet on our websites. Our front desk tells us the Real Estate brokerage is hopping with business, just as we are.
We also see new buisnesses opeining up. New housing developments. In one half hour period last week, we heard 3 ads for homebuilders on the radio. Unemployment is down. Spending is up. Homes have gone down to the same price level as they year 2000.
Well, no crystal ball, but we don't hink it takes a rocket scientist to put together the above facts and conclude that with record low prices, near record low interest rate, rising employment, business growth and new housing growth, 2011 looks good for Real estate. Very good.
My take is that we will have a first half of the year much like last year, but around mid year, look for rising prices and interest rates to take hold. Nothing spectaculay, but the price gains, and the interest rate increases, will be noticeable in our opinion.
We will say that we have had the busiest December since 2005. We have had alot of leads come from the Internet on our websites. Our front desk tells us the Real Estate brokerage is hopping with business, just as we are.
We also see new buisnesses opeining up. New housing developments. In one half hour period last week, we heard 3 ads for homebuilders on the radio. Unemployment is down. Spending is up. Homes have gone down to the same price level as they year 2000.
Well, no crystal ball, but we don't hink it takes a rocket scientist to put together the above facts and conclude that with record low prices, near record low interest rate, rising employment, business growth and new housing growth, 2011 looks good for Real estate. Very good.
My take is that we will have a first half of the year much like last year, but around mid year, look for rising prices and interest rates to take hold. Nothing spectaculay, but the price gains, and the interest rate increases, will be noticeable in our opinion.
Thursday, December 16, 2010
2011 Real EState Phoenix AZ Forecast
Well, it's been an interesting year here at Ground Zero in Real Estate! The normal seasonal patterns have fallen by the wayside, and people are buying, or not buying, in my opionion, due to outside forces. They lost a job. Got one. Got scared. May lose a job. Heard prices are going up. Going down. What about interest rates? Wow.....buyers and sellers don't know who to believe.
One report came out about a week ago that we should give some attention to. Jay Butler, who heads up the Real Estate Institute at ASU, issued his forecast for the future of Real Estate in the Valley. And I say we should pay attention because Jay Butler has no axe to grind, so to speak. He is not a Realtor. Does not owwn a brokerage. Not with a bank. Not even with a trade group. Just ASU....and he says.......
By 2014, Real Estate in Phoenix should jump in value by 60% from todays levels. Really?
Well, let's look at the numbers. Home now are selling at 2000 prices. In other words, if you bought a home in 2000 and sold it today, you would most likely break even. So, that's 10 YEARS at 0.0% appreciation. Now, go to 2014, and you have to account for 4 MORE years, for a total of 14 years appreciation. Historically, real estate has appreciated 3-3.5%. Do the math over 14 years, and guess what....right about at 60%.
So, what sounds outlandish at first is just a return to the norm. And historically, markets return to normal. Which they almost always do, without fail.
Will the economy support a return to normal. Well, we are seeing signs here. Unemployment is down, at least a bit. Phoenix is projected to be #2 in the nation next year for job growth. Almost 20% of employers plan to hire. New commercial construction is up. Values of infill land in abandoned subdivisions have doubled this year. The number of new home communities opening has increased substantially.
In a nutshell, there IS reason to believe.....
Jay Butler may just be right.
One report came out about a week ago that we should give some attention to. Jay Butler, who heads up the Real Estate Institute at ASU, issued his forecast for the future of Real Estate in the Valley. And I say we should pay attention because Jay Butler has no axe to grind, so to speak. He is not a Realtor. Does not owwn a brokerage. Not with a bank. Not even with a trade group. Just ASU....and he says.......
By 2014, Real Estate in Phoenix should jump in value by 60% from todays levels. Really?
Well, let's look at the numbers. Home now are selling at 2000 prices. In other words, if you bought a home in 2000 and sold it today, you would most likely break even. So, that's 10 YEARS at 0.0% appreciation. Now, go to 2014, and you have to account for 4 MORE years, for a total of 14 years appreciation. Historically, real estate has appreciated 3-3.5%. Do the math over 14 years, and guess what....right about at 60%.
So, what sounds outlandish at first is just a return to the norm. And historically, markets return to normal. Which they almost always do, without fail.
Will the economy support a return to normal. Well, we are seeing signs here. Unemployment is down, at least a bit. Phoenix is projected to be #2 in the nation next year for job growth. Almost 20% of employers plan to hire. New commercial construction is up. Values of infill land in abandoned subdivisions have doubled this year. The number of new home communities opening has increased substantially.
In a nutshell, there IS reason to believe.....
Jay Butler may just be right.
Thursday, November 25, 2010
Happy Thanksgiving to All Followers of The Real Estate Phoenix AZ Blog
It's Thanksgiving, a time when all of us should reflect upon our many blessings. Throughout the year, we have heard of the many people losing homes, failed loan modifications, short sales, declining values.....the list goes on and on.
What's the good news??? It's all around us, each and every day. We live in Phoenix, AZ (if we are lucky).....it's the 5th largest city in the US, and any recession here always makes the rest of the country wonder what we are complaining about here. Even the worst of economies in Phoenix, AZ tops the average in many other parts of the country.
And yes, home values are down in Phoenix, but homes for sale in Phoenix AZ haven't been this affordable in years. Interest rates are at record low levels. More people than ever can afford to buy a home. I see people every day thanking their lucky stars that they can now buy their first home, their vacation home, or their retirement home, here in Phoenix, when only a few years ago it was beyond their reach. I see people that are building their nest eggs by purchasing Real Estate in Phoenix. Yes, the average person can afford it....I've sold investment homes as low as $32,000....less than many people spend on a car. Prices have never been better.
I see the first buds of growth all over....Temporary help firms are advertising. New home developments are opening again. Prices of some development land have doubled. Consumer spending is up. And if I don't miss my guess, the Christmas retail season will be great.
And next year, who knows? Well, I do. We live in Phoenix, AZ. That alone will be good. Beyond that, good news will be all around us. We just need to see it. And appreciate it.
Happy Thanksgiving, from all of us at the Right Move Team.
What's the good news??? It's all around us, each and every day. We live in Phoenix, AZ (if we are lucky).....it's the 5th largest city in the US, and any recession here always makes the rest of the country wonder what we are complaining about here. Even the worst of economies in Phoenix, AZ tops the average in many other parts of the country.
And yes, home values are down in Phoenix, but homes for sale in Phoenix AZ haven't been this affordable in years. Interest rates are at record low levels. More people than ever can afford to buy a home. I see people every day thanking their lucky stars that they can now buy their first home, their vacation home, or their retirement home, here in Phoenix, when only a few years ago it was beyond their reach. I see people that are building their nest eggs by purchasing Real Estate in Phoenix. Yes, the average person can afford it....I've sold investment homes as low as $32,000....less than many people spend on a car. Prices have never been better.
I see the first buds of growth all over....Temporary help firms are advertising. New home developments are opening again. Prices of some development land have doubled. Consumer spending is up. And if I don't miss my guess, the Christmas retail season will be great.
And next year, who knows? Well, I do. We live in Phoenix, AZ. That alone will be good. Beyond that, good news will be all around us. We just need to see it. And appreciate it.
Happy Thanksgiving, from all of us at the Right Move Team.
Monday, November 1, 2010
5 Things to do Before Putting Your Home on the Market
As the Real Estate Market in Phoenix, AZ continues to improve, more homes are coming on the market, and we are getiing more inquiries about listing homes. To help people out, here is a short list of things to do in order to prepare their home to sell. Remember, too, that if you want a free DVD on how to stage your home for sale, just email me at mikezahn@cox.net, and we'll be happy to send you a copy!
1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin.
2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.
3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.
4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.
5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?
1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin.
2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.
3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.
4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.
5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?
Tuesday, August 24, 2010
Considerations When Buying Real Estate in Phoenix
Buying a home in Phoenix is an important decision. Sometimes, there seems like there is so much information flying around the various media, it's easy to lose focus. Stick to the basics, and you can't go wrong. When you are buying real estate in Phoenix, here are some of the LESS common factors to consider:
The commute: What is your commute to work? What's traffic like? Do you have access to public transportation, if needed?
School districts: Do you have or plan to have school aged children? How does the school district rate? How close is the school of choice? Did you know we provide FREE School Reports rating every school in the Valley, including private and charter schools? If you want it, Just ask!
Access to shopping: How close is your favorite grocery store or mall?
Are you on city or septic? Which utility company will you use? Do you have city water or well? And don't forget access to cable or high-speed Internet!
Public safety: How close are police and fire departments? How are the emergency medical services? Is distance to the nearest hospital important to you?
Recreation Areas: Do you have recreational interests to factor into your home search? How close is the nearest park, lake, mountain, or hiking trail? If you are moving to a new community, you may want to check out playgrounds and fitness centers.
All of these factors and more contribute to a quality of life that will affect your enjoyment of your new home. When you are ready to purchase a home, we welcome the opportunity to help you. Our team closes 7 times more homes than the average Realtor, and that's because we do it right. We KNOW the in's and out's of this very challenging real esate market in Phoenx, and we can guide you every step of the way.
The commute: What is your commute to work? What's traffic like? Do you have access to public transportation, if needed?
School districts: Do you have or plan to have school aged children? How does the school district rate? How close is the school of choice? Did you know we provide FREE School Reports rating every school in the Valley, including private and charter schools? If you want it, Just ask!
Access to shopping: How close is your favorite grocery store or mall?
Are you on city or septic? Which utility company will you use? Do you have city water or well? And don't forget access to cable or high-speed Internet!
Public safety: How close are police and fire departments? How are the emergency medical services? Is distance to the nearest hospital important to you?
Recreation Areas: Do you have recreational interests to factor into your home search? How close is the nearest park, lake, mountain, or hiking trail? If you are moving to a new community, you may want to check out playgrounds and fitness centers.
All of these factors and more contribute to a quality of life that will affect your enjoyment of your new home. When you are ready to purchase a home, we welcome the opportunity to help you. Our team closes 7 times more homes than the average Realtor, and that's because we do it right. We KNOW the in's and out's of this very challenging real esate market in Phoenx, and we can guide you every step of the way.
Monday, June 14, 2010
Buying a Home in Phoenix, AZ
It's hard to believe you need to consider your next move before
purchasing real estate in Phoenix, AZ! It is always prudent to shop for a new home
with an eye on potential resale value down the road. While I can't
predict what the future will bring, here are some simple things you
can look for:
Views: Homes with a view often sell for a premium. This can be a
double edge sword as beauty is in the eye's of the beholder. Not
all buyers will place the same premium on views.
Lot Size and Shape: Level or rectangular lots are the most
desirable. Much of the value in real estate is in the home, not
the landscape. As a buyer, do not pay a premium for someone else's
landscaping efforts.
Neighborhoods: Buy a smaller house in a nicer neighborhood. Rather
than buy a large home with smaller homes around it, buy a smaller
home surrounded by larger homes. This will improve your
appreciation opportunities. Real Estate in Phoenix AZ is typically in subdivisions, and your Realtor can check the surrounding properties for you easily.
Closets: Closet space is always an issue.
Kitchens and Baths: A spacious, updated kitchen is among the most
important features in a home. Real Estate Buyers in Phoenix AZ often look for granite counters, updated cabinets, and plenty of counter space. Updated baths are also important.
Garages: The bigger the better.
Backyard Features: Decks and patios generally yield almost a
dollar-for-dollar return.
So, although it seems strange to consider your next move before making this one, Real Estate in Phoenix AZ is no diferent than any other place....location location location. It's important to have the features noted above when buying. But if they are not there, many can be added. What you can't add is location....views, lot size, size relative to neigborhood, etc. Be sure to consider these items when making your next move.
purchasing real estate in Phoenix, AZ! It is always prudent to shop for a new home
with an eye on potential resale value down the road. While I can't
predict what the future will bring, here are some simple things you
can look for:
Views: Homes with a view often sell for a premium. This can be a
double edge sword as beauty is in the eye's of the beholder. Not
all buyers will place the same premium on views.
Lot Size and Shape: Level or rectangular lots are the most
desirable. Much of the value in real estate is in the home, not
the landscape. As a buyer, do not pay a premium for someone else's
landscaping efforts.
Neighborhoods: Buy a smaller house in a nicer neighborhood. Rather
than buy a large home with smaller homes around it, buy a smaller
home surrounded by larger homes. This will improve your
appreciation opportunities. Real Estate in Phoenix AZ is typically in subdivisions, and your Realtor can check the surrounding properties for you easily.
Closets: Closet space is always an issue.
Kitchens and Baths: A spacious, updated kitchen is among the most
important features in a home. Real Estate Buyers in Phoenix AZ often look for granite counters, updated cabinets, and plenty of counter space. Updated baths are also important.
Garages: The bigger the better.
Backyard Features: Decks and patios generally yield almost a
dollar-for-dollar return.
So, although it seems strange to consider your next move before making this one, Real Estate in Phoenix AZ is no diferent than any other place....location location location. It's important to have the features noted above when buying. But if they are not there, many can be added. What you can't add is location....views, lot size, size relative to neigborhood, etc. Be sure to consider these items when making your next move.
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