Housing Market Report, What’s Up & What’s Down?

Everyone enjoys keeping up with the values in our neighborhoods as the housing recovery dominates the daily news wires.  The reports for Scottsdale and the Northeast Valley have been encouraging as prices continue to rise, while the inventory remains low by the standards of a balanced market.

This months Phoenix metro area housing market report highlights listings, sales, supply and pricing and a housing market year-over-year comparison.

Here’s what’s happening in your neighborhood.

Northeast Valley – grew active listings by 2.1% between March 1 and April 1, although this is still down by 3% from the same period in 2012. This is not having a negative effect on the market in the Northeast Valley because sales grew 28% between February and March. This is the ONLY area where the annual sales rate has grown.

Southeast Valley – 14% fewer active listings in April 2013 than in the same month in 2012, additionally; it dropped 4% in the previous month. On a positive note, monthly sales were up by 33% between February and March; this is only 2.8% down from this time last year. This area has seen the largest percentage decline in both days of inventory and months of supply over last year.

West Valley – grew sales between February and March, rising by 23.7% but its monthly sales rate is down 11.8% from last year. Active listings dropped by 11.6% over the last year and by 8.9% in the last month. This area has inventory causing a severe restraint and has tightened more than in any other area between March 1 and April 1.

Central Valley – comprising Phoenix itself (excluding Ahwatukee) is the top area for price appreciation with a 24.5% increase in the average $/SF for monthly sales. Its active listing count is down 12.1% over the last year and down 3.4% in the last month. This area takes the top spot for increase in annual dollar volume (5.4%) despite annual sales units dropping 14.9%.

Phoenix Housing Market Year Comparison…
February 2012- February 2013

Monthly_Home_Sales_feb_2012-Feb_2013

 

What’s Up? (Single Family Year over Year)

  • New homes (up 67%)
  • Normal re-sales (up 62%)
  • HUD sales (up 8%)

What’s Down? (Single Family Year over Year)

  • Bank owned homes (down 59%)
  • GSE (Fannie Mae, Freddie Mac, etc.) owned homes (down 53%)
  • Short sales and pre-foreclosures (down 48%)
  • Investor flips (down 38%)
  • Third party purchases at trustee sale (down 57%)

Pricing

Phoenix Housing Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix Housing market
 

 
 

 
 

 
 

 
 
 

Supply

Supply has seen a decrease of 4.9% from February 1, 2013 -March 1, 2013.
However 79% of this supply is priced above $150,000 and 22% is priced over $500,000.

Cash Purchases

  • Under $150,000 50.1% cash (48.8% last month)
  • Between $150,000 and $500,000 26.3% cash (23.6% last month)
  • $500,000 and over 35.1% cash (37.1% last month)

 

First Quarter Sales show a marked upswing in Terravita home values

Terravita Housing Market

2013 is off to a great start in Terravita.  As recently as 6 months ago, the median days on market for active listings in Terravita, was 129, whereas today the median days on market is 62.  Median list price has risen from $524,000 to current $540,000, during the same 6 month period.  Median price statistics represents the midline where 50% of the properties are above that price and 50% are below.  With the current inventory of 20 Terravita homes on the market, the absorption rate is 3.5 months.  What does that mean?  If no new listings come on the market it would take 3.5 months to absorb (sell) the 20 homes.  If this trend continues, it is quite likely 100+ Terravita homes will sell this year.  As our market continues to improve, a balanced market of 10 % turnover appears within reach in the next 18-24 months.  All of these indicators demonstrate increased home values.

With prices in Terravita steadily rising, all signs indicate that the bottom of the market is behind us.  And yet, between the low inventory of active listings, and  new loan interest rates remaining at record low rates, the buying energy continues to build.  With many Terravita residents wanting to move up or scale down within Terravita, there is more of a sense of urgency to secure replacement homes, to enable the Seller to take advantage of the current selling season.  If inventory continues to stay thin and buyer inventory remains stable, there is great likelihood that strong sales will occur during the “low season” of summer and fall.

You might question whether it makes sense, given the demographics of the current market, to put your home on the market to sell before you have found and secured the home you want to buy?  There may be a benefit to sell while attempting to find the right home to buy, though that strategy does come with some risk.  If you actively look while you are preparing to sell, you have a better chance of understanding the market and being prepared to make an offer when the right property comes along.  With many of the Terravita buyers from out of state, second home or investment buyers paying cash, there is an increased opportunity to sell with a condition to lease back for a short term time period allowing you to identify, secure and move into the replacement property.  The current market condition atmosphere makes it increasingly more difficult to buy a home contingent on the sale of another unless all contingencies have been satisfied on the house you are selling.

Be as flexible as possible to achieve your goals.
1. Don’t delay another moment; Get your home show ready.
2.  Identify potential interim housing as a backup, which could mean putting your household goods in storage and renting a furnished home in the interim (Off season rates start in May). 3. Get all potential moving and storage cost estimates now, leaving little to guess.
4. When marketing your home, indicate “Seller is interested in a delayed closing or short term lease back.”

Why call Gayle?
With $4,394,000 in closed sales the first quarter of 2013 and listings averaging 35 days on market,  she is your smart choice when selling your home in Terravita.

For more details, call me today:602-850-4335.
I am only a phone call away or just around the corner; your Terravita neighbor.

 

Lights, Camera, Action – Preparing Your Home for Photography

Preparing your home for PhotographyOne of the most important aspects of marketing your home is the photography. Most buyers and agents will decide whether to visit your property simply by the photos they see on the internet or MLS.

The smallest of actions we take up front, can produce huge results! Here are some suggestions to help make your home a star. Please note that you do not have to do everything on the list, but whatever you do will pay off in dividends!

EXTERIOR

  • Remove cars or trucks from the driveway or in front of the house so we can get a clear view of the property.
  • Remove any trash cans, toys, or equipment from the front or visible side of the home.
  • If it is dusk, please turn on all the lights on the patio areas, pools, etc. If you have a firepit or waterfall – turn them on.
  • Hide pool nets along side of house. Remove pool skimmer prior to photographer arriving as it drips water on the pool deck.
  • Remove any debris with a quick sweep on the patios.

INTERIOR

  • Turn on all the lights two days before the photo shoot to make sure they work and replace any burned out. On day of shoot, turn lights on and open blinds to make the space is as light as possible.
  • Hide personal photos or special memorabilia that you don’t want the world to see.
  • Clean windows if needed.
  • Hide pet bowls and litter pans.
  • Remove magnets/notes from refrigerators.
  • Remove appliances from the counters in the kitchen to show off as much space as possible.
  • Put some fresh flowers in a vase or citrus in a bowl for a splash of color in the kitchen and/or bathrooms.
  • Make all beds, put clothes in laundry.
  • Take used towels off the shower door, and toiletries off counters.Place fresh towels on the rack neatly folded.

If you have any spectacular photos of your home with stunning sunsets or views, we’d be happy to include them in our marketing. We look forward to the marketing and sale of your home! Please let us know if you have any questions.

What Matters Most in the Terravita REALTOR you Choose

team-300x226Not all REALTORS are the same and being successful in real estate has many complex components.  When you hire someone to represent you in the sale of your Terravita home, you really are looking for someone who will take the care, the time and energy to treat your home sale as if it were their own.  We believe you hire us to market your home and all of its amenities and benefits to as wide an audience as we can possibly reach through ALL of our resources.  Through the Multiple List System (MLS), print ad and truly, the “world wide web”, we can reach an infinite number of Buyers and Agents.  And if we do our job correctly, which is to market-blitz your home, chances are, we will not be the one to bring you the offer.  What does that matter as long as it sells?  It matters a lot.  The wider the audience the more probable you will sell your home for the highest amount possible in the fewest days and with the least amount of hassle.

There are approximately 40,000  REALTOR-members in Arizona Association of REALTORS, with 8,200  Scottsdale Area REALTOR Association members. These numbers demonstrate that the odds are in the favor of a cooperative agent bringing us the offer, along with a possibility of getting multiple offers resulting in a potential sales price above listed price. We lose that edge if we don’t use those resources.

One of the first Real Estate lessons I learned from watching others, is what it takes to be an exceptional agent.  People like working with people they know, or have been referred to, who have good communications skills and have developed good relationships.  That not only applies to the Seller, in making their REALTOR choice, but to a Buyer Agent in their comfort level in the professionalism of the Listing Agent.  REALTOR reputation matters.  And I will attest that our Scottsdale Area Association of REALTORS has a great reputation for professionalism in the valley. What matters is understanding that we sell your home three times during the process.   We sell your home and our reputation to fellow REALTORS to make them comfortable to show your home to their clients.  We sell your home to the Buyer to give them the comfort level to make an offer and if a loan is needed by the Buyer, we sell your home to the appraiser to support the value in the purchase price.  If you would like to know more about our Certified Wiser Home strategy, please email or call me.

So what matters most to us, probably matters most to you in both business and personal interactions.  It is creating partnerships in all facets of the transaction where good communications skills and open dialogue are born of a commitment to mutual respect.