The seller’s market is weakening and will become more balanced.

Today I’m talking about how the seller's market in Phoenix is weakening. I have some interesting information to share with you. We've been in a low inventory market for a long time now. We still have 75% less than normal for our listing inventory but, we're starting to see things shift. We've had an increase in listing inventory of 24% since February. What's really interesting is that between the price points of $400,000 to $800,000 that increase is over 65%. That’s an indicator that the market is starting to change.

Based on the statistics we have today, we can predict that at this trajectory, we should be about 15 months away from the market changing and becoming more balanced. We can even break that down by city. If things were to stay the same as today, in Gilbert we would be looking at November 2021 for things to balance out. If you're interested, make sure to call us and we can provide you with the information about your city.

Another indicator of market slowdown is price reduction. We've seen prices reduce by 64% since February. We are also seeing 40% more single-family permits, so we have more availability for homes. 

If you're thinking about selling, this is your window of opportunity. Call us and we can provide you with a detailed market analysis and statistics on what's happening in your area. We are here to service any of your real estate needs. Have a great day.

Here are the three most obvious reasons it’s time for you to downsize.

Downsizing is an extremely personal decision. There are so many reasons why people start thinking about it. Here are a few of the most common signs that it’s time to downsize:

1. Maintenance. The cost and time of maintenance increase over the years, as do the expenses. If you’re on a fixed income, sometimes the cost just isn’t worth it. Some people love the maintenance, others don’t. If you don’t, it might be time to downsize

2. The financial gains. If you’re in or approaching retirement, you may consider selling for the financial gains you could see, especially with today’s prices. We’re currently in a market where homes have appreciated by 25% since January!

3. More freedom. If you want the type of property where you can just leave and travel or want something smaller and cozier, it might be time to downsize.

Take this seven-question quiz to see if it’s time for you to downsize. If you get less than 50%, it’s probably not time. If you get over 50%, definitely give us a call. We’d be happy to discuss your situation, and we can even email you a copy of our downsizing consumer guide. 

If you have any other questions for us, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.

The appreciation rate for Phoenix homes has risen considerably in 2021.

I have some great information from The Cromford Report to share with you today regarding appreciation rates in our Phoenix real estate market. Specifically, we’ll look at the average list price per square foot for all properties currently under contract.

As you can see at 0:36 in the video, back in January we were at $220 per square foot, but as of March 20, we’re at $242.20 per square foot. That’s a 9% increase. Obviously a lot of things can change in our market, but if we stayed on this upward trend in 2021, homes could appreciate as high as 45%.

Which factors can affect this trend? A lot of people may be waiting to get vaccinated to put their homes on the market. Also, interest rates could change. We’re watching this situation closely, but you can see a huge difference between now and years past. 

If you’re thinking about selling or are curious about your home’s value, don’t hesitate to reach out to me. I’d be happy to provide a market analysis of your local area and help you in any way I can. I look forward to hearing from you.

Here's how you can sell a tenant-occupied property.

We have a lot of investor clients who would love to take advantage of these market conditions and sell their investment properties. The problem many of them are running into is that they already have a tenant in place and a lease that hasn’t come to term.

If you're in a similar position, we have a few options you can use to maximize your opportunities to either cash out on your equity or do a 1031 exchange and buy a new property with today’s low rates. You might have more options than you realize!

The first option is contacting the tenant to see if they are interested in purchasing the property. You might be surprised that the tenant wants to take advantage of the market conditions and these low interest rates. Oftentimes when we contact the tenant, it helps create some urgency to get qualified. This is the easiest and most straightforward solution.

Another option is selling the property with the lease in place. Due to this low inventory market, buyers are willing to purchase a property and wait for the lease to run out so they can lock in their interest rate now. We also have a network of hundreds of investors who might be interested in purchasing a property with a lease and tenant already in place.

The most popular option right now is incentivizing the tenant. Maybe give them a few months of free rent or pay for their moving expenses in exchange for terminating the lease and the ability to show the property regularly.

All of these options are working for our clients these days, but the right decision for you depends on your situation. If you have any questions for us or would like to put a plan in place to take advantage of this market, don't hesitate to reach out via phone or email. We look forward to hearing from you soon.

According to the stats, our Phoenix market is in unprecedented territory.

Where does our Phoenix real estate market stand as we move through February?

Before I get to that, a quick announcement of import: My team and I have changed our brokerage's name to RHouse Realty. We’re still the same group, and you can count on the same exceptional service we’ve always provided. We couldn’t be more excited about this change!

Now to the topic at hand. It’s difficult to describe what’s happening in our market because we’re entering new territory, with records breaking in terms of contracts being accepted and low inventory. 

At 1:11 in the video you can see a Cromford® Market Index graph from the beginning of February that dates back to the beginning of the century. As the graph shows, we’ve only been in a true buyer’s market three times since then. The first time was back in 2001. The second time was from 2005 to 2009 during the housing crisis. The third time was for a brief period in 2014. As you can see at the right of the graph, we’re currently in an extreme seller’s market. 

However, we’ve not hit the peak of the market yet, so it’s still a good time to buy. Nobody wants to buy a home and immediately see it depreciate in value, right? Why is the market still climbing? The first reason is population growth: Last year Phoenix grew by 17% while housing only increased 9%. 

In other words, demand is stronger than supply, so if you’re thinking about selling, there’s no better time than now. Last month, 35% of all homes sold for over asking price. Inventory is very low, so you have an opportunity to sell quickly and at a high price. If you’re a buyer, I know things are difficult with this low inventory, but you don’t want to wait. If interest rates change, your affordability could be affected. 

Give me a call today and I’d be happy to review your options whether you’re buying or selling. I look forward to hearing from you!

Here’s why now may be the best time of year to sell a home in Phoenix.

Seasonality in the Phoenix real estate market means that spring is by far the busiest time of year to sell a home. However, there are a few things you might want to consider about the role seasonality will play in our market in 2021. Right now, our listing inventory is 65% lower than it normally is for this time of year. At the same time, demand is up by 35% from what it normally would be.

Just to put this in perspective, we currently have about 5,500 listings for sale. In a balanced market, we typically have 20,000 to 25,000 homes. Sellers have an advantage in this market.

In December, 31% of homes sold for over asking price, and here in January 2021, 35% of homes have already sold for over asking price. There are a lot of reasons for this, including population growth. If you’re thinking about selling this year, it might be worth it to take a look at selling now and taking advantage of these incredible conditions.

If you have any questions for us or would like to talk about your situation, don't hesitate to reach out via phone or email. We look forward to hearing from you soon.

Here are the differences between home maintenance and home improvement.

What’s the difference between home maintenance and home improvement? It’s important to know the distinction and what brings the most value to your property.

Look at home maintenance as the actions required to simply maintain the value of your home. This may include replacing the roof or servicing the air conditioner. Maintaining these big-ticket items means that, when it comes time to sell your house, you’ll get market value or above for it.

Home improvements or upgrades include things like adding a pool, renovating the kitchen, or updating the bathroom. These items will bring added value to your property. While living in your home, make these improvements for your personal enjoyment. You won’t get a dollar-for-dollar return for upgrades, but you can still enjoy them while you live in your home.

It’s crucial to have a real estate agent evaluate your property so you know what needs to be done before you sell and how much it will sell for.

If you’re curious about the value of your home, we offer consultations where we can review this information and determine the value of your property. Use our scheduling tool to set up a time to chat with us, or call if you have any questions about home maintenance, improvements, or other real estate matters. We would love to help you.