Greater Phoenix Real Estate Video Blog with Jason Penrose

Q: Why Is the Real Estate Market so Hot?

2020-08-24T10:34:00.000-07:00

Here’s why our real estate market is so hot right now.

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

The Phoenix real estate market is scalding hot right now. Many people thought that COVID would decimate the market, but the opposite has happened.

We have freeware homes on the market for sale, more buyers than I’ve ever seen, and bidding wars on properties. What’s causing this?

First, we’re one of the states that have more people moving in than moving out. We have a lot of people relocating here, but there aren’t enough homes to sell. As a result, prices are going up.

Rent has been going up for some time as well, so many buyers are jumping into the market and buying because they can have a mortgage payment that is the same or even less than their rent.

Many people are moving here, but there aren’t enough homes available.

There’s also a fear of the Fed printing so much money will result in inflation and buyers will eventually be priced out of the market. If you’re going to trade up, why wouldn’t you want to trade up with interest rates under 3%?

If you have any questions about buying, selling, or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

The Coronavirus’s Impact on Home Prices

2020-02-25T07:15:00.001-08:00

What does the coronavirus have to do with home prices? Find out here.

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

The coronavirus has spread to all corners of the news and the internet lately. But what does this illness

have to do with real estate?

We’re starting to see a decrease in Chinese investment here in the United States. In 2018, total Chinese investments in the U.S. equaled around $30.4 billion compared to $13.4 billion in 2019.We first encountered the coronavirus at the end of 2019, but part of that decrease also probably stems from the trade war with China that lowered the value of the Chinese yuan, which ultimately made U.S. real estate more expensive (especially on the coasts).

"In 2018, total Chinese investments in the US equaled around $30.4 billion compared to $13.4 billion in 2019."

Ultimately, it doesn’t impact Arizona much, but there are certain parts of the country where Chinese
investment has slowed. That said, the Chinese as a whole do see America as a safe-haven investment,
so money is still pouring into our country for real estate—just not at the same rate as in 2018.

If you have any questions about what factors in your area could be affecting your home price, feel free

to reach out to me. Remember: Real estate is local. Call me on my cell 602-738-9943.

Renovating vs. Selling As Is: Which Is Better?

2020-01-21T13:24:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

If you’re struggling to decide between renovating your home before listing it on the market and saving yourself the effort by selling it as is, consider the cost of the renovation projects you’d want to do and compare them to the return you’re likely to get when you sell.

A 2018 report from Remodeling Magazine shows us that the average cost of the top 20 renovations sellers make have a recapture rate of less than 80%, meaning you’ll only get 80 cents back for every dollar you spend. So in most cases, a renovation doesn’t make sense for your bottom line.

"This year, the most expensive projects didn't have much of a gain," Craig Webb, editor of Remodeling and manager of the report, said back in 2018. "I think it's because real estate professionals think we're getting close to a peak in market prices. So consequently, spending a lot of money does not automatically mean your house will just ride the escalator up and be worth a lot more."

Now, there are some exceptions to that trend: If you like to trade or buy your materials from a warehouse at a discount and you plan to do the labor yourself, you can certainly make a profit when you sell. Similarly, if you’re an investor who buys homes at steep discounts and has crews to do the remodel for cheap rates, you can also make your money back. However, the average homeowner who hires contractors to take care of the renovations and repairs typically doesn’t make a lot of money back.

That said, there are four things you can do to your home that will get you your money back in multiples: installing new flooring, adding new paint, deep cleaning, and decluttering.

One common objection I hear, using carpet replacement as an example, is, “What if I replace the carpet before I sell the home, but the buyer ends up just tearing it out after they buy it?”

Yes, but they bought the home and that’s the key! Why take a $20,000 discount on a home for $7,000 worth of carpet?

For some people, though, renovating isn’t an option at all, and they have to sell it as is. In that situation, you just need to price the home accordingly so it will sell. You could also consider offering a discount to potential buyers to offset your lack of renovations—you can read more on that here.

If you have any questions about selling your home or the pros and cons of certain renovations you’re considering, please call me on my cell phone 602-738-9943 I’d love to hear from you.

What's Unusual About Our Current Market?

2020-01-07T13:23:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Today I’m sharing the December 2019 real estate market recap, which is very different than December 2018. That’s a great sign for 2020.

In December, we had an 8.6% decrease in new homes coming onto the market compared to December 2018. We also had a decrease of 21% in active listings. Additionally, we had a 35% decrease in the months’ worth of inventory available; we’re currently sitting at 2.02 months’ supply. However, we had a 20.2% increase in the number of homes sold year-over-year. At 0:26 in the video above, you can view a chart that lays out each number of these four statistics from September 2018 through December 2019.

What’s unusual is that inventory was dropping but buyer demand was increasing. Why? Rates were dropped by the Fed again, so more buyers were coming into the marketplace. Many buyers who were waiting until 2020 to purchase a home decided to buy in the fourth quarter of 2019 instead. They wanted to lock in an excellent interest rate while it was below 4%.

Now, in January, I have more and more people reaching out to me wanting to move, more than in recent years. With rates as low as they are, and with it being an election year, I believe many people will move in 2020. This is a wonderful time to make a move; rates are low and prices are stable—in many markets, they are still going up. Take advantage of these exceptional numbers while you can!

If you have any questions about buying or selling real estate, please call, text, or email me. I would love to help you.

The Latest Phoenix Real Estate Numbers

2019-12-30T13:22:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Today I’ve got a market recap for you for November 2019. It’s very different than what we saw at this time last year, and here are the numbers that prove it:

-New listings are down from 8,630 last November to 7,738 this year—that’s an 11% decrease
-Active inventory is down 16.5% from 20,263 to 16,927
-Sold homes are up 7.3% from 6,639 to 7,130
-The months’ of inventory are down 23% from 3.05 to 2.37

What do we have? Well we have fewer homes coming on the market, fewer homes available for sale, and less inventory.

Obviously, this is a much hotter market than we saw at this time last year. Buyers are still buying properties quickly because interest rates have dropped again. In fact, a lot of buyers are moving up their 2020 purchase plans to 2019 to lock in those low rates. Right now, we have around 9,850 homes under contract in the Valley.

Right now, we’re in a great market if you’re thinking about making a move. You can sell high and lock in that low rate. If you have any questions for me or need help buying or selling, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

The Penrose Christmas Party was a Success!

2019-12-19T13:22:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

I wanted to take a moment and thank everyone who came out to the 2019 Penrose Christmas party. The food and drink were wonderful and Chazz the magician was fantastic! I cannot tell you how many people came up and thanked me for bringing him out because they couldn’t believe the magic he was performing. I look forward to inviting Chazz back in 2020.

Whether you were there or not, I think you’ll enjoy the party footage in the video above, and you’ll also see some testimonials from satisfied clients who joined us (also view a few magic tricks)! The party footage begins at 0:55, and you’ll also see some testimonials from satisfied clients who joined us (also view a few magic tricks)! I look forward to seeing you all in 2020. If you know anyone who needs to buy or sell real estate, please let us know. We love and appreciate your referrals.

We hope you have a Happy Hanukkah, a Merry Christmas, and a joyous New Year!

Should You Sell in Q4 or Q1?

2019-11-08T13:21:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Soon there will be 30,000 homes coming onto the market in the first quarter of 2020. Don’t believe it? It’s true! There’s a misconception floating around that the first quarter is the best to buy or sell a home.

Here’s what historically happens in the first quarter of any year: Over 30,000 homes come on the market for sale, in addition to what’s already on the market. Whether that’s positive or negative is determined by demand. Are there enough buyers to absorb that inventory or will inventory start to build up? Are rates low enough where buyers can afford to buy those homes? Are sellers asking sensible prices for those homes? There are many variables.

Currently, we have a shortage of new homes on the market for sale. All those new homes entering the market in the first quarter isn’t necessarily a bad thing—it will give buyers more options to choose from. Also, more buyers come out in the spring to look at homes.

So, when is the best time to buy or sell a home? One of the benefits of Arizona is that there’s never a “best” time to buy or sell; it’s always a wonderful time. We don’t have adverse weather that pushes buyers out of the marketplace. In certain parts of the country, if it rains too much or there are heaps of snow, the market can completely pause. If you’re not originally from Arizona, you may not know that the market actually picks up during the cooler months because people are coming here from places that have worse weather wanting to buy homes.

We persistently have people wanting to relocate here. We have one of the fastest-growing counties in the nation! We have a net population increase every year. So, there’s no negative time to buy or sell a home—it’s what’s most suitable for you.

Here’s my advice: List your home when you don’t have much competition. Right now is a wonderful time to list because we don’t have as many homes on the market that need a buyer. Most people are waiting until after the new year to list their home. Put your home on the market now and you can take your home temporarily off the market during Thanksgiving and Christmas. You can show your home during the fourth quarter when buyers need to purchase a home. With fewer options to choose from, you can get a better price and you can always close after the holidays.

Also, rates are currently below 4%!

If you would like to discuss this in detail, feel free to call, text, or email me. I look forward to hearing from you soon.

The 4th Quarter Is a Great Time to Sell—Here’s Why

2019-10-21T13:20:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

A lot of people believe the fourth quarter isn’t a good time to sell a home because of the holidays, but that’s not true.

Why? Think of it this way: Any buyer who needs to purchase a home during the fourth quarter absolutely needs to buy. Who wants to move around Thanksgiving or Christmas? Only someone who needs to buy.

Also, keep in mind that Arizona is a popular relocation state, either due to retirement or job transfers, and a lot of job transfers take place during the fourth quarter. Arizona also has a positive net population—more and more people are moving here because of the cost of living and a host of other benefits.

One particular advantage sellers have during the fourth quarter is a lack of existing homes for sale. Buyers have fewer options to choose from, which makes it more likely you’ll be able to sell for top dollar.

On top of that, interest rates are still under 4%, and a ton of people are visiting Arizona over the holiday season admiring our beautiful weather.

If you don’t want to move over Thanksgiving or Christmas, don’t worry—you don’t have to close escrow those weeks. If you don’t want to show your home during these times, you don’t have to do that, either. Just take the home temporarily off the market for those weeks.

Finally, a lot of other sellers are taking their homes off the market right now, so you’ll face less competition.

If you’d like to get started on your home selling journey or you have any questions about our market, don’t hesitate to reach out to me. I’d love to help you, call me at 602-738-9943.

How Does Our Market Look as We Close Out Q3?

2019-10-15T13:19:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

For your latest Greater Phoenix market update, let’s look at the key year-over-year numbers from September:

-New listings decreased 1% from 9,151 to 9,223
-Active listings decreased 11% from 18,276 to 16,328
-Sold listings increased 13.4% from 7,071 to 8,021
-The month’s supply of inventory decreased 21% from 2.58 to 2.04 months

As you might’ve heard, the Federal Reserve recently reduced interest rates—a 30-year fixed rate is now around 3.75% and a 15-year rate is around 3.13%. This is super low, which is why we’re seeing a bump in sales. Buyers want to lock in low rates right now. As you can see from the stats above, inventory is also low. If we were in a balanced market, we’d have roughly 30,000 to 35,000 homes on the market.

Since a lot of buyers want to lock in a low rate and sellers are having a hard time finding the next home they plan on purchasing, the market has stalled somewhat in the last six weeks. It remains to be seen what will happen next, because so much depends on the stock market, the strength of our economy, and whether rates stay low.

I hate to say it, but we’re addicted to low rates. If rates increase, the cost of mortgage payments rise along with them, and buyers start adjusting their prices downward. This means we’ll have to keep an eye on interest rates, the stock market, and the strength of our economy moving forward. Simply put, people buy homes when they have jobs.

At the moment, though, now is a great time to sell, so if you’d like to put your home on the market or you have any other real estate needs I can take care of, don’t hesitate to reach out to me. I’d love to help you, please call me at 602-738-9943.

What Can Sellers Do to Have a Top-Dollar Sale?

2019-09-24T13:18:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

There are certain habits that successful home sellers have in common when it comes to selling for the most money in the least amount of time. Having sold real estate for close to two decades and after helping over 1,700 families, I’ve learned a few things about what gets a home sold quickly and for top dollar.

Condition obviously plays a factor. You want great curb appeal because some buyers may just drive on by your house if they don't like what they see from the outside.

When the buyer comes into your home, it should be in great condition, decluttered, and sparkling clean. The home should smell really good and all the lights should be on as well.

It’s best if the seller isn’t home during showings. Sellers who provide access to the property on two hours’ notice allows flexibility to buyers. The more flexible sellers are, the easier it is for the home to sell and the quicker it gets sold.

You don’t want to have any deferred maintenance items in your home. If buyers see it, they will wonder what else is wrong, even if something is insignificant. This could lead to lower offers or no offers at all.

Pricing is of the utmost importance to help you get maximum exposure to the market and attract the most buyers possible.

Finally, it’s vital to use a great Realtor that knows how to price the home, market the home, drive buyers to the home, and sell it quickly.

If you have any questions for me about selling a home or real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Why Is Now a Good Time to Buy or Sell?

2019-09-10T13:17:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

As of August 2019, there have been some major changes in our real estate market. Last month, we had 9,666 homes come on the market for sale versus 10,001 the year before. That’s a 4.5% decrease.

There were 16,555 active homes on the market this August versus 17,763 last year. That’s a 6.9% decrease.

Home sales are up by 6.9% from 8,255 to 8,832. At the same time, our months’ supply of inventory dropped from 2.15 to 1.87.

What does all of this mean? While fewer homes are entering and staying on the market, more homes are selling. It’s a tight market in most price ranges and as rates keep dropping, buyers will continue to look for homes.

On the flip side, sellers want to sell but they’re worried about their purchase. That’s why you need to have a team to help you coordinate those two timelines together—you want to be able to lock in a rate and sell high while demand is up.

I’ve been doing this for over 20 years and have helped over 1,700 families in the Valley. I can help you too. If you have any questions for me about the real estate market or about buying or selling a home, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

What Will Our Fall 2019 Market Hold?

2019-08-27T14:30:00.000-07:00

What will happen in our local market this fall? Let’s discuss a few predictions.
Looking to Sell Your Home? Get a FREE Home Value ReportLooking to Buy a Home? Search All Homes for Sale

As most people who have lived in or around Greater Phoenix for a while will know, fall is the time when our seasonal residents return to the area. But what else can we expect from the season ahead as summer draws to a close?

As far as our real estate market is concerned, one development we’ll almost certainly see is an influx of new listings. Home prices have risen significantly, and you can be sure local home sellers are preparing to take advantage of this.

“

Buyers will have more options to choose from.

”

This surge of supply will also benefit buyers, by extension—as buyers will have more options to choose from. Interest rates are still historically low, so it's a great time for buyers to lock down that lower rate.

As always, if you have any other questions about what’s going on right now, or if you or anyone you know is interested in making a move, feel free to give me a call at (602) 738-9943 or send me an email. I look forward to hearing from you soon.

It’s a Great Time to Buy or Sell in Phoenix

2019-08-15T08:51:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Now that we’re more than halfway through the summer of 2019, it’s time to check in on our current market conditions.

This July, 8,724 new homes hit the market which is a slight decrease from the 9,090 that were listed during that same month last year. The number of active listings also dropped year over year, but only by a little over 300 homes, with there being 17,365 active listings in July of 2019 compared to the 17,695 that were on the market last year.

The number of homes sold, meanwhile, actually rose, with 9,344 having sold this July, compared to the 8,544 homes that sold in July of 2018. This rise is also reflected in the amount of inventory available today. We currently have 1.86 months’ worth of supply. Last July, there were 2.07 months of available inventory.

So what does all of this mean? First of all, sales are up. Not only that, but homes are selling fast. With less than two months of available inventory, we’re in a red-hot seller’s market right now. There simply aren’t enough homes to satisfy buyer demand, so smart sellers are making their move and taking advantage of these incredible conditions.

Buyers, too, have a great opportunity before them. Interest rates are extremely low, which means purchasing power is high. This makes upsizing (or downsizing) more affordable than ever.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Giving Back With the Phoenix Dream Center

2019-06-04T13:12:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Today I’d like to give you a quick glimpse into why our team has partnered with the Phoenix Dream Center—America’s largest rescue organization for sex trafficking victims. I’ve personally been on the Phoenix Dream Center’s board of directors for many years, and now I’m leveraging this position to raise funds through my real estate career.

From now until August 31st 2019, mention this ad, and I will donate 25% of the commission on any real estate sale or purchase. So if you or anyone you know wants to buy or sell a home, now is a great opportunity to do so while also helping to give back to the community.

In addition to helping victims of sex trafficking, the Phoenix Dream Center also helps to support children who have aged out of the foster care system. These children, who are left with nowhere else to go, are taken in by the Phoenix Dream Center and given a chance to transition into adulthood without the threat of homelessness hanging over them.

If you would like to learn more about the Phoenix Dream Center or read testimonials from real people the organization has helped, click here.

And, as always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The April 2019 Real Estate Market: What the Heck Happened?

2019-05-07T13:10:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Today I’ve got another great market update for you that covers the latest numbers for the Greater Phoenix area for April 2019.

10,973 homes came on the market this year versus 10,804 last year, a 1.56% increase. We also had 21,986 homes available this year versus 18,856 last year, a 16.6% increase.

This year, we had 9,662 homes sell versus 9,186 last year, a 5.2% increase. As for our months’ supply of inventory, it went up from 2.05 to 2.28, an 11.2% increase.

What are we seeing here? First, a very slight increase in new homes coming on the market to go along with a modest increase in sales. Our inventory has gone up slightly, but we’re still in a seller’s market as a whole.

What’s affecting all of this? Interest rates, mostly. Last year, rates were going up and the stock market was tanking. Between those two things, a lot of people held back and demand went down at the end of the year. Rates are lower now than they were then, but they have gone up a bit in the last few weeks.

If you know anyone who is thinking about buying a home, or you’re thinking about buying a home yourself, now would be a great time to do so while rates are still low. There’s no guarantee that they’ll stay this low in the future.

If you have any questions for me in the meantime, don’t hesitate to give me a call at (602) 738-9943 or send me an email. I look forward to hearing from you soon.

The Mad Market Trends of March 2019

2019-04-11T13:10:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Today’s topic: March Madness.

No, I don’t mean basketball—I’m talking about the madness of the real estate market we saw in March of this year.

In March, 11,170 homes came on the market, as compared to the 11,560 we saw in March 2018. That’s a 4.4% decrease in new homes coming on the market for sale.

Even still, we had 22,211 homes on the market for sale, which is 16.3% more than the 19,094 active listings we had last year.

We sold 8,507 listings this March—11.9% fewer year over year.

When we looked at the month’s supply of inventory, we saw that it went up 2.61%. Last March, it only increased by 31.98%.

In summary, we have more homes on the market for sale and fewer homes that are selling, which means that the inventory has increased. At the same time, mortgage rates dropped faster in the last 60 days than they have in over a decade!

Amid these mixed indicators, we’re noticing that homes that are priced well and are in great condition are still selling very quickly in most cases. Homes that need work and are priced too high or aren’t presented correctly are obviously taking longer to sell, if they sell at all.

Right now, we’re in a normal market that seems to be in flux—some areas in the Valley are slowing down, and others are pretty hot.

If you’re curious about what your home is worth, or if you’re thinking about buying a home and you’d like some tips on how to get the best deal in our market, don’t hesitate to reach out to me at (602) 738-9943. I’d love to help.

How to Handle Double Transactions

2019-03-26T13:09:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

A double transaction means you’re selling your home at the same time as you’re buying your next one. Over the last 19 years in real estate, I’ve helped hundreds of clients with double transactions.

It gets tricky because you’re handling the buying and selling processes at the same time, meaning you deal with twice as many home inspections, appraisals, and negotiations. Though it can be a complex process, it’s certainly achievable, and today we’ll be telling you how to do it.

Before doing anything, find out what your home is worth. Work with a Realtor who will provide you with a net sheet and help you find out your market value; this will give you an accurate approximation of what you’ll be walking away from the sale with.

With this amount, go to a lender and get pre-qualified; this will also show you what you should use as a down payment. With all this, you’ll know the price point you should be looking at for your next home purchase.

I suggest you find out what’s on the market before you list your own home. You should have five to seven homes that you’re interested in and can make an offer on before listing.

Next, it’s time to market your home with an aggressive agent who can get the job done. When it goes under contract, go out to the aforementioned homes you’re interested in and make an offer that’s contingent upon your own home sale. Once your own home is under contract and has passed the inspection process, it’s much easier to get your offer accepted on a purchase.

It’s a great idea to have an agent who will represent you in both the buying and selling transactions. It’d be even better if they had an escrow coordinator who can organize the timelines and deadlines of each sale, ensuring you have a smooth closing. Your agent should also be working with lenders, title companies, and so on.

There are a lot of details that need to be hammered out, but, fortunately, we have handled these sales hundreds of times. If you are interested in orchestrating a double transaction in your next sale, have any questions, or need further information, feel free to reach out to us. We look forward to hearing from you soon.

The Latest Numbers From Last February Will Blow You Away

2019-03-12T13:07:00.000-07:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

What’s the latest news from our Phoenix real estate market? Here are the statistics from February and how they compare to February of last year:

New listings decreased 4% from 9,940 to 9,555
Active listings increased 18.1% from 19,229 to 22,714
Sold listings decreased 8% from 7,070 to 6,507
The months’ supply of inventory increased by 28.3%, going from 2.72 months to 3.49 months

As you can see from our supply of inventory, we’re still in a seller’s market, but 28.3% is still a drastic jump. Aside from the rise in inventory, another statistic worth noting is that the Cromford Market Index is down 24% since last August. This means homes are still selling, but we don’t have as many bidding wars as we saw last year.

Additionally, interest rates are still low—the average rate for the 30-year fixed mortgage is around 4.25%. This makes now a great time to buy. If you wait for rates to drop, you risk getting priced out of the market if they start to rise.

If you or anyone you know is thinking about buying or selling a home or you have any other questions about our market, don’t hesitate to get in touch with me. I’d love to help you.

What Will Rising Rates Do to Your Real Estate Goals?

2019-02-26T13:07:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Affordability and mortgage rates go hand in hand. That said, their impact goes deeper than some might think.

Many are quick to point out that interest rates were once hovering around 18%, and that today's single-digit rates are incredibly low by comparison. This is true. The difference is that when rates were that high, homes were also much less expensive.

Today, prices have gone up considerably. Therefore when rates rise by even a single percent, it makes a big difference in affordability.

As mortgage rates continue to rise, we’ll begin witnessing a few key consequences with increasing frequency. For one, a large number of buyers will be priced out of the market. These buyers will be forced to either move their search into lower price ranges or stop looking altogether.

For homeowners who locked in an extremely low rate, the decision to move to another home is not one to be made lightly. These homeowners will find it difficult to rationalize buying a new home if it means accepting a much higher rate, unless they have a pressing enough reason to move.

In other words, rising rates can result in a drop of both buyer and seller activity.

With that said, rates have temporarily dipped. Now is a perfect time to enter the market if you’re interested in buying or selling before they rise once more.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

January 2019 vs. January 2018

2019-02-15T13:04:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Today we’ll be comparing the numbers from our January 2019 market to those of January 2018.

10,905 homes came on the market in January 2019, while 10,594 were listed in January 2018—an increase of 2.9%. We had 20,616 active listings this January, while there were 19,147 last year—a 7.7% increase.

5,466 homes sold this January compared to 6,208 last year—a 12% drop. The months’ supply of inventory increased from 3.08 last year to 3.77 this year.

The market is shifting toward a normal market. We’re leaving the times where you can put a sign in your yard and get five offers in a day. More homes will come on the market and listings will take longer to be sold. In fact, the Cromford Market Index peaked at 165 in August and is now at 131—a 20% decline over six months.

There are more buyers coming into the market because mortgage rates have dropped. If they continue to trend up, however, these buyers will likely back out again.

If you have any questions or need more information, feel free to reach out to me. I look forward to hearing from you soon.

New Year, New Market Update

2019-01-25T10:40:00.004-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

The latest numbers are in for December 2018 and we’re excited to talk about what has changed in the market during the last year.

This December, we had 6,147 homes come on the market. That’s down 1.9% from the number we saw in December 2017. During the same time period, our active inventory is up 2.6%. We had 19,735 homes on the market in December 2017, but we have 20,249 homes on the market as of December 2018.

The number of homes sold in our market is also down significantly. We had 6,503 sold homes in December 2018, down 9.7% from the 7,197 we saw last year. As for the months’ supply of inventory, that figure is up by 13.5%, from 2.74 to 3.11 months.

You’re going to notice a couple of things from these numbers. A steady increase in the months’ supply of inventory from May 2018 to December 2018. It remains to see how January will play out, but we’re starting to note that buyer demand is in a steady decline from about 165 to 132 on the Cromford Market Index.

What does all of this mean? Buyer demand is cooling as interest rates have gone up. At the same time, buyer affordability has gone down because prices have gone up. The hot market we had in the early part of 2018 has gone away and we’ve transitioned back to a normal, flat market.

When it comes to supply and demand, we’re still technically more favorable for sellers, but we are trending towards a balance. One thing I just saw is that mortgage rates have come down to the lowest they’ve been in eight months and we’re currently sitting at around a 4.5% average. I expect to see more buyers come into the market because of this because rates will go up again in 2019.

If you or anyone you know is looking to buy or sell a home in 2019, don’t hesitate to give me a call or send me an email today. I look forward to hearing from you soon.

Should You Wait Until Prices Go Down to Buy Your First Home?

2019-01-25T10:40:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

If you’re a first-time homebuyer, does it make more sense to rent now and wait for real estate prices to come down and buy a home at a lower price in the future?

There are a couple factors you need to consider. First, how long are you planning on renting the home? Second, how much would you pay monthly for rent?

If you’re paying $1,500 a month, that equates to $18,000 a year. If you’re going to wait—say—three years for prices to go down and you’re paying $18,000 a year in the meantime, you’d end up paying $54,000. That’s a lot of money! You’re banking on the hope that the home you intend to buy will decrease $54,000 in the next three years just to break even.

In most cases, it doesn’t make sense to wait and rent until prices go down because of all the money you’d throw away on rent. There’s no equity and there aren’t any tax write-offs when it comes to renting properties.

If you buy now, you start making payments on your home now. When you retire in 20 or 30 years, would it make more sense to have a home that’s paid for or would you rather still be renting? Whatever your age is now, add 30 years to it—is your home going to be paid off by then?

Only if you buy a home now. Think about it.

If you have any questions or are thinking about buying your first home, don’t hesitate to give me a call. I look forward to hearing from you.

What Changes Are We Currently Seeing in Our Market and Why?

2019-01-25T10:39:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Our market saw no real significant change in new listings: 8,521 new listings emerged in November 2018—in contrast, 8,554 came on the market last year.

There was a 2.8% increase in the active homes for sale from this year to last with 21,145 active home listed this year, and 20,564 listed in 2017.

Notably, our market underwent a 7.8% drop in homes sold from this year to last—6,644 were sold this year, while last year’s sales reached 7,202.

November’s inventory finished at 2.86 months last year and rose to 3.18 months this year, resulting in an 11.1% year-over-year increase.

So why the sharp increase in a few of these areas and the cooling off of sales?

These numbers appear to be symptoms of affordability becoming an issue for consumers, the ever-increasing interest and mortgage rates we’re seeing, and the fact that buyers aren’t qualifying for the homes they want to purchase or simply not qualifying altogether.

This results in buyers feeling uneasy, which causes them to pass on purchasing.

The truth of the matter is if you bought a home between 2011 and 2017, you likely locked in a better rate than most buyers could get today—as it stands now, they’re sitting at 4.675%.

Though a number of reasons still make moving a necessity for some, we’re seeing fewer buyers electing to move at this time.

But this shouldn't totally discourage you: Homes that are priced right still have plenty of potential to sell.

For buyers, don’t wait to make a move until after the new year—you’ll want to capture the rate for that home you really want, now. If you don’t act, you may get “priced out.”

If you have any additional questions about the state of the market or any other real estate-related questions, please call or text me today at 602-738-9943. I’d be happy to assist you!

The Shifting Market's Impact on Agents

2019-01-25T10:38:00.000-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

The real estate market is shifting, and it’s affecting agents as well as buyers and sellers.

As you’ve probably noticed, the market is slowing down. Right now, there are a lot of agents in the business, and the average agent sells about four or five homes a year. As interest rates continue to climb and the market continues to slow down, though, you'll notice more agents doing less business. Eventually, these agents will either leave the industry altogether or decide to join a team to help their business grow and increase their production.

At the Penrose Team, I’m always looking for talent—talent I can motivate and inspire to take the Penrose system, help as many people as possible buy and sell real estate, and give the best customer service possible.

So if you know of anyone here in Arizona looking to join a real estate team, give me a call or tell them to give me a call. I’d love the chance to meet and talk with them.

In the meantime, if you have any real estate questions yourself or you’re thinking of buying or selling a home, feel free to reach out to me as well. I look forward to hearing from you.

Your October Market Update

2018-11-16T12:32:00.002-08:00

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

We’ll be discussing the recent changes we’ve been noticing in today’s market update for October.

We had 9,791 new listings this October, compared to 9,974 in October 2017—a 1.9% decrease. There were 19,889 homes on the market this October, a 3.1% decrease from 20,523 homes the same time last year.

Home sales are slightly down. We saw 7,340 sales in October 2018—a 1.2% decrease from 7,424 the year prior. We’re seeing 2.71 months’ worth of inventory this October, while we saw 2.76 months’ worth last year.

We’re seeing the highest mortgage rates since 2011, and the Fed is looking at hiking the rate again before the end of the year. We’re also noticing between 2,200 and 2,400 price reductions each week. This suggests we’re in a transitioning market where we have low inventory but also weakening demand. Higher rates mean buyers are having to pay more money for the same house. If you’re looking to move, it’s better to do it sooner rather than later so you can get a lower interest rate locked in.

If you or someone you know is looking to buy or sell, feel free to call me at 602-738-9943. I can also answer any questions you may have or provide you with further information. I look forward to hearing from you.