Nov 2018 – The 4th Quarter is Seasonally the Best Time to be a Buyer

New Listings Up 18% in October between $250K-$400K
The 4th Quarter is Seasonally the Best Time to be a Buyer

For Buyers:
Seasonally the 4th Quarter is the best time to be a buyer and this year is no exception.  Typically buyer contract activity is at its strongest from March through May and weakest between November and January.  Buyers who were out-bid by competing offers last Spring will have a different experience now.  October saw 18% more new listings hit the market between $250K-$400K compared to last October while buyer contracts are about the same within the same price range.  There was only a 1% increase in new listings in the lower price range between $200K-$250K but a 12% drop in buyer contracts which caused overall supply to rise another 11%.  The market is still a seller’s market, but more seller competition for fewer buyers translates into more price reductions and seller concessions until the Spring “Buyer Season” is upon us once again.

For Sellers:
The market may be softening between $200K-$400K (which accounts for over 56% of MLS sales), but that doesn’t mean sellers are getting a raw deal.  Monthly average sale prices per square foot in this price range have appreciated 5% since October last year and nearly 19% in last 5 years.  Under $200K, the appreciation rate is 9.5% in the past year and 44% in 5 years.    $400K-$800K has appreciated 6% in the last year and 14% in 5 years and the annual average sale price per square foot* over $800K has appreciated 3% in the last year and 10.5% in 5 years.  What’s happening underneath that contract price, however, is an increased cost to sell at “top dollar”.  That cost can take the shape of longer days on market with multiple price reductions, repairs, needed upgrades to the home prior to list and closing cost assistance.

*Annual averages are used in the higher price ranges to mitigate the sharp price fluctuations that affect this market.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2018 Cromford Associates LLC and Tamboer Consulting LLC


Posted on November 14, 2018 at 4:53 pm
Eric Karlene | Posted in Uncategorized | Tagged , , , , , , , , , , ,

Thank You! – For Trusting me to Sell Your Home!

It’s always great when you can work with clients and build a lasting relationship. Not all transactions go smoothly from start to finish. Often, there are little roadblocks that must be overcome. When they do come up, working with people that are willing to take a step back re-evaluate the situation and address it from a new perspective is always key. It creates a win-win for everyone involved….and sometimes we are even able to end the transaction by selling it over the appraised value.


Posted on October 29, 2018 at 9:29 pm
Eric Karlene | Posted in Uncategorized |

Where is the Market Going? According to Steve Harney

I have been getting a bunch of questions about where the market is going. “Should I buy now or wait a few years for a market shift?” is on of the most common questions that I have been receiving. I love to follow Steve Harney from Keeping Current Matters. Basically, what his is saying is “Buy Now”. Your interest rates are great and by holding off, your will only be diminishing your purchasing power. Home prices will continue to climb at the same time. This will allow you to still ride the appreciation in the home that you love. See Instagram posts below.


Posted on October 9, 2018 at 7:38 pm
Eric Karlene | Posted in Uncategorized |

Tina Tamboer on Phoenix Home Affordability

 

Cited from the Cormford Report.


Posted on October 9, 2018 at 7:14 pm
Eric Karlene | Posted in Market Updates - Cromford Reports |

Price Reductions up 27% on Active Listings Between $250K-$400K

Seller Concessions Spike on Listings Sold Between $200K-$250K
Price Reductions up 27% on Active Listings Between $250K-$400K

For Buyers:
October marks the 4th month in a row that supply has continued to rise between $200K – $400K, which is good news for many buyers as it provides them with more choice and fewer competing offers.  However, for those buyers with budgets under $200K, this trend in supply doesn’t apply to them and their choices are still extremely limited.  Last January, inventory under $200K made up 18% of all active listings.  Within that price range, single family homes made up 50%, condos and townhomes 30%, and mobile homes 20%.  As of this month, inventory under $200K only makes up 12% of actives and has declined 36% since January.  Single family homes make up 45%, condos and townhomes 36%, and mobile homes 19%.  This drop in supply equates to 591 fewer single family homes, 198 fewer condos and townhomes, and 229 fewer mobile homes available for sale under $200K since the beginning of 2018.

For Sellers:
When supply rises, sellers react in a number of ways to compete with one another for the existing buyer pool.  One option is a price reduction on their active listing prior to contract. This does not necessarily result in a decline in sale price, only a decline in sellers’ expectations for appreciation.  Sales price trends may still continue to rise, but perhaps only at 5% instead of 8%, for example.  Another option is to agree to a concession, such as paying a portion of closing costs or a home warranty; and finally to agree to a much lower sale price than what they were asking. Typically sellers agree to the first two options before submitting to a “low ball” contract, which is why sales price trends are the last measures to respond to a shift in supply and demand.  With that being said, weekly price reductions this month between $250K-$400K are up 27% compared to last year, while price reductions between $200K-$250K are only up 1.7%.  However, seller concessions on sales between $200K-$250K reached 41% so far this month compared to last quarter’s measure of 36%.  Only 21% of sales between $250K-$400K recorded a seller concession.  Which leads us to conclude that sellers below $250K are agreeing to more concessions than price reductions; while sellers over $250K are submitting to more price reductions.  Despite this slight weakening in sellers’ advantage, Greater Phoenix is not close to a balanced or buyer’s market so expect overall prices to continue rising over the next 3-6 months.

Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2018 Cromford Associates LLC and Tamboer Consulting LLC


Posted on October 9, 2018 at 6:55 pm
Eric Karlene | Posted in Market Updates - Cromford Reports | Tagged , , , , ,

For “As-Is” Transactions, Leave the Purchase Contract “As-Is”

For some reason, it is becoming increasingly common for sellers to expressly state in Section 8a of the Residential Resale Real Estate Purchase Contract (Residential Purchase Contract) that the Premises will be conveyed in “as-is” condition.

In February 2017, the Residential Purchase Contract revised Section 5a to express that the Premises are being sold in its “present physical condition as of the date of contract acceptance.” In other words, what you see is what you get. This change eliminated the need for the Arizona REALTORS® As-Is Addendum as well as the need for parties to specify in Section 8a that the Premises will be conveyed “as-is.”

While parties may include additional terms in Section 8a, writing in that the Premises will be sold “as-is” accomplishes nothing.

It should also be remembered that regardless of whether Section 8a of the Residential Purchase Contract specifies that the Premises will be sold in “as-is” condition, buyers may still request repairs. As stated in Section 5a, buyers and sellers “may, but are not obligated to, engage in negotiations for repairs/improvements to the Premises.” The Arizona REALTORS® Buyer’s Inspection Notice and Seller’s Response form remains available for this purpose.

Additionally, “as-is” in no way excuses a seller’s disclosure obligations. Even in an “as-is” transaction, sellers must still disclose known facts materially affecting the value of the property that are not readily observable and are not known to the buyer. Hill v. Jones, 151 Ariz. 81, 725 P.2d 1115 (App. 1986).

While drafting contracts, it is best to avoid redundant and thus superfluous terms. When parties attempt to restate the same proposition in a number of different ways, it becomes increasingly likely that the provisions will actually contradict one another. For this reason, the best course of action when conveying a property “as-is,” is to leave the Residential Purchase Contract “as-is.”

 – Scott Drucker, Esq.

 

 

Scott M. Drucker, Esq., a licensed Arizona attorney, is General Counsel for the Arizona REALTORS® serving as the primary legal advisor to the association. This article is of a general nature and reflects only the opinion of the author at the time it was drafted. It is not intended as definitive legal advice, and you should not act upon it without seeking independent legal counsel.

Cited From: https://www.aaronline.com/2018/10/01/for-as-is-transactions-leave-the-purchase-contract-as-is/

 

 


Posted on October 2, 2018 at 8:09 pm
Eric Karlene | Posted in Info | Tagged , ,

Elegance in Rancho Del Mar Home

 

 

Welcome to the desirable Community of Rancho Del Mar. Outstanding single level Home with 3 car garage and pristine interior. Dramatic soaring ceilings, soothing palette, plantation shutters, neutral tile/carpet in all the right places, ceiling fans, and upgraded lighting. Formal living/dining rooms, Den w/built-in bookcases, and French door to patio from family room. Center kitchen island, granite counters, breakfast bar, plant shelves, pantry, and plenty of wood cabinets. Create a feast with family & friends. Large laundry room offers storage shelves and room for a 2nd refrigerator. Generous size bedrooms, ample closets, and 2 baths. Grand master retreat boasts double door entry, patio access, and private en suite, Enjoy the backyard covered paver patio, built-in seating area, and colorful foliage. Storage shed. This wonderful Home will not disappoint.

444 – W Monterey Ave, Mesa, AZ 85210

4 Bedrooms, 2 Bathrooms, 2136 sqft, 3 Car Garage

Please contact me for your private showing.


Posted on September 24, 2018 at 5:39 pm
Eric Karlene | Posted in Uncategorized |

Seller Price Reductions up 46% and 61% in these Price Ranges

Supply Continues to Rise in the Middle
Seller Price Reductions up 46% and 61% in these Price Ranges

For Buyers:
Overall supply is down 9.6% compared to last September.  At first glance that’s nothing new.  However, for those of you who pay close attention to our monthly infographic (I know you’re out there), you have no doubt noticed that last May supply was down 15.5%, June supply was down 12.2%, July was down 11.1% and August was down 9.9% from last August.   What this means for buyers is that the Greater Phoenix market is still in short supply, but it’s subtly becoming less bad.  Most significantly, supply continues to increase between $200K-$400K.  Last month we reported an 8.1% increase in listings between $200K-$250K since May, that is now 9.7%.  Between $250K-$300K, supply has risen 15% in only 8 weeks.  Between $300K-$400K, supply has slowly risen 10% since January.  All other price ranges are either declining in supply or following their normal seasonal trends.  This is great news for buyers; more choice in the marketplace means less negotiating pressure. However, don’t expect sale prices to plummet anytime soon. The first price to respond to a supply shift isn’t a sale price, it’s a list price in the form of a price reduction.

For Sellers:
Despite the increase in supply between $200K-$250K, there hasn’t been a correlating increase in weekly list price reductions from sellers yet.  However that is not the case for the market between $250K-$300K where weekly list price reductions have risen 46% in the past 8 weeks and weekly reductions between $300K-$400K have risen 61% since January.  This is not an indicator that sellers are becoming desperate. Make no mistake, there are very few desperate sellers in this marketplace. There are, however, many optimistic sellers who may be taming their expectations. Average annual price appreciation per square foot remains between 3.5% – 5.0% for sales between $200K-$400K, so it’s still a seller’s market despite recent developments.  Expect prices to continue increasing at least through the remainder of 2018.

Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2018 Cromford Associates LLC and Tamboer Consulting LLC


Posted on September 11, 2018 at 4:51 pm
Eric Karlene | Posted in Uncategorized | Tagged , , , , , , , , ,

10050 E Celtic Dr – Beautiful Scottsdale Remodel – Open House!


Posted on August 21, 2018 at 4:37 am
Eric Karlene | Posted in Properties | Tagged , , , , , , ,

August 2018 Market Update – Supply between $200K-$250K has Risen 8.1% since May

Supply between $200K-$250K has Risen 8.1% since May
Seller Price Reductions Up 7% in Popular Price Range

For Buyers:
If your budget lies somewhere between $200,000 and $400,000 for a home, there’s good news for you.  Supply between $200,000 and $250,000 has been rising gradually over the past 12 weeks.  After dropping 15% from 2,300 listings in January to 1,944 in May, it has since risen 8.1% to 2,101 listings in August, placing it only 6.7% below last year’s count instead of 18% below like it was 3-4 months ago. Listings between $250,000 and $400,000 have also risen sharply 5.3% from 4,791 to 5,044 over the past 4 weeks, placing them only 0.2% below last year’s count of 5,053 listings. The increase in competition has resulted in a notable 7.3% increase in weekly seller price reductions from an average of 778 per week in June to 835 in July.  56% of year-to-date sales in Greater Phoenix have been between $200K-$400K so this increase in supply should come as a little bit of relief for the majority of buyers.

For Sellers:
If you have a home listed between $200,000 and $400,000, then you make up 48% of everything that’s listed in the MLS.  Listings under contract in this price range have averaged 7.4% higher in volume than 2017 all year, until now.  Over the last two weeks, including the end of July through the first week in August, listings in escrow have dropped to 2.2% below last year’s level.  Buyer activity is expected to slow seasonally from the peak in April through the end of the year; however open contracts have dropped 26% since the 2018 April peak compared to a lower 20% drop in 2017 over the same time frame; all while corresponding supply has been rising.  Sellers haven’t seemed to notice this sharper decline as their average asking price per square foot has soared from just 3% higher than last year in March to as high as 7% higher in July.  The average sales price per square foot was up 5.9% in July, compared to 4.6% in June.  However, price is a lagging responder to shifts in supply and demand. We will have to wait and see if buyers accommodate sellers’ price expectations given that they have more to choose from in the marketplace right now.

Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2018 Cromford Associates LLC and Tamboer Consulting LLC


Posted on August 12, 2018 at 11:21 pm
Eric Karlene | Posted in Uncategorized | Tagged , , , , , , , , , ,