Two Months Left to Our Peak Selling Season

Sellers:
We have two months left to our peak selling season before activity begins
to noticeably slow. If you have been on the fence about selling, now is
the time. Remember, “pretty homes” sell faster and for more
money…have your home in tip-top shape to secure the best offer(s)
from potential buyers.

Buyers:
Interest rates have remained stable (low) over the past 30 days. As
expected, active inventory dropped slightly this month making it more
competitive for buyers. Remember, you will often get a good price or
good terms (concessions/contingencies), but rarely both. Be prepared to
write your offer accordingly.

Posted on May 6, 2019 at 3:43 pm
Eric Karlene | Category: Uncategorized | Tagged , , , , , ,

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Posted on May 2, 2019 at 5:11 pm
Eric Karlene | Category: Uncategorized | Tagged , , , , , , , ,

Mortgage Payments Drop $50 per Month on a Median Priced Home

Mortgage Payments Drop $50 per Month on a Median Priced Home
Listings Under Contract Up 19% in 5 Weeks!

For Buyers:
Buyers got a break last month as 30-year mortgage rates dropped significantly from an average of 4.41% to 4.08%, which is the lowest they have been since January 2018.  On a $267,000 home (the median sales price in Greater Phoenix) the drop equated to nearly $50 per month in savings on principal and interest, which was enough to get many buyers off the couch and looking for homes.  This rate drop combined with an increased conventional loan limit up to $484K and a 32% increase in weekly seller price reductions meant that price ranges between $200K all the way up to $800K saw a combined 19% increase in contracts written over the last 5 weeks.  Contract activity is expected to increase at this time of year anyway due to seasonality, but last year over the same 5 weeks it only increased 8.6%.  For buyers who are still waiting for prices to begin declining, their wait just got longer.

For Sellers:
The drop in mortgage rates could not have come at a better time for sellers.  Up until 6 weeks ago the negotiating advantage sellers have been enjoying for years in Greater Phoenix had weakened to the point where the market was on track to enter balance within a matter of months and price appreciation would have begun to slow even more.  However by April 4th the average 30-year mortgage rate (as reported by Freddie Mac) had dropped to a 15-month low.  This spurred buyer activity and resulted in Listings Under Contract, which were 10.2% below 2018 last month, to sharply increase and surpass 2018’s April count by 0.8%.  Currently sales volume is down 9.6% from last April, however when these contracts close escrow over the next 4-6 weeks May and June should fare much better.  Don’t get too excited though, the seller market is still much weaker than last year.  Affordability and demand were helped by this interest rate drop but could quickly be negated as prices continue to rise.  Sellers still need to be mindful of their asking price to get under contract before buyer activity seasonally begins to decline between May and the end of the year.

Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2019 Cromford Associates LLC and Tamboer Consulting LLC

Posted on April 12, 2019 at 5:06 pm
Eric Karlene | Category: Info, Market Updates - Cromford Reports | Tagged , , , ,

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 | Category: Uncategorized | 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 | Category: Info | Tagged , ,

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 | Category: Uncategorized | Tagged , , , , , , , , ,

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

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