Jan. 14, 2021

Phoenix Metro Housing Market Report--January 2021

 

Phoenix Metro Housing Market Report--January 2021

January 2021 Market Report Commentary

 

Supply Down 51%, Slim Pickings in 2021

SUMMARY:  The main headline for 2021 housing market news so far is LOW INVENTORY. In fact, earlier this month we had the lowest number of homes on the market for sale in at least 20 years. Demand for housing continues to increase, from June to December of last year housing demand increased to 35% above normal. Historically low interest rates are fueling the demand.  In December, 33% of all sales closed over the asking price and only 10% included seller-paid closing costs in the 4th quarter. New construction home sales are booming but the builders are not keeping up with the demand.  Median home prices have risen 15.5% year-over-year.   There simply is not enough housing inventory for the number of buyers in the Phoenix Metro Area and buyers need to be prepared, pre-qualified with a lender, and ready to pay full price with no closing cost assistance from the seller if they want to win against the competition.

Full Commentary by Tina Tamboer, Senior Housing Analyst with The Cromford Report:

For Buyers:

There were 111,036 new listings added to the Arizona Regional MLS (ARMLS) in 2020, only 38 more than 2019, while 100,650 sold. As of January 10th, 2021 there were only 6,162 listings still active in the MLS, which is the lowest supply count recorded in at least 20 years. To make matters worse, 10% of those properties are outside of the Greater Phoenix boundary.

While the number of new listings barely changed last year, demand for homes accelerated between June and December to 35% above normal. Luxury sales over $1M soared after the pandemic restrictions were lifted. While they were already up 7.7% over 2019 at the end of June, by the end of December annual luxury sales were up 48.7%, securing an enormous record for 2020 at 2,575 sales over $1M.

Outside of the MLS, new home developers have been struggling to meet demand as well. Despite the roadblocks in production due to the pandemic, forest fires and supply line disruptions, as of November builders still managed to sell 14% more homes and obtain 28,204 more single family permits for future supply, up 24% over 2019. The median price of a new single family home only rose 6% from $333K to $353K and considering the median price of a resale home is $335K, thats extremely competitive.

As supply began to drop last month, December saw 33% of sales closed over asking price and only 10% in- involved seller-paid closing costs in the 4th Quarter.

Bottom line for buyers starting their search in 2021, be on top of your loan and be ready to pounce on every new listing that fits your needs. Many new listings will be on the market for less than a week prior to ac- accepting a contract.

For Sellers:

The state of Arizona ranked 3rd in the nation for population growth behind Texas and Florida in the latest 2020 Census release. When the full report comes out later this year, we expect to see California as the #1 source of inbound migration for Greater Phoenix. Moving companies such as Atlas, United Van Lines and North American have released their annual migration reports and 2 out of the 3 list Arizona in their Top 5 states for inbound moves. United Van Lines specifically cites retirement” as the primary reason for 37% of inbound moves, 70% were over 55 years old and 63% made incomes over $100,000 per year.

While median home prices have risen 15.5% year-over-year, the median rental rates through ARMLS have also risen 12.9% from $1,550 to $1,750/month. This increase, combined with historically low mortgage rates, has fueled more demand to purchase.

As the population continues to grow, the housing gap is becoming harder to close. After a decade of under-building, this will take more than a few months or a year to correct. However as prices rise and affordability quickly drops, its reasonable to expect some demand to drop with it. With that expectation, home prices are still projected to rise throughout 2021 but possibly at a slower rate in the latter half of the year. It will be another great year for sellers.

Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report ©2021 Cromford Associates LLC and Tamboer Consulting LLC 

 

Have any questions about how you can buy a home in the Goodyear area just outside of Phoenix?  Or are you thinking about selling your home in the Goodyear area?  I'm here to help!  Contact me at 623-252-9350, I'd be happy to help you get a game plan together for finding a new home.  My goal is to set you up for success with less stress!

 

Dec. 8, 2020

The Best High Schools In Goodyear, Arizona | 2021 Edition

Goodyear, Arizona, is located in the Phoenix Metropolitan Area, and it’s a laidback, relaxed place that many people are excited to relocate to. The city is thriving, as it’s home to some of the state’s best employers, it’s a safe community, and has access to excellent schools. The neighborhoods are thoughtfully-designed with a variety of home prices, so there’s something for everyone in Goodyear. Parents looking to choose Goodyear as their next home will feel confident choosing the community because of the excellent education resources. Here are the best high schools in Goodyear, Arizona. 

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Posted in Goodyear
Nov. 26, 2020

Revealed: The Best Neighborhoods in Goodyear, Arizona

The best neighborhoods in Goodyear Arizona

Goodyear, Arizona, is one of the most exciting communities near Phoenix. With the booming economy and real estate markets, the city is thriving more than ever. Goodyear has a reasonable cost of living, beautiful homes, excellent amenities, and thoughtfully-planned neighborhoods that fit a range of budgets. With seven months of sunshine, Arizona is an invigorating place to call home. Goodyear offers residents a healthy mix of condos, townhomes, single-family homes, estate homes, and gated communities, both older and newly constructed. There’s something for everyone in Goodyear. All of the communities are raved about, but here are the best neighborhoods to call home in Goodyear, Arizona. 

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Nov. 1, 2020

The New Normal: A Strong Housing Market in Goodyear

 

Goodyear Housing Market

 

The New Normal: A Strong Housing Market in Goodyear Expected to Continue into 2021

 

What a crazy year this has been!  A lot of people are wondering, will the housing market in the Goodyear area continue to be strong?

 

“2020 will be known for a lot of things, and a record-breaking year for real estate will certainly be one of its more unexpected legacies,” prominent economist Daryl Fairweather said.1 And he’s right: most of us would have expected the housing market to suffer from circumstances like a once-in-a-hundred-years pandemic and historic inventory shortages. 

 

But, rather than a slowdown, we are continuing to experience a surprisingly robust real estate market across the country, as well as here in Goodyear. And experts estimate that these conditions are likely to last well into the new year. Fannie Mae Senior VP and Chief Economist Doug Duncan predicts that existing home sales will ultimately “be up a percent or more in 2021.” He believes home prices will continue to rise due to limited inventory, but he is confident the Federal Reserve will keep interest rates low into the future, which will be “very good for households.”2

 

Market conditions like fewer available listings, changing criteria for desired homes, and record-low mortgage rates are changing the way people buy and sell homes, most likely in a lasting way. But this sustained activity, even in the uncertainty that is 2020, proves that our country still views real estate as a sound investment. The only question now is how you can take advantage of the housing market’s “new normal.” 

 

Goodyear Housing Market

 

 

FEWER LISTINGS EQUALS A SELLER’S MARKET IN GOODYEAR

 

Inventory, meaning the number of homes for sale, is at a record low across the country. The National Association of Realtors (NAR) reports there are fewer homes on the market today than the association has seen in data going all the way back to 1982.3 Currently, the total housing inventory is about 1.47 million units, which is a decline of 19.2% from one year ago.4

 

Experts do predict some relief on the horizon. MarketWatch had previously anticipated housing starts would occur at a pace of 1.45 million and building permits would come in at a pace of 1.52 million.But it turns out that the market exceeded expectations: compared with last year, housing starts are up 11%, and permitting for new homes occurred at a seasonally-adjusted annual rate of 1.55 million. That represents a 5% increase from August and an 8% increase from a year ago.  Buying a new construction home can be a great option for buyers right now.  New homes are being built in Goodyear, Avondale, Litchfield Park and Buckeye.

 

For now, the fact that there are fewer listings creates an advantageous housing market for sellers. There are several reasons why. 

 

For one, buyers have to act fast to snap up available homes. As a result, most properties that come on the market stay for an average of just 21 days before they are sold.6 “That is the fastest ever recorded in our monthly series,” says NAR Chief Economist Lawrence Yun.

 

Another benefit is that sellers are enjoying higher net returns on their listings. This is thanks to the tough competition for homes, which often results in bidding wars between buyers. Nationwide, the median home price in September rose to $311,800. That translates to about $40,000 (15%) more than just a year ago.7 

 

This seller’s market is not simply a product of the pandemic. In fact, in the country’s top 100 metro markets, inventory has been dwindling since the first quarter of 2020.8 This means that even with increased construction, buyers can’t simply wait for things to go back to normal before reentering the market. Rather, all signs indicate that this is the new normal in the Goodyear, Litchfield Park, Avondale, and Buckeye area.

 

What It Means for Homeowners: 

These higher home prices show that buyers are willing to spend more on a home right now than they did last year. So, if there ever were a time to list for top dollar—and expect to receive asking price quickly—that time is now. Ask us for a free consultation of your home’s value today.

 

 

What It Means for Homebuyers:

Due to low inventory, buyers could easily find themselves in a bidding war. Time is of the essence in a seller’s market, so you’ll need to get your financing in order and be preapproved for a loan before you begin your home search. We can connect you with a trusted mortgage professional to get you started.

 

 

BUYERS IN GOODYEAR BENEFIT FROM LOW MORTGAGE RATES AND A BIGGER PLAYING FIELD

 

Don’t worry, homebuyers. This “new normal” of real estate has benefits for you too. 

 

For example, people used to base their next home purchase on how far the commute was to work or in which public school district it was. But now, thanks to the pandemic shifting the locus of jobs and work, they are free to consider what they need from a home to make it a place they truly want to be in as they work, teach, exercise, cook, and live.

 

Often, this equates to needing more space in different types of areas. Realtor.com consumer surveys show that people are desiring quieter neighborhoods, home offices, updated kitchens, and access to the great outdoors.9 The search for these criteria is driving residents out of densely populated metropolitan areas and into the suburbs.10 And this exodus from cities is good news for buyers: it opens up more possibilities for inventory that they could not have considered pre-pandemic. 

 

Another advantage for buyers is the record-low mortgage rates. The average rate for a 30-year fixed-rate mortgage hit a record low in mid-October when rates fell to 2.81%. That’s the lowest since Freddie Mac began conducting the survey in 1971 and well below last year’s 3.69%.11 Similarly, a 15-year fixed-rate mortgage can be had for as low as 2.35% compared to 3.15% a year ago.

 

Thanks to these rates, buyers are afforded the opportunity to buy nearly $32,000 more home than they could one year ago while keeping their monthly payment the same.12 So even though home prices are high now, it is currently more affordable to buy a home now than it was last year.

 

If you want to take advantage of these rock-bottom mortgage rates, you need to act fast. Though rates are projected to stay low, housing economists predict that the window of opportunity to get the best rate could be closing in the coming months. Mike Fratantoni, chief economist at the Mortgage Bankers Association, said he expects the average rate on a 30-year mortgage to rise to 3.5% by the end of 2021.13

 

 

What It Means for Homeowners:

Record-low mortgage rates offer you the opportunity to lower your monthly payment—or even take out some equity—with a refinance. With those additional funds, you could even choose to invest in a second home in a new desirable location. Reach out to me for a referral to a trusted mortgage professional or an agent in those markets. 

 

 

What It Means for Homebuyers:

The time is now to determine how much home you can comfortably afford and make a plan to find it. I can set up a search for you to find homes that best meet your new needs, even if they’re in neighborhoods you wouldn’t have considered before.  We can also site down and get a game plan together for getting you in a new home with the least amount of stress.

 

 

A RECORD-SETTING YEAR FOR HOME SALES IS JUST THE BEGINNING

 

Despite the seemingly adverse buyer conditions, 2020 experienced a 14-year high number of home sales, NAR reports. Existing-home sales, which include single-family homes, townhomes, condominiums and co-ops, rose 9.4% in September to a seasonally adjusted annual rate of 6.54 million.14 That’s a 21% increase from a year ago! 

 

Every region of the country has seen a surge in sales activity. According to George Ratiu, senior economist for Realtor.com, part of the reason for these continued sales is that the pandemic has created a paradigm shift in the patterns of real estate.15 For example, housing needs are typically resolved by late summer and early fall to coincide with the commencement of the new school year. With homeschooling and remote work, however, buyers have been freed to continue their home search into the traditionally slow winter months.

 

Another reason for the robust market is that Millennials are finally putting their money into homeownership. According to the U.S. Census Bureau, the homeownership rate for 25-to-34-year-olds rose to 40.7% by the end of last year.16 This is significant because Millennials, the generation of people in their mid-20s to late-30s, currently surpasses Baby Boomers as the nation’s largest living adult generation. As the remaining percentage of this group starts investing in homes in the near future, demand will persist.

 

All of these factors indicate that the housing market is poised to remain strong as we head into the new year. And as Jonathan Woloshin, head of U.S. real estate at UBS Global Wealth Management, believes, they could “buoy the housing market for years to come.”17 

 

What It Means for Homeowners:

It’s tempting to believe that homes will basically sell themselves in a market like this. But we’re still seeing properties that are overpriced and under-marketed sit unsold. I can help you optimize the process of selling your home so you can get the best possible offer with the best terms.

 

 

What It Means for Homebuyers:

Preparation is key to success in a seller’s market like this, but don’t let yourself become paralyzed. I am here to answer your questions and offer sound advice to guide you through all the options that are available to you.  Together we can get a game plan together that will help you beat out the competition.

 

 

REAL ESTATE IS A SAFE BET

 

Your other investments might have been on roller coasters this year, but the real estate market has been steady, competitive, and strong throughout. That makes it a good choice for your financial future.

 

National real estate numbers can give us a pulse on the market, but real estate happens in our own backyard. As your local market experts, we can help you understand the finer points of the market that impact sales and home values in your own neighborhood. 

 

If you’re considering buying or selling a home before the new year or in early 2021, contact me now to schedule a free consultation. I’ll work with you to develop an actionable plan to meet your goals. You can use my contact form, email me at cinda@cindarose.com or give me a call/text at 623-252-9350.  I look forward to hearing from you!  It's my goal to set you up for success!

 

 

 

 

 

Sources:

  1. Redfin -
    https://www.redfin.com/news/housing-market-news-september-2020/
  2. Housing Wire - https://www.housingwire.com/articles/fannie-maes-doug-duncan-offers-his-predictions-for-2021/
  1. CNBC – https://www.cnbc.com/2020/10/22/september-existing-home-sales-jump-9point5percent.html
  1. NAHB – http://eyeonhousing.org/2020/10/existing-home-sales-surge-despite-record-low-supply
  1. MarketWatch – https://www.marketwatch.com/story/new-home-construction-slows-slightly-in-august-driven-by-pullback-in-multifamily-starts-2020-09-17
  1. National Association of Realtors – https://www.nar.realtor/newsroom/existing-home-sales-soar-9-4-to-6-5-million-in-septembeBusiness Insider - https://www.businessinsider.com/how-2020-broke-the-housing-market-inventory-could-run-out-2020-9
  1. Forbes -https://www.forbes.com/sites/petertaylor/2020/10/11/covid-19-has-changed-the-housing-market-forever-heres-where-americans-are-moving-and-why/#74e7355761fe 
  1. Realtor.com –
    https://www.realtor.com/research/top-consumer-home-features-coronavirus/ 
  2. Wealth Advisor – https://www.thewealthadvisor.com/article/covid-19-has-changed-housing-market-forever-heres-where-americans-are-moving-and-why
  3. Washington Post -https://www.washingtonpost.com/business/2020/10/15/30-year-mortgage-rate-drops-record-low/
  1. Forbes – https://www.forbes.com/advisor/mortgages/buying-a-home-low-mortgage-rates/
  1. BankRate - https://www.bankrate.com/mortgages/refinance-window-could-close-soon/
  1. National Association of Realtors – https://www.nar.realtor/newsroom/existing-home-sales-soar-9-4-to-6-5-million-in-september
  1. Forbes -https://www.forbes.com/sites/petertaylor/2020/10/11/covid-19-has-changed-the-housing-market-forever-heres-where-americans-are-moving-and-why/#74e7355761fe
  1. TD Economics – https://economics.td.com/us-falling-mortgage#:~:text=The%20homeownership%20rate%20among%20millennials,47.7%25%20at%20a%20comparable%20age.&text=This%20means%20that%201.4%20million,that%20of%20the%20older%20generation
  1. Axios Media -https://www.axios.com/real-estate-market-819e3c85-3765-4014-91c0-b545be6d5935.html
Oct. 18, 2020

The Ultimate Guide to Moving and Living in Goodyear, Arizona

 

Moving To Goodyear Arizona

Located just west of Phoenix, Goodyear is a city of around 75,000 residents. It’s an exciting place to be, as those who call Goodyear home have access to all the action of Phoenix, the annual events and attractions in the city, and all the outdoor activities you could ask for. Moving to Goodyear is an easy decision for those who want to live in a smaller city with fantastic amenities. 

Those who call Goodyear home have a high quality of life. It’s a safe city with a lot to offer, and around 84% of citizens recently rated their lives in Goodyear as very positive. It was ranked in the top ten best places to live in the country by 27/7 Wall Street. 

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July 14, 2020

6 Tips for Beating the Competition and Winning Your New Home

6 Tips for Making a Winning Offer on a New Home and Beating the Competition

The weather isn't the only thing that is hot in the Goodyear area right now!  The housing market is on fire!  This means if you are looking for a new home, you could face some fierce competition out there.  So how do you beat the competition and win the home?  Here are 6 tips to help you set yourself up for success:

1.  Get pre-qualified or preapproved for your home loan. This is a very crucial step that buyers often put off until the last minute.  Bottom line, in the Goodyear area, sellers will most likely NOT consider your offer at all if you do not have at least a prequalification form completed by your lender.  A preapproval letter is even better and will help increase the confidence a seller has in you being able to complete the purchase of their home. If you spend some time working with a lender from the start, you may be able to increase your buying power.

2.  Stay flexible.  In a seller's market like the one we are experiencing today, being flexible with the terms the seller wants can help you win the bid.  Some sellers may need to extend the closing date past the normal 30 to 45 days so they can move into their new home.  Being mindful of what the seller wants can help you rise above the competition and make the seller want to work with you instead of other buyers.  

3.  Write a letter.  Past clients of mine have had great success with writing a personal letter to the seller about why you want to purchase their home.  I recently had a buyer that needed to relocate back to Arizona due to her parents' health issues.  She wrote a lovely letter to the sellers and it helped her get her offer accepted.  We just closed escrow at the end of June and she is getting settled in her new home.  

4.  Use an escalation clause.  In a market with low housing inventory and high buyer competition, an escalation clause can help you get your offer accepted.  You simply agree to increase your bid if another buyer outbids you.  Of course, we put a cap on how high you will go to protect you.  Using an escalation clause is a great way to beat out the competition.

5.  Increase your earnest money deposit.  Increasing the amount of your earnest money helps gain trust and confidence with sellers. It is important to know that you could end up losing your earnest money to the seller if you end up cancelling the sale.  However, the Arizona Purchase Contract has several contingencies that protect buyers and their earnest money, including the inspection period contingency, the appraisal contingency (the property must appraise for the sales price or higher or you can cancel and get your earnest money back) and the financing contingency (if you can not obtain loan approval, you can cancel and get your earnest money back).  

6.  Start working with a Realtor right away.  One of the best ways to beat out the competition is to align yourself with a Realtor that can help you get ready to beat the competition.  In addition, your Realtor can start networking with other agents and past clients to find a property that may be hitting the market soon.  

Ready to start looking for a new home in the Goodyear area?  I'm here to help! Our first step would be to have a conversation about your goals and what you are looking for in a new home.  We can then get a game plan together to help you find the perfect home.    My goal is to help you experience success on your road to being a homeowner with less stress!  

July 13, 2020

9 DIY Improvements That Add Value to Your Home

 

 

Add Value To Your Home With These 9 DIY Improvements

 

Whether you’re prepping your house to go on the market or looking for ways to maximize its long-term appreciation, these nine home improvement projects are great ways to add function, beauty, and real value to your home.

 

The best part is, once you’ve secured the materials, most of these renovations can be completed over the course of a weekend. And they don’t require a lot of specialized skills or experience. So grab your toolbox, then get ready to boost your home’s appeal AND investment potential!

 

 

1. Spruce Up Your Landscaping

 

Landscaping improvements can increase a home’s value by 10-12%.1 But which outdoor features do buyers care about most? According to a survey of Realtors, a healthy lawn is at the top of their list. If your lawn is lacking, overseeding or laying new sod can be a worthwhile investment—with an expected return of 417% and 143% respectively.1. 

 

Planting flowers is another great way to enhance your home’s curb appeal. And if you choose a perennial variety, your blooms should return year after year. For an even longer-term impact, consider planting a tree. According to the Council of Tree and Landscape Appraisers, a mature tree can add up to $10,000 to the value of your home.2

 

 

2. Clean The Exterior

 

When it comes to making your house shine, a sparkling facade can be just as important as a clean interior. Real estate professionals estimate that washing the outside of a house can add as much as $15,000 to its sales price.3

 

A rented pressure washer from your local home improvement store can help you remove built-up dirt and grime from your home’s exterior, walkway, and driveway. Just be sure to read the instructions carefully—and only use it on surfaces that can withstand the intensity. If you have a home with stucco you should do some investigating before proceeding.  When in doubt, a scrub brush and bucket of sudsy water will often do the trick.

 

 

3. Add A Fresh Coat Of Paint

 

New paint can have a big impact on both the appearance and value of a property. In fact, it’s one of the most effective ways to revitalize a home’s exterior, update its interior, and make it appear larger and brighter. The best part? Painting is relatively easy and inexpensive!

 

To get the maximum return at resale, stick with a modern but neutral color palette that will appeal to a broad range of buyers. According to a recent survey of home design experts, cool neutrals are a safe bet when it comes to interior paint. And respondents chose white and gray as the best exterior paint colors to use when selling a home.4 However, it’s important to consider a property’s architecture, existing fixtures, and regional design preferences, as well.   

 

 

4. Install Smart Home Technology

 

In a recent survey, 78% of real estate professionals said their buyer clients were willing to pay more for a home with smart technology features.5 The most requested smart devices? Thermostats (77%), smoke detectors (75%), home security cameras (66%), and locks (63%).6

 

The good news is, many of these gadgets are fairly easy to install. And some of them, including smart thermostats and light bulbs, will pay for themselves over time by making your home more energy-efficient. In fact, many manufacturers report that smart thermostats can cut back on heating and cooling costs by 10-20%.7  

 

If you already own a smart speaker, like Amazon Alexa or Google Home, choose devices that will pair with your existing technology. This will enable you to create a truly integrated (and in many cases voice-activated) smart home experience.

 

 

5. Modernize Your Window Treatments

 

Smart—or motorized—blinds are also growing in popularity, and several manufacturers make models you can order and install on your own. But they’re not the only way to modernize your window treatments. 

 

If you have old aluminum blinds, consider replacing them with plantation shutters, which are energy-efficient, durable, and have strong buyer appeal.8 Roman and roller shades are another stylish alternative, and they come in a variety of colors and fabrics, which you can personalize to meet your design and privacy preferences.

 

Fortunately, upgrading your blinds has gotten easier and less expensive in recent years. There are a number of retailers that specialize in affordable window coverings that are simple to measure and hang yourself.

 

6. Replace Outdated Fixtures

 

Drastically transform the look and feel of your home by swapping out dingy and dated fixtures for contemporary alternatives. Start by assessing your current light fixtures, faucets, cabinet hardware, doorknobs, and even switch plates. Then prioritize replacing those that are particularly outdated or in highly-visible areas, such as your entryway or kitchen.

 

Even if your home is fairly new, consider trading your builder-grade fixtures for higher-end options to give it a more upscale appearance. And forget the old rule about sticking to one metal tone throughout your property. According to designers, mixing metal finishes can add interest and character to a space.9

 

For more designer insights and decor trends, contact us for a free copy of our recent report: “Top 5 Home Design Trends for a New Decade.”

 

 

7. Upgrade Your Bathroom Mirror

 

A minor bathroom remodel offers one of the best returns on investment, with a $1.71 increase in home value for every $1 you spend.10 We’ve already explored several improvements you can make to your bathroom: new paint, fixtures, and hardware. Now complete the look by upgrading your vanity’s mirror.

 

Before you purchase a new mirror, examine your existing one to see how it is attached to the wall. Some vanity mirrors are glued to the wall and difficult to remove without shattering the glass or damaging the sheetrock behind it.11 

 

If you prefer to keep your existing mirror, you can paint the frame—or add one if it’s currently frameless. There are several online retailers that will send you the frame components cut to your specifications, which you can assemble and mount yourself. Much like a work of art, your vanity mirror serves as a focal point for your bathroom, so let your creativity shine through!

 

 

8. Shampoo Your Carpet

 

Carpet is notorious for trapping dust, dirt, and allergens. It’s one of the reasons that most buyers prefer hard surface flooring.12 But if you love your carpet, or you’re not ready to invest in an alternative, make an effort to keep it clean and odor-free.

 

To properly maintain your carpet, you should vacuum it weekly. Experts also recommend a deep shampoo at least every two years.13 Fortunately, this is a cheap and easy DIY project you can knock out in about 20 minutes per room. According to Consumer Reports, you can rent a machine and purchase cleaning fluid and supplies for around $90. With an average return on your investment of 169%, it’s well worth the effort and expense.14

 

 

9. Customize Your Closet

 

Real estate professionals estimate that a closet remodel can add $2500 to a home’s selling price. And while a professional renovation can cost upwards of $6000, there are many high-quality DIY closet systems you can customize and install yourself.15 

 

Experts recommend taking a thorough inventory of your wardrobe and accessories before you get started. Make sure frequently-worn pieces are easy to reach and store seasonal and seldom-used items on high shelves. Place shoe racks near the closet entrance so they are easy to access.16 A little planning can go a long way toward building a closet that you (and your future buyers!) will love.

 

 

GET A COMPLIMENTARY ANALYSIS OF YOUR PROJECT

 

We’ve been talking averages. But the truth is, the actual impact of a home improvement project will vary depending on your particular home and neighborhood. Before you get started, contact us to schedule a free virtual consultation. We can help you determine which upgrades will offer the greatest return on your effort and investment.

 

 

Sources:

  1. HomeLight -
    https://www.homelight.com/blog/improve-curb-appeal-landscaping/
  2. National Association of Realtors -
    https://www.realtor.com/advice/home-improvement/landscape-renovations-that-pay-off/
  3. HouseLogic.com - https://www.houselogic.com/save-money-add-value/add-value-to-your-home/adding-curb-appeal-value-to-home/
  4. Fixr -
    https://www.fixr.com/blog/2020/01/14/paint-color-trends-in-2020/
  5. T3 Sixty -
    https://blog.coldwellbanker.com/wp-content/uploads/2018/01/CES2018-Smart-Homes-An-Emerging-Real-Estate-Opportunity.pdf
  6. Consumer Reports -
    https://www.consumerreports.org/smart-home/smart-home-tech-upgrades-to-help-sell-your-house/
  7. American Council for Energy Efficient Economy
    https://www.aceee.org/sites/default/files/publications/researchreports/a1801.pdf
  8. Forbes - https://www.forbes.com/sites/trulia/2016/07/05/10-upgrades-under-1000-that-increase-home-values-2/#47b0d3162e60
  9. Insider -
    https://www.insider.com/home-design-rules-you-should-be-breaking-2020-1
  10. Zillow -
    https://www.zillow.com/sellers-guide/roi-for-bathroom-remodel/
  11. Lowes -
    https://www.lowes.com/n/how-to/remove-a-bathroom-mirror
  12. HomeLight -
    https://www.homelight.com/blog/what-flooring-increases-home-value/
  13. Angie’s List -
    https://www.angieslist.com/articles/how-often-should-i-clean-my-carpets.htm 
  14. HomeLight -
    https://www.homelight.com/blog/projects-that-increase-home-value/
  15. National Association of Realtors - https://www.nar.realtor/research-and-statistics/research-reports/remodeling-impact
  16. EasyClosets -
    https://www.easyclosets.com/tips-ideas/2016/10/02/how-to-plan-your-walk-in-closet/
June 20, 2020

Is Now a Good Time to Buy or Sell Real Estate in Goodyear AZ?

Is Now a Good Time to Buy or Sell Real Estate?

 

 

 

Good time to buy or sell real estate in Goodyear AZ

 

 

Usually, spring is the busiest time of the year for real estate in Goodyear. However, the coronavirus outbreak along with its subsequent stay-at-home orders, led many buyers and sellers to put their moving plans on hold. As a result, in April new listings fell nearly 45%, and sales volume fell 15% compared to last year.1

 

Fortunately, as restrictions have eased, we’ve seen an uptick in market activity. In fact, economists at Realtor.com expect a rebound in July, August, and September, as fears about the pandemic subside, and buyers return to the market with pent-up demand from a lost spring season.2

 

But given safety concerns and the current economic climate, is it prudent to jump back into the real estate market?  Before you decide, it’s important to consider where the housing market is headed, how it could impact your timeline and ability to buy a home, and your own individual needs and circumstances.

 

WHAT’S AHEAD FOR THE HOUSING MARKET?

 

The economic aftermath of the coronavirus outbreak has been severe. We’ve seen record unemployment numbers, and economists believe the country is headed toward a recession. But people still need a place to live. So what effect will these factors have on the housing market?

 

Home Values Projected to Remain Stable

 

Many Americans recall our last recession and assume we will see another drop in home values. But the 2008 real estate market crash was the cause—not the result—of that downturn. In fact, ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that home prices actually went up in most cases. Only twice (in 1990 and 2008) did prices fall, and in 1990 it was by less than one percent.3 

 

Many economists expect home values to remain relatively steady this time around. And so far, that’s been the case. As of mid-May, the median listing price in the U.S. was up 1.4% from the same period last year.4

 

 

Demand for Homes Will Exceed Available Supply

 

There’s been a shortage of affordable homes on the market for years, and the pandemic has further hindered supply. In addition to sellers pulling back, new home starts fell 22% in March.5 In fact, Fannie Mae doesn’t foresee a return to pre-pandemic construction levels before the end of 2021.6

 

This supply shortage is expected to prop up home prices, despite recessionary pressures. Fannie Mae and the National Association of Realtors predict housing prices will rise slightly this year7, while Zillow expects them to fall between 2-3%.8 Still, that would be a far cry from the double-digit declines that occurred during the last recession.9

 

 

Government Intervention Will Help Stabilize the Market

 

Policymakers have been quick to pass legislation aimed at preventing a surge in foreclosures as we saw in 2008. The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress gives government-backed mortgage holders who were impacted by the pandemic up to a year of reduced or delayed payments.10

 

The Federal Reserve has also taken measures to help stabilize the housing market, lower borrowing costs, and inject liquidity into the mortgage industry. These steps have led to record-low mortgage rates that should help drive buyer demand and make homeownership more affordable for millions of Americans.11

 

 

 

HOW HAS THE REAL ESTATE PROCESS CHANGED?

 

As the pandemic hit, real estate and mortgage professionals across the country revised their processes to adapt to shifting safety standards and economic realities. While these new ways of conducting business may seem strange at first, keep in mind, military clients, international buyers, and others have utilized many of these methods to buy and sell homes for years.

 

New Safety Procedures

 

The safety of our clients and our team members is our top priority. That’s why we’ve developed a process for buyers and sellers that utilizes technology to minimize personal contact. 

 

For our listings, there are 4 ways you can safely show and sell your home.  We’re holding online open houses, offering virtual viewings, and conducting walk-through video tours. We’re also using video chat to qualify interested buyers before we book in-person showings. This enables us to promote your property to a broad audience while limiting physical foot traffic to only serious buyers.

 

Likewise, our buyer clients can view properties online and take virtual video tours to minimize the number of homes they step inside. Ready to visit a property in person? We can decrease surface contact by asking the seller to turn on all the lights and open doors and cabinets before your scheduled showing.

 

The majority of our “paperwork” is also digital. In fact, many of the legal and financial documents involved in buying and selling a home went online years ago. You can safely view and eSign contracts from your smartphone or computer.

 

 

Longer Timelines and Higher Mortgage Standards

 

The real estate process is taking a little longer these days. Both buyers and sellers are more cautious when it comes to viewing and showing homes. And with fewer house hunters and less available inventory, it can take more time to match a buyer with the right property.

 

In a recent survey, 67% of Realtors also reported delays in the closing process. The top reasons were financing and buyer job loss, but appraisals and home inspections are also taking more time due to shifting safety protocol.12

 

Securing a mortgage may take longer, too. With forbearance requests rising, lenders are getting increasingly conservative when it comes to issuing new loans. Many are raising their standards—requiring higher credit scores and larger down payments. Prepare for greater scrutiny, and build in some extra time to shop around.13

 

 

IS IT THE RIGHT TIME FOR ME TO MAKE A MOVE?

 

The reality is, there’s no “one size fits all” answer as to whether it’s a good time to buy or sell a home because everyone’s circumstances are unique. But now that you know the state of the market and what you can expect as you shop for real estate, consider the following questions:

 

Why do you want or need to move?

 

It’s important to consider why you want to move and if your needs may shift over the next year. For example, if you need a larger home for your growing family, your space constraints aren’t likely to go away. In fact, they could be amplified as you spend more time at home. 

 

However, if you’re planning a move to be closer to your office, consider whether your commute could change. Some companies are rethinking their office dynamics and may encourage their employees to work remotely on a permanent basis.

 

 

How urgently do you need to complete your move?

 

If you have a new baby on the way or want to be settled before schools open in the fall, we recommend that you begin aggressively searching as soon as possible. With fewer homes on the market and a lengthier closing process, it’s taking longer than usual for clients to find and purchase a home. 

 

However, if your timeline is flexible, you may be well-positioned to score a deal. We’re seeing more highly-incentivized sellers who are willing to negotiate on terms and price. Talk to us about setting up a search so we can keep an eye out for any bargains that pop up. And get pre-qualified for a mortgage now so you’ll be ready to act quickly.

 

If you’re eager to sell this year, now is the time to begin prepping your home for the market. A second wave of infections is predicted for the winter, which could mean another lockdown.14 If you wait, you might miss your window of opportunity.

 

 

How long do you plan to stay in your new home?

 

The U.S. real estate market has enjoyed steady appreciation since 2012, which made it fairly easy for owners and investors to buy and sell properties for a profit in a short period of time. However, with home values expected to remain relatively flat over the next year, your best bet is to buy a home you can envision yourself keeping for several years. Fortunately, at today’s rock-bottom mortgage rates, you can lock in a low interest rate and start building equity right away.

 

 

Can you meet today’s higher standards for securing a mortgage?

 

Mortgage lenders are tightening their standards in response to the growing number of mortgage forbearance requests. Many have raised their minimum credit score and downpayment requirements for applicants. Even if you’ve been pre-qualified in the past, you should contact your lender to find out if you meet their new, more stringent standards.

 

 

Is your income stable?

 

If there’s a good chance you could lose your job, you may be better off waiting to buy a home. The exception would be if you’re planning to downsize. Moving to a less expensive home could allow you to tap into your home equity or cut down on your monthly expenses.

 

 

WHEN YOU’RE READY TO MOVE—I'M READY TO HELP!

 

While uncertain market conditions may give pause to some buyers and sellers, they can actually present an opportunity for those who are willing, able, and motivated to make a move. 

 

Your average spring season would be flooded with real estate activity. But right now, only motivated players are out in the market. That means that if you’re looking to buy, you’re in a better position to negotiate a great price. And today’s record-low mortgage rates could give a big boost to your purchasing power. In fact, if you’ve been priced out of the market before, this may be the perfect time to look. 

 

If you’re hoping to sell this year, you’ll have fewer listings to compete against in your neighborhood and price range. But you’ll want to act quickly. Economists expect a surge of eager buyers to enter the market in July—so you should start prepping your home now. And keep in mind, a second wave of coronavirus cases could be coming in this winter. Ask yourself how you will feel if you have to face another lockdown in your current home.

 

Let’s schedule a free virtual consultation to discuss your individual needs and circumstances. I can help you assess your options and create a plan that makes you feel both comfortable and confident during these unprecedented times.

 

 

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

 

 

Sources:

  1. Forbes - https://www.forbes.com/sites/ellenparis/2020/05/08/latest-housing-market-update-from-realtorcom/#20bf7829113e
  2. HousingWire -
    https://www.housingwire.com/articles/realtor-com-housing-market-will-bounce-back-this-year-but-the-rebound-will-be-short-lived/
  3. Curbed -
    https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates
  4. Realtor.com -
    https://www.realtor.com/research/weekly-housing-trends-view-data-week-may-9-2020/
  5. Money.com -
    https://money.com/coronavirus-real-estate-home-prices/
  6. Fannie Mae -
    https://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_051320.pdf
  7. HousingWire -
    https://www.housingwire.com/articles/pending-home-sales-tumble-on-covid-19-shock/
  8. HousingWire -
    https://www.housingwire.com/articles/zillow-predicts-small-home-price-drop-through-rest-of-2020/
  9. Federal Reserve Bank of St. Louis -
    https://fred.stlouisfed.org/series/CSUSHPINSA
  10. Consumer Financial Protection Bureau -
    https://www.consumerfinance.gov/coronavirus/cares-act-mortgage-forbearance-what-you-need-know/
  11. Bankrate -
    https://www.bankrate.com/mortgages/federal-reserve-and-mortgage-rates
  12. National Association of Realtors -
    https://www.nar.realtor/sites/default/files/documents/2020-05-11-nar-flash-survey-economic-pulse-05-14-2020.pdf  
  13. Forbes -
    https://www.forbes.com/sites/alyyale/2020/04/17/buying-a-home-during-the-pandemic-dont-expect-your-everyday-home-purchase/#fadad3d33b0c
  14. Washington Post -
    https://www.washingtonpost.com/health/2020/04/21/coronavirus-secondwave-cdcdirector/
May 9, 2020

Buying a Home in Goodyear: What Happens After I Find a House?

Buying a Home in Goodyear AZ

 

Wondering what happens after we find you the perfect house in Goodyear and the seller accepts your offer?  Here’s a quick breakdown of the process:

  1. Deposit Earnest Money with the Title Company
  2. Home Inspection Period Begins, Inspect the Home and Negotiate Repairs
  3. Your Lender Will Start the Financing Process, Submit all Required Documents
  4. Your Lender Will Complete an Appraisal
  5. The Seller Will Complete Any Agreed Upon Repairs
  6. Sign the Closing Documents and Bring Your Closing Funds
  7. Complete a Final Walk-Thru of the Property
  8. Once the Sale Records with the County, You Get the Keys to Your New Home!

Thinking about moving to Goodyear and want someone to be your advocate and help guide you through the process of buying a home?  I’m here to help! Fill out the contact form below and let's get a game plan together!

April 16, 2020

Great Tips for Moving to Goodyear AZ

 

Moving to Goodyear, AZ

Thinking about moving to Goodyear

in the next 7 months?

Caroline Carter, author of "Smart Moves:  How to Save Time and Money While Transitioning Your Home and Life," is a home transition expert that feels that you ideally need about seven months to get your house ready to sell.  Of course, I've had clients pack up their things in a couple of weeks, but in my opinion, I agree that for some people, 7 months is not too early to start. 

1.  Pace yourself.

Put a plan together and realistically set up a timeline.  You will most likely still have your normal day to day life to contend with so you will need to keep that in mind.  I find it is easier for my clients to schedule times to work on the house and add them to a calendar to ensure they are completed.  It may take up your evenings and weekends but once you are in your new place settled, it will be worth it.  Once you set a target date to be in your new home, you can work backward from there.

2.  Get organized.

Moving is a great time to organize your belongings and hopefully, when you are done you will have less to move!  Start with your paperwork, sort and scan your important papers and shred the rest.  Make sure you keep a list of important numbers and accounts handy. A three-ring binder comes in handy to keep important information while moving.  And remember that you will need financial paperwork for your mortgage process.  You can scan these important items for a paper-free option.  Make sure to use a cloud-based place to store your files, or back them up on a thumb file or external drive.  Evernote is a great online tool to store documents, as well as Dropbox.com. Next, go room by room and organize your belongings.  Determine what you are going to keep, sell, give away or toss.  You can even start boxing up items that you will be keeping but won't be using to store inside a closet.

3.  Timing is everything.

Make sure you give yourself enough time to complete the organizing tasks so you can make your move by your desired target date.  You will also need to factor in any time you will need to complete any necessary repairs on your current home.  Don't underestimate how much time it is going to take you.  By giving yourself enough time, you will make the process less stressful.

4.  Take control of your stuff.

The average house has about 300,00 items!  Be objective when you go through your house and take control of what you keep and what you donate or toss.  Don't lose sight of your goal to reduce the items that you will need to move.  Carter uses blue painter's tape and a black market to mark each item as pack, sell, dump and donate.

5.  Out with the old.

Once you complete the sorting process, you can find numerous companies to come haul any unwanted items away.  You can also contact several organizations to donate items and they will even come pick your stuff up.  Check out Goodwill, Salvation Army, and St Vincent de Paul to see if they will come and pick up your items for free.  For more information visit www.donationtown.org.   Based on Article originally appeared in the Seattle Times.

If you have any questions about moving please contact me.  I have local connections that can help make the process easier for you.  If you would like more information about moving to Goodyear don't hesitate to reach out.

While you are here, check out my home search tool to search for HOMES FOR SALE IN GOODYEAR.