Phoenix Real Estate Market Update – It’s a Buyer Frenzy!

The Phoenix real estate market is in a buyer frenzy early in the season due to low inventory in the most active price ranges. For Buyers: Buyers continue to find themselves in a frenzy of competition for homes as March recorded the highest number of non-distressed sales through the MLS since September 2005.  Supply has dropped a significant 12.7% overall compared to this time last year. That's a whopping 22% drop  in the Southeast Valley and 27% in Pinal County! Despite the extreme lack of supply under $300K, 30% of closings in this price range are showing some form of seller-paid concession at close.  Compare this to 27% in March of … [Read more...]

What Does It Take To Buy A House In Phoenix?

I don't know if you knew this, but it takes $4,000,000,000,000 to buy a cheap, dilapidated home in Phoenix. Do you have that in your bank account right now? I mean, everyone else does, why not you? JUST KIDDING. Seriously though, it does take some money to buy a home. (Key word here: "Buy") Here are three things you need to get your butt in gear: 1) Cash 2) Credit 3) Compensation Cash  What is cash? Well, it grows on trees, of course! But only in my fairytale books which I sold at a garage sale 20 years ago. (Sorry.) If you have a cash-money-honey tree then nobody cares who you are, what you look like, who or what … [Read more...]

What’s the Easiest Way to Invest in Real Estate?

A friend of mine recently asked me about investing in a REIT, which is a Real Estate Investment Trust. There's been a lot of them poppin' up over the last 15 to 20 years - especially online. This particular one that she was looking at had $1,000 minimum. My friend asked, "I don't have the $1,000 now, but if I did is this a good idea?" The online REIT that she's looking at is so super-hipster right now too (because my friend who asked is also a hipster). The site talks about crowd-sourcing and how you can become a real estate mogul just like everyone else! It's real sexy, amazing, gnarly, yadda yadda yadda. A lot of REITs invest in … [Read more...]

Buying Real Estate the Smart Way in a Tight Economy

Ok, so as mentioned in my previous blog, we are due for another recession. Every 5 years, a recession occurs. We haven't had a recession in 7.5 years. Yikes! So it's time to tighten up the proverbial expenditure belt. And you might be thinking, "Well, crud, I wanted to finally buy a house this year!" NEWS FLASH: The #1 reason to buy a house is NOT, "Oh, it's not a recession right now -- Let's buy a house!" There are actually some very good reasons to buy a house right now. Reason #1 Interest rates are still really, really low. Even in the fours, they're still historically low. I mean, they may not be this low again when they … [Read more...]

Happy New Year 2017 – Looking Ahead in Phoenix Real Estate

We have spent 7.5 years in an awesome growth period as a country. On the flip side, this makes us well overdue for a little recession. That's pretty amazing though - considering we've come a long way from foreclosure and losing our homes back in 2008. The interesting thing about being overdue for a recession is this: It's kind of like being overdue for a major earthquake in Los Angeles - except a tiny recession is much more likely to happen yet won't leave your life in shambles. This mini-recession will not be anywhere near as bad as 2008. We won't have to rebuild an entire city, or country, for that matter.   Here are … [Read more...]

Population Pause…We Need More Babies!

One of the biggest drivers in housing demand is population growth. Simple math here. If you have more people, you need more houses. There are essentially 2 ways people come to Phoenix - they move here or they are born here. And folks, the number of people born here is on the decline. My friends at Cromford Report, pointed out the shift in the population make-up we are seeing in this country. Nationwide, folks are living longer and having few babies, so the population is essentially aging, skewing towards an older demographic. This will result in a slowing population growth. We have seen this trend in the United States before, so it will be … [Read more...]

Historic Fraser Fields – Downtown Mesa, Arizona

Fraser Fields is one of Mesa's historic neighborhoods, with ranch style homes on large irrigated lots near Downtown Mesa. Homes in the Fraser Fields Local Historic District  were built in the late 40's and 50's and appealed to the affluent middle class, looking for a change from "the city" in what was known at the time as Mesa's most exclusive community. Yes, that's what it was like in the 50's.   There is no single builder in the neighborhood - homes were built to order for the original residents, which included doctors, lawyers and businessmen with names that are easily recognized in Mesa. Fraser Fields was originally a plot of land … [Read more...]

About that Zestimate, Spencer….

http://www.youtube.com/watch?v=d9EoBa_ez3Q Spencer Rascoff, the CEO of Zillow, sold his house in Seattle in February for a cool $1,050,000. You might be wondering why I am telling you about this. Who cares if Spencer sold his house..whatever. Well, what makes this story interesting is that Rascoff's website, Zillow, zestimated that the house is actually worth $1,608,670, off by a measly 53% of the actual market value. Ooops! And while it's super fun for real estate agents to bash the "evil" Zillow monster, the realty is that computer-generated valuations are far from the best way to determine what your house is worth. … [Read more...]

First Quarter 2016 – Review of the Phoenix Real Estate Market

It's about that time when I like to tantalize all of you with some market statistics! How is the Phoenix real estate market so far in 2016? Well let's take a look... Supply is gradually increasing as it usually does this time of year, but demand has been a little sluggish in the price ranges below about $250-300K in most areas, and a lot sluggish in the upper price ranges. Sellers still call the shots below $250K in most geographic areas, but buyers and in hog heaven in those upper ranges. Hope you bought your lottery tickets because this is the year to buy that mansion. Interest rates have decreased slightly since the Fed lowered the … [Read more...]

Yikes! Where are All the Affordable Houses?

Home prices are going up in Phoenix. Great news if you are a seller...not so great if you are a buyer. Particularly a buyer who does not currently own a home. The bar for entry level homes is going up - homes are becoming less affordable. You are jumping onto a moving merry-go-round, my friend. Check out this visual from my good friends are the Cromford Report: Yup...the inventory below $150K is quickly becoming non-existent, and the inventory of affordable homes between $150K-200K is starting to fade away as well. Anything below $250K is going to be gobbled up quickly by strong buyer demand - and guess what? We are on the brink of … [Read more...]