July Real Estate Market update

2016-07 Infographic and Commentary_Page_1 (Click image above or HERE for downloadable PDF)

 

Monthly Sales Up 7.7%
Listings Under Contract Up 5.6%

For Buyers:
Unless you’re looking for a property in the lowest price ranges, there’s a decent amount of supply to choose from in the Phoenix Metropolitan Area. As prices rise, most buyers will ad-just what they buy in terms of size or location in accordance with their budget. Over time, we’ve seen the average size home purchased continue to rise, even when prices were at their highest. For example, in 2002 the average sized home purchased was 1,607sf. It rose to 1,632sf in 2006, then 1,715 in 2011 and 1,762sf so far in 2016. Of properties sold under $200K in 2006, the average size is currently 1,388sf. Between $200K-$300K, the average size is 1,829sf. $300K-$500K is 2,385sf. $500K-$1M is 3,189sf. $1M-$2M is 4,421sf and over $2M is 6,338sf.

For Sellers:
The median sales price has risen a whopping $20,000 since January’s measure of $210,000, a 9.5% increase. This type of disparity can spur articles and discussion about real estate “bubbles” and rapid price appreciation. This looks very exciting for sellers until it’s compared to the price per square foot measure, which has only increased 1.5% from $138.73 to $140.84 during the same time frame. The difference in growth rates between the median sales price and the average sales price per square foot can be attributed to a shift in the composition of sales by price range. Due to the lack of supply of properties below $150,000, the Phoenix Metropolitan Area has seen a significant drop in percentage of sales in this price range. Simultaneously, there has been an increase in market share within the $200,000 - $300,000 price range where there is also more supply. The increase in supply over $200,000 keeps individual property appreciation per square foot more sustainable. However, because the under $150,000 market continues to lose market share as the over $200,000 market gains, the median sales price measure is pushed up higher than the rate of the average price per square foot. For the median measure to increase, sales over $230,000 would need to achieve 51% market share or more.

Commentary written by Tina Tamboer-Glatfelter, Senior Real Estate Analyst with The Cromford Report
©2016 Cromford Associates LLC and Tamboer Consulting LLC

June’s Real Estate Market Update

 

Cromford Infographic report_Page_1

Click image above or HERE for PDF version of the full article

Total Monthly Sales Up 3.4%
Monthly Median Sales Price Up 6.5% to $226,900

For Buyers
Welcome to June! The weather is heating up and Realtors are using oven mitts on lava-hot lockboxes and keys to show property. If you’re planning to continue your search into the summer, you may find some relief in the competition for that perfect property. While other potential buyers are distracted by graduations, vacations and weekend getaways, that leaves a slightly longer window of opportunity for snagging up those new properties that hit the market. Don’t expect current price trends to change anytime soon. There is still more demand than supply in many areas under $500,000 so expect sales prices to continue rising through the summer, especially for properties under $200,000.

For Sellers
This month we’ve introduced the Listing Success Rate into our graphic. This measure counts all of the listings that closed, canceled or expired over the last month and takes a percentage of those that closed. The current measure is 76.7%, which is very positive considering it was 66% at the end of 2014. The price ranges with the highest success rates are $100,000-$200,000 with 85% of listings successfully closing and only 15% cancelling or expiring followed by the $200,000-$300,000 price range with an 81% success rate. The higher price ranges over $500,000 are seeing lower success rates with those over $1M seeing more properties cancel or expire in a month than close. This is actually typical as many sellers in these price ranges choose to cancel their listings once temperatures reach over 100 degrees and relist when things cool off in October, causing a higher than normal cancellation rate for June.

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That damned foam cowboy hat…

ASREB cover

Coming up next next Friday June 24, 2016, I’ve been honored by the Arizona School of Real Estate and Business by being asked to speak on a panel with other extremely top producing well known highly experienced agents on the topic “50 ways to Sell a Listing”.  I feel very humbled.  I can’t say it enough.  With that said, I have had to reminisce about all the struggles and hard work it’s taken me to get to this point in my career. 

I’ve been so very blessed to have had many fans and supporters, mentors, colleagues, clients and good friends cheer me on, but I have to admit- I didn’t get here without my share of failures

One in particular; still, when I allow the “gremlins” to sneak in, makes me want to run crying to the safety under my bedcovers to hide my head and squeeze my eyes shut in hopes of making the memory of the horror of it all to also squeeze right out of my head…

I now know without a doubt it was that event that played a big part of who I am today professionally and had I not fought to overcome my “gremlins”, I never would have accepted the General Sales Manager position offered to me a few years later.  It was the fear of failure, that I’d make a fool of myself again and be vulnerable to experience that same trauma again- I found just the thought of it unbearable.  Being a GSM meant I’d have to get in front of 300+ people in the monthly company wide meetings and actually sound like a competent person let alone speak in front of many of the same sales people who witnessed my most professionally humiliating moment, knowing some would be hoping for a repeat.  The little girl in my head kept screaming that it could happen again and then what… ?  I almost didn’t take that job and had I not, I would never had learned so much of what I rely on today to succeed in this ever so competitive field I love so much- Real Estate. 

clip_image001Remembering back, I believe it was spring 2003, a little over 13 years ago.  I was no rookie by definition with 10 years under my belt, but boy did I sure feel like one that fateful morning when I was about 7 months pregnant with my daughter Sarah. I remember the paisley dark blue and crème maternity dress from Motherhood Maternity I wore that day. I sat in a regular weekly sales meeting for the Builder I worked for at the time, then known as Trend homes (better known today after acquisitions and merger as CalAtlantic Homes), surrounded by the other 25+ competitive sales people I worked with.  I had a pit in my stomach that grew louder and louder every time my sales manager at the time, Joel Huston, shook his damned foam cowboy hat full of names… Inevitably my name was in that pile… knowing at any moment it could be my turn- I could feel my heart racing- eeeek!  “How did I mess up our assignment so badly?” I wondered and wondered while praying under my breath that it would NOT be me called next, but rather the person across from me…

We were having a dreaded Role playing exercise and our assignment was to explain the features and benefits and sharing our 2 minute elevator speech about our neighborhood we were assigned to sell homes in.  However, I completely missed the mark and misunderstood what my manager wanted from us, which I figured out very quickly when I heard the ever so smooth Dave McNichol go as he was called on first… I could hear my heartbeat so loudly in my ears as I sat uncomfortably rocking side to side in my chair… luckily the next person called on wasn’t me either… “Oh Thank God” I kept thinking but the fear was relentless because I just knew- just knew I wasn’t going to get off scott-free… lost in my thoughts of what was I going to do if I was called on- and then, all of a sudden, it happened… just what I was so terrified of, “Rebecca, you’re next….” I’m sure I was sweating bullets, stuttering like a fool, it was so bad when I stood up to give my presentation that not only was I extremely uncomfortable- everyone else in the room had to of been too… Someone I didn’t know hardly at all at the time (ended up being a dear friend) came up to me afterwards and said he just kept thinking that I needed to say my stomach hurt and sat down to escape the self inflicted humiliation I put myself through.  Ok, maybe he wasn’t that blunt but boy, did I get the point!  Oh the horror!  With every stutter I could feel my face get hotter and I wanted nothing more than to crawl under the conference table, get out of sight and in the fetal position to suck on my thumb until I soothed myself to sleep…..praying I’d wake from the nightmare.  I think what made me even more flustered was that I knew that there were many in that room at the time that loved every minute of my embarrassment and when I saw the glances clip_image001being exchanged between them, I only did worse.  Shaken, I finally sat down after which, you could hear a pin drop.  I can’t even remember the details as I think my flight or fight kicked in by then along with all the estrogen from being 7 months pregnant, so the details may have been partially blocked out to protect the innocent- but I’m pretty sure, that damned foam cowboy hat was retired that day after my epic failure that scarred me for quite sometime.

Seems that with success, many times comes critics, naysayers, people wishing for failure… at least that’s what the “gremlins” whisper in my head when I am thinking about this fateful public appearance.  Actually I’ve been learning that it’s when we are our authentic selves and allow ourselves to be vulnerable, is when we grow and learn the most.  It’s those moments that define us.  We can choose to let them keep us frozen, bitter, in the blame mode OR we can choose to overcome our fears and face them!  The first thing I did when I accepted that management position was start teaching contract law for New Homes @ASREB to force myself out of my comfort zone and start practicing more public speaking in order to improve.  Today, I have appeared in many Real Estate themed videos and even was interviewed by Channel 3 live on the morning news just 6 months ago.  I’ve come a long way since that 30 year old 7 month pregnant lady stuttered like a fool in front of her peers but I am so thankful for the experience and extremely grateful I still get to speak about my passion to anyone who will listen to me today.

Your A/C unit, this weekend’s HEAT WAVE, BIG warning- please read if you live in AZ and own a home!!!

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I direct this blog to all homeowners (landlords/owner occupants alike) with a HUGE warning as we will be having RECORD temps this weekend and currently 1 of our beloved clients that just closed escrow on their home is being completely screwed over right now by Choice Home Warranty and I really think it’s an important trending topic to MAKE ALL OF YOU AWARE so this doesn’t happen to you too!

Lessons learned dealing with recent AC issues for both our client and ourselves:#1 NOT ALL Home Warranty Companies are alike, #2 just like your car, your AC needs regular maintenance not just to extend the life of the unit- but to ensure you have coverage on your AC in the event it fails under these harsh AZ temps and you need to call in a claim on your home warranty. #3 You get what you pay for #4 Don’t let your dog pee on your AC unit(s).

The story of Diane and Chad in Goodyear AZ… These wonderful clients of ours bought a home from a lady who was having some personal issues and when it came to the condition/maintenance/etc… there’s definitely a lot of work my clients knew they were in for after closing. HOWEVER, because they did a Home Inspection prior to closing (with a reputable inspector) and found issues with the AC that were fixed by the Seller/warranty company during the escrow period (& the same warranty policy transferred over to them which doesn’t expire until August), they didn’t think they’d be staring at a $3k bill today and most likely will have to sue Choice Home Warranty in small claims court if they do not step up to fix their AC like they should.

About a month ago, my husband & I experienced a disappointing situation ourselves with our own AC for our 3 year old Shea home.  It prompted us to purchase a Platinum Warranty with Old Republic immediately on our own home with the Star coverage that allows us to have our units serviced for a reduced price annually.  Basically our ACs were covered completely first 2 years we owned our new home by the manufacturer via our Builder’s warranty dept, but after year 2, only parts.  Our coil went bad on one of the units- turns out our lab was peeing on it 🙁 and it cost us $2k for labor/Freon.  What we found out in dealing with this is it’s a new trend by builders, manufacturers and warranty companies to deny any coverage IF you can’t prove you serviced your AC unit during the previous 12 months?!?! Most of us don’t think about our AC unit until it’s not working properly, so yet another lesson learned- give yourself an annual reminder in early Spring to get those AC’s serviced and ready to go for the long hot upcoming Summer. AGAIN NOT just to ensure coverage, but increase efficiency and the lifetime of the unit itself.

In case you’re curious… the following is a list of what “they” consider “servicing” but notice- everyone seems to be finding a way to exclude coverage for anything expensive like coils or compressors, so take care of those expensive units! 

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Document1The scoundrels currently denying coverage for our clients are Choice Home Warranty, check out these horrible reviews- click on the image---> for link!!! Don’t USE THEM!!! And if you’re a Realtor- DON’T let your clients use them either!!!!!

May Real Estate Market Update

2016-05 Infographic and Commentary_Page_1

(Click on photo above or here to download PDF document)

Listings Under Contract Up 6.5%
Monthly Median Sales Price Up 9.9%

For Buyers
May is often the last month of “buyer season” before the summer slowdown. In anticipation
of hotter temperatures, graduations and upcoming summer vacations, many home buyers
would prefer to get their contracts into escrow and closed before the end of June. As a result,
there are many areas of the valley where there are currently more properties in escrow than
active for sale. Not surprisingly, those areas are concentrated where the average sale price is
under $250,000 in parts of the Southeast Valley (such as North Tempe, West Mesa, North
Chandler and North Gilbert), South Phoenix, and most of the West Valley. This is temporary,
buyers can expect relief from competing offers in the summer months if they choose to brave
the higher temperatures.

For Sellers
Overall sales have been following 2015 pretty closely thus far. April was down less than 1%
from April last year, but year-to-date sales are up 2.5% as of week 19. The main difference is
in the activity by price range. Sales under $175,000 have been declining year-over-year for
the past 9 months with April 2016 down 18.4% from April 2015. This is not due to low demand,
but low supply of homes available for sale. April sales between $175,000 and
$600,000 are up 15% year-over-year and down 9.3% over $600,000. The big difference between
these price points is the level of supply. It’s chronically low in the bottom price ranges
and too high at the top, causing vastly different experiences for sellers. Properties selling under
$175,000 are experiencing annual appreciation around 10% since the beginning of
2016. Middle range properties are seeing around 3-5% annual appreciation, and the high end
properties over $500,000 are experiencing flat appreciation rates at best with some price
ranges at the very top seeing negative annual appreciation.

Commentary written by Tina Tamboer-Glatfelter, Senior Real Estate Analyst with The Cromford Report
©2016 Cromford Associates LLC and Tamboer Consulting LLC

Integrity-Technology-Security-5-Professionalvas2

Winner Winner Chicken Dinner!

Recently we reached out to our database asking for help to rename a video we posted both on Facebook and via email.  Boy, did they rise to the occasion!?! THANK YOU to everyone who participated!

We had a ton of replies to go through and narrowed it down to the top few, of which we ended up combining into one name.  We also plan to use the new tag line/title for other future marketing purposes as well, besides the renaming of the video above… so it was really important we didn’t make a rash decision.

JUST KNOW- We really did struggle because there were so many GREAT ideas given! (Just FYI- James does do a lot more than sleep most work days btw HAHA!)

One worth mentioning that caught our eyes (even though we didn’t end up going with it) was “Far Beyond Driven”.  Simply put, it rang true!  (Not to mention there’s a few scenes in the video of Rebecca actually driving, so nice play on words to the person who submitted that one!)

Drumroll please….

The winners were a combination of “#IWorkForYou”, “Sunrise to Sold”, and “Integrity, From Dawn to Dusk” creating the NEW TITLE of our last video: #IntegritySunrisetoSold

How we came up with the winner:

#1 “#IWorkForYou” The use of hashtags # is a great way to tag different posts online and keep a trending history of various related posts and to also help to catch the attention of all those Millennial Clients that will only search online for their next home or Agent.

#2 “Sunrise to Sold” Truth be told, Rebecca is much more of a morning girl than a night owl and it’s true that we never give up until our job for our client is done, period.  Even after we’ve successfully helped a client close on either/or/both the sale/purchase of a home- we stay in touch and remain in service perpetually. We hope this part helps to convey that commitment to our clientele that we want to be a part of their lives indefinitely.

#3 “Integrity, From Dawn to Dusk” While similar to #2, it has a with a very important component- the word INTEGRITY. When Rebecca first opened Integrity All Star Realty back in late 2007, it was important then and remains an important part of our business today.  We pride ourselves in following through and always keeping the clients interest as a priority. We do “Walk the Talk” and if ever fall short (as we are human), we will make sure to make it right- whatever the issue may be!

We know the value of treating people right and keeping our clients “for life”.  We pride ourselves on the number of repeat clients we have and the tremendous reviews and referrals they are willing to post and share on our behalf. WE TRULY are GRATEFUL for each and every one of them.  THANK YOU ALL SO MUCH that we are speaking about!!!

If you are a past client and haven’t had a chance to toot our horn yet, but would still like to, please visit: http://integrityallstars.com/about/review/

We will be reaching out to our winners and notable mention this week to award their prizes! Congrats!!