The Penrose Team Blog

Feb. 13, 2020

How Did Our Market Begin in 2020?

 

The start of the 2020 real estate market has been unlike what any of us expected. Here are the eye-popping numbers you need to know from January:

 

  • We had 9,714 homes come on the market, a 12% decrease from what we saw in January 2019.
  • We had 14,575 homes available for sale, a 28% decrease from last year.
  • Home sales are up 18% from 5,471 to 6,455.
  • Months of inventory is down 39% from 3.68 to 2.26.

 

What is going on? It’s unbelievable, but interest rates have dropped even further. The average 30-year fixed rate right now is 3.5%, and 15-year rates are close to 3%. A lot of buyers want to purchase and take advantage of this, but there's not enough inventory. As a result, prices are increasing and multiple offers remain common. 

 

This can make things a bit challenging for buyers because things are so competitive. However, if you know someone who is buying or selling, we can help. If you want to know more or know anyone wanting to buy or sell real estate, give me a call on my cell phone at (602) 738-9943.

 

 

Jan. 21, 2020

Renovating vs. Selling As Is: Which Is Better?

 

If you’re struggling to decide between renovating your home before listing it on the market and saving yourself the effort by selling it as is, consider the cost of the renovation projects you’d want to do and compare them to the return you’re likely to get when you sell.

 

A 2018 report from Remodeling Magazine shows us that the average cost of the top 20 renovations sellers make have a recapture rate of less than 80%, meaning you’ll only get 80 cents back for every dollar you spend. So in most cases, a renovation doesn’t make sense for your bottom line.

 

"This year, the most expensive projects didn't have much of a gain," Craig Webb, editor of Remodeling and manager of the report, said back in 2018. "I think it's because real estate professionals think we're getting close to a peak in market prices. So consequently, spending a lot of money does not automatically mean your house will just ride the escalator up and be worth a lot more."

 

Now, there are some exceptions to that trend: If you like to trade or buy your materials from a warehouse at a discount and you plan to do the labor yourself, you can certainly make a profit when you sell. Similarly, if you’re an investor who buys homes at steep discounts and has crews to do the remodel for cheap rates, you can also make your money back. However, the average homeowner who hires contractors to take care of the renovations and repairs typically doesn’t make a lot of money back.

 

That said, there are four things you can do to your home that will get you your money back in multiples: installing new flooring, adding new paint, deep cleaning, and decluttering.


You’ll only get 80 cents back for every dollar you spend on a majority of the home improvements people tend to do.


 

One common objection I hear, using carpet replacement as an example, is, “What if I replace the carpet before I sell the home, but the buyer ends up just tearing it out after they buy it?”

 

Yes, but they bought the home and that’s the key! Why take a $20,000 discount on a home for $7,000 worth of carpet?

 

For some people, though, renovating isn’t an option at all, and they have to sell it as is. In that situation, you just need to price the home accordingly so it will sell. You could also consider offering a discount to potential buyers to offset your lack of renovations—you can read more on that here.

 

If you have any questions about selling your home or the pros and cons of certain renovations you’re considering, please call me on my cell phone 602-738-9943 I’d love to hear from you.

Posted in News
Jan. 7, 2020

What's Unusual About Our Current Market?

 

Today I’m sharing the December 2019 real estate market recap, which is very different than December 2018. That’s a great sign for 2020. 

 

In December, we had an 8.6% decrease in new homes coming onto the market compared to December 2018. We also had a decrease of 21% in active listings. Additionally, we had a 35% decrease in the months’ worth of inventory available; we’re currently sitting at 2.02 months’ supply. However, we had a 20.2% increase in the number of homes sold year-over-year. At 0:26 in the video above, you can view a chart that lays out each number of these four statistics from September 2018 through December 2019. 

 

What’s unusual is that inventory was dropping but buyer demand was increasing. Why? Rates were dropped by the Fed again, so more buyers were coming into the marketplace. Many buyers who were waiting until 2020 to purchase a home decided to buy in the fourth quarter of 2019 instead. They wanted to lock in an excellent interest rate while it was below 4%. 

 

Now, in January, I have more and more people reaching out to me wanting to move, more than in recent years. With rates as low as they are, and with it being an election year, I believe many people will move in 2020. This is a wonderful time to make a move; rates are low and prices are stable—in many markets, they are still going up. Take advantage of these exceptional numbers while you can!

 

If you have any questions about buying or selling real estate, please call, text, or email me. I would love to help you. 

 

Dec. 30, 2019

The Latest Phoenix Real Estate Numbers

 

Today I’ve got a market recap for you for November 2019. It’s very different than what we saw at this time last year, and here are the numbers that prove it:

 

  • New listings are down from 8,630 last November to 7,738 this year—that’s an 11% decrease
  • Active inventory is down 16.5% from 20,263 to 16,927 
  • Sold homes are up 7.3% from 6,639 to 7,130
  • The months’ of inventory are down 23% from 3.05 to 2.37

 

What do we have? Well we have fewer homes coming on the market, fewer homes available for sale, and less inventory. 

 

Obviously, this is a much hotter market than we saw at this time last year. Buyers are still buying properties quickly because interest rates have dropped again. In fact, a lot of buyers are moving up their 2020 purchase plans to 2019 to lock in those low rates. Right now, we have around 9,850 homes under contract in the Valley.

 

Right now, we’re in a great market if you’re thinking about making a move. You can sell high and lock in that low rate. If you have any questions for me or need help buying or selling, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

 

Dec. 19, 2019

The Penrose Christmas Party was a Success!

 

I wanted to take a moment and thank everyone who came out to the 2019 Penrose Christmas party. The food and drink were wonderful and Chazz the magician was fantastic! I cannot tell you how many people came up and thanked me for bringing him out because they couldn’t believe the magic he was performing. I look forward to inviting Chazz back in 2020. 

 

Whether you were there or not, I think you’ll enjoy the party footage in the video above, and you’ll also see some testimonials from satisfied clients who joined us (also view a few magic tricks)! The party footage begins at 0:55, and you’ll also see some testimonials from satisfied clients who joined us (also view a few magic tricks)! I look forward to seeing you all in 2020. If you know anyone who needs to buy or sell real estate, please let us know. We love and appreciate your referrals. 

 

We hope you have a Happy Hanukkah, a Merry Christmas, and a joyous New Year!

Posted in News
Nov. 8, 2019

Should You Sell in Q4 or Q1?

 

Soon there will be 30,000 homes coming onto the market in the first quarter of 2020. Don’t believe it? It’s true! There’s a misconception floating around that the first quarter is the best to buy or sell a home. 

Here’s what historically happens in the first quarter of any year: Over 30,000 homes come on the market for sale, in addition to what’s already on the market. Whether that’s positive or negative is determined by demand. Are there enough buyers to absorb that inventory or will inventory start to build up? Are rates low enough where buyers can afford to buy those homes? Are sellers asking sensible prices for those homes? There are many variables. 

Currently, we have a shortage of new homes on the market for sale. All those new homes entering the market in the first quarter isn’t necessarily a bad thing—it will give buyers more options to choose from. Also, more buyers come out in the spring to look at homes. 

So, when is the best time to buy or sell a home? One of the benefits of Arizona is that there’s never a “best” time to buy or sell; it’s always a wonderful time. We don’t have adverse weather that pushes buyers out of the marketplace. In certain parts of the country, if it rains too much or there are heaps of snow, the market can completely pause. If you’re not originally from Arizona, you may not know that the market actually picks up during the cooler months because people are coming here from places that have worse weather wanting to buy homes. 

We persistently have people wanting to relocate here. We have one of the fastest-growing counties in the nation! We have a net population increase every year. So, there’s no negative time to buy or sell a home—it’s what’s most suitable for you. 


Currently, we have a shortage of new homes on the market for sale.



Here’s my advice: List your home when you don’t have much competition. Right now is a wonderful time to list because we don’t have as many homes on the market that need a buyer. Most people are waiting until after the new year to list their home.
Put your home on the market now and you can take your home temporarily off the market during Thanksgiving and Christmas. You can show your home during the fourth quarter when buyers need to purchase a home. With fewer options to choose from, you can get a better price and you can always close after the holidays. 

Also, rates are currently below 4%!

If you would like to discuss this in detail, feel free to call, text, or email me. I look forward to hearing from you soon. 

 

 

       

Oct. 21, 2019

The 4th Quarter Is a Great Time to Sell—Here’s Why



A lot of people believe the fourth quarter isn’t a good time to sell a home because of the holidays, but that’s not true. 

Why? Think of it this way: Any buyer who needs to purchase a home during the fourth quarter absolutely needs to buy. Who wants to move around Thanksgiving or Christmas? Only someone who needs to buy.

Also, keep in mind that Arizona is a popular relocation state, either due to retirement or job transfers, and a lot of job transfers take place during the fourth quarter. Arizona also has a positive net population—more and more people are moving here because of the cost of living and a host of other benefits. 

 

One particular advantage sellers have during the fourth quarter is a lack of existing homes for sale. Buyers have fewer options to choose from, which makes it more likely you’ll be able to sell for top dollar. 

On top of that, interest rates are still under 4%, and a ton of people are visiting Arizona over the holiday season admiring our beautiful weather. 

If you don’t want to move over Thanksgiving or Christmas, don’t worry—you don’t have to close escrow those weeks. If you don’t want to show your home during these times, you don’t have to do that, either. Just take the home temporarily off the market for those weeks.

Finally, a lot of other sellers are taking their homes off the market right now, so you’ll face less competition.

If you’d like to get started on your home selling journey or you have any questions about our market, don’t hesitate to reach out to me. I’d love to help you, call me at 602-738-9943.

Oct. 15, 2019

How Does Our Market Look as We Close Out Q3?

 

For your latest Greater Phoenix market update, let’s look at the key year-over-year numbers from September:

  • New listings decreased 1% from 9,151 to 9,223
  • Active listings decreased 11% from 18,276 to 16,328
  • Sold listings increased 13.4% from 7,071 to 8,021
  • The month’s supply of inventory decreased 21% from 2.58 to 2.04 months 

 

As you might’ve heard, the Federal Reserve recently reduced interest rates—a 30-year fixed rate is now around 3.75% and a 15-year rate is around 3.13%. This is super low, which is why we’re seeing a bump in sales. Buyers want to lock in low rates right now. As you can see from the stats above, inventory is also low. If we were in a balanced market, we’d have roughly 30,000 to 35,000 homes on the market. 

 

Since a lot of buyers want to lock in a low rate and sellers are having a hard time finding the next home they plan on purchasing, the market has stalled somewhat in the last six weeks. It remains to be seen what will happen next, because so much depends on the stock market, the strength of our economy, and whether rates stay low. 

 

I hate to say it, but we’re addicted to low rates. If rates increase, the cost of mortgage payments rise along with them, and buyers start adjusting their prices downward. This means we’ll have to keep an eye on interest rates, the stock market, and the strength of our economy moving forward. Simply put, people buy homes when they have jobs. 

 

At the moment, though, now is a great time to sell, so if you’d like to put your home on the market or you have any other real estate needs I can take care of, don’t hesitate to reach out to me. I’d love to help you, please call me at 602-738-9943.

 

Sept. 24, 2019

What Can Sellers Do to Have a Top-Dollar Sale?

 

There are certain habits that successful home sellers have in common when it comes to selling for the most money in the least amount of time. Having sold real estate for close to two decades and after helping over 1,700 families, I’ve learned a few things about what gets a home sold quickly and for top dollar.

Condition obviously plays a factor. You want great curb appeal because some buyers may just drive on by your house if they don't like what they see from the outside.

When the buyer comes into your home, it should be in great condition, decluttered, and sparkling clean. The home should smell really good and all the lights should be on as well. 

It’s best if the seller isn’t home during showings. Sellers who provide access to the property on two hours’ notice allows flexibility to buyers. The more flexible sellers are, the easier it is for the home to sell and the quicker it gets sold.

You don’t want to have any deferred maintenance items in your home. If buyers see it, they will wonder what else is wrong, even if something is insignificant. This could lead to lower offers or no offers at all.


You don’t want to have any deferred maintenance items in your home.



Pricing is of the utmost importance to help you get maximum exposure to the market and attract the most buyers possible.

Finally, it’s vital to use a great Realtor that knows how to price the home, market the home, drive buyers to the home, and sell it quickly.

If you have any questions for me about selling a home or real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Posted in News
Sept. 10, 2019

Why Is Now a Good Time to Buy or Sell?



As of August 2019, there have been some major changes in our real estate market. Last month, we had 9,666 homes come on the market for sale versus 10,001 the year before. That’s a 4.5% decrease.

There were 16,555 active homes on the market this August versus 17,763 last year. That’s a 6.9% decrease.

Home sales are up by 6.9% from 8,255 to 8,832. At the same time, our months’ supply of inventory dropped from 2.15 to 1.87.

What does all of this mean? While fewer homes are entering and staying on the market, more homes are selling. It’s a tight market in most price ranges and as rates keep dropping, buyers will continue to look for homes.


Interest rates keep dropping.



On the flip side, sellers want to sell but they’re worried about their purchase. That’s why you need to have a team to help you coordinate those two timelines together—you want to be able to lock in a rate and sell high while demand is up. 

I’ve been doing this for over 20 years and have helped over 1,700 families in the Valley. I can help you too. If you have any questions for me about the real estate market or about buying or selling a home, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Posted in News