The Penrose Team Blog

Oct. 6, 2017

It's Time for Another Market Update

Today we’re talking about the changes we’ve seen in the real estate market, as well as giving an overview of where things were at as of this September.

In September of this year, 9,454 new listings came onto the market, compared to 9,938 in 2016. This is a 4.9% decrease. 

The number of active listings year over year has also decreased, going from 21,791 in 2016 to 20,806 in September of this year.

However, sales have been basically flat. The difference between last year and this year was just a .002% increase from 7,436 to 7,456. 

Like new listings and active listings, inventory has also decreased. In September of this year, there were 2.79 months of inventory, whereas last year there was 2.93 months. 

All of this indicates a shortage of homes for sale in our current market, especially in lower price ranges. Nevertheless, demand is still strong.

These conditions combined with the fact that rates are still low means that now is a great time for sellers. It’s a great time to cash out as a seller while the market is still in your favor.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

 

        

Oct. 2, 2017

Should You Invest in Stocks or Real Estate?

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The stock market has been hitting all-time highs lately, which has many people wondering, “Should I put my money into the stock market or into real estate?”

I am not a financial advisor, so I can’t give you any financial advice. What I can do is talk with you about real estate investing and how it’s been done in the past. 


There are a few things to consider when deciding whether to invest in real estate or stocks. 

For example, when you buy stock, you own a piece of a company. Theoretically speaking, can that company go to zero? Sure it can. It can go on the penny stocks, become delisted, or go down in value. 

Real estate can go down in value. However, can you buy a piece of property, rent the property, let the tenant pay off the mortgage, and own a free and clear property to provide income for you during retirement? Of course you can. 

When you invest in real estate, you can make money on the appreciation. Of course, the real estate market can be volatile as well. 

When deciding whether to invest in real estate or not, it all depends on your long-term motives. 

Do you want to own a property that pays you an income stream every month for retirement? Are you looking for a fairly stable income stream? Are you looking for an income stream that you can increase year over year to match inflation? 


If you are still worried, consider it this way. Are rents higher now than they were in the 1970s, 1980s, 2000s, or even 2010? Of course. 

Rental rates have gone up year over year in most cases. They can tick down sometimes if the real estate market gets really hot, but they have never dipped as low as they were 30 or 40 years ago. 

Owning a rental property that has been completely paid off can provide great financial security for you during retirement. 

Again, I am not a financial advisor. I am simply sharing what has worked for myself and my clients who invest in real estate. 

If you have any questions or are interested in investment properties, just give me a call or send me an email. I would be happy to help you!

Sept. 13, 2017

This August's Real Estate Market Set Records

Today I’d like to take a look at our real estate market for August of 2017. 

During the month of August, we had 9,780 homes come on the market, compared to the 9,333 that came on the market this time last year. 

The difference between these numbers means an increase of 4.2% from 2016 until now in terms of new homes on the market.

Active listings, though, have gone down. This statistic saw a decrease of 8.8%, going from 21,787 active listings in 2016 to 19,877 in August of this year.

In terms of sold homes, we had 8,251 this year. This constitutes a 4% increase from the number of sold homes in August of 2016, which was 7,932.

The months' supply of inventory right now is sitting at about 2.41 months—a decrease of 13.4% from last year’s 2.75 months.

A reduction of homes coming on the market combined with an increased number of homes being sold has lead to this decreased supply. This means that we are still in a seller’s market.


Right now is a great time for buyers and sellers alike to make their move.

 

Demand is also still very strong, since interest rates are lower than they’ve been all year. Right now, the 30-year fixed interest rate is about 3.78% on average. The average for a 15-year fixed is just 3.08%. All of these factors have combined to create a very interesting market. We’ve got record-low interest rates, the lowest inventory we’ve seen in about 10 years, and a lot of demand.

Ultimately, now is a great time to move forward with a real estate transaction whether you’re looking to buy or sell.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

 

 

Aug. 30, 2017

Should You Wait Until Prices Go Down to Buy Your First Home?

If you’re a first-time homebuyer, does it make more sense to rent now and wait for real estate prices to come down and buy a home at a lower price in the future?

There are a couple factors you need to consider. First, how long are you planning on renting the home? Second, how much would you pay monthly for rent? 

If you’re paying $1,500 a month, that equates to $18,000 a year. If you’re going to wait—say—three years for prices to go down and you’re paying $18,000 a year in the meantime, you’d end up paying $54,000. That’s a lot of money! You’re banking on the hope that the home you intend to buy will decrease $54,000 in the next three years just to break even. 

In most cases, it doesn’t make sense to wait and rent until prices go down because of all the money you’d throw away on rent. There’s no equity and there aren’t any tax write-offs when it comes to renting properties. 

 


The sooner you buy, the sooner you’ll be able to pay off your home.


 

If you buy now, you start making payments on your home now. When you retire in 20 or 30 years, would it make more sense to have a home that’s paid for or would you rather still be renting? Whatever your age is now, add 30 years to it—is your home going to be paid off by then? 

Only if you buy a home now. Think about it. 

If you have any questions or are thinking about buying your first home, don’t hesitate to give me a call. I look forward to hearing from you.

 

Aug. 22, 2017

How Has the Phoenix Market Changed in a Year?

It’s time for us to share the latest numbers for the Phoenix real estate market. We took the numbers through July of 2017 and compared them to what we saw in July of 2016 to see how the market has changed. Here’s what we found:

  • New listings are down slightly by 1.5%, going from 9,043 last year to 8,912 this year.
  • Active inventory is down by 10.8%, from 22,510 in July 2016 to 20,301 in July 2017.
  • Sold homes went up by 4.2%, from 7,761 to 8,016.
  • Inventory dropped from 2.9 months in July 2016 to just 2.59 months now. That’s a 13% decrease.

We’re still seeing a tightening of inventory and an uptick in home sales, showing that we are in a very strong seller's market with limited availability and strong buyer demand. A lot of that has to do with interest rates. Right now, the 30-year fixed average is around 3.75%. Buyers are buying now to lock in these low rates before they go up.

If you have any specific questions for us about the market or real estate in general, give me a call or send me an email. If you found this video helpful, go ahead and pass it onto someone you know. I look forward to hearing from you soon.

 

Aug. 10, 2017

How to Ease the Stress of an Inherited Property

Inherited homes often come with a lot of baggage.

Outside of the property itself, you are often coming into possession of valuables and other things that were left behind within the home. 

These extra belongings can make the task of inheriting a home seem daunting. So when you hire an agent to help you sell the home it is important that you hire one who specializes in probate.

I personally partner with many different people, including a probate attorney who is capable of handling some if not all of the paperwork associated with this process. Also on my team I have people able to come in and do an estate sale.

They will be able to come in and help sell off the inventory on the property for you outside of the things you set aside to keep, and the things that are leftover can then be donated or removed.

Our team consists of a number of individuals all qualified to get the home ready to sell.

However, if you are in a situation where you are ready to be done with the property immediately without going through any of the steps above, we do have cash investors who can come to the table and buy the property within 24 hours.

 


No matter what avenue you take, having a probate expert to help you out will be essential.


 

Whatever option you choose should be the one that will remove the most stress from your life.

But no matter what avenue you take, having a probate expert to help you out will be essential.

Also, you can click here to visit our website to get more information on the process.

If you or anyone you know could use our help or if you have any other questions, feel free to get in touch by giving us a call or sending an email. We look forward to hearing from you soon.

Posted in News
July 25, 2017

Examining the Market Numbers From This Past June

The latest Phoenix area market statistics are in for the month of June 2017. Here’s how they stack up against where we were in June 2016:

  • The number of homes that came on the market increased 2% from 9,934 to 10,143.
  • The number of active listings decreased 6.9% from 23,071 to 21,484.
  • The number of sold listings rose 7.1% from 8,959 to 9,596. 
  • Our months of inventory decreased 13% from 2.58 months to 2.24 months. 

As you can see, our market is experiencing a decline in the number of homes for sale, an increase in the number of homes sold, and a decrease in our month’s supply of inventory. These numbers indicate a strong seller’s market. 

Along with the shortage of inventory and strong demand from buyers, interest rates are still below 4%. With prices going up, many buyers are entering the market with the intent of locking up a low interest rate before prices go any higher. 

If you’re thinking about buying your first home or making a switch from your current home, give me a call so we can formulate a strategy. I look forward to hearing from you soon. 

 

July 3, 2017

Why Should You Hire Me as Your Real Estate Agent?

I wanted to begin by laying out the three core principles that we live and work by on The Penrose Team.

1. Honesty. I won’t lie to you about the price of your home just to get your business.

2. Integrity. I will follow through on what I promise I’m going to do to get your home sold quickly and for top dollar. 

3. Communication. You’ll receive weekly communication from us about everything you need to know to get your home sold.

With more than 18 years of experience and having sold more than 1,300 homes in my career, I have a lot of experience that people seek out in order to get their homes sold. We’re consistently ranked as one of the top 25 Realtors in the Valley, and this out of a pool of more than 50,000 agents. There is no substitute for experience.

 


There is no substitute for experience.


 

If you want to schedule a time to meet or you’re looking for a listing agent in the Phoenix area, please give me a call. I look forward to working with you.

 

Posted in News
June 12, 2017

What Changed About Our Market This Past May?

What changed about our market this past May compared to May 2016? Let’s look at how the numbers stack up.

This year, we had 10,504 new homes come on the market, which is a 4.2% increase from the 10,074 homes that came on the market in May 2016. Inventory decreased 6% from 24,172 available homes in May 2016 to 22,704 available homes in May 2017. The number of homes sold increased 10.9% from 8,832 in May 2016 to 9,797 in May 2017. Our month’s supply of inventory went from 2.74 months in May 2016 to 2.32 months this past May, which is a 15.4% decrease. 

This 6% decrease in inventory and 10.9% increase in buyer demand means we’re in a strong seller’s market in most neighborhoods. However, this can also vary depending on your price point. Interest rates are the lowest they’ve been in 2017. The last email I saw from Freddie Mac said that the average 30-year fixed rate was 3.875%.

If you have any questions about our market or you or anyone you know is interested in buying or selling a home, don’t hesitate to give me a call. I look forward to hearing from you soon.

May 24, 2017

Real Estate Teams vs. Single Agents

There are a few reasons why you should hire a real estate team instead of an individual agent. 

The main challenge is that single agents work with both buyers and sellers, so they get pulled in two different directions. If you hire a single agent to list your home, they are not 100% dedicated to selling your home. They are driving all over town doing showings for buyers and trying to make a paycheck, which is understandable but not very good for your home sale. 

When you hire a real estate team, there will be multiple agents who can show your home so that your property is shown on the prospective buyer’s schedule, which ultimately gets you more showings and better offers.

If you hire an individual agent to help you buy a home, they will also be working with sellers. How can they service the sellers and still take you out to look at homes when you are available? If the home you want hits the market and your agent isn’t available to take you to a showing, then you risk losing that home to another buyer. When you work with a real estate team, it is much easier to look for the homes you want on your schedule.

 


A real estate team is able to create smoother transactions.


 

Finally, single agents have a hard time dealing with escrow. Escrow is when you are under contract on a home. Most individual agents work on their own escrow, which means they spend all day working with buyers and sellers before turning to escrow when they have extra time. 

If an agent waits until the end of the day to work on escrow, they might miss timelines, overlook certain details, and create unnecessary drama in the transaction. Our real estate team has a dedicated escrow manager who handles all of the details and helps the other agent to make the entire transaction go smoothly. That’s why our team is able to offer better customer service and less stressful transactions. 

If you have any other questions about working with a real estate team, just give us a call or send us an email. We would be happy to help you!

 

Posted in News