The Penrose Team Blog

April 10, 2018

A Year-Over-Year Recap of Our March 2018 Market

Here’s how the latest year-over-year statistics from our Phoenix market compare between March 2017 and March 2018:

-The number of new listings dropped from 12,200 to 11,402.

-The number of active listings dropped from 22,100 to 20,356.

-The number of sold listings rose from 9,357 to 9,612.

-The month’s supply of inventory dropped from 2.36 months to 2.12 months.

As you can see, sales are up, inventory is down, and there aren’t as many new listings coming onto the market. What’s interesting is interest rates have escalated since last year, but at the same time, home values and sales are both rising as well. This is because buyers want to lock in a rate now before they get even higher. If rates rise too high, these buyers will get priced out of the market and not be able to afford what they really want to purchase.


If you’re looking to trade up or buy your first home in our market, now is a great time to do so.

There’s a scramble among these buyers to buy now, so if you’re looking to trade up, now is a great time to do it. If you’re looking to buy your first home, now’s a great time to lock in a low rate before they increase even further.

If you have any questions about our Phoenix market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you.

 

 

March 22, 2018

Watch Out for These Red Flags When Hiring a Realtor

 

Whether you are hiring a Realtor to help you buy or sell a home, there are a few red flags and pitfalls to look out for.

 

The most common thing I see when people have tried to sell a home and it didn’t work is that they hired a friend or family member to sell their home. While hiring a friend or family member isn’t always a bad idea, you need to make sure that the person you are hiring is full-time and has a lot of experience.

 

It’s important to keep in mind that 87% of Realtors in Maricopa County are either new, part-time, or have been in the business for less than five years. When you hire a real estate agent, you need to make sure that they are selling at least 100 homes a year before you hire them to work for you.

 

You should also find out if your agent has training and certification in contract negotiation. I am a certified negotiation expert. Less than 1% of agents in the U.S. have that certification. In fact, real estate school doesn’t teach agents anything about negotiation. They teach you how to fill out a contract and a counteroffer but not how to negotiate and defend your seller’s equity. That’s extremely important.

 

In fact, our clients are getting an average of 2% more for their homes than the average Realtor in the MLS because all of our contractors are negotiated by certified negotiation experts.


87% of Realtors in Maricopa County are either new, part-time, or have been in the business for less than five years. 

Finally, make sure that the agent you hire charges at least 6% commission. Why? There are a number of agents who charge less than 6%, but those agents are doing what I call a “list and leave.” They put the home on the MLS, stick a sign in the front yard, and wait for a buyer to show up.

 

The problem is that it takes a lot longer to sell their home because no marketing is being done. The longer the house sits on the market, the lower the offers will be. The seller might have saved 1% or 2% on commission, only to lose 3% to 5% on the sale price because the home took too long to sell and there was no marketing being done, causing the seller to leave a lot of equity on the table.

 

If you are looking to buy or sell out of state, let me know. I am part of a network of the top 1% of agents in the United States. I can find you a great Realtor through the RE/MAX referral network.

 

I would love to talk to you more about what you need to look for when hiring a real estate agent. If you have any questions, just give me a call or send me an email.

Posted in News
March 8, 2018

February 2017 vs. February 2018: How Has Our Market Changed?

Now that February is behind us, it’s time to take a look back at the latest market statistics from that month.

In February of 2018, we saw 9,721 new listings come on the market. This is a 3% decrease from what we saw in February of last year, when the number of new listings was 10,016.

As for the total number of active listings, we had 20,711 on the market this February compared to 22,305 in February 2017.


There’s no way to be sure what the market will do, so don’t put off your real estate plans any longer.

 

There has been a 7% increase in the number of homes sold, with 7,019 listings having sold in February of 2018 and 6,529 having sold in February of last year.

Also, inventory has dropped. This February we had 2.95 months’ worth compared to last year’s 3.42 months. This is a 16% decrease in supply.

Due to our low supply and high buyer demand, most of our local markets currently favor sellers. Buyers are still highly motivated, despite the fact that rates have gone up, rising from about 3.5% last year to 4.25% this year. Buyers are concerned that if they don’t buy a home now, they’ll be subject to even higher rates later on in 2018.

In fact, the Fed has hinted that they may be raising rates as many as four times this year.

Whether your real estate plans are to buy or to sell, I recommend making your move as soon as possible. There’s no way to be sure what the market will do, so don’t put off your real estate plans any longer.

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.

 

 

 

Feb. 21, 2018

January 2018 Market Update

Hopefully, you’ve had a happy 2018 so far! Today, I’d like to fill you in about what happened in the real estate market this past January.

We had 10,389 homes come on the market this year, as opposed to the 10,316 the year before. With a 0.08% difference, there was pretty much no change.

There were 19,961 active listings in January 2018. This was a 9.7% decrease from the previous year, which had 21,909 listings.

Six thousand one hundred and sixty-one homes sold on the market this year, constituting a 2% increase in the number of homes sold.

Inventory went down from 3.63 months last year to 3.24 months this January—a 12% drop.


If you’re thinking about moving in the future, do it as soon as possible.

 

It’s still a seller’s market. Rates have been going up, and they’ve actually hit the highest level they’ve been since 2014. However, they’re still really, really low.

We’re seeing a lot of buyers coming into the market to purchase homes, but there aren’t enough homes for sale. They naturally want to lock in the rate while it’s low, so if you’re thinking about buying a home, now is a great time. If you’re thinking about moving, do it as soon as possible so you don’t run the risk of it going higher in the future.

For any questions about buying or selling, please feel free to contact me at 602-738-9943.

 

                                                              

Feb. 7, 2018

How Is This Volatile Market Affecting Real Estate?

 

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Today I’d like to talk to you a little bit about stock market volatility and how it impacts the real estate market.

 

When the stock market is going up, people tend to be more optimistic. That results in higher spending and a stronger real estate market. When the stock market goes down and starts to get choppy, people are less likely to spend and less likely to get involved in real estate. As fewer buyers come on the market, we start to see inventory climb.

 

The stock market has been really good for us this year, but things have started to get a bit more choppy recently. The interesting thing is that buyers are still buying at an aggressive clip. We put 30 homes under contract last month on our team alone.

 


The stock market has been choppy, but buyer optimism remains strong.

 

As of right now, the Phoenix market remains strong. Buyers are still buying, unemployment remains low, and optimism is high. If you want to know more about the market, what your home might be worth, or anything else about real estate, don’t hesitate to give me a call or send me an email today. I look forward to hearing from you soon.

Posted in News
Jan. 24, 2018

Lending Guidelines Have Changed in Phoenix

Today I wanted to quickly touch on a few changes to the tax code, as well as recent changes to loan limits. Before I get started, let me just say that if you’re looking for tax or financial advice, seek out a qualified professional. I’m not a CPA or a financial advisor.

 

Right now you need to know that the loan limits have increased for FHA, conventional, and VA loans. This means that more buyers are going to be entering the market, more buyers are going to be selling and trading up to a higher-priced property, and we’re going to see more market activity in general. More activity leads to higher home values, which is great news for homeowners.

 


More activity leads to higher home values.

 

You’ve also probably heard a lot about the recent tax code shift. You used to be able to deduct the interest on your loan up to the first $1 million on a property you’ve purchased, but that limit has now dropped to $750,000.

 

The property tax deduction is now being capped right at $10,000. That won’t affect most Arizonans, but it will affect homeowners in higher-taxed states like California, New York, and Illinois. I wouldn’t be surprised if we saw a lot of retirees selling their properties and moving to lower-taxed states like Arizona. I wouldn’t be shocked if we a saw a real boom in the market from that. This is the busiest January I’ve seen in 18 years in Phoenix. I anticipate a really great market in 2018.

 

If you have any questions for me about the market or anything else about real estate in general, give me a call or send me an email anytime. I look forward to hearing from you.

Posted in News
Jan. 10, 2018

What Happened in December 2017 and What to Expect From 2018

 

 

Want to know what your home is worth? Get a FREE home value report
Want to look at homes on the MLS? Search all homes for sale
Want to see more videos? Subscribe to my YouTube Channel!

 

What happened in the December 2017 real estate market? What can you expect from our real estate market in 2018?

In 2017, 6,146 homes came on the market in December. In December 2016, 6,579 homes came on the market, leaving us with a 6% decrease in 2017.

In December 2017, there were 20,461 homes available for sale. Compared to the 22,449 homes available for sale in December 2016, that’s a 9.7% decrease in active inventory.

The number of sold homes increased by 0.8% year over year, from 7,128 sales in December 2016 to 7,185 sales in December 2017.

In December of 2016, there were 3.15 months of inventory on the market, which decreased by 10.5% to 2.85 months of inventory in December 2017.

 

What do all of these numbers mean for our market?

 

There were fewer homes coming on the market for sale, and we had a 10% decrease in active inventory. We did have a slight increase in the number of homes sold, but inventory is down, leaving us with a seller’s market.


Why?


For one thing, interest rates are below 4%. Interest rates have gone up slightly, so buyers realize that as rates go up, their payments will go up. As a result, they want to lock in that low rate now, while it’s still below 4%.

The stock market is booming and the economy is roaring, causing homebuyers to think, “Prices are going to go up, so I’d better lock in the current price now.”

What does all of this mean for the 2018 market here in Phoenix?

I anticipate 2018 to be one of the hottest markets on record, and it’s off to a great start.

In January, we get about 10,000 new homes on the market. From now until May, there will be 10,000 to 12,000 homes going up for sale each month, so get your home on the market now before your neighbors do.

 

If you have any questions about buying or selling a home in 2018, please don’t hesitate to reach out to me. I would be happy to help you!

 

 

Dec. 27, 2017

Why Are Buyers So Eager to Buy Now?

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Have you noticed there aren’t a lot of homes on the market for sale? Have you noticed that there are a lot of buyers out there looking to purchase?


If rates go up, you might end up kicking yourself wishing you had bought a home earlier.

 

This is because interest rates have been rising this past year. The Federal Reserve raised rates twice, and there’s talk that they may do it again. Why? The economy is going up—the stock market is up roughly $5 trillion and the GDP is up about 3.3%. As the economy grows and expands, the Fed tends to get nervous and raise rates in order to curb inflation.

As that happens, buyers decide that because the rates are going up on their would-be mortgages, they’ll either have a higher payment or be able to buy less property. That’s why they’re smart to buy now and lock in rates before they get any higher.

You might be thinking to yourself, “What if I buy a home now at today’s rates and they drop?” If that happens, you can always refinance and lower your rate then. It’s better to buy now though because if rates do go up, you might end up kicking yourself and wishing you had done something.

 

If you or anyone you know wants to buy before rates get any higher or sell in order to buy another home before rates get any higher, don’t hesitate to give me a call or shoot me an email. I’d love to help.

Posted in News
Dec. 13, 2017

How Does Our Current Market Compare to Last Year's?

 

Want to know what your home is worth? Get a FREE home value report
Want to look at homes on the MLS? Search all homes for sale
Want to see more videos? Subscribe to my YouTube Channel!

 

Today, I’d like to take a look back at our November 2017 market here in the Greater Phoenix area.

 

We had very little change year over year for the month of November. Last year, we had 8,477 homes come on the market. This year, we had just 20 more homes at 8,497.

 

In terms of active listings, there were 23,191 in November 2016 compared to 21,347 we saw this year. That’s an 8.6% decrease.

 

Sales are up, though, by 4.5%. We had 7,210 homes sell this year versus 6,890 last year. Inventory is down 13.8% in the valley from a 3.37-month supply in 2016 to 2.96 in 2017.

 

Interest rates have also gone up. Despite the fact that buyer demand is still strong, they are definitely paying attention to these rates. Buyers want to lock their rate now before they go any higher.

 

If you or anyone you know are looking to buy or sell, 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.

 

 


Nov. 13, 2017

How Are Things Shaping Up in The Phoenix Market This Fall?

 

How did our October 2017 market compare to what happened in October 2016?

Here are how the latest statistics stack up:

  • The number of homes that came on the market dropped from 10,026 to 9,842, which is a 1.8% decrease.

  • The number of total active listings dropped from 22,962 to 21,410—a 6.8% decrease.

  • The number of total homes sales rose from 7,097 to 7,393, which is a 4.1% increase.

  • Our supply of inventory dropped 11.5% from 3.24 months to 2.9 months. Remember—when you have a six-month supply or greater, you’re in a buyer’s market. Anything below six months generally constitutes a seller’s market.

Because there are more homes selling, fewer homes for sale, and fewer coming onto the market, we’re in a seller’s market in most neighborhoods in the greater Phoenix area.

If you or anyone you know are interested in buying or selling in this market, don’t hesitate to give me a call. I’d love to speak with you.