The Penrose Team Blog

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. 

 

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
Aug. 27, 2019

What Will Our Fall 2019 Market Hold?


What will happen in our local market this fall? Let’s discuss a few predictions.

 

As most people who have lived in or around Greater Phoenix for a while will know, fall is the time when our seasonal residents return to the area. But what else can we expect from the season ahead as summer draws to a close?

As far as our real estate market is concerned, one development we’ll almost certainly see is an influx of new listings. Home prices have risen significantly, and you can be sure local home sellers are preparing to take advantage of this.

 


Buyers will have more options to choose from.


 

This surge of supply will also benefit buyers, by extension—as buyers will have more options to choose from. Interest rates are still historically low, so it's a great time for buyers to lock down that lower rate.

 

As always, if you have any other questions about what’s going on right now, or if you or anyone you know is interested in making a move, feel free to give me a call at (602) 738-9943 or send me an email. I look forward to hearing from you soon.

Aug. 12, 2019

It’s a Great Time to Buy or Sell in Phoenix




Now that we’re more than halfway through the summer of 2019, it’s time to check in on our current market conditions.

This July, 8,724 new homes hit the market which is a slight decrease from the 9,090 that were listed during that same month last year. The number of active listings also dropped year over year, but only by a little over 300 homes, with there being 17,365 active listings in July of 2019 compared to the 17,695 that were on the market last year. 

The number of homes sold, meanwhile, actually rose, with 9,344 having sold this July, compared to the 8,544 homes that sold in July of 2018. This rise is also reflected in the amount of inventory available today. We currently have 1.86 months’ worth of supply. Last July, there were 2.07 months of available inventory. 


Interest rates are extremely low, which means purchasing power is high.


 

So what does all of this mean? First of all, sales are up. Not only that, but homes are selling fast. With less than two months of available inventory, we’re in a red-hot seller’s market right now. There simply aren’t enough homes to satisfy buyer demand, so smart sellers are making their move and taking advantage of these incredible conditions. 

Buyers, too, have a great opportunity before them. Interest rates are extremely low, which means purchasing power is high. This makes upsizing (or downsizing) more affordable than ever. 

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.

 

 

July 11, 2019

Home Sellers: Remodel First, or Sell As Is?

 

Almost every day, sellers ask me, “Should I sell my home the way it is, or should I remodel it first and then sell it?”

A survey from the National Association of Realtors looked at the costs to upgrade a property versus the recapture on the sales price. The survey showed that almost all of the improvements done recapture 75% or less of the money spent on them. A major kitchen remodel recaptures only 59% of the costs—that’s a lot of money lost!

 

So why do people remodel their kitchens? My hope is that they’re doing it for their own enjoyment, not for resale. Will a kitchen remodel increase the value of your property? Yes. But will it increase the value by the cost of doing the remodel? No.

 

There is an exception: If you’re a contractor who buys kitchen cabinets at a discount and you do the work yourself, you can build equity. But the average Joe will likely hire someone else to do their remodel, so they’re not personally making money on the remodel. In most cases, it’s better to sell the home the way it is rather than sink a lot of money into a property to remodel it and then sell it for more money.

 


Will a kitchen remodel increase the value of your property? Yes. But will it increase the value by the cost of doing the remodel? No.



Here’s another remodel tip: Do you want a home with a pool? That’s fine, just know that pools are expensive—even a cheap pool can cost $30,000 or more to install, and that’s not to mention all the extra amenities that people tend to purchase to go with the pool (spas, grottoes, etc.).
From a financial perspective, you’d better enjoy that pool once you pay for its installation because you’re not going to recoup that cost once you go to sell your home.

 

Some people choose to buy a home with a pool already installed because they don’t want to spend tens of thousands of dollars to install it, only to get a small portion of that back upon resale. In general, this is the cheaper option, but don’t get hung up on this singular feature when it comes to buying a home. Pools are accessories that can always be added later.

 

If you have any questions, comments, or concerns about today’s topic, or if you’re looking to buy or sell real estate in general, don’t hesitate to reach out to me. I’d love to give you some advice!

Posted in News
June 28, 2019

June 2019 Phoenix Market Update


Today we’re talking about the real estate market in May of 2019. What’s changed in the past year? We’re here today to find out.

 

  • We had 11,028 homes come on the market for sale in May 2019 versus 10,677 homes in May 2018. That’s a 3.2% increase!
  • Active inventory is up to 20,544 from 18,247 last year. That’s a 12.6% increase.
  • Home sales are up to 10,488 from 10,104, a 3.8% increase.
  • Our months’ supply of inventory is up from 1.81 months to 1.96 months, an 8.3% increase.

 

Now, a two-month supply of inventory is obviously still a seller’s market generally speaking. Inventory has gone up, but is still historically low. As for interest rates, they’ve dropped a bit recently because the stock market has been so volatile. A lot of money has been going into the bond market, pushing down these rates. This is great news for buyers because lower rates equal lower payments.

 

In the U.S., 10,000 people turn 55 each day. A lot of these baby boomers will be selling their homes this summer and downsizing. Summer is a great time to sell your home, as evidenced by the amount of homes on the market right now. 

 

In fact, more homes sell in June, July, and August than in any other time of the year. A lot of families move in the summer when kids are out of school. Arizona is one of the top states for retirement and you can take advantage of that fact by selling a home this summer while there is less competition and more homebuyers.

 

If you have any questions for me in the meantime, don’t hesitate to give me a call at (602) 738-9943 or send me an email. I look forward to hearing from you soon.

 

June 4, 2019

Giving Back With the Phoenix Dream Center



Today I’d like to give you a quick glimpse into why our team has partnered with the Phoenix Dream Center—America’s largest rescue organization for sex trafficking victims. I’ve personally been on the Phoenix Dream Center’s board of directors for many years, and now I’m leveraging this position to raise funds through my real estate career.

 

From now until August 31st 2019, mention this ad, and I will donate 25% of the commission on any real estate sale or purchase. So if you or anyone you know wants to buy or sell a home, now is a great opportunity to do so while also helping to give back to the community.



If you or anyone you know wants to buy or sell a home, now is a great opportunity to do so while also helping to give back to the community.


 

In addition to helping victims of sex trafficking, the Phoenix Dream Center also helps to support children who have aged out of the foster care system. These children, who are left with nowhere else to go, are taken in by the Phoenix Dream Center and given a chance to transition into adulthood without the threat of homelessness hanging over them.

 

If you would like to learn more about the Phoenix Dream Center or read testimonials from real people the organization has helped, click here.

 

And, as always, 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.

Posted in News
May 7, 2019

The April 2019 Real Estate Market: What the Heck Happened?


Today I’ve got another great market update for you that covers the latest numbers for the Greater Phoenix area for April 2019.

10,973 homes came on the market this year versus 10,804 last year, a 1.56% increase. We also had 21,986 homes available this year versus 18,856 last year, a 16.6% increase.

This year, we had 9,662 homes sell versus 9,186 last year, a 5.2% increase. As for our months’ supply of inventory, it went up from 2.05 to 2.28, an 11.2% increase.

What are we seeing here? First, a very slight increase in new homes coming on the market to go along with a modest increase in sales. Our inventory has gone up slightly, but we’re still in a seller’s market as a whole.

What’s affecting all of this? Interest rates, mostly. Last year, rates were going up and the stock market was tanking. Between those two things, a lot of people held back and demand went down at the end of the year. Rates are lower now than they were then, but they have gone up a bit in the last few weeks.

If you know anyone who is thinking about buying a home, or you’re thinking about buying a home yourself, now would be a great time to do so while rates are still low. There’s no guarantee that they’ll stay this low in the future.

If you have any questions for me in the meantime, don’t hesitate to give me a call at (602) 738-9943 or send me an email. I look forward to hearing from you soon.

 

 

 

April 11, 2019

The Mad Market Trends of March 2019



Today’s topic: March Madness.

No, I don’t mean basketball—I’m talking about the madness of the real estate market we saw in March of this year.

In March, 11,170 homes came on the market, as compared to the 11,560 we saw in March 2018. That’s a 4.4% decrease in new homes coming on the market for sale.

Even still, we had 22,211 homes on the market for sale, which is 16.3% more than the 19,094 active listings we had last year.

We sold 8,507 listings this March—11.9% fewer year over year.

When we looked at the month’s supply of inventory, we saw that it went up 2.61%. Last March, it only increased by 31.98%.

In summary, we have more homes on the market for sale and fewer homes that are selling, which means that the inventory has increased. At the same time, mortgage rates dropped faster in the last 60 days than they have in over a decade!

Amid these mixed indicators, we’re noticing that homes that are priced well and are in great condition are still selling very quickly in most cases. Homes that need work and are priced too high or aren’t presented correctly are obviously taking longer to sell, if they sell at all.

Right now, we’re in a normal market that seems to be in flux—some areas in the Valley are slowing down, and others are pretty hot.

If you’re curious about what your home is worth, or if you’re thinking about buying a home and you’d like some tips on how to get the best deal in our market, don’t hesitate to reach out to me at (602) 738-9943. I’d love to help.