Phoenix Real Estate and Community News

Sept. 20, 2018

Is the Real Estate Market Finally Getting Back to Normal?

Is the Real Estate Market Finally Getting Back to Normal? | MyKCM

The housing market has been anything but normal for the last eleven years. In a normal real estate market, home prices appreciate 3.7% annually. Below, however, are the price swings since 2007 according to the latest Home Price Expectation Survey:

After the bubble burst in June 2007, values depreciated 6.1% annually until February 2012. From March 2012 to today, the market has been recovering with values appreciating 6.2% annually.

These wild swings in values were caused by abnormal ratios between the available supply of inventory and buyer demand in the market. In a normal market, there would be a 6-month supply of housing inventory.

When the market hit its peak in 2007, homeowners and builders were trying to take advantage of a market that was fueled by an “irrational exuberance.”

Inventory levels grew to 7+ months. With that many homes available for sale, there weren’t enough buyers to satisfy the number of homeowners/builders trying to sell, so prices began to fall.

Then, foreclosures came to market. We eventually hit 11 months inventory which caused prices to crash until early 2012. By that time, inventory levels had fallen to 6.2 months and the market began its recovery.

Over the last five years, inventory levels have remained well below the 6-month supply needed for prices to continue to level off. As a result, home prices have increased over that time at percentages well above the appreciation levels seen in a more normal market. 

That was the past. What about the future?

We currently have about 4.5-months inventory. This means prices should continue to appreciate at above-normal levels which most experts believe will happen for the next year. However, two things have just occurred that are pointing to the fact that we may be returning to a more normal market.

1. Listing Supply is Increasing

Both existing and new construction inventory is on the rise. The latest Existing Home Sales Report from the National Association of Realtors revealed that inventory has increased over the last two months after thirty-seven consecutive months of declining inventory. At the same time, building permits are also increasing which means more new construction is about to come to market. 

2. Buyer Demand is Softening

Ivy Zelman, who is widely respected as an industry expert, reported in her latest ‘Z’ Report:

 “While we continue to expect a resumption of growth in resale transactions on the back of easing inventory in 2019 and 2020, our real-time view into the market through our Real Estate Broker Survey does suggest that buyers have grown more discerning of late and a level of “pause” has taken hold in many large housing markets.

Indicative of this, our broker contacts rated buyer demand at 69 on a 0- 100 scale, still above average but down from 74 last year and representing the largest year-over-year decline in the two-year history of our survey.”

With supply increasing and demand waning, we may soon be back to a more normal real estate market. We will no longer be in a buyers’ market (like 2007-February 2012) or a sellers’ market (like March 2012- Today).

Prices won’t appreciate at the levels we’ve seen recently, nor will they depreciate. It will be a balanced market where prices remain steady, where buyers will be better able to afford a home, and where sellers will more easily be able to move-up or move-down to a home that better suits their current lifestyles.

Bottom Line

Returning to a normal market is a good thing. However, after the zaniness of the last eleven years, it might feel strange. If you are going 85 miles per hour on a road with a 60 MPH speed limit and you see a police car ahead, you’re going to slow down quickly. But, after going 85 MPH, 60 MPH will feel like you’re crawling. It is the normal speed limit, yet, it will feel strange.

That’s what is about to happen in real estate. The housing market is not falling apart. We are just returning to a more normal market which, in the long run, will be much healthier for you whether you are a buyer or a seller.

Posted in Real Estate News
Sept. 19, 2018

25% of Homes with a Mortgage are Now Equity Rich!

25% of Homes with a Mortgage are Now Equity Rich! | MyKCM

Rising home prices have been in the news a lot lately and much of the focus has been on whether home prices are accelerating too quickly, as well as how sustainable the growth in prices really is. One of the often-overlooked benefits of rising prices, however, is the impact that they have on a homeowner’s equity position.

Home equity is defined as the difference between the home’s fair market value and the outstanding balance of all liens (loans) on the property. While homeowners pay down their mortgages, the amount of equity they have in their homes climbs each time the value of their homes go up!

According to the latest Equity Report from ATTOM Data Solutions, “13.9 million U.S. properties in Q2 2018 were equity rich — where the combined estimated balance of loans secured by the property was 50 percent or less of the property’s estimated market value — representing 24.9% of all U.S. properties with a mortgage.”

This means that nearly a quarter of Americans who have a mortgage would be able to sell their homes and have a significant down payment toward their next home. Many who sell could also use their new-found equity to pay off high-interest credit cards or help children with tuition costs.

The map below shows the percentage of properties with a mortgage in each state that were equity rich in Q2 2018.

25% of Homes with a Mortgage are Now Equity Rich! | MyKCM

Bottom Line

If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, let’s get together to discuss your options!

Posted in Real Estate News
Sept. 18, 2018

Home Prices: The Difference 5 Years Makes

Home Prices: The Difference 5 Years Makes | MyKCM

CoreLogic recently released their Home Price Index ReportOne of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from July 2013 to July 2018 to show how prices over the last five years have fared.

The graph below was created to show the 5-year change in price from July 2013 to July 2018 by price range.

Home Prices: The Difference 5 Years Makes | MyKCM

As you can see in the graph, the highest price appreciation occurred in the lowest price range with 48% growth, while the highest priced homes appreciated by 25%. This has been greatly fueled by the lack of inventory of homes available at the lower price ranges and high demand from first-time buyers looking to enter the market.

Where were prices expected to go?

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

According to the Q3 2014 survey results, national homes prices were projected to increase cumulatively by 19.5% by December 2018. The bulls of the group predicted home prices to rise by 27.8%, while the more cautious bears predicted an appreciation of 11.2%.

Where are prices headed in the next 5 years?

Data from the most recent HPES shows that home prices are expected to increase by 20.0% over the next 5 years. The bulls of the group predict home prices to rise by 31.2%, while the more cautious bears predict an appreciation of 9.3%.

Bottom Line

Every day, thousands of homeowners regain positive equity in their homes. Some homeowners are now experiencing values even greater than those before the Great Recession. If you’re wondering if you have enough equity to sell your house and move on to your dream home, let’s get together to discuss conditions in our neighborhood!

Posted in Real Estate News
Sept. 17, 2018

5 Reasons to Sell Your House This Fall

Have you been thinking about putting your house on the market? What about moving-up to the house of your dreams? With supply and demand continuing to raise prices, now may be the perfect time! Let's get together to discuss why you should list your house for sale this fall!

 

What’s my home worth? 

Get a TRUE home value report at 

www.cenphxhomevalues.com

 

Interested in buying a home or multi-family?

Free property search at www.awntelsellshomes.com

 

-Awni & Chantell Abbas

Awntel Property Advisors 

5134 N Central Ave #101

Phoenix, Az 85012

Office: 602-472-3489

Mobile: Call or text 480-788-4118

http://cenphxliving.com

“AWNTELL IT LIKE IT IS” SHOW

7 STAR SERVICE

 

Posted in Selling Your Home
Sept. 17, 2018

North Central Phoenix home SOLD! 509 W Diana Ave Phoenix, Arizona 85021

North Central Phoenix home SOLD! 509 W Diana Ave Phoenix, Arizona 85021! Sold for $400,000!

 

Check out this immaculate remodeled North Central Phoenix home with NO HOA, irrigated lot and a NEW plastered POOL with all NEW equipment!! NEW ROOF! Offering a open floor plan, all NEW wood lam floors in the main living areas, plush NEW carpet in the bedrooms, wood tile in the bathrooms, fresh NEW paint inside and out, NEW LED lighting, NEW ceiling fans, NEW modern hardware and fixtures all throughout. Enjoy cooking in your NEW kitchen w/ bright white cabinets with built-in wine rack, granite countertops with breakfast bar, NEW Samsung stainless steel appliances. Bathrooms have NEW floating vanities and new tub/showers. Bedrooms are spacious with plenty of closet space. NEW upgraded electrical panels, NEW 2 car garage fully permitted! Arizona room with electrical has options for an extended master suite, art room, office, yoga/gym studio or Pool house. Home also has city stamp approval for an extra 400 sqr ft of addition, if you want to add on!! Workshop/storage area off the back of the house. Large irrigated lot, mature trees & citrus trees, grass, Just a quick 10 min. walk to Spokes & Wheel a lively bike-themed gastropub, Ladera- a modern Mexican bar, Timo wine bar, a variety of shopping, easy access to all freeways, Downtown Phoenix & Sky Harbor Airport, A+ schools, North Mountain very close by offering a variety of hiking trails! This home has it all and is very affordable! Come check it out today!!

 

What’s my home worth? 

Get a TRUE home value report at 

http://cenphxhomevalues.com

 

Interested in buying a home or multi-family?

Free property search at http://awntelsellshomes.com

 

When it’s time to sell, call AWNTEL

Awni and Chantell Abbas 

Awntel Property Advisors

480-788-4118

 

Posted in Selling Your Home
Sept. 17, 2018

Housing Market Update

Housing Market Update


Awni & Chantell Abbas
REALTORS
Awntel Property Advisors
Equal Housing Opportunity
“AWNTELL IT LIKE IT IS” SHOW
7 STAR SERVICE

Posted in Real Estate News
Sept. 17, 2018

If You Are Thinking of Selling? You Must Act NOW!

If You Are Thinking of Selling? You Must Act NOW! | MyKCM

If you thought about selling your house this year, now more than ever may be the time to do it! The inventory of homes for sale is well below historic norms and buyer demandis skyrocketing. We were still in high school when we learned about the concept of supply and demand, so we understand that the best time to sell something is when the supply of that item is low and demand for that item is high. That defines today’s real estate market.

Lawrence Yun, Chief Economist at the National Association of Realtors, recently commented:

Contract signings inched backward once again last month, as declines in the South and West weighed down on overall activity.”

Yun goes on to say:

The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”

In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction, including the inspection, appraisal and financing contingencies.

Bottom Line

As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas.

Posted in Selling Your Home
Sept. 14, 2018

Phoenix HOMES FOR SALE! Downtown Phoenix 3002 N 23rd ave Phoenix, Az 85015

Price: $269,995 

Address: 3002 N 23rd ave Phoenix, Az 85015 

Welcome to this super nice remodeled move in ready home in the Siesta Terrace neighborhood near downtown Phoenix! This is absolutely the best priced block home for the value in the area!! Inside you'll find plenty of charm, a well thought out floor plan and plenty of opportunity to add your personal touches! This is a large 3 bed, 2 bathroom at 2,250 sq. ft with a formal living room and family room with dual pane Arcadia sliding doors and a lovely wood burning fireplace! Everything inside has been updated, from new flooring (carpet and wood-grain tile) throughout, brand new kitchen includes stainless steel appliances, quartz counter tops, custom backsplashes, modern lighting, pantry space and a separate entrance/exit to the garage. The garage includes the laundry hookups with plenty of storage space, and a new hot water heater. Relax in your abode in the spacious living room/dining combo for entertainment and gatherings. The family room is a great place to hang out, sipping your favorite beverage near your cozy fireplace. There are plenty of closets in this home if you need extra storage. All bathrooms are completely redone with beautiful custom tiling and new vanities/fixtures/plumbing, with quartz counters.The large master bedroom is perfect for any size furniture and has extra space for a desk/office or lounge chase and a large walk-in closet. The master bathroom is also redone, stunning and huge, with dual vanities and stand up shower. Save money on those utility bills, as the entire home has dual pane windows for extra efficiency and new insulation in the attic. 

Outside you'll find an inviting oversized backyard which has plenty of room for RV storage/RV parking, ATV', jet ski's boats, large shed/workshop, includes an RV gate, perfect for entertainment/parties/BBQ, several citrus trees, and a swimming pool that can easily be built! It's massive back there! There is also a covered patio to cool off under. 

This home is near the I-17/ I-10 freeways, Metro Tech High School, Heard Elementary, Heard School, Phoenix Union High School district, private schools, tons of local restaurants and shopping centers, gas stations, convenient stores, grocery stores including Fry's Safeway and Sprouts, two Encanto 18 hole golf course and country club, Encanto Enchantment Island Amusement Park; one of the best parks in the country named Encanto Park, Starbucks is down the street, St. Joseph's hospital, Metro light rail, Roosevelt Row Arts district, Arizona State Fair, Sky Harbor Airport 15-20 minutes away, and downtown Phoenix is less than 10 minutes away!! Please stop on by today and check out this lovely home. This home has everything and is in need of a proud new homeowner to create endless memories!!!

 

What’s my home worth? 

Get a TRUE home value report at 

http://cenphxhomevalues.com

 

Interested in buying a home or multi-family?

Free property search at http://awntelsellshomes.com

 

When it’s time to sell, call AWNTEL

Awni and Chantell Abbas 

Awntel Property Advisors

480-788-4118 

 

Posted in Buying a Home
Sept. 14, 2018

Is Buying a Home Really More Stressful Than Planning a Wedding? [INFOGRAPHIC]

Is Buying a Home Really More Stressful Than Planning a Wedding? [INFOGRAPHIC] | MyKCM

Some Highlights:

  • According to a new survey from Open Listings, 62% of Americans ages 25-54 believe that buying a home is more stressful than planning a wedding.
  • Many young couples are saving for a wedding and a home at the same time.
  • The average US wedding now costs 66% of a median home down payment, according to The Knot.
Posted in Buying a Home
Sept. 13, 2018

Are Homebuyers Starting to Hit the ‘Pause’ Button?

Are Homebuyers Starting to Hit the ‘Pause’ Button? | MyKCM

For the last several years, buyer demand has far exceeded the housing supply available for sale. This low supply and high demand have led to home prices appreciating by an average of 6.2% annually since 2012.

With this being said, three of the four major reports used to measure buyer activity have revealed that purchasing demand may be softening. Here are the four indices, how they measure demand (methodology), what their latest reports said, and a quick synopsis of the report.

The Foot Traffic Report
by the National Association of Realtors

Methodology: Every month SentriLock, LLC provides NAR Research with data on the number of properties shown by a REALTOR®. Lockboxes made by SentriLock, LLC are used in roughly a third of home showings across the nation. Foot traffic has a strong correlation with future contracts and home sales, so it can be viewed as a peek ahead at sales trends two to three months into the future.

Latest Report“Foot Traffic climbed 3.2 points to 55.8 mid-summer in July. Additionally, the diffusion index is higher than last year by 13.5 points. Despite a healthy economy and labor market, supply and new construction remains unable to keep up with buyer demand.”

Synopsis: Buyer demand remains strong.

The Showing Index
by ShowingTime

Methodology: The ShowingTime Showing Index® tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.

Latest Report“Showing activity throughout the country increased by 0.3 percent year over year in July, the third consecutive month that the U.S. ShowingTime Showing Index recorded buyer interest deceleration compared to the previous year. The June 2018 figures revealed a 0.0 percent change in showing traffic from 2017, while May showed a 1.2 percent year-over-year increase. The 12-month average year-over-year increase was 4.6 percent.”

Synopsis: Buyer demand is softening

Realtors Confidence Index
by the National Association of Realtors

Methodology: The REALTORS Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners. Practitioners are asked about their expectations for home sales, prices and market conditions.

Latest Report“REALTORS reported slower homebuying activity in July 2018…The REALTORS® Buyer Traffic Index registered at 62, down from the same month one year ago (69). This is the fifth straight month (since March 2018) that Realtors reported a decline in buyer activity compared to conditions one year ago.”

Synopsis: Buyer demand is softening

The Real Estate Broker Survey
in the ‘Z’ Report by Zelman and Associates (subscription needed)

Methodology: Proprietary survey results of real estate executives.

Latest Report“While we continue to expect a resumption of growth in resale transactions on the back of easing inventory in 2019 and 2020, our real-time view into the market through our Real Estate Broker Survey does suggest that buyers have grown more discerning of late and a level of “pause” has taken hold in many large housing markets. Indicative of this, our broker contacts rated buyer demand at 69 on a 0-100 scale, still above average but down from 74 last year and representing the largest year-over-year decline in the two-year history of our survey.”

Synopsis: Buyer demand is softening

Bottom Line

Again, three of the four most reliable measures of buyer activity are reporting that demand is softening. We had a strong buyers’ market directly after the housing crash which was immediately followed by a strong sellers’ market over the last six years.

If demand continues to soften and supply begins to grow (as is projected to happen), we will return to a more neutral market which will favor neither buyers nor sellers. This “more normal” market will be better for real estate in the long term.

Posted in Buying a Home