March 2019 Phoenix Real Estate Report

phoenix real estate market updateHighlights of my March 2019 Phoenix Real Estate Market Report:

1. How fast are homes selling? Average number of days on market for homes sold is 72 (down 2 from last year)
2. How many homes are for sale? We currently have 21,869 properties for sale (up 13.2% from last year)
3. What is the average sales price? Homes across the valley are selling for $328,743 (up 6.4% from last year)

February’s supply (measured by 9,635 homes listed for sale last month) was down 3.1% from February 2018 and February’s demand (measured by 6,530 homes sold last month) was down 7.6% from February 2018. In the latest rolling 12 months, home values increased 6% and our current market absorption rate sits at 3.63 months (keep in mind, lower is better if you are selling) which is at its second-highest level in the past year and up about 75% from our 2018 summer selling season (March through August).

What is going on? Total home sales for the first two months of 2019 were 9.4% below the pace of 2018. With March, our selling season takes off and we’ll see our first significant numbers for 2019. The median sales price will continue to rise, most likely through June. Last month we discussed rising prices and affordability in our market. Now I’d like to explain the main reason home prices continue their ascent: persistent under-supply. Since the housing crisis, people have been living in their homes longer. I’ve seen reports of 10-12 years today compared to 6-7 prior to the collapse. With people living in their homes for longer periods of time and with lower new construction numbers, the number of homes for sale remains low.

According to Freddie Mac: “The United States is not building enough housing to meet demand. The current annual rate of construction is about 370,000 units below the level required by long-term housing demand. After years of low levels of building, a significant shortfall has developed, with between 0.9 and 4.0 million too few housing units to accommodate long-term housing demand. We forecast housing construction to pick up gradually. However, it will still be a year or more before the level of building matches incremental annual long-term housing demand. Until construction ramps up, housing costs will likely continue rising above income, constricting household formation and preventing homeownership for millions of potential households.”

One bright spot for our housing market comes from the 2016 government census. It shows data indicating that, in defiance of many prognostications that the US was becoming a “renter nation”, the decade-long decline in the homeownership rate abruptly reversed. The once rapid growth in renter households stalled and the long stagnant number of owner households began rising. So we have growing demand for homes, still relatively low mortgage rates, supply of new construction below historical levels and homeowners remaining up to twice as long in their current home. Translation? Highly reduced inventory of available homes to purchase and thus rising home prices – for now.

Curious about your current Phoenix home value? Ask me for your Phoenix Property Value report created especially for your home and emailed to you within 24 hours. It is filled with local market data, demographics, pricing trends, your home’s estimated value and my confidence rating.

Realistic pricing and professional photography to showcase a property are essential in maximizing value and minimizing time on market. Ask about my written guarantee to sell a home within 67 days at a price acceptable to the owner or they get $1,000 from me at closing.

Data from ARMLS® COPYRIGHT 2019.

6752 W LUCIA DR, Peoria

Original owner home has been incredibly cared for in every respect! Flawless condition Camelot home on large premium lot with mountain views inside gated community. Private courtyard with custom iron door leads into round foyer with soaring ceiling. Upgrades are found at every turn: travertine floor, plantation shutters, gigantic granite kitchen with hand-rubbed cabinets & pull-out drawers, farm sink, sub-zero fridge, gas cooktop, double ovens & warming drawer, custom fireplace & built-ins at family room, alarm system, expanded covered patio, 3-car garage with epoxy flooring, lots of storage cabinets plus separate 4th car garage. Oversized RV gate & paver stone driveway offers plenty of parking. Secluded north Peoria community of Sonoran Mountain Ranch.

North Peoria home for sale in Sonoran Mountain Ranch, marketed by Peoria AZ Realtor Andrew Robb.

Listing Price: $669,000
MLS #: 5886369
Address: 6752 W LUCIA DR
City: Peoria
State: AZ
ZIP: 85383
Home Size: 3,889
Lot Size: 16,272
Bedrooms: 4
Bathrooms: 2.5
Garages: 4
Pool: N
Get Directions

Opendoor Reviews Offerpad Reviews

Opendoor reviews Offerpad reviewsLooking for Opendoor reviews or Offerpad reviews on Yelp? Good luck.

On February 11, 2019 Inman News reported that Yelp made finding these reviews almost impossible, by removing them from Yelp’s online search tool and from Google search results. The review pages are still accessible with direct links so consumers can still read old reviews and post new reviews – you just can’t search for the review pages any more since Yelp has stopped them from turning up in searches. When the review pages became unsearchable, Opendoor had a 3.0 star rating from over 180 reviews, while Offerpad had a 1.0 star rating from only 1 review. Interestingly, Opendoor has received financial backing from Yelp’s CEO as well as two former Yelp board members though they state the Yelp policy change has nothing to do with this relationship.

Why are reviews so important to a business? Consider when you make a small purchase decision, such as buying a new toaster or going out to eat. How often do you read reviews before making your choice? Let’s be honest, most of us hardly doing anything today with a little research first, which includes reading customer reviews and looking up star ratings. Would you buy a toaster with a rating of 3.0 stars in their reviews? Would you eat at a restaurant that only gets 3.0 stars from hundreds of patrons? And we’re talking about spending less than $100 in each of these situations. Consider then that selling a home is one of the biggest and most important financial transactions of many people’s lives. So if you won’t eat at a Chinese buffet with a questionable 3-star rating, would you sell your home with a company that gets the same rating?

Here is a link, which is also fully searchable on Google, to my rating and reviews from Zillow: Andrew Robb reviews.

13140 W BAKER DR, Peoria

RARE CORNER LOT WITH VIEWS! Incredible opportunity to be the envy of everyone with this prime location in guard gated community and perfect outdoor entertaining oasis. Plenty of privacy thanks to lush mature landscaping and delightful front courtyard. Gigantic laundry room has abundance of cabinets and very comfortable workspace. Plenty more storage is found in 3.5 car garage with built-in cabinets and epoxy floor coating. Highly upgraded exterior living with travertine flooring at front & back, built-in gas BBQ and expanded covered patio. Thoughtful interior touches include central vacuum, water softener, water filtration system and upgraded window treatments with honeycomb shades, large walk-in master closet with custom cabinets and guest bedroom with full en-suite bathroom.

Peoria AZ home for sale marketed by Peoria AZ Realtor Andrew Robb.

Listing Price: $519,000
MLS #: 5881450
Address: 13140 W BAKER DR
City: Peoria
State: AZ
ZIP: 85383
Home Size: 2,305
Lot Size: 7,850
Bedrooms: 2
Bathrooms: 2.5
Garages: 3
Pool: N
Get Directions

First Time Home Buyer

Phoenix First Time Home BuyerLooking to buy your first home in Phoenix? There are three loan types and one down payment assistance program that may be ideal for you, depending on your situation:

1. Conventional loan is a mortgage available to buyers with as little as 3% (of property sales price) down payment. This will require mortgage insurance (in the form of a monthly premium built-in to the mortgage payment) unless the down payment is 20% or more of the sales price. Generally, mortgage insurance can later be removed by the lender once the equity in the home exceeds 22%. Borrowers will need to have a FICO credit score of at least 640 and typically the higher the credit score, the lower the insurance premium will be.

2. FHA loan is a mortgage available to buyers with as little as 3.5% (of property sales price) down payment. Mortgage insurance will also be required (in the form of a monthly premium built-in to the mortgage payment) but allows for borrowers to have a FICO as low as 580. For borrowers with a 500-579 FICO credit score, they must put down 10% of the sales price. Mortgage insurance remains for the life of the loan, so the only way to avoid paying it is to refinance out of an FHA loan into a conventional loan when possible for the borrower.

3. VA loan is a mortgage available to military (active or retired) buyers with as little as 0% (of property sales price) down payment. There is no mortgage insurance required however there is a VA funding fee of about 2.5% that is added to the loan balance at time of origination. Typically a borrower will need a FICO credit score of at least 640 to qualify, along with their military certificate of eligibility from the VA.

Arizona also offers a down payment assistance program to help first time home buyers in Phoenix. The main benefits of the Home Plus loan program are down payment assistance, closing cost assistance and reduced mortgage insurance premiums. To be eligible, buyer must occupy home as their primary residence, the home price cannot exceed the program limit, buyer must meet income and credit score requirements, and finally the buyer must also complete an educational course about borrowing and home ownership. Borrowers who qualify for Home Plus can get up to 5% of the purchase price in the form of down payment assistance. This gift is by way of a no-interest (silent) second mortgage that is 100% forgiven as long you do not sell or refinance your home for 3 years.

Questions about these loan types or down payment assistance program? I can put you in touch with a variety of reputable local Phoenix lenders to handle all your inquiries.

RE/MAX Renaissance Realty
9059 W Lake Pleasant Pkwy #B200
Peoria, AZ 85382