Freon Phase-Out

end of freonYou probably recognize R22 by its common name: Freon. This refrigerant has been used in households for over 60 years to allow our air conditioners to cool our homes. During the 1970s, scientists discovered a link between hydro-chlorofluorocarbons (HCFCs) and depletion of the Earth’s ozone layer. With this link began the phase out of R22, an HCFC product, in 2010. R22 is an HCFC refrigerant that use gases to produce cool air by compressing warm air sources into liquid through HVAC coils. Freon has been an industry standard in refrigerants since the 1950s due to its efficiency.

How will this affect homeowners?
Although production of R22 will cease, there is expected to be plenty available and approved for use through December 31, 2029. Between 2020 and 2029, servicing systems with R22 will rely solely on recycled or stockpiled quantities. Homeowners are not required to stop using R22 air conditioners, nor are they required to replace existing equipment. However, homeowners should keep in mind that as supplies of R22 becomes limited over time, they may experience an increase in prices.

Phaseout dates to know:
Under the Clean Air Act of 1990, the U.S. began to outline a phase out for the use of R22 that would unfold slowly over the course of 20 years.
January 1, 2020 – there will be a ban on production and import of R22. Service of product will rely on stockpile.
January 1, 2030 – there will be a ban on remaining stockpile and import of all HCFCs.

What can homeowners do now?
The phase-out of R22 has been lengthy to allow homeowners to replace their air conditioner as they naturally age, and replace them with new energy-efficient equipment that uses EPA-approved
refrigerants, such as R410A which is a non-ozone-depleting refrigerant alternative refrigerant. It is flourine-based and contains no chlorine. R410A is also noncorrosive, nonflammable, and neutral to the environment. It is manufactured and sold under many names such as, PURON®, GENTRON AZ-20®, and SUVA®.

Purchasing a home warranty plan for the property is likely the most cost effective way to deal with the R22 Freon phase-out and conversion to R410a that we are facing. It can save you thousands when entire systems need to be replaced.

19418 N 86TH DR, Peoria

Rare opportunity to live behind the gates inside Vista Pinnacle at Westbrook Village! Great room floor plan with 2 bedrooms, 2 large bathrooms (each with separate shower & tub), highly sought-after 3-car garage with cabinets, all on an oversized corner lot! The bright sunny kitchen features an island, flat cooktop, wall oven & microwave, with spacious eat-in area. Impressive gas fireplace in great room, integrated dining area & dry bar make for splendid entertaining. Gigantic hobby room has window & tile floor, plus reconfigured laundry area inside home – not in garage! Extended covered back patio with gas stub for BBQ to enjoy private large back & side yard. Added bonus: new AC & exterior painted in the past year. Plus enjoy community pool, spa, tennis, pickleball, fitness & more!

Gated subdivision Westbrook Village home for sale, marketed by Westbrook Village Realtor Andrew Robb.

Listing Price: $409,000
MLS #: 5949798
Address: 19418 N 86TH DR
City: Peoria
State: AZ
ZIP: 85382
Home Size: 2,326
Lot Size: 10,456
Bedrooms: 2
Bathrooms: 2
Garages: 3
Pool: N
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3809 N 424TH AVE, Tonopah

Incredible home on 5 flat acres with mountain views, 1500sqft workshop (30’x50′ with electric & garage door), 3-car covered parking & OWNED SOLAR with new 5-year warranty. Exterior & interior just painted, 3 solar tubes for lots of natural light, new roof in 2010, open kitchen with island & storage, roll-out shelves & breakfast nook, laminate floor throughout, spacious family room & dining room, master bedroom walk-in closet with custom built-in, separate shower & jetted tub. Huge covered patio overlooks grass & very large pond with relaxing water feature, gazebo structure for cooking, fully fenced yard perimeter, convenient RV electric hook-up & prewired for generator, plus separate exterior storage shed, 7 hose taps around property & drip/sprinkler system.

Tonopah home for sale, marketed by RE/MAX Realtor Andrew Robb.

Listing Price: $252,000
MLS #: 5945742
Address: 3809 N 424TH AVE
City: Tonopah
State: AZ
ZIP: 85354
Home Size: 1,750
Lot Size: 217,800
Bedrooms: 3
Bathrooms: 2
Garages: 6
Pool: N
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21844 N 119TH DR, Sun City

* UNDER CONTRACT IN 1 DAY * On corner, backing to cul-de-sac, this rare lot is 50% bigger than standard. Stay refreshed in private backyard with pebble sheen pool featuring multiple water features & cool deck – built July 2017. Popular floorplan boasts flexible upstairs bonus room, 3 large bedrooms split from oversized master bedroom, big master walk-in closet & huge upgraded shower with rainfall head to relax. Entertain effortlessly with wide plank laminate wood throughout, stylish open kitchen, fashionable white cabinets, granite counters & tile backsplash. Lots of space for toys thanks to 3-car garage with overheight door, RV gate & tons of storage under stairs. Check out nearby tennis courts, basketball courts & volleyball, soccer field, parks & playgrounds. Peoria school district & NOT age restricted!

Sun City non-age restricted home for sale, marketed by Sun City AZ Realtor Andrew Robb.

Listing Price: $340,000
MLS #: 5945143
Address: 21844 N 119TH DR
City: Sun City
State: AZ
ZIP: 85373
Home Size: 2,466
Lot Size: 7,274
Bedrooms: 4
Bathrooms: 2.5
Garages: 3
Pool: Y
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Phoenix Real Estate Report

phoenix real estate market update1. How fast are homes selling? Average number of days on market for homes sold is 64 (up 2 from last year)
2. How many homes are for sale? We currently have 19,458 properties for sale (up 6% from last year)
3. What is the average sales price? Homes around the valley are selling for $348,220 (up 4.9% from last year)

May’s supply (measured by 11,169 homes listed for sale last month) was up 4.6% from May 2018 and May’s demand (measured by 10,531 homes sold last month) was up 4.2% from May 2018. In the latest rolling 12 months, average home values have increased almost 5% and our current market absorption rate is a healthy 2.5 months (keep in mind, lower is better if you are selling) and is right in the middle of its range over the past year.

What is going on? May was a record-setting month. New records were established for both unit sales volume and total dollar volume, meaning we sold the most homes ever and for the most money ever. Sales volume as reported by MLS even surpassed 2005. The prior record was in June of 2011 when foreclosures dominated the landscape and nearly every home sold was listed on the MLS. I don’t want to insinuate that May of this year accounted for more sales than during the peak bubble years, as a very large number of those transactions were conducted outside the MLS. In June of 2005 Maricopa County recorded 17,991 home sales which is the largest home sales volume month in history. Public records reported 12,041 home sales in Maricopa County this May, the highest reported total since March of 2006.

The term housing bubble will be forever engrained in our vocabulary, and with high sales volume and record median prices, it can be expected that housing bubble chatter will resurface. Earlier this year, I mentioned how our current home prices were teetering on the outer edge of affordability. I’ve said that lower price appreciation rates (more in line with inflation) would be welcome. We’ve seen slight moderation this year. One of the known causes of an economic bubble is excessive monetary liquidity. Let’s take a look at our mortgage underwriting standards today versus 2006. Current underwriting standards and the elimination of crazy money are two of the main reasons I subscribe to the “we are not in a bubble” theory. The differences between then and now are significant. In May 2019 in Maricopa County, 28% of home purchases put down 3% or less, 29% have a 20% or greater down payment and 17% are cash sales (we removed all institutional buyers as they overstate cash buyers). In March 2006, 50% of home purchases put down 3% or less, 22% had a 20% or greater down payment and 8% were cash sales.

As we move forward, we’ll keep a cautionary eye on underwriting standards, delinquency (foreclosure) rates and price appreciation rates. What we’d like to see is consistently strong lending standards and a continued moderation in price appreciation rates. Both will ensure ongoing health in our housing market.

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.

Appropriate 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.

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