Phoenix Real Estate Report

phoenix real estate market update1. How fast are homes selling? Average number of days on market for homes sold is 58 (down 4 from last year)
2. How many homes are for sale? We currently have 15,605 properties for sale (down 15% from last year)
3. What is the average sales price? Homes around the valley are selling for $335,347 (up 4.9% from last year)

September’s supply was up 0.4% from September 2018 (measured by 9,260 homes listed for sale last month) and September’s demand was up 13.6% from September 2018 (measured by 8,030 homes sold last month). In the latest rolling 12 months, average home values increased almost 5% and our current market absorption rate is only 1.95 months (the lower the number, the fewer number of homes for sale) – still at its lowest level in recent history.

What is going on? Based on sales activity through September 30th, our market is on pace to transact 100,000 units in 2019 – up from 96,000 units last year. It is important to reflect on this, as it confirms the health of our market, which continues to enjoy: strong demand, reduced inventory, job growth and low mortgage interest rates. Some are starting to question if we are repeating 2005 (in a bad way) and I say no. I have already touched on this topic in recent newsletters and here is a quick recap: tighter lending requirements today, fewer new housing starts and reduced investor buying activity. These 3 facts, when combined with the 4 positive signs just previously mentioned, allow for our market to keep moving up at a reasonable pace.

What can we expect? I would argue that we should not get used to continued 5-6% annual gains in property prices. What we are likely to see is home values increasing at about 1.5-2x the annual inflation rate, or about 3-4% annually. Why? Quite simply, home value increases cannot drastically exceed the rate of wage growth indefinitely or we will run into an affordability issue, like in California and many other major US metro areas. If salaries are rising at 2% each year (to keep pace with inflation) and homes are rising 6% each year, it doesn’t take long for a majority of the population to be priced out and not have enough purchasing power to buy homes.

Interested in getting multiple competitive offers to buy your house? My new platform Offer Nerd is the only site you need to request numerous offers from institutions competing to buy your home. Simply submit your address, upload property photos (or I can take them for you at no cost) and in a few days I will have obtained several competitive written offers from companies looking to buy your house. I’ll be your guide throughout the process and if none of the offers make sense for you, there is no obligation to sell. I’ll even include my realistic selling price if you were to take your home to market rather than accepting an institutional offer.

Data from ARMLS® COPYRIGHT 2019.

28455 N 67TH DR, Peoria

* SOLD FOR 97.9% OF LIST PRICE * Highly UPGRADED & CUSTOMIZED Camelot Home in gated community awaits proud new owner! Expanded floorplan provides 4090sqft living space with 3 bed, 2 full bath, 2 half bath, private office, bonus room w/wet bar, professional gym & 5 car garage (1100sqft). Endless possibilities! Entertain fabulously in huge open kitchen w/island, enjoy quality time in pool & BBQing, play games in bonus room w/wet bar, retreat to private courtyard with gas firepit, relax in master jetted tub, dual head shower or outdoor heated spa. More free time & less to worry about in 2013 build, save time w/easy maintenance yard w/artificial turf front & back, save money with newer AC units & added insulation.

Gated subdivision at Canyon’s Edge Camelot Home for sale, marketed by Sonoran Mountain Ranch Realtor Andrew Robb.

Listing Price: $699,000
MLS #: 5964343
Address: 28455 N 67TH DR
City: Peoria
State: AZ
ZIP: 85383
Home Size: 4,090
Lot Size: 12,150
Bedrooms: 3
Bathrooms: 4
Garages: 5
Pool: Y
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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: $350,000
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

* SOLD FOR 98.8% OF ASKING * 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: $249,900
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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RE/MAX Fine Properties
21000 N Pima Rd, Suite 100, Scottsdale AZ 85255