This Month in Real Estate- November 2013

Looking for a change?

Thought about a career in real estate or maybe looking to make a change… check out this video and call me today!

The outFRONT Group Welcomes You

This Month in Real Estate- July 2013

Home Prices Keep Soaring

It’s what I keep saying…. If you are looking to buy your next home, what are you waiting for?  These soaring home prices are not a bubble.  They are still correcting for the huge market losses seen in areas like Phoenix, Las Vegas, San Francisco and others.  Rates are going up as well, making it the ideal time to buy your next home.   Check out the CNN.com story here: Home Prices Keep Soaring and contact me today if you would like me to set up a customized home search for you or provide you with a market analysis of your current property.

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June Real Estate Minute

Average sales price all of Phoenix Metro Area (directly from MLS):

March 2013      $222,310
April 2013        $227,836
May 2013         $238,975

This increase represents a 7% increase in sales price in just the past 60+ days.  If buyers are not seeing a 7% increase in their salaries then they are not keeping up with the market increases which will result in decreased buying power over time.

The projected increase over the next 6 months is another 5-10%+ for the Phoenix area.  What that means for us is that you should probably be seeing homes that are now selling around the $240,000 price point selling for $250-275K depending on what areas the houses are.  In the southeast Gilbert area, these zip codes are very active and the market there is hot.  Prices will be trending higher as there is a great deal of new construction there too, mostly starting higher than $300,000.

The other interesting statistic is that in the Phoenix market as a whole we are averaging across all price ranges around 97-98% of list.  This includes multi-million dollar homes as well so that is a good barometer of how the market is acting.  In the zip code 85296 again, the average list to sales price ratio for May 2013 was right at 100% according to MLS.  For homes that had a sales price less than the average however, these homes were seeing list to sales price ratios higher than 100% in many cases, meaning that well priced homes are going for higher than list by up to 5%  due to the super high demand in the geographic area and the ultra low inventory.

What does all this mean for you?  If you are looking to buy a home in this hot market, the #1 real estate market in the U.S. for this entire year so far, you need to be super aggressive with your price, be willing to accept seller terms and in most cases be willing to pay for things that in a balanced market you may not have to or could be negotiated.

One final real estate point, since the market is appreciating at a steady pace, appraisals are in some cases not meeting the agreed upon sales prices.  Buyers and sellers alike know this when entering a contract and if the appraised price is within 1-2% of sales price, in most cases the buyers are accepting and absorbing the difference just to get the house closed.  The appraisal contingency waiver on deals is here and is steadily becoming the norm on many deals.

Finally- RATES…. Rates have been inching up as the Fed adjusts it policies toward the secondary mortgage market.  Average rates have been creeping up and have been hovering around 4%.  There are some rates lower, each lender and program are different (ie. Some lenders roll in costs to the rate, some have you paying more upfront, etc).  About 2 months ago however, rates were averaging 3.5%.  What does this 1/2% rate increase mean to you in conjunction with the average sales price increase?  See the example below:

March 2013- Average 30 yr fixed at 3.5%, Average sales price from MLS $222,000, 30 year Principal and Interest Payment with 20% down= $797.50

May 2013- Average 30 yr fixed at 4%, Average sales price from MLS $239,000, 30 year Principal and Interest Payment with 20% down= $858.57

That is a $60 per month increase or $720 per year.  Rates look like they will be rising to 4-4.25 over the next few months as well based on what most lenders are saying.  If prices rise another $5000 even in the next 30-60 days that actually has you spending over $100 more a month than what you were spending just 60 days ago.  That could mean the difference between getting qualified at $230,000 or getting $215-220K which reduces your overall buying power and may mean more sacrifice for what you want.  Conclusion- What are you waiting for????

As many of my buyer clients are doing now…. They realize that they may not be getting the home of their dreams, but it is much better than renting and they are using this opportunity to gain equity in their investment.  If the average home rises 10-15% over 12 months in value or 10-20% in just 12-24 months, that is a larger gain than any investment that they have their money in.  In other words, if you invest $50K into a home today and the price of that $230,000 home goes up to $250,000 in 12-24 months, that is $20,000 they realized in their investment.  They are willing to look at this home purchase as an investment and not a long term purchase home, knowing that average homeowners only keep their homes for about 5 years.

If there is anything that my team or I can do for you, do not hesitate to call, email or contact me today!  This has been your June Real Estate Minute from The outFRONT Group at Keller Williams Realty and E.J. McKinney.  Look for us on YouTube in the near future!

Did you know….

You may think it takes only qualifications, experience, and education to get ahead but according to psychologist and best-selling author Richard Wiseman in his book 59 Seconds, Think a little, Change a lot, 30 years of research says  it doesn’t always come down to qualifications, experience, education or a host of other criteria. Often times, it came down to likability.

Likability has also been linked to the success of presidential candidates in a presidential race (as predicted by Gallup) and likable people are reported to be far less likely to get a divorce or be sued for malpractice (The University of Toronto).

So instead of cutting your commission or adding even more designations behind your name to get business, you may want to try being irresistibly personable to help win more clients.

But don’t go too far, people are also less likely to trust you if you come off as “too perfect.”

Here are nine easy things you can practice to become more likable:

1. Be known for your positive attitude
2. Be passionate about what you’re doing
3. Have a good sense of humor
4. Assume the best in people, especially in front of others
5. Be complimentary, but not too complimentary
6. Listen more than you talk. Here’s how: hear it, acknowledge it, add something of value
7. Be known for your ability to adapt
8. Have good manners, good grooming and good language
9. Be humble

Choosing the right partner to grow your real estate business…

Have you been thinking about a career in real estate?  Are you already a REALTOR but not getting what you want from your existing brokerage?  I HAVE THE ANSWER!  The Mendoza Team with Keller Williams Realty has been in Phoenix for over 30 years.  We are one of the largest real estate teams in the valley and with annual production of nearly $50 million, we have the right solutions for you.  Check out this video from Gary Keller and then call me to set up a confidential meeting to talk about how we can help your career take off.

E.J. McKinney

Team Leader, REALTOR

The Mendoza Team/Keller Williams Realty- Sonoran Living

480-823-7770

This Month in Real Estate- May 2013

Phoenix Tops List Again of #1 Real Estate Market in U.S.

2013 Hottest U.S. Real Estate Markets

1. Phoenix, Ariz. 
> Change in home value: 24.0%
> Current home value: $165,600
> Bottom in home value: Q3 2011
> Forecast change in home value: 10.6%

No other metropolitan area’s housing market has grown faster than Phoenix, where home values rose 24% over the past year. The growth is expected to continue as well. Between 2013 and 2014, home values are projected to rise an additional 10.6%. The unemployment rate in the Phoenix metro area was just 6.7% in February 2013, down a percentage point from the same month in 2012. Notably, construction jobs were up 8.2% from the previous year, likely an indicator of a more robust housing market.