****MARKET UPDATE -AUGUST 2020****

Navigating uncharted territory without a compass is challenging at best. Nothing about this year’s real estate activity fits into the usual cyclical patterns. Data companies are updating their projections seemingly daily.

Projections are based on trends and it takes at least 3 weeks to see an emerging trend. Before the trends, there is consumer sentiment. Home has never been more important. Today we live, work, play, and teach at home. This is why real estate is the shining star in the midst of so much bad news.

With a 58% increase in new starts from June to July, multi-family new builds made up the majority of the 22.6% new housing starts in July over June. The new builds are the only thing keeping prices from skyrocketing out of control. (Bisnow)

In July, single family starts were up 7.4% year over year. (Elliot Eisenberg)

New single-family sales are were up in July 36.3% year over year. (US Census Bureau & HUD)

Resale closings in July were up 24.7% from June which were up 20.7% from May. July’s closings were up 8.7% year over year. (NAR)

After 101 straight months of price increases the national median sales price is $304,100; the highest ever and an 8.5% increase over July 2019. (NAR)

The median listing price increased 10.1% year over year for week ending August 15. (Realtor.com)

People are buying larger houses. In July sales of houses with a square footage range of 3,000 – 5,000 are up 21.2%. (Redfin) Reasons for the increased space:

21% dedicated office space to work from home.

21% outdoor/recreation space.

7% home-schooling space.

During Q2 2020 San Francisco is the only city in the country without an increase in prices. (FHFA house price index)

FOOD FOR THOUGHT-- “Although housing prices have consistently moved higher when the favorable mortgage rates are factored in, an overall home purchase was more affordable in 2020’s second quarter compared to one year ago.” ~DR. LAWRENCE YUN, CHIEF ECONOMIST FOR NAR

Enough about National Markets-- Here is what is predicted to happen on the home front! The AZ Market:

Local economist Elliott Pollack believes that the Phoenix metro housing market will remain strong. Between the strength of our job market, affordable prices, stability, and good weather people will continue to move here from other parts of the country.

Supply: Inventory remains low but is not dropping at incredible rates. As of yesterday, our inventory is 64.4% below normal. Active listings excluding under contract accepting backups (UCB) are at 8,000 (we should have 25,000) down 40% year over year and down over 4% month over month.

Southeast Valley New Listings: This a bi-weekly comparison of new listings in 2019 and 2020 for Tempe, Mesa, Chandler, Gilbert, Apache Junction, and Queen Creek. 2019 followed the typical annual cycle showing more activity in the first half of the year. 2020 is not following any typical patterns. Which makes it impossible to know what the orange line will do next.

Demand: Pending sales up 16% year over year. This is significant given the low inventory. Our demand is nearly 22% above normal. The demand continues to rise but at a slow rate.

Sales & Prices: Phoenix metro area closed sales are up 3.2% month over month and up 15% year over year. The median sales price is $320,500, up 14.5% year over year. Healthy appreciation is 3% annually.

Southeast Valley New Listings, Pendings, and Closings: This week over week comparison for Tempe, Mesa, Chandler, Gilbert, Apache Junction, and Queen Creek since March 15 shows the listing progress we have made. It remains to be seen whether or not last week’s dip in new listings is a trend or an anomaly. Demand continues to increase slightly, absorbing the new listings quickly.

Economic Indicators:

Elliott Pollack estimates that as many as 30-35% of business will permanently close due to COVID.

US debt is $14.3 trillion. The total annual US GDP is about $20 trillion. (Federal Reserve Bank of New York)

70% or $9.8 trillion in mortgages

$1.54 trillion in student loans

$1.3 trillion in car loans

$820 billion in credit cards

$380 billion in revolving lines of credit

$400 billion in miscellaneous

Okay- so what does all this data mean to you? 5 notable thoughts!! 

•  Right now getting a loan is about as cheap as you will ever see it. 
•  If you are thinking the home you have right now will not meet your needs within 5 years, then NOW is the time to sell. 
•  If you are thinking of Buying a home within the next 3 years-- again NOW is the time to do it! 
•  If you own a home and want to take advantage of these AMAZING interest rates, Do a REFI-- it could lower your payment and add some cash to your pocket. 
•  Elections USUALLY have a slight effect on the real estate market-- but as you have seen 2020 has been an exceptional year, so at the end of the day Live the Best Life You Can and do what you love--

Remember 2012 is around the corner and We are going to get this this, yuck 2020 year! Please call or Text me if you want to talk about a specific situation or you need to buy or sell a home-- I am always here for you!

 Special Thanks to Sarah Perkins--  :)  

Choosing Energy Efficient Windows

Are you wanting to make an impact on your energy bills? 

     If eyes are the windows to the soul, then surely windows are the eyes of your house, right? Something like that, anyway. When it comes time to replace those windows, it’s important to make a carefully considered decision before pulling the trigger. Today’s modern windows come in a staggering number of designs, made from a lot of different materials, all with different ratings to help you better understand their performance.

Choosing the Best Windows for the Job

The good news is that there’s no one window that’s perfect for your home, so you’ll have plenty of options. There will probably be many different types and styles to choose from, with features that will help you improve your energy efficiency and keep your home cool in the summer and warm in the winter. Start by choosing the window style and cladding materials you want. Once you’ve settled on that, you’ll find yourself toe to toe with the NFRC label.

What’s on an NFRC Label?

The NFRC label is a useful sticker developed by the National Fenestration Rating Council to help you better understand what you’re getting from your window purchase. It contains lots of useful information, and if you know how to decode it, you can learn a lot about how your new windows will behave in all kinds of weather.

Here’s what you’ll see on the label:

• U-Factor. The U-factor tells you how much heat your window will lose when compared to other windows. A lower number means that there’s less heat flow between the glass, with values as low as 0.30 for double-pane windows and 0.15 for triple-pane windows. This measurement is only for non-solar heat flow, so don’t hesitate to go for a low U-factor if your home relies on passive solar for heating.
• Solar Heat Gain Coefficient (SHGC). If you do have a passive solar home, this part of the label is going to be really important for you, because it shows how much solar radiation can pass through the window to be released into your home. A low SHGC rated window transmits a lot less radiation and is better at acting as a shade in the summer. High SHGC windows allow more radiation to pass through the glass, adding more heat to your home. Low SHGCs are excellent for super hot and sun-intense areas like the desert southwest, whereas high SHGCs are perfect for homes that don’t experience intense summer heat but might benefit from the extra heat being transferred indoors in the winter.
• Visible Transmittance. Do you like lots of indoor light? Most people do, but it’s not perfect for every spot. That’s why windows have options! Visible transmittance refers to how much light visible to the human eye is allowed to pass into interior spaces. This rating ranges from 0 to 1, with 0 transmitting the least amount of light and 1 transmitting the most.
• Air Leakage. Drafty windows are almost a feature of older homes with older windows, but they don’t have to be with tightly designed, properly installed new windows. A higher number indicates more air leakage, a lower one means less. This number is based on the windows being installed correctly, which is sometimes difficult for a homeowner to do on their own, so be sure to ask for advice to get the most value from your purchase.
• Condensation Resistance. Condensation forms on a window when moist air hits window glass that’s significantly cooler. A high number tells you that your new windows are highly resistant to condensation. Although condensation is mainly a cosmetic issue, it can lead to longer term problems. So if that’s a major problem where you live, you’ll want to give this part of the label careful consideration.

What If I Need Help With My Windows?

Whether you just want to purchase windows or are looking for a pro to handle the entire job, you’re in luck!

Prepare for the storms that are coming will save you time and money in the long run.

As the monsoon season get started and as spring turns to summer, Most folks think, BBQ's and baseball and all kinds of summer fun! But here in the valley we as homeowners should be thinking of doing a little preventive maintenance in additions to all that fun! Unfortunately, not all of the weather is going to be so wonderful. Depending on where you live in the valley, you may face several severe storms during the summer as well as the usual summer storms and rain. Now is the time to prepare for storm season to make sure that you aren’t taken by surprise when bad weather hits.

Trim the Trees
Falling limbs and trees are one of the big causes of property damage associated with storms. A lot of this can be prevented with some forethought, however. Trim back or remove heavy or dying limbs that hang over your house, vehicles or power lines. Diseased, damaged or dead trees should also be removed to prevent them from falling as a result of heavy winds.

Check your Drainage 
Knowing where the water pools on your property is a great thing to be aware of and if any pooling is happening around your foundation you should be taking care of it and getting a landscape company to the  help with the grading and they can do a lot to make sure your home is safe. 

Inspect the Roof
A roof is easy to ignore until it starts leaking, but at that point a significant amount of damage may have already been done. To help you get ready for storm season, take some time to walk around your home and see if you notice any visible damage such as missing shingles or notable divots in the roof material. You might also consider bringing in a roofing crew that offers roof inspections as part of your storm preparations. The more potential damage you find now, the easier it will be to avoid leaks and other damage when storms hit.

Secure Everything
Wind can do a lot of damage during storms. Double check any shutters, downspouts or other wall fixtures to make sure that they’re well secured, tightening screws or replacing securing straps as needed. If you have items in your yard that could be moved by the wind, such as a trampoline, consider getting straps and pegs to secure it to the ground as well. The more secure everything is, the less chance that there is for property damage to occur in strong winds.

Mind Your Electricity
Between high winds and lightning, storms can spell bad news for your electrical power. Installing a lightning rod or a full-home surge protector can help protect you in the event of lightning strikes or power surges, and hooking critical electronics up to an uninterruptable power supply (UPS) can keep them running for a little while even if your power drops out. If it’s in your budget, you might also consider getting a home generator that you can switch on if the power goes out.

Check Your Insurance
If you have homeowner’s insurance, it’s worth double checking to see what is and isn’t covered by your policy. While insurance might cover several common forms of storm damage, a lot of policies don’t cover flood damage unless you take out additional coverage. By understanding what is covered, you can get a better feel for what additional coverage you might need to be secure even in the worst of storms. It is also a good time to evaluate if you have items that a regular insurance policy wouldn't cover and get a separate rider for these items-- such as jewelry, guns, tools, or electronics.  Need a good contact for insurance?  Contact me and I will make sure you have a great person!!  

Get Storm Ready
If you need to do some work around the house to really get it ready for storm season, HomeKeepr is here to help. Sign up for a free account today to find roofers, electricians and other home pros who can hook you up with everything you need to protect yourself from the storms.

New Real Estate "Rules and or Guidelines" Under Social Distancing

In Arizona and all around the Nation-- heck the world- things are changing.  With Covid-19 looming around the corner on the door handle, on a light switch perhaps even in your car, you just can’t be too careful!  Arizona has been hit, but as bad as some states. In this new normal you will notice many more Virtual tours, open houses done through video, or Facebook, sanitizer wipes in each home asking the potential buyers to make sure they use them. Buying or selling a home can be stressful even under ordinary circumstances now add all of this-- it can be overwhelming! Unfortunately, the current state of the world is far from ordinary and no one knows how long this will be our new normal. The housing market is feeling the crunch- but in some ways is becoming more efficient. As fewer buyers want to get out and shop for a home, and fewer sellers want to take a risk with selling. Brokers and Agents are finding creative ways to make it all work for their clients. Now- This isn’t to say that nobody’s buying and selling, of course; the market is just going through some changes and some tweaks.

One of the biggest changes revolves around how buyers and sellers are handling social isolation and social distancing. If you’re thinking of selling, or are in the market to buy, here are a few new “rules” to keep in mind when entering the real estate fray in the era of self-isolation.

Increasing Online Presence

One of the big changes to the real estate process is an increased dependence on online resources instead of in-person shopping. This includes lots of pictures and videos of properties being posted online, but many sellers are taking things even further than this. Recorded virtual tours, online conferences to allow buyers to ask questions about the property, and even livestream walkthroughs with a seller or agent showing the property are all increasingly popular options to supplement or even replace in-person showings and conferences.

Fewer if Any Open Houses

Open houses are a popular way to show off a property to many potential buyers, but in the current crisis these events are a big no-no. In many locales, open houses aren’t even allowed under state and federal guidance. In states where they haven’t been specifically banned, many sellers are still hesitant to hold an event that would bring multiple people into close contact with each other. Online “virtual open house” conferences are popping up as one option to adapt to this, letting multiple potential buyers come together on Zoom or a similar video conference service at the same time to get a better feel for the property that’s being sold.

More One-on-One Time

As convenient as online access and virtual tours are during the current isolation period, few if any buyers would sign on the dotted line without getting a chance to see a property in person. To accommodate this, many sellers and agents are meeting with potential buyers by appointment only. This lets a potential buyer get a good look at the property in question while also restricting the size of the meeting as much as possible. Many of these appointments are made with the understanding that if any participant feels the least bit under the weather on the day of the meet-up, then it will need to be rescheduled for another time.

Respecting Social Distancing

Even when buyers and sellers do meet up, the process is usually a little different than it used to be. Social distancing rules are usually respected, meaning that everyone involved should stay at least six feet apart at all times to prevent potential infection. Discussions about the property and general Q&As are more likely to occur outdoors in the open air, and any greetings or introductions skip out on traditional handshakes. Masks, gloves, shoe covers and hand sanitizer are commonly available on site, and many sellers go through and open all of the doors and windows to both maximize airflow and to allow interested buyers access to the entire house without having to touch doorknobs or other surfaces in order to see inside.

Closing Remotely

Remote closing—In Arizona have been approved and should be implemented very soon. The negotiations are becoming much more common, taking advantage of video conferencing to bring everyone together without actually having to be in the same room.

Now, There may be some instances where people have to meet up to actually sign paperwork because it removes that point of contact, but digital signings of the actual closing documents are more common and notaries are starting to explore the ways they can use the technology and still be in compliance with the law. Even when people do come together for closing and signing, it’s much more likely that everyone will utilize social distancing and that both parties will use their own pens instead of sharing.

As the situation evolves, so do the added measures so keep in mind it is a moving target and I have stayed on top of all the details to make sure you are getting the best care and the best team around! 

We are all in this together, and if there is anything I can do to help you buy or sell a home- please call or text me and I would be happy to help in any way I can! 

Are you wanting to find a home in Mesa with 4 bed, 3 bath, 3 car garage, RV pool and workshop?

Take a tour of this Mesa Gem- 4 bed, 3 bath, 3 car garage, RV gate, pool and a workshop. This home is 2448 sq ft with the popular Athena floor plan, it has a comfortable floor plan with formal living/dining and an eat in kitchen, granite countertops & lots of cabinets, and pantry. Gas fireplace in the living room and split master suite. The master bathroom has double sinks, separate tub and shower, large walk in closet with plenty of storage. The laundry has a sink and more cabinets for storage. The other side of the home is appointed well, with a jack and jill bathroom adjacent to 2 bedrooms. You will be pleased with the 3rd full bathroom in the hall and the last bedroom that is being used as an office, now. We are just getting started- heading outside, the patio will always be shady, and the play pool is perfect for the Arizona summers, the shed/ workshop is HOA approved, and is perfect for the hobby of your choice-- In addition, newer paint outside and The RV gate is positioned to be very usable, and the 2 AC units were just replaced 2 years ago with seer 16 very efficient units. Hurry and make your appointment to see this one!

https://my.matterport.com/show/?m=o9hmyug2t4E&brand=0