Dennis Carr

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Phoenix, AZ Metro Daily Market Update

Posted On: April 12th, 2022 6:47PM

Taking a look at today's snaphsot, it's hard to buy into the narrative the rising interest rates are impacting the Phoenix, AZ Metro market.  Perhaps the next few months will tell a different story, yet today there is still a huge demand/supply imbalance.  It's an amazing time to be a seller, this more homes coming off the market than adding to the already historically low supply.  These numbers are as of 10:00 this morning.

 

Today's Phoenix, AZ Metro Real Estate Update

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The Metro Market Report 4-8-2022

Posted On: April 8th, 2022 5:48PM

The Hardest Working Agent in Arizona
 

The Changing Rental Market

While more forward-looking data will need to confirm the trend, there is clear evidence that the rental market has shifted. 
  • Active listings are up 44% from this time last year. 
  • The average lease price per sq. ft. being offered is down from $1.80 to $1.69 over the last month, a fall of 6%.
  • The average lease price per sq. ft. being offered this time last year was $1.99.  This equates to a 15% fall over the last 12 months.
If this trend continues, it will put pressure on cash investors to soften their aggressive upward pricing purchase binge on entry and mid-priced homes. Investors purchasing with financing will be impacted not only by the decrease in rental income, yet a higher mortgage payment as a result of recent rate increases.   
 

March Maricopa County Sales Data

(single-family, condos, and townhomes)

  • There were 11,382 closed sales recorded during March 2022, down 5% from March 2021
  • There were 1,558 new homes closed, down 11% compared to March 2021
  • There were 9,824 re-sale closings, down 4% from March 2021
  • The median sales price was $470,000, up 29% from $365,000 in March 2021
  • The new home median sales price was $497,027, up 27% from $391,640 in March 2021
  • The re-sale median home price was $465,000, up 29% from $360,000 in March 2021
Supply chain issues are still preventing homebuilders from closing as many homes as they wish and work-in-progress remains very high. New home prices are still rising more slowly than re-sale prices, but the gap has narrowed considerably over the last six months. The new home median has jumped over 20% in the last half-year, while the re-sale median is up "only" 12%.
 

A Glimmer of Hope for Greater Phoenix Buyers?

While very premature in order to establish that we have a definitive upward trend taking place, active listings below 3,000 sq. ft. have increased 22% vs this time last year.  Interest rate hikes like we are witnessing tend to impact buyers shopping for homes in this "lower" price range.  Demand has softened in the segment, although new listings have also come at a slower pace.

Inventory above 3,000 sq. ft. is down 11% vs last year, and homes above 5000 sq. ft. have decreased 43%.  It is apparent that interest rate hikes have not impacted demand for larger homes. 
 
 

Balancing Your Wants and Needs as a Homeowner Today

Since the number of homes for sale is low today, it can feel challenging to find one that checks all your boxes. But if you know which features are absolutely essential in your next home and which ones are just nice bonuses, you can land a home that fits your needs.

Danielle Hale, Chief Economist for realtor.com, explains it like this:

“Focus on the goal you set out for yourself, like your list of must-haves and nice-to-haves and your budget, . . . Stick to that. Be persistent.”

So how do you go about creating your list of desired features? The first step is to get pre-approved for your mortgage. Pre-approval helps you better understand your budget, and that plays an important role in how you’ll craft your list. After all, you don’t want to fall in love with a home that’s too far out of reach.

Once you have a good grasp of your budget, you can begin to list all the features of a home you would like. Here’s a great way to think about them before you begin:

  • Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
  • Nice-To-Haves – These are features that you’d love to have but can live without. Nice-To-Haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender (examples: a second home office, garage, etc.).
  • Dream State– This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).

Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your real estate advisor. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your needs.

Bottom Line

Crafting your home search checklist may seem like a small task, but it can save you time and money. It’s also one of the keys to being successful in today’s competitive market. Connect with a real estate professional so you can work together to find a home that fits your wants and needs.
 
Homes with quality listing photos can sell quicker and for more money. Professional listing photos will increase the number of buyers who want to see your home in person! Know a great photographer? Tag them below!
 
 
As of 4/7/2022
30-year fixed: 4.860%
20-year fixed: 4.617%
15-year fixed: 3.899%
Rates have Increased Significantly since last week. 
Information courtesy of NerdWallet USA
 
Home Valuation Tool
Client Reviews
Search Homes
 
Market Reports (By Request)
 
Scottsdale
Phoenix
Paradise Valley
Cave Creek
Carefree
Fountain Hills
Mesa
Tempe
Chandler
Gilbert
Glendale
Peoria
 
 

 
Dennis Carr - Realtor, GRI
Licensed in AZ and CA
480.825.2870
 
Thinking of Selling or Buying?
 
Thank you for reading the Arizona Metro Market Report.  I hope this newsletter helps you stay informed about local real estate trends.

The Phoenix real estate market continues to be one of the most vibrant in the United States. An exodus from tax burdensome states such as CA, IL, and NY has helped fuel the growth. In spite of the rising prices in Arizona, the cost of housing continues to be a bargain for many out-of-state buyers. Overbidding and cash purchases are common themes. Currently, the market heavily favors sellers due to extremely low inventory.
 
If you are considering purchasing in Arizona and would like to discuss the possibility of buying or selling without being pressured, contact me so I can learn more about your timeline and real estate goals. It is more important than ever to plan ahead and develop a strategy for success. 
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The Metro Market Report 4-1-2022

Posted On: April 2nd, 2022 12:33AM


The Hardest Working Agent in Arizona
 

The latest S&P / Case-Shiller® Home Price Index® numbers were published on February 29

The new report covers home sales during the period November 2021 to January 2022

Comparing with the previous month's series we see the following changes:

  1. San Diego +2.50%
  2. San Francisco +2.35%
  3. Tampa +2.33%
  4. Seattle +2.02%
  5. Dallas +1.89%
  6. Miami +1.83%
  7. Las Vegas +1.70%
  8. Phoenix +1.69%
  9. Denver +1.61%
  10. Los Angeles +1.59%
  11. Atlanta +1.47%
  12. Charlotte +1.26%
  13. Washington +1.11%
  14. Portland +0.91%
  15. New York +0.86%
  16. Detroit +0.71%
  17. Boston +0.66%
  18. Chicago +0.64%
  19. Minneapolis +0.50%
  20. Cleveland +0.33%

Phoenix has dropped 2 places to eighth place but remains above the national average, which was 1.41%. No city declined month to month. Given that the market data does not include any of the Spring selling season, these are particularly strong numbers, particularly for the West and South of the country

Comparing year of year, we see the following changes:

  1. Phoenix +32.6%
  2. Tampa +30.8%
  3. Miami +28.1%
  4. Dallas +27.3%
  5. San Diego +27.1%
  6. Las Vegas +26.2%
  7. Seattle +24.7%
  8. Charlotte +24.4%
  9. Atlanta +22.5%
  10. San Francisco +20.9%
  11. Denver +20.8%
  12. Los Angeles +19.9%
  13. Portland +17.7%
  14. Detroit +14.0%
  15. New York +13.5%
  16. Cleveland +13.3%
  17. Boston +13.3%
  18. Chicago +12.5%
  19. Minneapolis +11.8%
  20. Washington +11.2%

Phoenix is top of the year-over-year table for the 32nd consecutive month.

The national average was 19.2%, up from 18.8% last month.
 
 

A Key to Building Wealth is Home Ownership

The link between financial security and homeownership is especially important today as inflation rises.  But many people may not realize just how much owning a home contributes to your overall net worth. As Leslie Rouda Smith, President of the National Association of Realtors (NAR), says:

“Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.”

Here are just a few reasons why, if you’re looking to increase your financial stability, homeownership is a worthwhile goal.

Owning a Home Is a Building Block for Financial Success

A recent NAR report details several homeownership trends and statistics, including the difference in net worth between homeowners and renters. It finds:

“. . . the net worth of a homeowner was about $300,000 while that of renters was $8,000 in 2021.”

To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter (see visual below):

The results from this report show that owning a home is a key piece to the puzzle when building your overall net worth.

Equity Gains Can Substantially Boost a Homeowner’s Net Worth

The net worth gap between owners and renters exists in large part because homeowners build equity. As a homeowner, your equity grows as your home appreciates in value and you make your mortgage payments each month.

In other words, when you own your home, you have the benefit of your mortgage payment acting as a contribution to a forced savings account. And when you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.

To sum it up, NAR says it simply:

“Homeownership has always been an important way to build wealth.”

Bottom Line

The gap between a homeowner’s net worth and a renter’s shows how truly foundational homeownership is to wealth-building. If you’re ready to start on your journey to homeownership, talk with a trusted real estate advisor today.
 
 
As of 3/31/2022
30-year fixed: 4.560%
20-year fixed: 4.197%
15-year fixed: 3.655%
The 30 and 15-year rates increased slightly compared to last week, while the 20-year rate declined slightly. 
Information courtesy of NerdWallet USA
 
 
Home Valuation Tool
Client Reviews
Search Homes
 
Market Reports (By Request)
 
Scottsdale
Phoenix
Paradise Valley
Cave Creek
Carefree
Fountain Hills
Mesa
Tempe
Chandler
Gilbert
Glendale
Peoria
 

 
Dennis Carr - Realtor, GRI
Licensed in AZ and CA
480.825.2870
 
Thinking of Selling or Buying?
 
Thank you for reading the Arizona Metro Market Report.  I hope this newsletter helps you stay informed about local real estate trends.

The Phoenix real estate market continues to be one of the most vibrant in the United States. An exodus from tax burdensome states such as CA, IL, and NY has helped fuel the growth. In spite of the rising prices in Arizona, the cost of housing continues to be a bargain for many out-of-state buyers. Overbidding and cash purchases are common themes. Currently, the market heavily favors sellers due to extremely low inventory.
 
If you are considering purchasing in Arizona and would like to discuss the possibility of buying or selling without being pressured, contact me so I can learn more about your timeline and real estate goals. It is more important than ever to plan ahead and develop a strategy for success. 
 

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March Phoenix Metro Update

Posted On: March 30th, 2022 2:54AM

Phoenix Metro Real Estate Update

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My Slice of the Pie Pizzeria

Posted On: July 18th, 2017 5:27AM

Hidden behind Bosa's donuts on the 3700 block of E Indian School Road, you will find "My Slice of the Pie" Pizzeria.  I wandered in this evening, and met Randy, the owner.  A Phoenix native, Randy put in "all his dough" last year to launch his business.  Having experience as a manager of Oregano's Pizza Bistro, the opportunity to own his own establishment drove him to sell his house, and take a chance at success in small business. He has his eye on opening additional locations in the future, and is off to a healthy start on his first one.  

 

Randy prides himself of operational excellence, and is process driven.  Although he was a manager at Oregano's, he had no experience making pizza dough.  He learned quickly through trial and error.  He explained that there are many variables due to the yeast in dough that makes the process so interesting. "Temperature, barometric pressure, water temperature, and humidity are all factors in the consistency of dough," he explains.  

 

After an encouraging first year, Randy says his pizzeria is getting more and more traction.  He attributes his success to consistency, quality, and excellent service.  He values the neighborhood experience, and believes Arcadia area residents feel the same way.

 

As Randy and I chatted, I enjoyed two delightful slices.  The crust was light; the sauce perfect, and the melted cheese mouth-watering.  He stresses fresh ingredients, and a non-corporate pizza experience.  I shared with him a story of eating at one of the national brands last year, and having to throw away the pizza due to the "plastic," "preservative," taste.  He says people appreciate authentic, local options.

 

The pizza made at "My Slice" is New York thin-crust style.  They also serve sandwiches, such as homemade meatball and other Italian varieties.  They make wings, and delicious salads also.  Besides traditional-style, they make Southwestern and pizzas influenced by Mexican flavors, such as the "Al Pastor" or "Supremo". They also serve up daily, weekly, and monthly specials.  

 

If you see the $2.00 Cheese Slice Sign on Indian School Road in front of Bosa's, pull in, and experience a piece for yourself.  You won't be disappointed, and will be helping a local business at the same time.

 

 

 

good lead, Dennis --- will check it out!

Steve Ballard 3/10/2018 06:08

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