MARKET DATA & PHILANTHROPY          |          TESTIMONIALS


Monday, March 23, 2015

Market Report - Maricopa County

Market Snapshot (compared to prior month):

•Closed sales increased 25.7% over prior month (normal trend)

•Pending sales decreased 14.5% (NOT a normal trend)

•Active listings decreased 21.2% (NOT a normal trend)

•New listings decreased 12.5% (fairly normal trend)

•Expired listings increased 12.9% (NOT a normal trend)

•Average LIST price increased 2.4% (fairly normal trend)

•Average SALES price decreased 1.59% (NOT a normal trend)

•Days on market remained the same @ 92 days (normally increases in February)

•Bank owned property sales increased slightly

•Short sale closings increased slightly




For Buyers

The month of February 2015 saw an increase in closed sales, a decrease in active listings, a decrease in NEW listings entering the market, and a slight increase in the number of listings that “expired” or were removed from the market. The result is that we saw buyers competing for inventory, especially in homes priced below the FHA limits. Buyers saw multiple offers return, and more competition from cash buyers.


The impact?  Buyers need to be more diligent in making sure they are working with a competent lender and real estate professional. In addition, these changes in the market could impact a buyer’s ability to negotiate on price, request contingencies and repairs, and to obtain concessions from sellers to offset closing costs.

For Sellers

The month of February 2015 saw an increase in closed sales, a decrease in active listings, a decrease in NEW listings entering the market, and a slight increase in the number of listings that “expired” or were removed from the market. The result is that days on market remained steady in a month when we normally see an increase.  However, the average of 92 days on market is the highest we have seen since December of 2011.

The impact? Sellers need to be responding to the market. If there are showings on the house but no offers, the market is not reacting favorably to the price/location/terms. Buyers are still requesting for assistance with closing costs AND, in many cases, are asking for repairs when an inspection is completed. Sellers can expect this trend to continue, and should factor this into the costs of selling a home.


STOP!


Be sure to call if you have any questions about this report or about how the market is performing.  This report includes MLS data for Maricopa County only as provided by the FlexMLS system.  Please note that MLS search results fluctuate as data is added to the system and the figures below were obtained on 3/3/2015.

Would you like to know what is happening in your neighborhood?

Would you like to know the value of your home?

Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?


We would be very happy to get you that information.

Monday, March 9, 2015

Understanding the Millennial Buyer

For those of you that have not read the Sunday Real Estate section of The Arizona Republic, March 8, 2015, we would like to give you the highlights of the article on the Millennial generation, why they aren’t buying and what they want.

The 18 to 35 age group is not ready, not able, or not convinced that home buying is a priority or a need. Many have high student loan debt, have watched their parents lose money on their homes, and prefer to remain flexible with job location. They are marrying later and delaying childbirth which makes them perfect tenants for all of the upscale apartments being built. Even with great lender programs geared to the first time buyer, Millennials are not taking advantage of them.
When they do venture into the home buying market, they are very specific regarding what they want. For those of you who have your homes on the market or are considering doing so, here is what will appeal to the Millennials:

1.    Covered closing costs. Because of their student debt, many have barely scraped together a down payment but they do not have the cash for the closing costs.
2.    A home that is move-in ready. If they don’t have the money for closing costs, they also do not have the cash to put into repairs or renovations. They will ask for almost all of the inspection report items to be fixed but may take a pass on the house if it needs all new bathrooms and kitchen.
3.    An open floor plan. This can mean the “great room” style or at least rooms that could have multiple uses, i.e. the dining room can become an office. While there isn’t much you can do about your floor plan, how you stage your home can make a difference for the younger buyer.
4.    Low-maintenance living. You may have landscaped your front and back yards with lovely lawns and plants but the Millennial will see the maintenance and the time required to keep it looking good. Their weekends are not geared towards yard work or home maintenance.
5.    Location might be up for grabs if they love the house. Many younger buyers are not married to a neighborhood. They often select a home over the community and take on a longer commute. They will take new builds in an area further out if it means upgrades are already in place. Good schools, nearby restaurants, and any kind of walkability often have priority for them so master-planned communities work well.

     The Millennials have also shown that they plan to move more often than older generations have done. They tend to sell their homes within 2-5 years to move on to either larger or homes in another city. It seems that they are not ready to settle down for the 20-year time frame of their parents. Once they marry and have children, they will most likely see the Nomad lifestyle disadvantages, but that hasn’t yet happened.

     So what is the take-away from this information? If your home is an area that appeals to young professionals or first-time buyers, get it ready to pull them in! We are not saying that you should remodel or spend money on updates unless you have a 20-year old water heater, HVAC, and roof. If you can’t replace, at least service and do any repairs so that you can tell buyers they all work well. Plan to cover some or all of the buyer’s closing costs, buy them a home warranty, and stage your home (using your own belongings) to show space and versatility in the floor plan. When you take the time to get your home ready to sell, it will appeal to all ages not just the Millennials.
  
     If you are considering selling and would like our help and advice, please do not hesitate to call. We can help with everything from repair recommendations to staging to the creative marketing it takes to bring in buyers of all ages!