Have you ever caught yourself questioning what the local real estate market in 2020 will look like? How many of you have heard about a potential crash in the market for this year, or that there's too many people moving to the Phoenix area/Arizona in general because of cost of living and housing prices? We talked to Zoltar, one of the world's most famous fortune tellers... Just kidding! We didn't necessarily talk to Zoltar about the local real estate market but we did do some research about the market and we have answers to the questions many are asking their local realtor! Don't worry, we don't have any bad news to bear but mainly great news that will keep you at peace when it comes to potentially buying or selling a home this year!
Let's start with the most talked about topic - a potential 2020 market crash. Many of us have noticed that the local real estate market is booming and that's great, but it also makes many wonder if that boom is happening too quickly. Not to worry, there won't be a recession or setback any time soon for the Phoenix area (yay!). Truth is, with these types of myths being thrown around in conversations, current homeowners are going back and forth about selling their home. Although house prices are currently increasing, they aren't going up rapidly. As a matter of fact, according to a recent article written by AZ Big Media, house prices for 2020 aren't quickly rising like they did in 2019 . This puts a homeowner in an interesting spot because there's a potential fear of getting stuck to a depreciating asset in the future if they don't take advantage of those rising prices. This could mean that there would be more of a push to put their home on the market before it starts to depreciate if a homeowner decides to wait a few more years.
So what exactly is determining the rise in prices here in the Phoenix area? Well, there's plenty of factors that go into play, but the Home Buying Institute states that, "there are two dominant trends that stand out within the Phoenix real estate market. They are a growing population and a limited supply of real estate inventory. These two factors account for the ongoing rise in home values, and the positive forecasts for the Phoenix real estate market in 2020" Brandon Cornett, Home Buying Institute (January, 2020). The article also mentions that the population has nearly rose by 15% within the last 9 years, which is much higher than the nation's rate. Don't fear that percentage because it's actually a good thing! Another important detail to point out that relates back to increased house prices is the imbalance of supply/demand. According to Redfin, a real estate brokerage company, at the end of 2019 the Phoenix area saw a 2-month supply of homes for sale, while the national average was roughly at a 3-month supply. That 2-month supply of homes for sale is what created that imbalance of supply/demand, which isn't necessarily a bad thing, it just means that we are currently in a sellers market. For those who don't know what a seller's market is, it's basically a situation where there's more demand than supply for homes. For example, a home that is being put on the market will have plenty of potential buyers coming in, which leads to multiple offers on that home (that's a great sign). The only challenge Phoenicians would be facing is competition amongst the lower price ranged houses. Lower end house prices will create more competition for buyers who want to stick to prices that are considered more affordable. Speaking of lower-end house prices, who exactly is searching for homes within this price point? Let's find out!
And the award goes to... young people! Yes, you the millennial, is the type of buyer who is looking for a home that's considered to be in the lower price point. It isn't necessarily bad, if anything it's a good thing because it indicates that young people are becoming financially ready to make a pretty big purchase in their life that doesn't include pricey lattes or avocado toast. In fact, millennials who are in their late 20s are getting ready to purchase a home because they are feeling financially stable to do so. It's been predicted that the younger generation is fascinated with wanting to live that luxurious lifestyle they see in LA or New York City, but realistically, it won't be happening any time soon. That's why many of them are looking at areas that still have a similar lifestyle but with a better overall cost of living. Imagine the suburbs being filled with a bunch of millennials years from now...
Did you know that there's also another generation who is making a change to the market? You guessed it, boomers! Sorry to call your generation boomers, but it does sound better than saying senior citizens... Anyways, in the same article mentioned above by AZ Big Media, it's predicted that around 2035, seniors will approximately make up 1/3 of the overall population. An entire third of the population... That's a lot! It also does mean that they'll be in need of houses and/or retirement homes, which will be a hot market later down the road for us realtors.
So we went over the myth of a potential recession, why prices are rising, and which groups are creating a shift in the market, but what else is there to mention? Probably one of the more important factors of buying a home, money! We are by no means loan officers but we can tell you this, the interest rate for a mortgage is still relatively low! Last year in June we published a blog that talked about low rates and we're happy to say that they are still sticking around for another while! The Home Buying Institute's article brings up a very interesting point about overall mortgage rates. The Consumer Financial Protection Bureau did research on the local market and they created a chart showing us delinquency rates. What's a delinquency rate you ask? In the simplest terms, it's the percentage of loans that are considered past due. Back when the recession hit, the percentage for those rates were fairly high. Fast forward to 2019, those rates are considered to be lower than average. That just means homeowners are doing a much better job with keeping up on their mortgage payments. Keep it up Phoenix!
Before coming to an end, we just wanted to make a few honorable mentions to a few other factors that go into play when it comes to the local real estate market. As technology continues to advance, the way we do business is also advancing. Local realtors are now competing against iBuyers. An iBuyer comes from a computer generated service that's making it easier to purchase a home. How do they make the process easier? iBuyer companies make a potential seller fill out information about their current home, then sends them an offer and the price the iBuyer is willing to pay for the home. Most iBuyers are real estate investors who are looking to make cash offers on that specific home. This could potentially bring in a lower than expected offer, compared to a higher offer a traditional realtor can bring in, and those companies take the pain of marketing, repairs, etc. out of the equation. Oddly enough, the iBuyer method was pioneered here in Phoenix. By the way, check out this article by Forbes that gives you more insight on iBuyers and how they shifted the market as well. Another honorable mention is the labor market! With more people moving to Arizona, that means there's also a need for more people with skilled labor experience. It's good news for those who are looking to go a different route than the traditional, let's get a college degree route! Trade jobs, specifically in the residential construction industry, need to be filled with potential employees who are looking to still get a job that comes with great benefits and pay. Trust us when we say those jobs are definitely out there.
Let's wrap it up! Is it truly a good idea to sell your home to buy another one if you're already in consideration of doing so? We still suggest that you do, only because the market is in good standings and we would hate for you to lose value on your current home if you decide to sell later on. We aren't just saying this because we're realtors and we want to make money, we genuinely say this because we believe that the time is now! We want to help our clients make the best decision they can when it comes to their home. Whether you're buying or selling, we have all the resources you need to get what you want. We as a team are learning to adapt to these changes. Sure, we might complain here and there about those shifts but that won't stop us from going out of our way to get you one step closer to your dream home. We'll continue to develop those awesome relationships with our clients like we always have, we'll make sure we can personalize the experience for each and every person we work with, and we'll refocus on the basics of real estate while still keeping up with the times. Just for the record, we don't run off of algorithms, we run off of emotions and we can guarantee you that we are all real human beings, check out the picture below for proof. ;) #robotsdontshowemotionbutwesuredo
Blufish. (2020, January 26). Housing market in 2020: Here's what to expect in Arizona. Retrieved from https://azbigmedia.com/real-estate/residential-real-estate/housing-market-in-2020-heres-what-to-expect-in-arizona/
Blufish. (2019, October 28). Housing market forecast: What can we expect in 2020? Retrieved from https://azbigmedia.com/real-estate/residential-real-estate/housing-market-forecast-what-can-we-expect-in-2020/
Cornett, B. (2020, January 14). Outlook: Why the Phoenix Housing Market Won't Crash in 2020. Retrieved from http://www.homebuyinginstitute.com/news/why-the-phoenix-market-wont-crash/
Ellis, T. (2020, January 16). US Home Prices Up 7% in December. Retrieved from https://www.redfin.com/blog/housing-market-news-december-2019/
Wake, J. (2019, September 1). The Surprising Way Real Estate Agents Are Adapting To "iBuyers" Buying Houses Directly From Sellers. Retrieved from https://www.forbes.com/sites/johnwake/2019/09/01/the-surprising-way-real-estate-agents-are-adapting-to-ibuyers-buying-houses-directly-from-sellers/#a3fe9a942120
And just like that, we've started a new year and a new decade! Who else feels like the end of the year flies by?? We sure do but we're also happy with how our year went! From selling a few new builds and plenty of awesome homes, to seeing a great outcome for our annual breast cancer pub crawl and of course, giving back to our community. We as a team truly care about having a positive impact on our community, especially since many of us are Chandler natives! We'll keep it short and simple, we're extremely happy with how our year went, both as a team and as individuals and we're ready to crush our goals for the new year! Check out how our year went below!
It's that time of year again and we can't be more excited for this year's Pub Crawl! Spend the day with us as we make our way through Downtown Chandler for a worthy cause! All money raised from the pub crawl will go toward this year's recipient, Sonya Wade, who has been battling breast cancer as of this year.
Need some tickets for the pub crawl? Click here for the link to buy tickets! We can't wait to see everyone October 19th!
With the pub crawl being a few weeks away, we're still looking for sponsors and raffle items! Here's a few ways of helping us out for this event! We'd really appreciate any help, whether it's from sponsorships, donations, or simply showing up to the crawl! Get in touch with us if you're interested in helping, we'd love to hear from you!
Happy first day of the month! Can you believe we're already in the month of August?? Time will definitely fly by us since the end of the year is filled with plenty of holiday and school/work events! It's also Monsoon season, which means we'll be getting plenty of random showers and dust storms throughout the day, so let's prepare for that too.
So you're probably wondering, what does my home worth have to do with the rest of the year and the monsoon season? Well, unfortunately the monsoon season leaves our homes with damages from time to time, or your home is becoming a little too old to be going through the same repairs over and over again. Maybe it's time to upgrade to a bigger home because the entire family is coming over for the holidays. Regardless of the reason, it's important to know if it's financially the right time to be looking for a new home!
We're excited to introduce a new useful tool that we are giving to our clients (and potential clients) called Homebot! Homebot is a free tool that gives you a snapshot of what your current home is worth and it also comes with more in-depth information regarding your home, mortgage loan, your purchasing power, and much more! Once you sign up with one of us for Homebot, we see the same exact information you see. So, in case you have any questions regarding your Homebot information, don't be afraid to ask us! The whole point of using this new tool is to help our clients get a better understanding of their home in a financial perspective, and for us to be able to help you figure out what's your best option!
Homebot is a great tool to use for anyone who wants to move, buy a second house , or is just simply curious about what their home worth is. We won't pressure you into buying a new home, in case you were wondering. We truly just want to help you make the best home and financial decision for you and your family! Click here to sign up for Homebot today, and don't forget, it's a free tool for you to use so take advantage!
Summer is a perfect time to re-decorate your home to give it a more personable touch! With plenty of different styles to follow, we'll give you some ideas for summer time decorations!
Start off by looking at Nautical-themed decor, where blues, grays, and whites make a huge difference to the way you decorate. Make a bold statement by mixing in the lighter color palette with distressed woods and dark colors to make the room truly stand out!
Another great interior design to follow is tropical trends! Let your fun and creative side come out with bright colors and fresh vibes! Bring in pineapple prints and citrus inspired decorations to your home! Keep a white background to help make the bright colors pop. Don't be afraid to have fun with the tropical design, it truly brings in a great vibe! Remember, tropical is topical!
Want to try something a bit more laid back and sleek? Try out a brass design where coppers, brasses, and bronzes make for a classy splash with a modern and up to date feel! Mix in some light colors to the design and marble inspired decor for the ultimate sleek look!
It's finally here! The first day of summer! Here in Arizona it starts to feel like summer way before the official start date to the season. Spring hangs around for a bit and then boom, the weather starts to warm up instantly! It's like living in an oven sometimes but thankfully, there's plenty of ways to keep cool during the summer! Whether you're hosting a BBQ for your friends and family, or go to a water park, there's always something to do here in the valley during the summer!
To kick off the summer season, we asked the team what their favorite summer food and drinks are!
Our awesome realtor, Brooke Michie loves a classic Vodka and Gin drink for the summer! The amazing Kari Dean is hooked on Mexican mules and wine spritzers like Le Croix mixed with a nice and refreshing Pino Grigio, and your classic summertime favorite, beer! She also enjoys vodka lemonade and a classic gin and tonic with orange slices! Bright and bubbly Laura Kulakowski enjoys another classic summer time drink, margaritas! Our marketing manager Vanessa Contreras enjoys a cold Modelo from time to time but also loves drinking some classic Mexican natural freshers like jamaica and horchata!
"Where's Dave?" loves a nice sunbrewed iced tea and some shrimp salad! He also loves Food City's version of a tasty pico de gallo, eat it with chips, tacos, burritos, you name it! By day he's a hospital logistic and software systems manager, but by night he's a great realtor! Chad Cox loves sipping on a nice refreshing Dos Equis by the pool, and you can find Chad eating a delicious tuna ceviche anytime he heads to Rocky Point! The team's most funniest yet caring member, Sam Mobley (#mobleymagic), loves a nice and cool red Sangria from Blanco Taco + Tequila which is located in Scottsdale, AZ! Last but not least, the man who created this amazing team, the one and only Darwin Wall enjoys a nice ice cold Coors Light accompanied by some tacos!
Curious to know more about where and how everyone makes their favorite drinks or foods? Ask them! Follow each of our realtors on their social media pages and they'll gladly share with you their favorite summer time recipes and drinks! Let us know what your favorite summer time recipes and drinks are in the comments below! We hope that your start to the summer is a great one and make sure to stay hydrated this season!
Ever listen to the song "In the Summertime" by Mungo Jerry? It's a classic feel-good song that gets you ready for the summer season! Summers here in the valley can get pretty hot, but thankfully there's many different ways to keep cool! Whether it's a dip in the pool or a float down in the Salt River or going to a water park, there is always something that will keep you cooled down!
There are plenty of homes here in the valley that come with a pool, and who wouldn't want to have a little piece of paradise in their backyard? That's one sure way of staying cool during the summer season here in the valley! Considering that we are one of the fastest growing states in the U.S., people need a place to live. Surprisingly, one of the best times to be searching for a new home is now during the summer! School is out, the buying power is up, but most importantly, interest rates for mortgages are at a low right now!
It may be getting hot outside as we keep getting deeper into the season, but that shouldn't stop you from searching for a new home. There are many ways to work around the heat, especially if you want to take advantage of low interest rates. There's great inventory in the market, so keep an eye out on what's being listed and let us know how we can help!
Our jobs as realtors is to make the home buying process as smooth as possible. It does tend to slow down during the summertime, but we still go above and beyond for our clients. If you're considering buying a house anytime soon, think about doing it now during the summer and feel free to contact us if you have any questions or need some guidance with the home buying process! And don't forget to listen to that summer classic if you haven't already! ;)
It's finally Friday, woot woot! We have some exciting connections all the way from Chicago, IL that we'd like to share with you all! The Zimmerman Property Group is a top producing team filled with seasoned brokers who know the ins and outs of buying and selling a home in Chicago! Captain/owner Joe Zimmerman has more than 18 years of experience in the real estate industry and has the tools and resources to help his clients get a perfect real estate experience. He started the Zimmerman Property Group in 2018 and has created a team that has sold over 200 homes per year! His team continues to be ranked within the top 1% of the Chicago Association of Realtors. Curious to learn more about this amazing team? Click here to visit their website and get to learn more about Joe Zimmerman and his team!
This morning David Rose from our team showcased the beautiful Chateau La Vie mansion in Chandler, AZ! If you missed watching it on tv we have the video right here! Take a look!
The darwin Wall Team. Assisting Arizona Home buyers and Sellers in the East Valley.