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Will Coronavirus Impact the Housing Market too?

Ever since the outbreak of the Coronavirus from China, things have turned a little upside down. Stores are running out of food and toilet paper. Businesses are closing down, some being forced to close and only do take-out. Even the President has put limits on things such as no gatherings over ten people.

If you’ve been monitoring the situation at all, you know that with all the madness, the stock market has already taken a significant hit and this virus is beginning to affect our economy in many ways. With that being said, the question on everyone’s minds is, “Is the housing market next?”

Will the ramifications of the Coronavirus make their way into the Real Estate world?

One great article from curbed.com dives into this question. Read below for their take on the Coronavirus and the Housing Market, discussing where the market stands, what has happened in years past, and what you should be thinking about both as a potential buyer and a as a homeowner.

HOW CORONAVIRUS IS IMPACTING THE HOUSING MARKET: THE ECONOMY IS GRINDING TO A HALT. WILL THE HOUSING MARKET FOLLOW?

Few homes look their best in the dirty grays of late winter, which is, in part, why homebuying season coincides with the arrival of spring. This year, however, the crocuses that can make a house look that much nicer are showing up alongside the less reassuring news of a virus circling the globe.

The spread of COVID-19—more commonly referred to as coronavirus or novel coronavirus—has officially been declared a pandemic by the World Health Organization. It’s already claimed more than 6,000 lives worldwide. Major events and conferences have been postponed or canceled, corporations are telling employees to work from home, and the stock market has dropped almost 30 percent since February 24.

The CDC has recommended social distancing as a preventive measure for getting the virus, but if you’re already in the market for a house, all the uncertainty might have you worried about the housing market. Will it suffer a swoon similar to Wall Street?

There are almost 4,000 cases currently confirmed in the United States, and that number is almost certain to rise. The countries where the virus has hit the hardest—namely China, where more than 81,000 cases have been documented—are global manufacturing hubs that corporations use as suppliers. China’s economy has been brought to a standstill as a result of the virus, and the longer it stays that way, the more the United States economy will be effected.

Historically low inventory and rock-bottom mortgage rates would normally set the stage for a highly competitive homebuying season. While recessions normally have only a minor effect on the housing market, the coronavirus is making life and markets anything but normal.

Coronavirus already pushing mortgage rates lower

Late Sunday, the Federal Reserve announced a second emergency interest rate cut since the coronavirus outbreak, bringing the yield on Treasury bonds to almost 0 percent. Furthermore, the stock market crash can have an effect on interest rates, too.

When investors start thinking the stock market is too risky—like right now—they sell their stocks and buy bonds. The increased demand pushes the price of bonds higher. The higher the price of bonds, the lower the interest payment—called the yield—is relative to the price. When bond yields are lower, mortgage rates are lower, too.

However, the New York Times reported that this inverse relationship between stocks and bonds has not held as firm as it has historically, probably in part because interest rates were already so low. Rates are down to around 3.7 percent, and it’s an open question how low mortgage lenders are willing to go, regardless of whether the Federal Reserve cuts its target rate again.

Where the housing market currently stands

The housing market is, in a word, tight. Consider Seattle, where home prices have risen dramatically as it has become one of the country’s leading tech hubs. And while the nation as a whole is suffering from housing shortages, Seattle’s available homes for sale dropped a dramatic 27.6 percent year-over-year in January.

The housing market in other cities isn’t much better off: supply is at near record lows nationwide, and demand is near an all-time high. This combination means home prices are also near all-time highs in most cities as many potential buyers are bidding on a limited supply of homes for sale.

At the end of 2019, the number of houses for sale dropped even lower, particularly on the West Coast. Compared to a year ago, some cities saw double-digit percentage decreases in available homes for sale, although that is partly a function of there having been a supply spike in the second half of 2019, so the decrease looks more stark than it otherwise would.

But the supply spike was short lived. “It’s actually back down near record lows in terms of the level of inventory for many markets and the country as a whole,” says Jeff Tucker, an economist with Zillow.

On the demand side, key indicators suggest there will be a lot of buyers in the market. Low unemployment, solid wage growth, and low mortgage rates are all signals of high demand. Todd Teta of ATTOM Data Solutions, a real estate data provider, says they’ve seen unusually high web traffic to real estate portals like Zillow and Redfin.

“We look at the portals, and traffic was way up relative to seasonality than what you saw in January of 2019,” he says. “All those indicators are looking pretty strong.”

It’s hard to forget the recent history, but while the 2008 financial crisis saw both the housing and stock markets drop in tandem, this was an aberration in so many ways; the housing market crash was ultimately the cause of the stock market crash. Typically the housing market isn’t tied to swings in the stock market, because people don’t buy houses purely as an investment. Housing is a basic need, and the decision to buy one is usually prompted by entering a new stage of life.

A newly married couple is moving in together and is buying a house. A couple is having a kid and needs more space to accommodate the baby so they buy bigger house. Empty nesters have more house than they need after their kids go to college, so they downgrade to a smaller house.

A stock market correction doesn’t change these circumstances for people. Even in full-blown recessions, the housing market is incredibly durable. In some previous recessions home prices have actually gone up.

Another thing to consider is that as the stock market drops, investors look for safer places to park their wealth, hence the bond market going up. The stock market drop can have the same effect on the housing market. Roofstock, a platform investors use to buy and sell single-family rental properties, has seen huge spikes in web traffic since the outbreak of the virus, as global investors look for less volatile investment options.

Are homebuilder supply lines being disrupted by coronavirus?

The short answer is yes. Nearly a third of home building material inputs come from China, according to the National Association of Home Builders, not to mention more finished products like bathtubs, sinks, appliances, and more.

This could delay home construction at a time when it has finally picked back up. Since the financial crisis, home building has struggled to keep pace with demand because of the cost of construction, lack of available land, and a construction labor shortage.

However, home builder confidence has skyrocketed in recent months, according to the NAHB. This signals that builders are more inclined to start construction on homes. To wit, new home sales—largely dependent on how many homes are built—have spiked dramatically in recent months, as have construction starts.

But if supply lines are disrupted, it could dampen the pace of home building and contribute to inventory shortages.

“Low interest rates help support demand, and consumer confidence readings in the coming months will be key, but the virus does heighten some of the longer-term challenges on the supply side in terms of housing supply,” says Robert Dietz, an economist with NAHB.

So how should I approach things heading into the spring homebuying season?

The conditions were set for the spring being an incredibly competitive housing market. Inventory is low, demand was high, and mortgage rates are low. If you already own a home, you might consider refinancing while rates are this low; other homeowners are already jumping at the chance.

However, it’s worth taking recent housing market history into consideration. Two years ago, similar conditions existed in the market and one realtor told Curbed that we were entering “the most competitive housing market in recorded history.”

That market didn’t materialize. Instead, home prices hit an affordability ceiling that kept many buyers out of the market. Eager sellers who listed their homes in hopes of taking advantage of the favorable conditions saw their homes linger on the market, leading to an inventory pile up not seen since the 2008 housing crash, particularly on the West Coast.

Home prices are still very high. If the same conditions existed and home prices were a little undervalued, it would likely create rapid home-price appreciation. But with prices already potentially maxed out, it remains to be seen whether current market conditions cause prices to break even higher or hit a ceiling.

The wild card in the housing market is coronavirus. If its impact is prolonged and induces even a minor recession, it could put a damper on demand—which would actually be welcome for buyers in particularly competitive markets. Still, don’t expect home prices to drop. It would likely just slow down the pace at which they are rising.

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March To-Dos for Your Home

The weather has finally been warming up (can we get a “hallelujah”?)! With sunshine and blue skies, it’s beginning to be nice enough to put on those work boots and do some much needed inspecting around the home. Below is a list from houseopedia.com with some things to consider doing around your home now that the weather is thawing out.

  • Inspect the roof. Check for damage from ice and wind. Look for loose shingles and flashing. Check behind chimneys where shingles meet flashing. Inspect the gutters, especially where they attach to fascia boards. Reattach any gutters that may have pulled loose under the weight of ice.
  • Inspect the attic. Look at the underside of the roof decking, checking for signs of water seepage. Ice can get into cracked shingles, expand and cause a leak upon melting. Replace shingles and backing, if necessary.
  • Foundation drainage. Before spring rains, check the slope of soil from the house foundation. Build up any areas where soil has eroded. Use small river rock mixed with the soil to better hold it in place.
  • Clean fireplace. Shovel out ashes and log remnants, then use a hand broom and vacuum to remove the fine dust. Close the damper. If you have a gas log set, consider shutting off the pilot for the spring and summer to save on gas usage.
  • Prep garden tools. Sharpen shovels, hoes and pick axes. Gas up the lawn mower and weed eater and give them a trial run. Take the insulating covers off the faucets and move hoses into place.
  • Gardening goals. In March or April, depending on your climate, it’s time to start thinking about a spring and summer garden. Clear raised planting beds of debris, and turn soil. Start seedlings inside. Do not plant until after last frost date in your area.
  • Relocate firewood. If you have left over wood, move it several yards away from the house. During the spring, a wood pile attracts creatures such as termites, carpenter ants, skunks and possums.
  • Power wash siding and decks. Over the winter prolonged moisture may create mold and moss on decks and house siding. Rent a power wash machine and give them a good cleaning.
  • Clean windows. Winter weather leaves dingy windows. Let the sun in with a good cleaning.
  • Provide nutrients for your landscape. Depending on your climate zone, March or April is the time to apply fertilizer and weed control. Consult local gardening experts.
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Let Us Help You Find the Perfect Home!

After this weekend, we will be in March, which means it’s home buying and selling season! Maybe you’re looking to move into the greater Prescott area because of a job, or to be closer to family, or maybe you just love the area and town and all the amazing qualities it has to offer.

Whatever it may be, we’d love to help you find your dream home here in our beautiful Northern Arizona town.

Reading this article from houseopedia.com, it will give you great insights into what to work with your agent on when talking about buying your new home. Your likes, dislikes, non-negotiables, and everything in between:

Partner with Your Agent to Find the Perfect Home

Your real estate professional is your best asset when searching for potential homes, but your agent needs certain key information to find the right fit. Knowing what to tell your agent can help you make the most out of this important partnership.

Budget. Figure out what you can afford. Think carefully about all the costs of owning a home — not just the down payment and mortgage. Don’t forget about homeowners association fees, maintenance costs, taxes and private mortgage insurance, if you need it. Be honest with yourself and your agent about how much you are willing and able to spend. While not necessary, it’s smart to be preapproved or at least but prequalified for a certain mortgage amount.

Time frame. If you’re in a hurry to find a new place, your agent needs to know. If you have plenty of time to search, agents will handle that differently, perhaps sending periodic listings that match your exact wish list.

Location. Be prepared to tell your agent where you want to live, being as specific as possible. It may be a larger search, such as a radius around a specific location, it may be a particular town or city, or it may be as specific as a single neighborhood. Also let your agent know if you need to be close to public transportation or in a specific school district. He or she may know of an alternative location that you may not have considered.

Type and size. Do you want a single-family home, a condominium, or some other type of property? Size is also an important factor. For example, how many bedrooms and bathrooms do you need? Do you have a certain square footage in mind? Do you want a small yard or acreage? Think about how much space you need and what is right for your lifestyle. Are you planning a large family? Do you want to maintain a large home or piece of land?

Wish list. It’s a good idea to create a wish list and rank items from most to least important. You may have a certain style of home that your prefer. Many people want a home that is move-in ready. There may be amenities that are important to you. Some of the most common wish list items include updated kitchens and bathrooms, hardwood floors, open floor plans and big yards. Depending on this list, you might be able to find a home that satisfies all your wants and needs for the right price. But often, buyers need to make tradeoffs.

Deal breakers. All homebuyers have certain things they just can’t live with — or without — in a home. Maybe it’s being located next to a busy road or having a driveway on a hill. Or perhaps you must have at least three bedrooms. Whatever your deal breakers might be, tell your agent up front. You’ll save everyone a lot of time and effort.

 

Give us a call today at 928-771-1111 and we’d love to help you on your home search. On top of helping you with everything listed above, we’ve also got dozens of years of Real Estate expertise in the greater Prescott areas.

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2020 Housing Market: Economic Perspectives

As we get ready for another month in 2020, let’s look some more about how our housing market is predicted to do this year. Below is an article from realtor.com (which you can read further by clicking here) going over the housing forecast of 2020 from an economic standpoint.

Economic Perspectives

Gross Domestic Product

Economic activity in the United States started 2019 on an upbeat note, fueled by consumer optimism and business confidence. Riding the corporate tax restructuring of the 2017 Tax Cuts and Jobs Act, companies boosted investments and, coupled with solid consumer spending, led to a 4.1 percent annualized gain in gross domestic product (GDP) during the first quarter of the year, according to the Bureau of Economic Analysis. In addition, exports outpaced imports during the period, leading to expectations of increased trade windfalls.

However, as the year wore on, the trade rifts between the US and its trading partners deepened, leading to an escalation in tariffs and overall uncertainty. While consumer optimism remained unabated—leading to a 4.6 percent annualized gain in consumer spending—business confidence waned and resulted in a 1.0 percent drop in investment in the second quarter. Even as government spending picked up the pace, the cumulative effect was a mild 2.0 percent GDP gain in the second quarter.

The loss of momentum was reflected in the third quarter’s GDP figure, which advanced at an initial estimate of 1.9 percent annual rate. The Bureau of Economic Analysis subsequently revised third quarter GDP to 2.1 percent, showing stronger business investment. The Federal Reserve, concerned about a deteriorating global economic outlook, decided to boost liquidity in the financial system, in an effort to prevent an economic slide.

Monetary Policy

The Federal Reserve moved into 2019 signaling through its forward guidance that, as the economy continued on an expansionary track, it would maintain a policy focused on monetary tightening. Markets expected at least two additional short-term interest rate increases at the outset of the year.

Towards the midpoint of the year, however, the central bank’s policy shifted, in response to global changes. While the US economy continued showing signs of growth, major economies around the world slowed. In response to the slowdown, central banks around the world engaged in accommodative monetary responses, resorting to cutting rates and purchasing assets, in an effort to boost output. Along with the Bank of Japan, several central banks in Europe took interest rates into negative territory, attempting to spur investment and liquidity. In response, world currencies dropped against the US dollar, adding pressure on US exporters and sectors sensitive to currency risks.

The Federal Reserve decided to change tack in light of these shifts, and responded by cutting rates 3 times, at the Federal Open Market Committee’s meetings in July, September, and October. The central bank also expressed that it would move from a longer term outlook to a shorter term horizon, assessing incoming economic data through the year to guide its policy actions. While the bank’s two main objectives—stable employment and low inflation—remained on track in 2019, the rate cuts seemed aimed at walking a tightrope between maintaining US economic momentum amid a global economic moderation and placating investors’ expectations for growth.

Employment

Mirroring the shift in business confidence, the pace of employment growth moderated in the first three quarters of 2019. While companies continued adding positions to their payrolls, the number of net new jobs totaled 1.45 million during the January to September timeframe, 27 percent lower than the same period in 2018, based on data from the Bureau of Labor Statistics.

The professional and business services sector—the main driver of employment growth during the past decade—took a back seat to the healthcare and social assistance sector, accounting for 311,000 net new jobs, a 29 percent decline from 2018. With over 410,000 new jobs added to payrolls, the healthcare sector led the pack, posting a 19 percent gain compared with the same period in 2018. Stemming from solid growth in business travel, the lodging and food services sector provided the third largest number of net new jobs in the first nine months of 2019, with 136,000 employees added to payrolls.

As the corporate outlook dimmed partway through the year, employment in manufacturing, trade, transportation and utilities slowed. In addition, despite strong demand for housing, construction companies hired 58 percent fewer employees in 2019 compared with the prior year. The slowdown in hiring was also evident in other sectors, such as mining and logging, financial activities, as well as arts, entertainment and recreation.

Government entities also reflected shifting priorities in 2019. After an extended period of flat hiring, the federal government added 45,000 new positions during the first nine months of the year. Local governments—enjoying rising property tax revenues—also went on a hiring spree, adding 91,000 new employees to payrolls, a 44 percent increase year-over-year. State governments pared back their hiring, adding a more moderate 20,000 new jobs.

The pace of employment, while slower than a year ago, pushed the unemployment rate to 3.6 percent in the third quarter of 2019, the same rate last experienced in the second half of 1969. The labor force participation rate reached 62.8 percent in the third quarter of the year, slightly below the average rate recorded over the past decade. While wages gained ground during 2019, at 3.0 percent during the first half of the year, when adjusted for inflation, they managed a more modest 1.2 percent year-over-year average gain.

Consumer Confidence

Consumer confidence spent the better part of 2019 moving sideways, despite monthly fluctuations. In September, the Present Situation component of the Conference Board Consumer Confidence Index was unchanged compared with the same month in 2018. However, the Expectations component dropped 15 percent over the figure from the prior year, leading to an 8 percent decline in the overall index, and implying that consumers were expecting deteriorating conditions over the next few months.

2020 Economic Outlook

As economic momentum moderated through 2019 and global headwinds gather, GDP growth is projected to post a modest 1.7 percent advance in 2020. As the housing share of expenses continues rising, consumers—the largest contributor to output—will likely trim back on non-housing spending. A slowdown in consumer spending, coupled with rising global uncertainty and market volatility, can be expected to lead companies to contain costs and trim employment goals. An employment slowdown will move the unemployment rate from 3.6 percent at the start of 2020 to 3.9 percent by the end of the year—a jobless rate still below what would be expected in a healthy economy, but a shift in the wrong direction. In turn, consumer confidence will soften during the year, with the Conference Board’s Consumer Confidence Index estimated to decline 21 percent.

Following the Federal Reserve’s monetary accommodation, inflation expectations remain modest and well-anchored, translating into a 2.0 percent year-over-year increase in 2020. While short term rates remain low, economic moderation is likely to impact bond markets, leading to mortgage rates moving mostly sideways in 2020. Rates for 30-year fixed mortgages are projected to average 3.85 percent during the next year.

 

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Is it Time to Reduce Your List Price?

Has your home been on the market for a few months now, or even longer? Maybe you’ve had a little bit of interest, maybe not. However, with the market we’re in today, if your home is in reasonably good condition and still isn’t selling, it’s time to start asking yourself some tough questions and consider lowering the price on your home.

Here are a few things to think about if you find yourself in this situation:

Locate the problem. With a Comparative Market Analysis (known as a CMA) of recent sales prices, hopefully you listed the house at an attractive price. However, maybe the booming market and wanting to make the most profit possible had you listing your home a little above market value, hoping it would appraise. This could be one reason you aren’t selling. People want to buy a home, but they don’t want to pay more than it’s worth. Other problems could be: did you make obvious repairs, and declutter and clean the house until it shines? Have you had an open house? Have you staged the home? Try to figure out why buyers aren’t seeing the value of the house in relation to your price.

Examine feedback. Review the feedback provided by prospective buyers who have toured your home. Your real estate agent can set this up for you. If buyers consistently list the same negatives, you’ve found your problem. Is your home a two-bedroom, one-bath model? Is there a busy road nearby? Does the home smell like cigarette smoke? Fix what you can immediately. What cannot be fixed must be addressed in price.

Seasonal Sales. Spring and summer are the busiest season for home sales. If you’re selling in the winter, buyers expect better deals and may have considered your home overpriced. This is also something to keep in mind when setting your home price. If you’re trying to sell your home in the dead of winter (maybe you have no other choice), but are trying to get top dollar, you’re probably going to end up having to drop the price to a more reasonable number for that time of year.

Search parameters. Is your home price just above a common online search parameter? For example, prospective buyers may search for homes ranging in price from $200,000 to $250,000. If you price your home at $260,000, your home will be excluded from many online searches. If you want to sell for $250,000, a savvy agent will steer you toward listing at $249,900 so that you don’t fall just outside of buyers’ search parameters, thereby missing out on good prospects.

Agent expertise.  A good agent should be investing significant time and effort in marketing your home. Good marketing can be everything! Relying solely on the Multiple Listing Service and a sign in the yard is not a good strategy. Your agent should assist you in staging your home correctly, getting professional photographs taken, sending direct mail advertising, and posting your listing to social media platforms. When your home does sell, you’re paying a lot of money for the agent’s services, so make sure you’re getting the best possible! If the agent you’re using took pictures on their phone and doesn’t advertise your home anywhere else besides MLS, these are not good signs of a good agent. First impressions are everything and good marketing helps your home make a great first impression.

How much to reduce? If, in the final analysis, you need to reduce your price, carefully consider all the factors discussed above and make a decision with the help of your agent.

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How to Build Good Credit from Bad Credit

While there are a lot of people out there who have bad credit simply because they have no credit, there are also a lot of people out there who have bad credit for the reason most think others have bad credit for – for making some un-wise financial decisions.

The range of credit scores goes from 300 all the way up to 850. Contrary to what some may believe, there aren’t very many people out there with a rock bottom credit score of 300. According to nerdwallet.com, principal Scientist at FICO, Tommy Lee says, “FICO scores of 300 are extremely rare; in fact, only 1% of the population has a score less than 470, and 4% have a score less than 500.” And, even those who have a score less than 500 are those individuals with some severe late payments, those who have negative remarks from public records or collections, and those whom are using well over their credit limit (meaning their credit cards are far past what would be considered maxed out). These individuals might have such insurmountable debt that bankruptcy is the quickest way to recovering their credit respectability.

However, let’s assume you aren’t quite there yet and your credit is still salvageable. How can you begin to rebuild that credit? Some of the biggest things that affect your credit score and that you can start improving on today are:

1) Making Payments on Time: You need to start making all your payments on time! Nothing matters more than paying on time, every time, and it should be your first priority. When getting any kind of credit, paying late should never be an option, and if it needs to be, then maybe you should think twice about taking out that credit. It’s not worth the potential credit score and financial havoc it could wreck on you.

2) The Amount of Credit You Use: Always be keeping track of just how much credit you are taking out. This is especially important if you have multiple lines of credit going at one time. Make sure you know the TOTAL amount of credit being built, not just one at a time, and like mentioned above, be paying those payments on time.

3) Stop Your Credit Bleeding: We mentioned not spending too much on credit, but what is “too much”? Well, a good rule of thumb is to not be spending more each month than you can actually afford. This seems like an obvious fix, but many people will splurge on things like a new computer, or a new wardrobe, promising, “I’ll pay it back over time.” However, then their car breaks down, or they have an emergency doctor visit, and so on and so forth. The point is, you never know what life will throw at you, and it’s far wiser to pay off any residual debt you already have and slowly save for those “splurge” things that, when you think about it, really can wait. If you can’t afford to pay for them that month, then you can’t afford them.

4) Make a Budget: Not only will a budget put your monthly finances into perspective for you, but it will also help you stay accountable to yourself and what payments need to be top priority. Then, any extra money you have that isn’t going towards paying off your credit, can go towards a night out with your friends, or perhaps even a savings account (*gasp!).

 

These are just a few tips on how to start turning that credit score around. If you have a horrid credit score, the good news is that you can only go up from there! We hope this article was helpful! If you have any more questions about how to build your credit back up, we’d encourage you to go speak with someone at your bank. We’re sure they’d love to help you on your road back to financially stability.

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Homeowners Buying a New Home in the 2020’s

If you are currently a homeowner, there’s a 45% chance that you’re planning to sell your home and move to a new one within this decade according to lendingtree.com.

With a booming market there are plenty of reasons homeowners might be considering making a move in the next 10 years. Moving because you want a newer and nicer home, moving to cash out on the investment that is your home, changing cities or states, moving closer to kids or grand-kids, retiring, opting to go back to renting rather than owning, and so much more!

CLICK HERE to read this great article from lendingtree.com on how and why homeowners are making an address change in the 2020’s.

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Deep Cleaning and De-Cluttering Your Home

Somehow we are already in the middle of February as time in 2020 moves just as fast as every other year.

Soon it will be Spring and that means it’s almost time to do some much needed Spring cleaning. Whether it’s deep cleaning your home, yard work, accumulated clutter around the house, old appliances, or whatever else you can think of, it’s time to take a hard look at your home and see what needs to go. Depending on the extent of cleaning needed, it might be a DIY job, or you might need to call in some professionals.

Here are some things to consider when it comes time to do your Spring cleaning this year:

The different types of trash in your home and getting rid of it

When it comes to your household waste, it falls into three categories, each with its own process of disposal.

  • Household trash is your everyday waste: food, food packaging, cans, cardboard boxes, diapers, etc. Your weekly trash pick-up handles this.
  • Junk includes old furniture not worth selling or donating, old warn out cloths, worn out appliances and household accessories. This includes things such as old mattresses and box springs, televisions, barbecue grills, refrigerators, washers and dryers, old microwaves, and more. When buying a new appliance, always ask if the merchant will haul away the old one. Remodeling construction debris also is common, but your contractor should dispose of it.
  • Hazardous waste includes paint and stains, cleaners, oils and pesticides. Do NOT put it in the trash or pour it down the drain. Refrigerators are both junk and hazardous material, since they contain refrigerant gas and a small amount of oil. Old fluorescent lights have gasses that make them hazardous.

For these things, check your city or county website to see if it offers extra services, such as pick up of large appliances or old furniture, for a small fee. Sometimes municipalities will schedule special days a couple of times a year to pick up large household items. The same applies to household chemicals. Many cities or counties have facilities where residents can drop off old paint, pesticides and other household hazards. Otherwise, you might consider hiring a junk removal service to come and hall things away for you.

Deep cleaning and De-Cluttering

In case you aren’t quite sure what types of deep cleaning things to do for your spring cleaning, here are some ideas:

  1. Cleaning the baseboards
  2. Wiping off the ceiling fan blades
  3. Emptying and cleaning your fridge and cabinets
  4. Cleaning the lint out of your dryer vent
  5. Shampooing your carpets
  6. Trimming trees and bushes
  7. Spraying your home for insects
  8. Shaking out rugs and curtains
  9. Replacing water filters, light bulbs, smoke detector batteries, etc.
  10. Dusting EVERYTHING
  11. Go through every closet, dresser, garage, and storage area to get rid of old cloths and things you don’t use anymore.

*A good rule of thumb is if you haven’t worn it or used it in over a year, it can probably go.

These are just a few suggestions to go along with your normal cleaning this Spring. Once everything has been cleaned and all the junk taken away, it’s amazing how much more open and fresh your home will feel!

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Are We In a Housing Bubble?

With higher home prices that just keep rising and a competitive real estate market, the phrase “housing bubble” is one that has been getting tossed around a lot as of late. People are wondering and worrying if there will be another housing market crash, afraid to buy in the event that there is or propelled to sell to make the most of their money while they can.

Well, while no one can say for certain because we can’t predict the future, many real estate professionals are leaning on the side of no, we are not headed for another crash.

Check out this article from scottsdalerealtors.org that details why many believe this is not a concern to be had:

Financial blogger Logan Mohtashami is not the first and certainly won’t be the last to write about whether the U.S. is entering another housing bubble.

With more than 30 years of experience in the home lending business, he recently remarked “it is bullish for housing that year-over-year real home prices went negative last year” as shown on the three Case-Shiller indexes below.

“Despite what some want you to believe, this housing cycle is not in a bubble. Look at the difference in the metrics for the real bubble years of 2002-2005 compared to the current cycle years 2012-2020.” – Logan Mohtashami | HousingWire

Did the Valley mirror this cycle? See the Cromford Market Index graph shared by senior analyst Tina Tamboer at the Scottsdale REALTORS® Influencer Marketing panel.

“What pushed demand so high?,” Tamboer asked the sellout crowd. “Dumb loans and false demand — somebody buying the house who’s not going to live in it and not going to rent it. Now, we’re back to normal demand, but we have no houses for them to buy.”

Despite the market rollercoaster, Tamboer said homeowners who kept their homes through the Bubble and the Crash saw a 20-year average Annual Appreciation Rate of 4.5%. Between 2009 and 2019, that rate more than doubled to 9.3% as shown below.

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When to Refinance Your Home

Refinancing your home.

In Arizona, with a booming market and homes appraising for great values, this is probably a topic that has come up among many homeowners whom perhaps want to make the most out of the investment that is their house, but aren’t quite ready to move yet.

In fact, refinancing is probably something that most homeowners consider at least once throughout the lifespan of their home loan.

Refinancing your mortgage can have many benefits, one being that it may allow you to pay off your previous loan by applying for a new one that has better financial advantages.

While there are many good reasons to refinance, here are five common ones:

  1. Scoring a lower interest rate. The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.
  2. Using an improved credit score. Even if interest rates have not dropped in the market, if you’ve improved your credit score over the last few years, you may be able to reduce your mortgage rate.
  3. Shortening the loan’s term. If interest rates are decreasing, there is a chance you may be able to get a shorter loan term with little to no change in your monthly payment, allowing you to pay off your loan sooner.
  4. Switching from an adjustable rate to a fixed rate. If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.
  5. Cashing out home equity. If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.

If you think refinancing your home might be something you’re interested in, give us a call at 928-771-1111. We’d love to connect you with one of our trusted lenders and see how they can help you achieve this goal!