Arizona’s Real Estate Market Statistics

In case you are curious how the current real estate market is doing in Arizona, check out these charts published by ARMLS (Arizona Regional Multiple Listing Service) in May. ARMLS is the home listing service that services the Phoenix Metro area, so these numbers may vary from Prescott’s own statistics, but our market is doing just as well as theirs, if not better.

Tom Ruff from ARMLS, whom posted the article, stated, ” After a close fact-check of homes reported sold by ARMLS, May was a record-setting month. New all-time records were established  for both sales volume and total dollar volumes, as well as the most homes sold and for the most money. Total dollar volume was $3,593,145,906. The monthly median sales price also set a record high reaching $278,000. After a slow start, 2019 is purring.”

Ruff goes on to say that with statistics like these that have continued to rise over the last several years, people inevitably begin to talk of another real estate “bubble.” However, Ruff, along with many others in the real estate industry, aren’t very worried about that. Current underwriting standards and the elimination of crazy money are two of the main reasons for this.

People aren’t worried because the differences from then to now in these two things are significant. Standards for lending are much more strict and the dollar amount on homes still has yet to reach what it was back before the burst. Due to better lending protocol alone, a huge bubble pop like last time is fairly unlikely.

Hopefully knowing that makes us all rest a little more easily and not fear that a few years after purchasing a home we’ll be looking at catastrophic amounts of foreclosures, short sales, and bankruptcies.

 

Listing Feature – 1579 Eagle Mountain Drive

Curious about what makes this home so special? Everything!

Upon the tile entry, you will be drawn into the great room featuring a high vaulted ceiling and gas fireplace with stacked-stone surround. This is the perfect space for sitting and relaxing with your family around the fireplace or as you watch TV.

The spacious kitchen features plenty of cabinet and storage space and is open to both the formal and informal dining areas. This way whomever is cooking can still be involved in the parties going on around them.

Relax in the master suite that offers a spacious room, vaulted ceiling, a separate French door exit out onto the deck, a walk-in closet, and master bath with double vanities and dressing table.

Two more large bedrooms, a full bathroom with dual sinks and linen closet, a powder room, and the laundry room are also on the main level.

The lower level has a game/family room with a wet bar, which could be perfect for multi-generational living. It also has a lot of storage space, a full bathroom, and the 4th bedroom with walls lined with windows.

The deck comes out from the living room and overlooks the lush green view of the back yard.

An oasis in itself, the yard features a pond and water feature, mature trees, turf grass areas, and paver patios that are also accessible from the lower level living.

If that weren’t enough, the home also includes a three-car garage, plus separate side parking for a small RV.

This is a house you are going to want to see in person! For a showing appointment, call our office today at 928-771-1111.

House Hunting Online

In this day in age, it’s no surprise that most buyers begin the search for the next future home online. Whether you are just browsing, or looking more seriously, there are a ton of different sites to visit in order to look at currently listed homes in your town/ the town you are moving to. For this reason, hunting for a new home online can be a really great place to start your search, however, it should not be your end all be all.

When looking at home listings online, keep in mind that good listing agents are excellent at highlighting the best features of a home, but there may also be more than meets the eye to the home you are looking at. To make the most of your time and efforts while online searching, and to also make sure you gather a well-rounded picture the homes you’re looking at online, it’s best to keep the following three things in mind.

Stay up to date. When you start your search, make sure you find a site that pulls up-to-date listings directly from the multiple listing service (MLS) where real estate agents actively post their most current homes for sale. This ensures you are getting the most accurate information you can because many other online resources update far less often or fail to remove listings that are off the market, making it more difficult to sort through the clutter. Imagine finding a home online you absolutely love only to find out it is already under contract, or even sold, contrary to what the online portal you were using said.

Pictures can be deceiving. Real estate photographers are experts at showing a home in the best possible light. Many use tools and strategies to boost appeal, such as a fish-eye lens, or wide-angle lens to make areas and rooms look larger than they actually are in real life. They also use creative editing to make colors and textures really pop, when the actual paint or flooring might be dull compared to the picture. Most of the time, listings will not contain photos of unappealing parts of the home, like small closets or outdated bathrooms. Listing agents are not trying to be deceiving, they are just doing their job in representing their seller as best they can in making sure that the home is presented in the best possible light it can be to get buyers interested and walking through the home.

See it to believe it. Once you find what appears to be your dream home online, make sure you call up your real estate agent and schedule a showing to go see the home in person. It’s important to take the opportunity to vet the home for yourself in person and explore every part of it before beginning the offer process. Your real estate agent will also be able to help you cover all your bases and answer any questions you may have. They can perhaps point out any property flaws or concerns that the pictures didn’t show. And, seeing the home in person helps you see it for what it really is and if it is truly the place you can envision your family living and as being the next place you want to call home.

These are just a few tips to consider when you’re looking at homes to buy online. When in doubt, call your real estate agent! They are there to help and find out the answers to any questions you may have. They want you to find the best home for you!

Listing Feature – 3103 Mountain Lake Drive

This is our new listing of a quaint and charming manufactured home in Mountain Lake Estates. Within walking distance to Willow Lake, this home offers great near by trails to enjoy the outdoors, along with beautiful views of Willow Lake and the surrounding dells.

The home is a single level, 1392 square foot Cavco manufactured home that offers three carpeted bedrooms, two bathrooms, an AZ room, plenty of storage space, and a separate laundry room that leads to the garage complete with its own separate storage closet. Brand new wood laminate Pergola floors are throughout the main living areas. When you first walk in the front door, you are met with an open living room and dining space, making your entertaining areas spacious and welcoming, with plenty of light.

You will be delighted with this fresh and newly remodeled kitchen! With light tones of white and grey, the kitchen is up-to-date on the latest trends. The cabinets are soft-close dovetail drawers topped with granite counter tops. A giant stainless-steel farm sink and new appliances complete this kitchen with its modern flair.

The master bedroom is extremely spacious compared to other manufactured homes. It was recently painted a soft grey, has a large closet space, and its own bathroom with dual sinks and a linen closet.

The bonus Arizona room is 120 square feet, featuring panoramic windows and views of the surrounding lake and dells. It’s the perfect place to sit and have your morning coffee or tea, or go out and read a good book.

The fenced backyard rounds out the property making it suitable for just about every buyer’s needs. A small paved area for seating and grilling, and rocks to accommodate any furry friends you may have. The home has extremely minimal landscaping in both the front and backyard.

The home also comes with a nice 2-car garage and a great front porch for enjoying Prescott’s nearly year round good weather. And did we mention how close it is to Willow Lake? In this picture, you can see it just down the road!

Interested in this property, or wanting to learn more about it? Call us today at 928-771-1111. We’d love to answer any of your questions and even show you the home!

Refinancing Myths

For many, the word “refinancing” when it comes to your home can come with a lot of fear and a lot of questions, but that doesn’t need to be the case. What does refinancing look like? Will it even really save me any money?

Well, for many homeowners, refinancing can not only lower your monthly payments and help with your monthly budget, but it can also save you thousands of dollars in the long run. That being said, here are some myths about refinancing and what the actual truth to them is:

IT’S TOO LATE.

No, it is not too late to refinance. For years now, we’ve been hearing that interest rates will be on the rise. Who wants to refinance when your interest rate will be higher than it is now, which would end up not saving you very much money at all. Although there have been some small increases, you’re still in a great position to drastically lower your interest rate if you get in at the right time. The general rule is if your mortgage interest rate is more than one percent above the current market rate, you should consider refinancing.

IT’S GOING TO BE TOO TIME CONSUMING.

No it will not. If you find yourself a good lender, they will walk your through every step and help take the headache out of the entire process. Don’t brush off refinancing just because it seems like a long and daunting process because this isn’t always the case. Once you find a good lender, it will only take a few minutes to have an informational call with them to see how rates compare and if refinancing is a good idea for you. On top of a good and knowledgeable lender, there are also some programs for streamlining the application process, which could make the time it takes to refinance seem like nothing. And besides, isn’t the amount of money you could save worth the time and effort?

ARMS CAN’T BE REFINANCED.

This is just not true! Seeing your Adjustable Rate Mortgage (ARM) increase after the introductory period can be incredibly stressful and place a squeeze on your budget. Many people assume they’re stuck, but ARMs can be refinanced, just like fixed-rate mortgages. You can even switch to a shorter term fixed-rate mortgage, such as 15 or 23 years. The longer you’re planning to stay in the home, the more sense it makes to look into refinancing.

If you have any more questions about refinancing, please don’t hesitate to call us at 928-771-1111. We’d love to help you out, or connect you with a great lender who can help answer your questions!

What’s the Difference Between Foreclosures and Short Sales?

If you’ve been looking to buy in the Prescott area, you know that the real estate market right now is a little crazy.

For sellers, it’s good news because we are at the top of our market and you can sell your home for top market value, capitalizing on your investment.

For buyer’s, the booming market can make it difficult to afford the house you require to accommodate you and your family, and not have to sacrifice some of your living needs.

This has led to many buyer’s looking into and considering short sale purchases, or foreclosure purchases. However, this also leads to the question: What’s the difference? If you aren’t familiar with these types of sales and purchases, they can seem similar, but there’s actually a pretty big difference.

As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short sales and foreclosures aren’t just good for buyers, but also provide sellers options for moving on financially. The terms are often used interchangeably, but they’re quite different, with varying timelines and financial impact on the homeowner. Here’s a brief overview.

Short Sales:

A short sale comes into play when a homeowner needs to sell their home but the home is worth less than the remaining balance that they owe. The lender can allow the homeowner to sell the home for less than the amount owed, freeing the homeowner from the financial predicament.

On the buyer side, short sales typically take three to four months to complete and many of the closing and repair costs are shifted from the seller to the lender.

Foreclosures:

On the other hand, a foreclosure occurs when a homeowner can no longer make payments on their home so the bank begins the process of repossessing it. A foreclosure usually moves much faster than a short sale and is more financially damaging to the homeowner. After foreclosure the bank can sell the home in a foreclosure auction.

In Sum:

Short sales are better for both seller and buyer, leaving the seller more financially sound and giving the buyer the chance to make a good deal on a home. Foreclosures, on the other hand, are usually worse for sellers and buyers than short sales. For sellers, it damages them financially and for buyers it’s a riskier purchase because homes are often bought sight unseen with no inspection or warranty.

Should You Use a Lower Down Payment?

If you have ever bought a home in the past, or have had friends and family who have bought homes, you’ve most likely heard the rule for down payments: save for a twenty percent down payment before you buy a home.

The logic behind saving twenty percent makes sense because it shows that you have the financial discipline and stability to save for a long-term goal, which in turn also helps you get favorable rates from lenders.

But there can actually be financial benefits to putting down a small down payment— some programs allow for as low as three percent—rather than parting with so much cash up front, even if you have the money available.

THE DOWNSIDE

The downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a twenty percent down payment, which will eliminate some homes from your search.

THE UPSIDE

The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down twenty percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for any home repairs the home may requite upfront, or perhaps even for doing some pricey upgrading right off the bat rather than waiting years and years until you have your money saved up again. These would allow you to immediately make sure your home is stable and to make the home the dream home you’ve always wanted.

THE HAPPY MEDIUM

Of course, your home payment options aren’t binary, there are many options out there for buyers now on the money needed for a down payment. Most borrowers can find some common ground between the security of a traditional twenty percent down payment and an investment-focused, small down payment. Your trusted real estate professional and local lender can provide some answers as you explore your financing options, and what the best choice is for you in your next home purchase.

Looking for more information, or some professional Real Estate Advice on this matter? Call us at 928-771-1111, we’d love to help!

Sharp Declines In Home Bidding Wars

If you have been looking to buy a home in the past few years and perhaps even put in a few offers on homes, then you know it has been a buyer eat buyer real estate world out there!

Homes would hit the market and instantly have multiple offers on them (if they didn’t already have offers on them before technically even being on the market). There were so many people looking to buy that the market had become incredibly competitive for buyers, yet also incredibly good for sellers who had their choice of highest and best offers to pick from.

You can imagine how these situations would be extremely frustrating for buyers who would be constantly outbid or their highest and best wasn’t as good as someone else’s highest and best.

Well, according to the National Association of Realtors, the amount of competition in Real Estate as we come into these Spring and Summer seasons will mostly likely be seeing a decline.  “There will likely be less competition for home buyers this spring—a widely reported index from Redfin shows a significant decrease among real estate professionals reporting bidding wars this month, compared to a year ago. Only 16 percent of offers written by Redfin agents on behalf of their customers in the first three weeks of March faced a bidding war, down from 61 percent a year ago, according to the brokerage’s index.”

This is good news for buyers because your chances of getting into a bidding war when making an offer on a home have sharply declined. This means you don’t have to come in at the very tip top of your home buying budget just to have a hope and a prayer of getting the home you have your eye on – you could possibly make a more reasonable bid and have it accepted because there isn’t another buyer breathing down your neck.

In Phoenix, the amount of offers that faced competition was at 41% in March of 2018. That number has gone down to just 14% calculated in March of 2019. Prescott is a lot different than Phoenix market wise, but agents here have noticed a decline in bidding wars as well, which means if you have been wanting to buy in Prescott, Arizona, now might be the time!

If you are looking to buy a home, or even sell a home in Prescott, you should give us a call! Working Real Estate in the community for the last fifteen years, we have a lot of experience and would love to help you in your next Real Estate transaction. 928-771-1111.

 

Wage Growth Vs. Home Price Growth

Living in Prescott, or perhaps anywhere in the United States, something you may have noticed is the difference in wage growth verses the difference in home price growth.

Being a Real Estate Agency in Prescott, this is something we have definitely noticed as our market has continued to grow healthily over the last few years. With such quick growth in the housing market, it would really be hard for wage growth to keep up.

Home prices can grow at any time they want. From one month to the next, the market can change and prices can go up. Even though the difference might not be substantial, or perhaps even noticeable, there is steady growth in home prices throughout the year (depending on the housing market at that time).

Wage growth, however, tends to be much slower. If you think about it, growth in wages happens maybe once or twice a year, if that. Being an employee, you may get a raise at the end of the year, or a raise when you are promoted to a higher position, but that’s not nearly enough to keep up with the rate of growth of the current housing market.

On top of that, Prescott has been known to be a very competitive job market, meaning employers can start a position off at a lower salary knowing that someone will be eager to fill the position with hopeful raises and bonuses later on down the line. Speaking of bonuses, many companies often don’t raise your salary at all, rather you get a “Christmas bonus” at the end of the year, meaning home price growth has gone up all year round, yet salary growth has remained stagnant. It all depends on the company you work for and the industry you work in.

To further show this fact, check out this quote from the National Association of Realtors (NAR), “Based on the headlines, home prices outpace wage growth. Indeed, in the last six years home prices increased 47 percent while wages rose 16 percent.”

After reading all of that, it may feel discouraging or make one think it would be impossible to afford a home when the rise of wages isn’t keeping up with the rise of home prices. However, what NAR found is that doesn’t appear to be the case.

“Nationwide, the monthly earnings of a typical employee rose by $530 to $3,784 in the fourth quarter of 2018 from $3,256 six years earlier. In the meantime, the monthly payment increased by $354 to $1,114 in 2018 from $760 in 2012. Thus, although home prices increased nearly three times more than wages (in percentage points), homebuyers needed to spend less than their salary increase for the higher mortgage payment. Noticeably, homebuyers needed to spend nearly two thirds of their salary increase (above the 30% rule) for the higher mortgage payment.” – NAR Economist’s Outlook Blog.

This is good news! It means that even though housing prices have grown far more than wages, wages have still grown enough to keep up with the price of these higher mortgages, only costing consumers two thirds of their salary increase towards their house payments. That may still seem like a lot, but at least it isn’t equal to or more than, which means housing based on current salaries is still somewhat affordable.

The best thing to do when thinking of buying a home, and wondering what you’d be able to afford on your salary, is to connect with a local lender. This is the very first thing you should do before even beginning to look at homes. That way you don’t’ set your eyes on something you can’t afford and have your hopes dashed. They will help you determine what your price range is based on your income and get you moving towards your ultimate goal: becoming a homeowner.

Need help finding a lender? Call us today and we can help! Working in the Prescott area for over a decade, we have a lot of experience with all the local companies and can help you find the right fit for you. 928-771-1111.

Listing Feature – 3555 Friendly Meadow Road

This is our amazing listing on 3555 Friendly Meadow Road in Williamson Valley Ranch. Right away, you are taken aback by the breathtaking views of Granite Mountain and ”The Indian,” which are captured from this rambling main level living family home.

Rural living offers a sense of space around you with only a 20-30 minute drive from downtown, giving you the feeling of being away from it all, while still being close enough to downtown to enjoy all of Prescott’s festivities. A large and fabulous deck with spa gives you a glorious outdoor living space you can enjoy all year long, taking in the views and the big night sky.

Approximately 3,557 square feet, the home includes five bedrooms and four bathrooms. The master bedroom is complete with a separate exit onto the expansive deck and plenty of windows to help you take in all of your wonderful views. The master bathroom includes dual sinks, a separate shower and jetted tub, and a walk in closet.

A spacious eat-in kitchen features granite counters, an island with breakfast bar, a gas range, plenty of pantry storage space, and an adjacent seating area with Kiva fireplace. Next to the kitchen is a cozy sunken living room that offers a more intimate gathering space when entertaining guests, or a little privacy to sit aside and read a book, or whatever you like.

The lower level living is a walk-out basement complete with its own family room and a full second kitchen for multi-generational living. It includes plenty of storage space to put all of your treasured items, a separate exit to outside, three bedrooms, and a large bathroom with three sinks to accommodate all those in this living space.

Not only does this home have all the living space you need, but it also sits on three acres to accommodate any growing your family will do, including horses and farm animals! The home has a brand new well plus storage tank. The well and the storage tank holds 3,400 gallons at a time and pumps 725 gallons per day. A typical family of 4 only uses 350 gallons per day.

Interested in this home? Call our office today for a showing appointment! 928-771-1111. Interested in homes similar to this one? Still call! We’d love to help you find the right home for you!