Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Sept. 15, 2022

Newest Metro Phoenix Market Update

Are you wondering what's going to happen in the Metro Phoenix housing market? Everybody is! You hear everything, whether it's going to go up, it's going to go down, it's going to go sideways. Well, I'm here to give you a boot on the ground report of what's actually happening in the Metro Phoenix marketplace right now.

Let's get started, first of all, active listings; they plateaued this month. They went from 18,364 last month to 18,655 this month. Basically, no change. So that's good news. So, we have a strong inventory. Still lower than expected as normally we have about 23,000 to 25,000 homes on the market, but 18/19,000 homes are going to give buyers a good selection. Our pending homes have stayed steady too, we went from 8,378 last month to 8,428 pending this month, only about a difference of 50 homes. Again, basically, unchanged.

Between August and September, the market has pretty much stayed the same as far as active and pending listings, but while that's been happening, there has been a shift. The days on the market have increased from about 34 days to about 40 days. They're probably going to inch up to 45 days, maybe even 50 days as we move forward. The homes are selling a little bit slower than they used to. Actually, they're selling a lot slower than they used to. We used to be able to put a home on the market and within a week it was sold. Now as a seller, you can expect anywhere from 4-6 weeks and that could rise going into the future. The median price of homes during all this has gone from 500,000 last month down to 494,000 this month. Is that a big change? Eh, it's 1% roughly. There has been a little give back in terms of the price.

Is that the market crashing? By no means, it's absolutely not. What you need to know is the fast sales are gone. You're not going to sell your home as a seller in a week. You're probably not going to sell it in two weeks. You might but be prepared for a longer ride in a sales environment like we have right now. Number two, the rapid price increases are gone. You're not going to see home prices go up 20% in a year, 30% in a year, things like we saw in the years past. What you're going to see instead, is probably for a while, fairly steady prices, maybe going down a little bit then inching themselves back up. Experts are projecting that prices are going to go up an average of 9% for 2022, about 4% for 2023 and 3.5% in 2024. Prices are not projected to come down and in fact, in reality, they're just fluctuating up and down. So, what you will see though are over exuberant sellers pricing their home higher than they should. As a realtor, three, four months ago, we priced the home maybe 2%, 3% over what a similar home sold for but now what we have to do is we have to price it at the same or maybe 1% above. But if you go 2%-4% above you're going to end up having price reductions. In fact, 40% of the homes in the Metro Phoenix marketplace have seen their prices come down. Have they come down below what they had sold for in the last go around? Not necessarily. Don't confuse price reductions with price falling, they might be starting too high and just ratcheting it down to a more "normal" market price.

Sellers need to plan on it taking longer to sell, similar to 30-60 days. Though, we're starting to see multiple offers again. Does that surprise you? Not me so much and here's why. When the interest rates and home prices began rising people were shocked and needed to take a moment to absorb. Right now, they've seen what's going on. Interest rates haven't come down, home prices haven't come down, they've held steady or gradually gone up. As a result, buyers who were back on the sidelines are sitting here now thinking, we better get back into it, and that's exactly what's happening. I sold three homes this last week, 1 in Sun City, 1 in Sun City West and 1 in Chandler, and all 3 of them had multiple offers. I was representing the Chandler home and the buyers were competing against each other's offers. Does this mean every home is going to have that competition? Not necessarily. Though don't be surprised, buyers have come back into the market and they're more active, so there are plenty of buyers. There are about 210 people a day moving into Metro Phoenix. That's a lot of housing needed and with inventory below its normal level, that means these buyers are going to be sometimes backing up against one another. However, this is the new market that we're dealing with.

If you want to see all of the best homes that are available on the market, go to the number one home search site in the valley right here. Which updated every five minutes! Feel free to comment any questions!

Posted in Buy, Market Updates, Sell
June 10, 2022

Marketing your home, Properly

When you market your home, you get ONE chance for a first impression. Over 90% of homebuyers begin their home search online, and the photos you take will determine your success when selling your home. Above are two examples of homes in North Phoenix. The one on the left was shot with a professional photographer, the one the right was taken as a snapshot by the listing agent. Which is more appealing? Which makes you want to stop the scroll and look at more pictures? Which is more likely….to bring a buyer?

I got a call from a past client who just bought a home in Tucson. He bought the home sight unseen, despite some horrible photos. He had his realtor down there to a video walk through with him, and this home (Appx 750K) was spectacular. But it had been on the market a LONG time. Why? Lousy marketing. Photos that were dark, uninteresting, and out of focus. Poor subject matter. The write up? Meh. There had been no effort placed on properly presenting this home. As my client said…. I am SO grateful to the listing agent for not doing their job, so this home was still on the market when we came looking. This home is easily worth $800-$850K. He saved me $50-$100,000 but cost his client the same amount.

Our listings are showcased. Professional Photography. Drone photos. A video walk through. A 3D Interactive walk through. Floor plans. Professional copywriting for the listing. All backed up with, not just a sign and the mls, but a MASSIVE Digital Marketing Campaign reaching 50,000+ potential homebuyers, along with a dedicated website for the home, text to call options, and four-color brochures. Our clients KNOW their home will sell for the most money possible. And, while we specialize in view properties (Lake, Mountain, City and Acreage) we handle ALL types of homes in the North Valley, from Surprise to Phoenix, to Cave Creek to Scottsdale and Fountain Hills. Best of all, we charge the same as most other agents.

If you’re interested in more information, watch this video, or contact us.

Posted in Market Updates, Sell
March 1, 2022

Rent Vs Buy

As a renter, you’re constantly faced with the same dilemma, keep renting for another year or purchase a home? Your answer depends on your current situation and future plans, but there are a number of benefits to home ownership that every renter needs to consider. Here’s a few things you should think about before you settle on renting for another year.

Number one, rents are rising quickly. Rent increasing each year isn’t new. Looking back at Census data confirms rental prices have gone up consistently for decades. If you’re a renter, you’re faced with payments that continue to climb each year. Realtor.com recently shared the September Rental Report, and it shows price increases accelerating from August to September.

 

As the graph shows, rents are still on the rise. It’s important to keep this in mind which time, when the time comes for you to sign a new lease as your monthly rental payment may increase substantially when you do.

Number two, renters miss out on equity gains. One of the most significant advantages of buying a home is the wealth you build through equity. This year alone, homeowners gained a substantial amount of equity, which in turn grew their net worth. Homes went up over 30%. As a renter, you miss out on this wealth building tool that can be used to fund your retirement, buy a bigger home, downsize, or even achieve personal goals, like paying for an education or starting a new business.

Third, homeowners can customize to their heart’s content. This is a big decision-making point if you want to be able to paint, renovate, or make home upgrades– make it your own. In many cases, your property owner determines the selection and prefers you don’t alter them as a renter. As a homeowner, you have the freedom to decorate and personalize, and truly make the home your own.

Number four, owning a home may provide greater mobility than you think. You may choose to rent because you feel it provides greater flexibility if you need to move for any reason. While it’s true that selling a home may take more time than finding a new rental, it’s important to note how quickly houses are selling in today’s market. According to the National Association of Realtors, the average home is on the market for only 17 days. That means you may have more flexibility than you think if you need to relocate as a homeowner.

So bottom line, deciding if it’s the right time for you to buy is a personal decision, and the timing is different for everyone. However, if you’d like to learn more about the benefits of home ownership, let connect so you can make a confident, informed decision and have a trusted advisor along the way. Reach out to us here at Mike Zahn Homes we help find people, the home they'll LOVE!

If you're looking to buy or sell a property connect with us today!

Posted in Market Updates
Feb. 18, 2022

Phoenix Housing Market Update

 

 

The housing market in Phoenix continues to gain. All indicators show the sellers’ market maintains a strong grip, but the number of active listings has declined from 6,791 to 6,253 last month. This lower supply of homes means higher prices. And that said, the number of homes pending sale dropped from 12,376 to 9,624, which is normal behavior over this period of time.

 

With the holidays, the average days on market also swelled a bit from 56 last month to 64 this month. But most significantly, prices took a a significant leap from a median price of 490,000 up to 519,900 in January. Phoenix led the nation last year in year-over-year price appreciation, an amazing 30%. I believe we’ll continue to see price appreciation between now and this time next year. Experts are predicting price gains of 6 to 16%, which would not surprise me. The good news is that the increase looks like it will be this year, and in my opinion, will be closer to the normal 4 to 6% gain going into 2023.

 

Now, that’s a long way out and my crystal ball does get a little fuzzy at this point but that’s my view at this time, higher appreciation at the beginning of the year, slowing appreciation as we come towards the end of the year into a more normal year in 2023. So what’s different this year is that interest rates are expected to rise over the coming 12 months, about 4% at the end of the year, it should be. Since a gain of this magnitude will add hundreds of dollars to your mortgage payment, I expect buyers to flood the market as this rise becomes apparent, putting further upward pressure on prices before the gains moderate late this year due to higher interest rates.

 

So if you can, now is the time to buy. If you’re looking to sell, now is definitely a good time. Declining price pressure and rising interest rates will retain the seller’s market as we move into 2023. In the interim though, we may see a price spike here in Metro Phoenix due to the combined rising mortgage rates and continued high appreciation. As always, if you have any questions, reach out to us here at the Right Move Team where we find people we like, the home they love.

Posted in Market Updates
Feb. 17, 2022

North Phoenix Real Estate Market Update

The housing market in Phoenix continues to gain. All indicators show the sellers’ market maintains a strong grip, but the number of active listings has declined from 6,791 to 6,253 last month. This lower supply of homes means higher prices. And that said, the number of homes pending sale dropped from 12,376 to 9,624, which is normal behavior over this period of time.

With the holidays, the average days on market also swelled a bit from 56 last month to 64 this month. But most significantly, prices took a significant leap from a median price of 490,000 up to 519,900 in January. Phoenix led the nation last year in year-over-year price appreciation, an amazing 30%. I believe we’ll continue to see price appreciation between now and this time next year. Experts are predicting price gains of 6 to 16%, which would not surprise me. The good news is that the increase looks like it will be this year, and in my opinion, will be closer to the normal 4 to 6% gain going into 2023.

Now, that’s a long way out and my crystal ball does get a little fuzzy at this point but that’s my view at this time, higher appreciation at the beginning of the year, slowing appreciation as we come towards the end of the year into a more normal year in 2023. So, what’s different this year is that interest rates are expected to rise over the coming 12 months, about 4% at the end of the year, it should be. Since a gain of this magnitude will add hundreds of dollars to your mortgage payment, I expect buyers to flood the market as this rise becomes apparent, putting further upward pressure on prices before the gains moderate late this year due to higher interest rates.

So, if you can, now is the time to buy. If you’re looking to sell, now is definitely a good time. Declining price pressure and rising interest rates will retain the seller’s market as we move into 2023. In the interim though, we may see a price spike here in Metro Phoenix due to the combined rising mortgage rates and continued high appreciation. As always, reach out to us here at Mike Zahn Homes, where we help find people, the home they'll LOVE!

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Posted in Market Updates
Feb. 5, 2022

Tips for Single Homebuyers

If you’re living on your own and looking to buy a home, know that you can make your dream a reality with thoughtful planning and the right team of experts. Research from Freddie Mac shows 28% of all households, 36 million, are sole person in that number is growing. Over the past 40 years, the number of sole-person households has nearly doubled, and that’s a trend that’s expected to continue.

According to Freddy Mac:

Our calculation suggests that there will be an additional 5 million sole-person households in the United States by the next decade. This means 42% of the household growth will be contributed by sole-person households, . . .”

If you fall into this category, here’s three tips to help you achieve your home ownership goals.

Number one, know your credit score. When you buy a home, you have to qualify for a loan based solely on your own finances and credit history. Investopedia says,

“. . . lenders will be looking at just one credit profile: yours. Needless to say, it has to be in great shape. It is always a good idea to review your credit report beforehand, and this is especially true of solo buyers.”

It’s important to find out your scores so you know where it falls. If you’re not sure it’s strong enough or where to focus your energy to improve it, meet with your mortgage professional for expert advice on your individual situation.

Two, explore down payment options. Next, we look into down payment program so we can get a feel for what you’ll need to save to buy a home.

Rob Chrane, the CEO of Down Payment Resource explains,

“Buyers should discuss their program options with their loan officer and real estate agent to make sure they choose the program best suited to their personal needs.”

In this step, lean on the pros to determine what you’re eligible for and what works right for you.

Third, think about your future home and your needs. You should also spend time thinking about what you want. What type of home do you picture yourself in? To answer that question, Quicken Loan shares this advice.

Think about your lifestyle, what you want out of your home and your needs. Is being close to work important? Do you need a lot of yard space? Do you want an extra bedroom that you can transform into a home office? Condo or detached home? Lots of space for entertaining? It’s all up to you (and your budget).”

But again, a professional can help you balance what you want and how much you should spend on your monthly housing costs to determine what type of home is right for you.

While buying a home solo can feel like a big challenge, it doesn’t have to be. If you lean on the professionals, they can help you navigate these waters. Make sure you’re able to take advantage of the great opportunities in today’s housing market, like low mortgage rates, to buy your dream home. Bottom line, the share single person households is growing. And if you are looking to buy a home on you own, be confident that the dream is achievable. When you’re ready to begin your search, let’s connect so we can have expert advice each step of the way. As always, reach out to us here at Mike Zahn Homes, where we help find people, the home they'll LOVE!

Posted in Buy
Jan. 6, 2022

Road Trip to Payson

Arizona has so many different climates. From the Sonoran Desert in the South to grassland in the center to tall pines to the North and East, we have it all. This past week I drove up to Payson, AZ to close on a sale I made up there. Payson is about 90 mi NE of Fountain Hills and is about 4800′ over sea level.

If you haven’t been, take the trip. You go through rocky desert outside Fountain Hills and come to the grassland and Valleys after that. The photo above is on a “winter storm” day. It was absolutely gorgeous. I was surrounded by snowcapped mountain tops, and the clouds were drifting down just above the ground in places. It was magical.

Payson was chilly – about 48 degrees, and it warmed up to the low 50’s. It has mild winters. The town is still small and quaint, with its business district scattered along the Beeline Hwy from Phoenix, and the 205 headed east towards Heber-Overgaard. If you go, don’t miss the historic district…. but don’t expect a Jerome or Globe in terms of “Old”. Very much a “pioneer old west” feel. I highly encourage you to check out Green Valley Park and Lake, where they have fireworks over the lake every fourth of July that puts many of the Valleys’ displays to shame. If you go for this……arrive early, it's packed!

For Breakfast or Lunch, check out the Beeline Cafe for local, informal dining. In town there are a couple of steakhouses for dinner, or for something very local and very good, drive East about half an hour to Christopher Creek Steakhouse.

Arizona has something for everyone. State 48 is the one of the best, so make the most of it and explore!!!

Posted in Day Trips, Lifestyle
Dec. 31, 2021

December Phoenix Housing Update

You need to know. You need to know what’s happening locally in our Metro Phoenix real estate market. Everyone wants to know if it's a good time to buy. Is it a good time to sell? It can be so confusing with all the news that’s both positive and negative. Who should you believe? What’s the best choice? I get it. I’m in the industry and have been for over 15 years, and I even find myself a little bit anxious. But let’s look at the data and see what’s really happening so that we can make an educated decision.

First of all, according to real estate experts and advisors, anytime you have an inventory level, meaning the number of active homes on the market, that are at least six months of inventory or below, we’re in a seller’s market. Anytime we have inventory levels in excess of that, in other words above six months, then we’re in a buyer’s market. It’s sort of like the supply and demand theory. Where there’s a lot of supply of something and it’s easy to get, you can’t sell it for more money. More often than not, you’ll have to lower the price in order to compete with all the competition. But when there is limited supply, then prices go up. It’s kind of like when people were selling toilet paper or hand sanitizer for 10 times what it was worth, because they knew we were going to need to, well, we need toilet paper. That wouldn’t be good if we didn’t have any. So, let’s see what inventory levels are doing here locally.

Is it a good time to sell here in Metro Phoenix and North Phoenix? Well, let’s begin by looking at what happened in the month of October. In Metro Phoenix we currently, as of the time of this video, have 5,692 homes active and on the market. Now this is historically low. Traditionally during this time, there are many more homes available. 5,692 is a very low number. In fact, we normally have over 25,000. The average time to sell is only 36 days, so we only have about one month’s worth of inventory, confirming we’re in a very strong seller’s market. Now you may be wondering if it’s a good time to sell in Metro Phoenix or North Phoenix. The active homes on the market in November are 5,692, we’ve sold 8,596. That means we are selling inventory faster than we’re getting it. Again, a seller’s market. Because we have less than one month’s worth of inventory, inventory is only at 66%, we’re selling 1/3 more homes than we have available. It’s a very strong seller’s market. So here in all areas of Maricopa County, we have very low inventory and a strong buyer demand. It’s a great time to sell as we’re experiencing bidding wars and homes being sold above list price in almost every case. That shouldn’t discourage you from getting a home, just be aware….it MAY take some persistence.

Posted in Market Updates
Dec. 23, 2021

2022 Real Estate Predictions: Is the market cooling off?

It has been a crazy year in real estate in 2021. If you’ve been looking to buy a home or you’ve been looking to sell a home, you already know that, but the question becomes, what’s going to happen in 2022? And that’s what people are asking me.

Look, like most industries, real estate has a seasonality to it. For example, toy stores sell more toys in October, November, and December than they do in any other three-month span throughout the year. More cars are sold in the US during the second quarter, April, May and June, than any other quarter of the year. Real estate's very similar. The number of homes sold in the spring is almost always much greater than in any other time of the year. It’s even labeled as the spring buying season among us Realtors. So historically, the number of buyers and listings for sale significantly increase in the spring and remain strong throughout the summer. Once fall sets in, the number of buyers and sellers typically drops off.

Last year, however, that seasonality didn’t happen. The outbreak of the virus and the subsequent slowing of the economy limited sales during the spring market. These sales were pushed back into the year, and last fall and winter saw an actual dramatic increase in the number of homes sold over the previous years. The only thing that held the market back was the extremely limited supply of homes for sale. So, what about this winter? Some experts thought that we’d returned to the industry’s normal seasonality, with both the number of purchasers and houses available for sale falling off. However, data now shows that neither of these situations will likely occur.

Buyer demand is still extremely strong, and it appears we may soon see an uncharacteristic increase in the number of homes coming to the market. Buyer demand remains really strong and the latest Showing Index from Showing Time, which tracks the average number of monthly showings on available homes, indicates that buyer activity was slightly lower than at the same time last year, but much higher than any of the three previous years.

Chart, bar chartDescription automatically generated

A report from realtor.com confirms that buying activity remains strong in the existing home sales market.

New housing data shows 2021’s feverish home sales base broke a yearly record in October, with last month marking the eighth straight month of buyers snatching up homes more quickly than the fastest pace in previous years.

Realtor.com

Buyer activity for newly constructed homes is also still very strong. Ali Wolf, the Chief Economist for Zonda, recently reported that Stuart Miller, the Executive Chairman of Lennar, one of the nation’s largest home builders, said this about demand,

There’s still a great deal of demand at our sales centers with people lining up and not enough supply.

Stuart Miller, Executive Chairman of Lennar

The only question leading into this winter is whether the number of listings available could come close to meeting this buyer demand. We may have just received the answer to that question. Sellers are about to list, right now. Instead of waiting for the normal spring buying market, new research indicates that homeowners thinking about selling are about to put their homes on the market this winter. Speaking to the release of a report on this recent research, George Ratiu, Manager of Economic Research for realtor.com, said,

The pandemic has delayed plans for many Americans and homeowners looking to move to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter

George Ratiu, Manager of Economic Research for realtor.com

So that’s where we’re heading. It looks like we’re going to have more homes for sale coming up this spring. It looks like it’s going to be a very strong year, in terms of buyer activity, as well as seller activity. That leads me to believe that as we move into 2022, along with the projected increase in mortgage rates, you’re going to see a softening of the rate of increase of home prices. It’s probably going to be front-loaded towards the beginning of the year, and as we move towards the end of the year, into fall and winter, you’re going to see that rate of increase slow even further, back to a normal level of 3 to 4%. And going into 2023, if I were to be really brave, maybe even drop farther below that.

So that’s the projection for the coming year. If you have any questions, reach out to us here at Mike Zahn Homes, where we help find people, the home they'll LOVE! See you in my next video.

Call Us! (602) 574-640

Posted in Market Updates
Dec. 21, 2021

Top Things to do when Celebrating the Holidays in Phoenix Arizona

Are you ready for the holiday season? I know last year, plenty of holiday events were changed or canceled, but this year there’s a lot going on. Here are the top holiday activities going on December, right here in Metro Phoenix.

Number one: ice skating. I know. The Metro Phoenix area doesn’t get snow or ice, but every year you can ice skate at several outdoor ice rinks here in the valley. You can find one at Cityscape in Phoenix for $18 per person, one at west gate and Glendale for $19 and one at city Plaza in downtown Mesa as part of their ongoing Merry Main Street event. There’s also an ice-skating rink at the Scottsdale princess resort as a part of their Christmas at the Princess event.

Number two: drive through light shows. Metro Phoenix puts on some spectacular drive-thru light shows every year. Two of the largest are put on by World of Illumination. Visit their reindeer road show in Tempe at Tempe Diablo stadium or Candy Crush at the Diamond Resort Casino in Glendale. Both events are $39 per car. If you’re in Mesa, check out Arizona Lights in the Night with over 1 million lights and hundreds of different holiday displays for $30 per car.

Number three: holiday festivals. Holiday festivals are great activities for families with kids here in the valley, and usually host events like hayrides, pictures with Santa, skating rinks, and light shows. Visit Christmas at Schnepf Farms, downtown in December at Murphy Park in Glendale, and Merry Main and Mesa, or the Lights at Vertuccio Farm.

Number four: holiday performances. If you’re a musical theater fan, December is a great time to catch some amazing performances in Metro Phoenix. The Nutcracker is performing at Ballet Arizona and the Orpheum theater. Catch the Elf Musical at Arizona Broadway theater in Peoria or watch the 13 days of Christmas at Fountain Hills Theater. Tickets for these tend to sell out quickly, so be sure to get your seats soon.

And finally, number five, and this is one of my favorites–Las Noches de las Luminarias at the Desert Botanical Gardens. The gardens are filled with thousands of beautiful handling luminarias. This holiday tradition has been going on for 44 years. Guests can enjoy performances, entertainment, and amazing food through the Patio Café and Gertrude’s Restaurant. Like the holiday performances, this event has sold out quickly in the past years, so make your reservations early.

I hope you find something for you and your family to enjoy this holiday season. Reach out to us for information on the Metro Phoenix area, the North Phoenix area, here at Mike Zahn Homes, where we find people, the home they'll love.

Posted in Day Trips, Lifestyle