On 10/03/15, the Consumer Financial Protection Bureau (CFPB) implemented a new rule affecting home loan disclosures. Here's what sellers need to know. It will allow consumers more transparency and a better understanding of the loan terms & process and hopefully prevent mass amounts of borrowers from defaulting on loans which they had little understanding of their obligations to repay. This new rule doesn't just affect buyers and sellers in the Phoenix & Scottsdale area. It's been implemented nationwide and will affect ALL US buyers & sellers involved in a sale with a financing.

The other day, I went to one of my listings to check on it. When I got there, I was saw that a buyer had left their notes behind. At first, I was impressed that the buyer actually took the time to think about all the things they wanted in a home, but I felt a little bad knowing that they didn't have them anymore. Fortunately, I can figure out which agent showed the house and send the notes to him/her.

Many buyers get so wrapped up in the process of "buying a house", that they forget that it has to fit their needs and lifestyle too. A lot of things about a home are not visible with the pictures you might see in MLS. Or, if the list agent doesn't do a good job representing the home with photos or marketing, it can be nearly impossible to gather this information until you get inside the home. There are somethings that you just can't photograph well at all, like the insulation or wiring for surround sounds/alarms/HDMI.

Every buyer has things that are important to them in a new home, but prioritizing them makes it very easy to sift out the ones that won't work from the ones that might be "diamonds in the rough". I completely encourage buyers to distinguish their needs from their wants and prioritize them. Then, when you go see a new home(s), jot down all of all the things you like (or dislike) in a home after you see them.

You can use pen and paper, just like this buyer did, or if you're visual, take pictures. Dictation into an app like Notes, AnyDo or EverNote (iOS) works too, if you're not a writer. Whatever you choose, just make sure you go back and actually revisit it. My personal favorite is pictures because my memory is like a sieve and my handwriting is even worse! Most buyers pick up only a fraction of what's in a home on the first visit and if you trust your memory (DON'T!!), you may dismiss a home that's a great option.

I'll admit, long ago when we moved to Phoenix, before I was a Realtor®, we bought our house in a weekend. We saw it exactly twice before we arrived 3 weeks later. I was 5 mos pregnant, so after driving 6.5 hours from the beach in CA, to arrive in a monsoon in 116-degree weather (August), I was MAD when I couldn't find the "3rd" bathroom in our new house. As it turns out, it really was a toilet in the corner of our laundry room. I'm pretty detail-oriented, but just short of staying for dinner, you don't really have that much time to take in every house, especially if you're on a tight time frame (who isn't?!).

If you've seen a lot of "plan homes" (i.e. in Desert Ridge, McDowell Mountain Ranch, McCormick Ranch, DC Ranch, etc.), there may be several of the same layout and it becomes even harder to distinguish one from another when you finally sit down to revisit all of your options. Unless the home was custom built, regardless of whether you're looking at a townhouse in Tempe (like my listing where I found this notebook) or a luxury villa in N. Scottsdale (like my newest listing), many of these homes may feel the same, but have different finishes, fixtures, locations and prices. In fact, the older a home is, the more likely it is to vary from a neighboring home and this is exactly where the value starts to become apparent if you're paying attention.

Newer dual-paned windows, roofs, heating/cooling systems, plumbing fixtures, paint, flooring, backyards, front yards and even the very lots they sit on can justify a property value easily. What's important to you?? Only you and your family can decide that, but make sure you do. It may mean the difference between finding the "right" house, that you can live in comfortably for years or having to move again when you realize that your house just isn't a "good fit" to be your HOME.

Happy home buying!!

Related Articles:

September 2015 Phoenix Metro Real Estate Snapshot

Metro Phoenix Rental Market Shows No Signs of Weakening

Is Your Homeowner's Insurance Keeping Up with Your Home Renovations?

I've been saying that our Metro Phoenix residential real estate market is still very strong. Here's a quick overview so you know exactly what that means. Check out this infographic from the Cromford Report for all the latest! Then call or email me with any questions!

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Metro Phoenix Rental Market Shows No Signs of Weakening

Is Your Homeowner's Insurance Keeping Up with Your Home Renovations?

ARMLS: 15,631 Active Listings in Maricopa County (and Still Falling?)

The rental market in our area continues to amaze me... Good rentals under $2,000/mo can be hard to find. This spring, even seasonal rentals were hard to find.

Apparently all the people who aren't eligible or aren't ready to commit to a mortgage or a long stay are not restraining landlords at all. I've been on both sides of the coin this year- representing landlords in Arcadia & McCormick Ranch who get full price & fast occupancy on "pie in the sky" prices and tenants in the heart of Scottsdale, Midtown Phoenix & the Biltmore who couldn't even find listings, let alone get to them fast enough. A client coming into town earlier this summer in advance of a relocation initially planned on staying for just a day. After advising him that it was likely enough time, he extended his trip to 3 days, but still was not able to lock up a rental before he left and had at least one rejection from a landlord, despite his signed 3-year contract for employment.

Back in early February, I shared a chart showing US Household Formation, which after a steep decline appeared to be on a steep upswing.

• October 2014 = 1,435,000
• November 2014 = 1,618,000
• December 2014 = 2,001,000

Here's what that same chart looks like today:

• April = 2,331,000
• May = 1,901,000
• June = 2,246,000

The trend definitely is still going and these are some substantial increases. Certainly, landlords are still in a unique position here in Maricopa County, if they actually want to be landlords. There's a lot that will play out over the next 6-12 months- new rental units under construction, more borrowers eligible to buy, a looming market correction in China???

Everyone should stay tuned for more info... but in the meantime, if you find yourself with a need to list a home to lease or lease a home to live in, please call/text/email me for info that will help you to make a wise decision!

Related articles:

Is Your Homeowners Insurance Keeping up with Your Renovations?

15,631 Active Listings in Maricopa County (and Still Falling?)

Gains Starting to "Trickle Up: in Phoenix & Scottsdale Real Estate

Have you made any improvements to your home in Phoenix, Scottsdale or Paradise Valley recently (or not so recently)? Have you made any improvements to your homeowner's insurance policy?

Most people give the same answer. Unfortunately, it's usually the wrong answer. Here's what you need to know and why you don't want to mess this up. Take comfort in knowing getting to the right answer is EASY. Watch this:

I've been through the process recently myself and know what it entails. Ask me your questions. Don't forget, I am happy to refer a few insurance agencies if you decide you want to shop around and compare. I'm only a call, text or email away!

Have a great week!

~ Camille

Related:

15,631 Active Listings in Maricopa County (and Still Falling?)

Gains Starting to "Trickle Up: in Phoenix & Scottsdale Real Estate

Mid-year Stats Show 2015 is a Good Year for Phoenix Real Estate

It's been exactly 2 months since I posted "ARMLS: 16,586 Active listings in Maricopa County (and Falling?)". Since then, active listing counts  decreased by nearly 1,000 (5.8%).

But why should I care? What does this actually mean?!

Let's consider simple economics, assuming conditions stay unchanged for the next 6 mos:

• If supply continues to decreases and demand increases, prices will also increase
• If supply continues to decrease, even if demand stays the same, prices should rise modestly

Let's take a look at buyer demand for real estate:

Demand has been pretty flat for the last few months, but note the trend upward since about Feb. 2014.

Let me break it down for you:

• Buyers- it's not getting easier to buy a home. Plan ahead and keep your prequal updated. Do something sooner than later so you don't have to compete with snowbirds, who will be here in about 2 mos.
• Sellers- spruce up your home and get it ready to sell- the market is saying that it's ready for you.

Whatever you decide... be prepared and contact me to represent you so you'll have a sound plan and agent ready to execute! I'm only a call away!!

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Gains Starting to "Trickle Up: in Phoenix & Scottsdale Real Estate

Mid-year Stats Show 2015 is a Good Year for Phoenix Real Estate

Metro Phoenix Condo Market Sizzles in 2015

Summer has been very good to sellers this year in the Valley of the Sun. The growth that initially took shape with the "starter" range close to our median area price of $220,000 is moving through the "move-up" range ($300-500K) and flowed nicely into the lower rungs on the luxury ladder.

August 8 - Luxury single-family home sales in the Northeast Valley remained surprisingly strong during July 2015. There were 354 closed transactions over $500,000 in the Northeast Valley though ARMLS, up 25% from last year. Almost all the strength was concentrated in ranges below $1 million. Over $1 million, sales were up only 2% while between $800,000 and $1 million sales rose an astonishing 69%. The top end went suddenly quiet with only 5 closed sales over $3 million, down from 16 in June. Unit sales over $500,000 were the second highest we have seen for any July since 2000 with July 2005 still holding the record at 479.

The swing away from the very top end to the ranges between $500,000 and $1 million is one factor that negatively affected the overall average $/SF during July.

Source: The Cromford Report

Though the ultra-luxury market actually did quite well at the end of last year with December posting some big gains, homes between $1-2M didn't quite have the same activity. A 69% increase in homes between $800K-1M is substantial.

For most buyers trying to get into the "core" areas of our metro around which most the more established residential and commercial areas are found, it hasn't been that easy to snap up a home. Take a look at where all sales in the last 180 days occurred in Maricopa County.

Notice the majority of the sales activity is confined to 1 quadrant of our metro area- the northeast valley, inclusive of N. Central Phoenix, Arcadia, the Biltmore, McCormick Ranch, Paradise Valley, Scottsdale Ranch, the East Shea Corridor, DC Ranch, Pinnacle Peak/Grayhawk areas of North Scottsdale, Cave Creek & Carefree. Nearly one half (209, to be exact) of all 457 sales occurred in the area from Central Ave (west) to 150th St (east) and from McDowell Rd (south) to the 101FWY (north).

An interesting point to note is that many of these areas already have high median home prices even though these stats include ALL types- SFR, condo, townhome, etc. The median sale price in:

• Paradise Valley (85253) is $1.196M,
• Pinnacle Peak, DC Ranch, Grayhawk, Desert Highlands, etc. (85255) is $575K
• East Shea Corridor- Ancala, Scottsdale Mountain, Stonegate, etc. (85259) is $536K
• McCormick Ranch & Scottsdale Ranch (85258) is $401K
• Arcadia/Arcadia Lite (85018) is $395K

So, just as sales volume under-$200K market are decreasing, sales between $800K-$1M within these areas also may decline in this price point and lead to an increase in sales volume at just above $1M. This is food for thought if you're planning to sell a home in the range of $1M. Call me to talk about what you can do to be ready to sell and maximize your proceeds.

If you plan to buy a home in the range of $1M in the next 6 months, you'll need to make sure the home you think you can buy today will still cost the same within 6 months. If the answer appears to be no, you may want to get serious and think about purchasing now, prepare to spend more or be willing to accept less.

Either way, call me to ensure you have the best representation and we'll craft a strategy just for you! Have a great week!

Related Articles:

Mid-year Stats Show 2015 is a Good Year for Phoenix Real Estate

Metro Phoenix Condo Market Sizzles in 2015

June 2015 Metro Phoenix Market Recap

"A picture is worth 1,000 words..." I agree with this statement, but tend to think that numbers say a whole lot too.

We are more than half way through 2015 and the latest numbers show real estate in the Valley of the Sun is still going strong across most price points. Here's a chart showing ht number of listings under contract for each of the last 5 years, including 2015 up to week 30 (the end of last week):

Source: Cromford Report

Note, there are 2 price points that aren't looking so good... both are $200K or less. Why is that? There is no inventory in those price ranges. Simply put, there aren't very many homes for sale under $200,000 as prices increase across the board.

Look at this chart:

Source: Cromford Report

Over the last 5 years, our median sale price increased from $113,875 to $220,000 (93.1%!!). If you're cautious about the slight dip from June to July, don't be. That seasonal decrease typically occurs every year when it gets hot and everyone leaves town. Look a little closer at the chart and you'll see that in most cases, most of the spikes occurred between March-June. The dips were either somewhere between June-August or between November-January- the 2 typical times of year when seasonally the market slows down.

The quick takeaways from these 2 charts show are:

1. If you're a 1st-time buyer, it's time to get off the fence and figure out a plan. Both values and interest rates are trending up. Might be better to get your foot in the door now, unless you just don't have the means and/or you plan to have a whole lot more down payment to buy something down the road.
2. The move-up market between $300-500K is going strong. Pending sales are up 56% over 5 years. I'm watching homes in the $250-500K range sell so quickly, even a few that I can't fathom anyone want.
3. If you plan to buy a home between $200-500K (represents 46% of our pending sales), be prepared. Have your financing, down payment and all the details in order. You snooze and you will likely lose.
4. Luxury sellers, your time has come... Last year the market from $500-$2M, was soft, particularly from $800K-$1.5M. Pending sales between $500K-1M are up 48% in the 5-year period. Pending sales between $1-2M are up 15%. And how about that $2M+ market? Pending sales are up a whopping 109%!

Regardless of what you do, make sure you arm yourself with a plan and talk to me about your next steps. Whether you want to buy and need help navigating through the coming changes ("Know Before You Owe- Consumer Financial Protecton Bureau" takes effect on 10/3/15) or whether you need to sell a home and want to maximize your sale proceeds, call me today to find out how what's going on in the market around you and discuss all of your available options. I promise you'll be glad you did!

Related:

Metro Phoenix Condo Market Sizzles in 2015

June 2015 Metro Phoenix Market Recap

How about that condo market... During the recession, this segment was hit hard and took a long time to recover, coming back more slowly than it's single-family cousin. Today, as those affordable options become scarcer for the demographics fueling the continuing market recovery ("Millennials" & "boomerang buyers"), condos are making a comeback!

Take a look:

Source: The Cromford Report

As you can see, condos below $300K are faring best, accounting for a big chunk of our market considering the median sales price for the Phoenix/Scottsdale Metro area is just over $200K. So, as all of these homes vanish from the market, it leaves those seeking lower priced options less from which to choose. Active condo listings under $200K are down as at least as 24% (more as the price decreases due to rising market values). Condo listings under contract between $150K-$500K are up over 50% across the board.

I've seen this change first-hand... A client of mine who put off listing a Scottsdale condo in February due to a sluggish market was surprised to hear from me when a buyer's agent sent out an email to an agent forum looking for "pocket listings" in the same community! It was welcome news no doubt. A Tempe condo I listed for a client sold in 14 days with multiple cash offers after a light prep for the market.

If you've been putting off listing your condo (AKA patio homes, townhomes, lofts, etc.), now may be the time to consider trying the market. Contact me today for market specific details about your home and let's see whether this is the right time to sell your condo in the Phoenix Metro area!

Related Info:

June 2015 Metro Phoenix Market Recap

ARMLS: Active 16, 586 listings in Maricopa (and Falling?)

Deal Breakers that Get in the Way of Buying the "Perfect" House

The "Big Picture"

A lot happened between May and June. It's 2A and I'm working on this long-overdue blog after a solid month of listing and selling. June is turning out to be another good month for real estate in the Phoenix/Scottsdale area. Even if you're just skimming through, look at the pictures and make sure you get to the "Bottom Line" below.

The market continues to be strong with inventory on the low side and stable buyer demand.

What's increasing: sales volume, dollar volume, appreciation & the median home price. What's decreasing: active listings, months supply (inventory) & pending sales (due to seasonality- it's 110-degrees here!!!). Do note: mortgage interest rates are trending up, which could put some pressure on buyers to get off the fence and take action to not lose buying power. That being said, there are an abundance of loan options out there for every buyer, ranging from the "A++ client" with FICO scores above 760 & verifiable income (W2 & Tax returns) to the buyer who has had a substantial credit blemish within the last few years, but has a good down payment ready to go. No- I'm not kidding about the clients with the "credit blemish"; I have one such client closing in a few days and another ready to pull the trigger. Here are the highlights for the month:

A Look by City

At the beginning of the month, the Cromford Report Major City Index looked solid with all but 3 of the 17 major cities boasting an index at or above 100.

Just 2 weeks later, that same chart boasted all but 1 city being above 100.

As a reminder, the Cromford Market Index is defined as: "a value that provides a short term forecast for the balance of the market. It is derived from the trends in pending, active and sold listings compared with historical data over the previous four years. Values below 100 indicate a buyer's market, while values above 100 indicate a seller's market. A value of 100 indicates a balanced market." In a nutshell, all but 1 major city favors sellers over buyers. Because the market doesn't appear to have "peaked" yet, summer 2015 could be right up there with summer of 2013, which sailed along smoothly until July before dropping back for most of 2014.

YTD Change in Revenue per Price Range

Life is pretty good if you're a seller listing a home between $150K-$600K. Even above $600K, while growth is barely in the double-digit range, it's still up by nearly double-digits. And did you check out the sales of luxury homes over $3M?? It is the single best performing segment year-to-date. If you're wondering why there are so few sales below $150K, keep in mind that while our market continues to recover and improve, home sales at the lower end are not doing poorly- there simply just aren't any homes at that price point to buy, which will make this segment continue to evaporate.

However, did you notice how the $600-800K market is performing the worst among all the price points. There are a lot of homes on the market at this price range. I think all of these higher end sellers decided at some point that the time to sell was "now"! However, if you look that are closely at the $350-400K market, you can see that it's outperforming most price points with the exception of the ultra-luxury market.

For Buyers & Sellers

Entry-level

Homes under $200K are evaporating quickly. Look at how they went from an abundance of listings under $200K in March 2010 to falling to their 2nd lowest level in June 2015. Buyers buying below $250K also beware. As these single family homes up to $200K next, the market will likely gobble up the $200-250K market soon and/or cause buyers to start focusing heavily on the condo/townhome market. A townhome I listed in mid-June in Tempe, near ASU got multiple, CASH offers in 14 days and under contract to sell at full price in only 3 weeks. When I initially put it out there to my agent colleagues, the lack of inventory caused a few to ask me if I had quoted the asking price correctly. If you are a seller with a home in this range, it's a great time to list a home, but it's a pretty lousy time to be a buyer. Check out how monthly sales overtook the volume of new listings on 6/23/15.

Move-up

As we saw in the section above, the entry & move-up markets are the most impacted by the recent changes in the market. The move-up buyer is likely competing with a number of other buyers. And even crazier than that, May and June both had lots of buyers still looking. One home that I listed in McCormick Ranch in June got an offer in 4 days. Another home I listed in the heart of Scottsdale, 85254 right before Memorial Day got multiple, CASH offers in only 3 days! We are closing at just under list price in a 26-day escrow. Sellers at this price point are sitting pretty with lots of competition among buyers.

Luxury

From $600K to $3M, it's actually quite a good time to be a buyer in this range. Though the market is still improving in this segment, there are lots of options readily available. Some areas that have a higher concentration of luxury homes (Paradise Valley, North Scottsdale, Carefree & Cave Creek) are fairly saturated. I see a LOT of opportunity for either sellers who are willing to make improvements to their homes at this price point to position their homes against others that are not updated or buyers who are willing to tackle the repairs themselves.

A word of caution to all: even though our market is improving, property values tend to be the last thing that moves higher after, higher demand, reduced supply and higher asking prices. Because of this, appraisals have been giving a lot of us agents (and sellers for that matter) a run for our money. Appraisers use closed sales to value homes, not asking prices. And while they will look to pending sales to identify trends, they have little bearing on the confirmed, closed sales upon which appraiser rely.

Rentals

Rentals are cooling a bit, or so the trend appears.

June 21  (Cromford Report) - The rental supply situation has started to ease a little. We see 3,271 active long term rental listings on ARMLS today, which is up 11% from April 21. However it is still down 24% from this time last year. Single family listings are up 15% from 2 months ago, while condo listings are up only 6%.

Among the active single family rentals, the average monthly lease rate has dropped from $2,086 to $1,993, the lowest since March 10. Last year on June 21, it was only $1,776.

The situation remains poor for tenants and great for landlords, but the trends have reversed for the time being at least.

April 2, 2015 had the tightest supply of single family rentals and the highest average monthly lease rate of $2,124.

Long term rental listings increased by 11% from April 2015 to June 2015 and asking prices actually decreased for single family rentals?! Maybe this is a little bit of relief for tenants who have been searching for affordable rental homes to live in. Mind you, prices are still substantially up over 2014. So while this may be a signal to landlords that the market could be changing, I can certainly vouch for the fact that rentals are hard to come by at any price point or area- from 1BR condos or apartments in Midtown Phoenix or North Central Phoenix, to fully furnished rentals in Scottsdale, the Biltmore, Arcadia and beyond, I've struggled to find reasonable options for many clients this spring.

The "Bottom Line"

Real estate is "hyperlocal". The "what" and the "where" are critical to determining a course of action, whether you're a buyer, seller, landlord or tenant. I can say that since I focus on properties in the "Core" of Metro Phoenix, I am seeing a push for many buyers to find homes that are centrally located with easy access to freeways, amenities, shopping & places of business. All of the mature neighborhoods that have existed for many years like Arcadia, the Historic Districts, McCormick Ranch, Old Town Scottsdale & many others are really holding their value.

I also believe there are "sleeper" neighborhoods like Sunnyslope that are under-valued and present a unique opportunity for an "in-town" location with good access to everything, that are good for buyers who may not have tons of options available in more established areas like North Central Phoenix, Biltmore Heights, Pointe Tapatio & Moon Valley.

Stay close to me for detailed info as it relates to your situation to chart your course. Have a happy 4th!