All About Anthem, Arizona

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How Much is Too Much Rent?

Chances are if you are renting you are spending too much of your income on your monthly housing expense. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their rent or mortgage payment. This percentage allows the household to save money for the future while comfortably covering other expenses.

According to new data released from ApartmentList.com, 49.5 million renters in the United States were cost-burdened in 2017, meaning they spent more than 30% of their monthly incomes on rent. This accounts for nearly half of all renter households in the country and is up 3.1 million from 2007.

When a household is cost-burdened by their monthly housing expense, they are not as easily able to save money for the future. This is a big factor for many renters who dream of owning their own homes someday.

But there is hope for those who are able to save at least a 3% down payment! The percentage of income needed in the US to buy a home is significantly less than renting at 17.1%! To win some money which you can use to buy your desires, you can play games like 겜블시티 파워볼.

The chart below compares the historic percentage of income needed to rent and buy from 1985-2000 to the first quarter of 2018. As you can see, the cost of renting has climbed above historic numbers while the cost of buying dropped over the same period of time.

If you are one of the many renters who is spending too much of their monthly income on rent, consider saving money by getting a roommate, moving into a less expensive apartment, or even moving in with family. These are all ways to save for a down payment so that you can put your housing costs to work for you! If you’re looking for affordable options, you might even explore options like canary wharf flats to rent for a cost-effective living arrangement.

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

4 Reasons to Buy A Home This Winter!

Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Insight report revealed that home prices have appreciated by 5.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.7% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase 

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4.8%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase in 2019.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage

There are some renters who have not yet purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person building that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on With Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.



Why Has Housing Supply Increased as Sales Have Slowed Down?

 

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the inventory of homes for sale this year compared to last year has increased for the last four months, all while sales of existing homes have slowed compared to last year’s numbers.

For over three years leading up to this point, the exact opposite was true; Inventory dropped as sales soared.

NAR’s Chief Economist Lawrence Yun shed some light on what could be contributing to this shift,

“This is the lowest existing home sales level since November 2015. A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”

Let’s take a deeper look:

Interest Rates

Since January, 30-year fixed mortgage interest rates have increased nearly a full percentage point (from 3.95% to 4.9%). Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association are all in agreement that rates will continue to increase to about 5.2% over the next 12 months.

“The rise in [mortgage] rates paired with this very strong price appreciation absolutely is slowing housing,” said Fannie Mae’s Chief Economist Doug Duncan.

Even though rates are higher than they’ve been in a decade, they still remain below the average for the 1970s, 80s, 90s, and 2000s!

Mismatch of Inventory

Elizabeth Mendenhall, President of NAR, said it best, “Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range.”

Prices of starter and trade-up homes have appreciated faster than their higher-priced counterparts. Over the last 5 years, the lowest-priced homes have appreciated by 47% while the highest-priced homes have appreciated by only 24%.

According to the Institute of Luxury Home Market’s Luxury Market Report, the $1M-and-up price range is now experiencing a buyer’s market. This means that supply (inventory) has finally caught up with demand and buyers are in the driver’s seat when it comes to negotiations. Additionally, many listings in this price range have experienced price cuts in order to entice buyers to put in offers.

Natural Disasters

Although not fully to blame for the national shortage in sales and inventory, natural disasters like Hurricane Florence, Hurricane Michael, and the wildfires on the West Coast have certainly had an impact.

Bottom Line

Additional inventory coming to market could help normalize the housing market and allow incomes to catch up to home prices. For more information about sales and inventory in our area, let’s get together so we can help you make the best decision for you and your family.

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

5 Tips When Buying a Newly Constructed Home

The lack of existing inventory for sale has forced many homebuyers to begin looking at new construction. But before buying a home you can also view more to know more about affordable restoration services. When you buy a newly constructed home instead of an existing home, there are many extra steps that must take place. Crane hire companies play a crucial role in large-scale construction projects, providing essential lifting equipment to streamline operations. For builders and developers, financing solutions from Equipment Finance Canada can help manage the costs of construction equipment, ensuring projects stay on schedule and within budget.

To ensure a hassle-free process, here are 5 tips to keep in mind if you are considering new construction:

1. Hire an Inspector

Despite the fact that builders must comply with town and city regulations, a home inspector will have your best interests in mind! When buying new construction, you will have between 1-3 inspections, depending on your preference (the foundation inspection, the pre-drywall inspection, and a final inspection) but this is the nearest one available which you can choose to start work quickly.

These inspections are important because the inspector will often notice something that the builder missed. If possible, attend the inspection so that you can ask questions about your new home and make sure the builder fixes any problems found by the inspector such as roofing repair or replacement through roofers.

2. Maintain good communication with your builder

Starting with the pre-construction meeting (where you will go over all the details of your home with your project manager), establish a line of communication. For example, will the builder email you every Friday with progress updates? If you are an out-of-state buyer, will you receive weekly pictures of the progress via email? Can you call the builder and if so, how often? How often can you visit the site?

Ensuring a strong foundation is just as important as maintaining clear communication throughout the project. Helical piles provide innovative, durable, and reliable solutions for stable foundations, making them a trusted choice for builders working in various soil conditions.

3. Look for builder’s incentives

The good thing about buying a new home is that you can add the countertop or any kitchen supplies you need, the mudroom you want, or an extra porch off the back of your home! However, there is always a price for such additions, and they add up quickly!

Some builders offer incentives that can help reduce the amount you spend on your home. Do your homework and see what sort of incentives the builders in your area are offering.

4. Schedule extra time into the process

There are many things that can impact the progress on your home. One of these things is the weather, especially if you are building in the fall and winter. Rain can delay the pouring of a foundation, as well as other necessary steps at the beginning of construction, while snow can freeze pipes and slow your timeline. In areas like Anchorage, where the weather can be particularly harsh, it’s important to work with a reliable foundation repair contractor in Anchorage to ensure that your foundation is properly prepared to withstand the elements. A skilled contractor can help mitigate weather-related delays and keep your project on track.

Most builders already have a one-to-two-week buffer added into their timelines, but if you are also in the process of selling your current home, you must keep that in mind! Nobody wants to be between homes for a couple of weeks.

5. Visit the site often

As we mentioned earlier, be sure to schedule time with your project manager at least once a week to see the progress on your home. It’s easy for someone who is not there all the time to notice little details that the builder may have forgotten or overlooked. Additionally, don’t forget to take pictures! You might need them later to see exactly where that pipe is or where those electrical connections are once they’re covered up with drywall! And if you’re considering some stylish upgrades for your space, check out creative ideas for butcher block floating shelves at https://www.foreverjointtops.com/15-creative-ways-to-use-your-butcher-block-floating-shelves.php.

Bottom Line

Watching your home come to life is a wonderful experience that can sometimes come with hassles. To avoid some of these headaches, keep these tips in mind!

If you are ready to put your current home on the market and find out what new construction is available in your area, let’s get together to discuss your options!

Existing Home Sales Slowed by a Lack of Listings

Some Highlights:

  • Existing home sales are currently at an annual pace of 5.22 million, which is up 1.4% over last month. This reverses the six-month trend of dips in sales every month.
  • The inventory of existing homes is still below the 6-month supply needed for a normal market and is now at a 4.3-month supply.
  • NAR’s Chief Economist, Lawrence Yun, had this to say: “After six consecutive months of decline, buyers are finally stepping back into the housing market. As more inventory enters the market and we head into the winter season, home price growth has begun to slow more meaningfully. This allows for much more manageable, less frenzied buying conditions.”

 

2 Myths Holding Back Home Buyers

Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership: Down Payment, Credit, and Affordability,”which revealed that,

“Consumers often think they need to put more money down to purchase a home than is actually required. In a 2017 survey, 68% of renters cited saving for a down payment as an obstacle to homeownership. Thirty-nine percent of renters believe that more than 20% is needed for a down payment and many renters are unaware of low–down payment programs.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same report:

“Most potential homebuyers are largely unaware that there are low-down payment and no-down payment assistance programs available at the local, state, and federal levels to help eligible borrowers secure an affordable down payment.”  

These numbers do not differ much between non-owners and homeowners. For example, “30% of homeowners and 39% of renters believe that you need more than 20 percent for a down payment.”

While many believe that they need at least 20% down to buy their dream homes, they do not realize that there are programs available which allow them to put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with programs that have emerged allowing less cash out of pocket.

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Similar to the down payment, many either don’t know or are misinformed about what FICO® score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

As you can see in the chart above, 51.7% of approved mortgages had a credit score of 600-749.

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.

Just as understanding your mortgage options can simplify the home-buying process, knowing the right selling options can make the selling journey just as smooth. If you’re looking to sell your property quickly and without the usual complications, working with a cash buyer who buys houses as-is can be a great choice.

Whether your home needs repairs or you have a unique property like one with an unpermitted ADU, a cash buyer can offer you a fast and hassle-free transaction. With this option, you don’t need to worry about staging, inspections, or waiting for financing approval.

To get started, simply reach out to trusted cash buyers who specialize in purchasing homes in their current condition, and you could be on your way to closing in as little as a few days, freeing you from the stress and uncertainty of traditional real estate sales.

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here

Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

Are We About to Enter a Buyers’ Market?

Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening?

The market has definitely softened. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:

Dr. Svenja Gudell, Zillow Chief Economist:

“These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”

Danielle Hale, Chief Economist of realtor.com:

“The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.”

In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question:

“When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?”

Only 5% said the market has already shifted. Here are the rest of the survey results:

 

Bottom Line

The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘Z’ Report, best explained the current confusion:

“With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign.

In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here

Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

Dispelling the Myth About Home Affordability

We have all seen the headlines that report that buying a home is less affordable today than it was at any other time in the last ten years, and those headlines are accurate. But, have you ever wondered why the headlines don’t say the last 25 years, the last 20 years, or even the last 11 years?

The reason is that homes were less affordable 25, 20, or even 11 years ago than they are today.

Obviously, buying a home is more expensive now than during the ten years immediately following one of the worst housing crashes in American history.

Over the past decade, the market was flooded with distressed properties (foreclosures and short sales) that were selling at 10-50% discounts. There were so many distressed properties that the prices of non-distressed properties in the same neighborhoods were lowered and mortgage rates were kept low to help the economy.

Low Prices + Low Mortgage Rates = High Affordability

Prices have since recovered and mortgage rates have increased as the economy has gained strength. This has and will continue to impact housing affordability moving forward.

However, let’s give affordability some historical context. The National Association of Realtors (NAR) issues their Affordability Indexeach month. According to NAR:

“The Monthly Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent monthly price and income data.”

NAR’s current index stands at 138.8. The index had been higher each of the last ten years, peaking at 197 in 2012 (the higher the index the more affordable houses are).

But, the average index between 1990 and 2007 was just 123 and there were no years with an index above 133. That means that homes are more affordable today than at any time during the eighteen years between 1990 and 2007.

Bottom Line

With home prices continuing to appreciate and mortgage rates increasing, home affordability will likely continue to slide. However, this does not mean that buying a house is not an attainable goal in most markets as it is less expensive today than during the eighteen-year stretch immediately preceding the housing bubble and crash.

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

Things To Do November 2018

Electric Desert at Desert Botanical Garden

November 1, 2018 to May 12, 2019

Cactus and desert become a living canvas in this nighttime experience, taking visitors on an immersive journey through the garden using light and original music. This is Klip’s second garden installation; the first was at Longwood Gardens in Pennsylvania.

dbg.org/events/electric-desert

 

Phoenix Public Market

Starting November 3, 2018

Recurring weekly on Saturday

At this local farmers market, expect to find local produce, grass fed meats, fresh eggs, baked breads and treats, jams and honey, peanut butter, flours and mixes, prepared foods, gluten free and vegan options, ready to eat meals, food trucks, local artisan wares and health and wellness products.

phxpublicmarket.com

 

Cynosport® World Games Dog Agility Championships

WestWorld of Scottsdale

November 1, 2018 to November 4, 2018

Nearly 750 canine athletes from nine different countries are headed to Scottsdale, Ariz., to compete.

cynosport.com

 

Carefree Fine Art and Wine Festival

Downtown Carefree

November 2, 2018 to November 4, 2018

Surround yourself with fine art, wine tasting, festival food and live music. The festival accommodates the return of Arizona’s largest wine-tasting event, providing a unique opportunity to sample an extensive collection of domestic and imported wines.

thunderbirdartists.com

 

AZ Barrels, Bottles and Brews

Salt River Fields at Talking Stick

November 3, 2018

Enjoy and celebrate craft beer, spirits and wine from around Arizona with over

25 local breweries, distilleries and

wineries from the state.

azbottlesandbrews.com

 

Bacon, Blues and Brews Festival

Queen Creek’s Founders Park

November 3, 2018

The family-friendly celebration of craft beer, blues music and everyone’s favorite pork product will feature an array of inventive bacon-based dishes from chefs from around Phoenix, as well as an assortment of additional offerings for those looking beyond bacon and beer (if such individuals exist).

baconbluesandbrewsaz.com

Dia de los Muertos Celebration at Desert Botanical Garden

November 3, 2018 to November 4, 2018

Recurring daily

Two-day family-oriented festival that uses music, dance and storytelling to explore the beauty and meaning of this special holiday.

dbg.org/events/dia-de-los-muertos/

 

azcentral Wine and Food Experience

Salt River Fields at Talking Stick

November 3, 2018 to November 4, 2018

Celebrate with the hearts and palates of chefs, vintners, distillers, restaurateurs and enthusiasts. In this rare culinary experience, you design your own culinary journey.

wineandfood.azcentral.com

 

Arizona Fall Festival

Hance Park

November 3, 2018

More than 200 vendors representing Arizona’s favorite local businesses; Food samples, food trucks, Arizona-produced wine, beer, and spirits. Live entertainment.

localfirstaz.com/fall-festival

 

Grape Arizona Wine Event

Heritage Square Phoenix

November 4, 2018

Head to Heritage Square in downtown Phoenix for an afternoon with great Arizona wine makers, favorite Valley eateries, local breweries and wine crafts. This year’s event will include an Arizona Reserve Wine Tasting where wine enthusiasts can explore Arizona wine history while sampling some special Arizona wines.

grapearizonawineevent.com

 

Chiles and Chocolate Festival

Desert Botanical Garden

November 9, 2018 to November 11, 2018

Recurring daily

Sample and shop your way through the top chile and chocolate vendors in Arizona.

dbg.org/events/chiles-chocolate-festival

Fountain Hills Festival of Arts and Crafts

Avenue of the Fountains

November 9, 2018 to November 11, 2018

Holiday shopping, purchase art and enjoy good food and live entertainment.

fountainhillschamber.com

 

Bentley’s Scottsdale Polo Championships

WestWorld of Scottsdale

November 10, 2018 to November 11, 2018

Live luxuriously and extravagantly at the Bentley Scottsdale Polo Championships.

thepoloparty.com

 

Illumination: Symphony of Light

November 14, 2018 to January 5, 2019

100-foot-wide nativity scene, along with an expanded Holiday Boulevard Marketplace. A winter wonderland designed for shopping, sipping hot cocoa and snacking.

worldofillumination.com

 

Goodguys Rod & Custom Association’s Southwest Nationals

WestWorld of Scottsdale

November 17, 2018 to November 18, 2018

Over 3,000 hot rods, customs and classic cars will be on display, swap meet, cars for sale corral, entertainment, Goodguys Autocross racing, kids zone, food booth and more.

good-guys.com

 

Fantasy of Lights Opening Night Parade

November 23, 2018

Nothing says the holidays like a parade! Kick off your holiday season right and join us in Downtown Tempe for the 24th Annual Fantasy of Lights Opening Night Parade.

downtowntempe.com

 

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.