All About Anthem, Arizona

Learn About Anthem Arizona Community

Housing Market: Another Gigantic Difference Between 2008 and 2018

Some are attempting to compare the current housing market to the market leading up to the “boom and bust” that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis.

However, there is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.

A normal market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply leading up to the housing crisis. When questionable mortgage practices ceased, and demand dried up, there was a glut of inventory on the market which caused prices to drop as there was too much supply and not enough demand.

Today is radically different!

There are those who believe that low mortgage rates have created an artificial demand in the current market. They fear that if mortgage rates continue to rise, some of the current demand will dry up (which is a possibility).

However, if we look at supply again, we can see that the current supply of homes is well below the norm of 6 months.

Bottom Line

We will not have a glut of inventory like we did back in 2008 and home values won’t come tumbling down and that’s why many people are getting apparments in buildings as these are practical and buildings have great curtain walling from https://curtainwallinginstaller.co.uk/aluminium/ so they look great as well. Instead, if demand weakens, we will return to a normal market (approximately a 6-month supply) with historic levels of appreciation (3.6% annually)

If you are having a problem finding a house in a location you prefer or can’t find the house feature that you are looking for, you may consider building your own with the help of professional new home building contractors.

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.

Supply & Demand Will Determine Future Home Values

Supply & Demand Will Determine Future Home Values

Will home values continue to appreciate throughout 2018? The answer is simple: YES! – as long as there are more purchasers in the market than there are available homes for them to buy. This is known as the theory of “supply and demand,” which is defined as:

“The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”

When demand exceeds supply, prices go up. Every month this year, demand (buyer traffic) has increased as compared to last year and for the first five months of 2018, supply (the number of available listings) had decreased as compared to last year. However, a recent report by the National Association of Realtors (NAR) revealed the first year-over-year increase in supply in three years.

Here are the numbers for supply and demand as compared to last year since the beginning of 2018:

Supply & Demand Will Determine Future Home Values | MyKCM

The increase in the June numbers doesn’t mean that prices won’t continue to appreciate. In that same report, Lawrence Yun, NAR’s Chief Economist, explained:

“It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels.

Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”

Bottom Line

The reason home prices are still rising is that there are many purchasers looking to buy but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.

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.

Real Estate Marketing Statistics August 2018

Real Estate Marketing Statistics August 2018

Supply between $200K-$250K has Risen 8.1% since May
Seller Price Reductions Up 7% in Popular Price Range

For Buyers:

If your budget lies somewhere between $200,000 and $400,000 for a home, there’s good news for you.  Supply between $200,000 and $250,000 has been rising gradually over the past 12 weeks.  After dropping 15% from 2,300 listings in January to 1,944 in May, it has since risen 8.1% to 2,101 listings in August, placing it only 6.7% below last year’s count instead of 18% below like it was 3-4 months ago. Listings between $250,000 and $400,000 have also risen sharply 5.3% from 4,791 to 5,044 over the past 4 weeks, placing them only 0.2% below last year’s count of 5,053 listings. The increase in competition has resulted in a notable 7.3% increase in weekly seller price reductions from an average of 778 per week in June to 835 in July.  56% of year-to-date sales in Greater Phoenix have been between $200K-$400K so this increase in supply should come as a little bit of relief for the majority of buyers.

For Sellers:

If you have a home listed between $200,000 and $400,000, then you make up 48% of everything that’s listed in the MLS.  Listings under contract in this price range have averaged 7.4% higher in volume than 2017 all year, until now.  Over the last two weeks, including the end of July through the first week in August, listings in escrow have dropped to 2.2% below last year’s level.  Buyer activity is expected to slow seasonally from the peak in April through the end of the year; however open contracts have dropped 26% since the 2018 April peak compared to a lower 20% drop in 2017 over the same time frame; all while corresponding supply has been rising.  Sellers haven’t seemed to notice this sharper decline as their average asking price per square foot has soared from just 3% higher than last year in March to as high as 7% higher in July.  The average sales price per square foot was up 5.9% in July, compared to 4.6% in June.  However, price is a lagging responder to shifts in supply and demand. We will have to wait and see if buyers accommodate sellers’ price expectations given that they have more to choose from in the marketplace right now.

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

What Do the Recent Drop Prices Mean to the Real Estate Market?

What Does the Recent Rash of Price Reductions Mean to the Real Estate Market?

Last week, in a new report from Zillow, it was revealed that there has been a rash of price reductions across the country. According to the report:

  • There are more price cuts now than a year ago in over two-thirds of the nation’s largest metros
  • About 14% of all listings had a price cut in June
  • Since the beginning of the year, the share of listings with a price cut increased 1.2%
  • This is the greatest January-to-June increase ever reported, and more than double the January-to-June increase last year

Senior Economist Aaron Terrazas further explained:

“A rising share of on-market listings are seeing price cuts, though these price cuts are concentrated at the most expensive price-points and primarily in markets that have seen outsized price gains in recent years.”

What this DOESN’T MEAN for the real estate market…

This doesn’t mean home values have depreciated or are about to depreciate.

A seller may put a home worth $300,000 on the market for $325,000 hoping a bidding war will occur and an overanxious buyer will pay more than its actual value. That has happened often over the last few years. If the seller gets no offers and reduces the price to $300,000, it doesn’t mean the home dropped in value. It is still worth $300,000. Make smarter, more strategic real estate decisions with guidance from a trusted property investment advisor. We used this Calgary based real estate lawyer to close our deal in our latest real estate transaction in Canada.

Home prices will continue to appreciate over the next 12 months (view here to see all the details). In this same report, Terrazas remarks:

“It’s far too soon to call this a buyer’s market, home values are still expected to appreciate at double their historic rate over the next 12 months, but the frenetic pace of the housing market over the past few years is starting to return toward a more normal trend.”

What this DOES MEAN for the real estate market…

This does mean that sellers should be more conservative when it comes to the price at which they list their homes – especially sellers in the upper end of each market.

Sellers have been listing their homes at inflated prices hoping a super-hot market will deliver a buyer willing to pay virtually any price to ensure they don’t lose the house. That strategy has worked somewhat successfully over the last two years. However, the time that strategy would have worked may have passed.

Again, quoting Aaron Terrazas in the report:

“The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever-so-slightly.”

Bottom Line

Prices are not depreciating. However, if you want to sell your house quickly and with the least amount of hassles, pricing it correctly from the beginning makes the most sense. To ensure you get the best advice and guidance on setting the right price, Call Mays Realty for a realtor Bermuda Run. They can help you navigate the process smoothly and achieve your real estate goals.

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.

Homes More Affordable Today than 1985-2000

Rising home prices have many concerned that the average family will no longer be able to afford the most precious piece of the American Dream – their own home.

However, it is not just the price of a home that determines its affordability. The monthly cost of a home is determined by the price and the interest rate on the mortgage used to purchase it.

Today, mortgage interest rates stand at about 4.5%. The average annual mortgage interest rate from 1985 to 2000 was almost double that number, at 8.92%. When comparing affordability of homeownership over the decades, we must also realize that incomes have increased.

This is why most indexes use the percentage of median income required to make monthly mortgage payments on a typical home as the point of comparison.

Zillow recently released a report comparing home affordability over the decades using this formula. The report revealed that, though homes are less affordable this year than last year, they are more affordable today (17.1%) than they were between 1985-2000 (21%). Additionally, homes are more affordable now than at the peak of the housing bubble in 2006 (25.4%). Here is a chart of these findings:

 

What will happen when mortgage interest rates rise?

Most experts think that the mortgage interest rate will increase to about 5% by year’s end. How will that impact affordability? Zillow also covered this in their report:

 

Rates would need to approach 6% before homes became less affordable than they had been historically.

Bottom Line

Though homes are less affordable today than they were last year, they are still a great purchase while interest rates are below the 6% mark.

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.

Waste Removal Company in Anthem, Arizona

The waste removal company in Anthem Arizona is Republic Trash Services. Republic Services collects trash for the east side of Anthem which includes Parkside, The Landings, and the Country Club. This article will cover everything you need to know about waste removal in Anthem Arizona. There are some materials you can easily recycle.

Services

Republic Trash services provides a variety of waste disposal options. Normal trash and recycling, bulk trash removal, and the spring/fall electronics, hazardous materials, and paper shredding. All of these services are included in the quarterly rate that is paid by the residents.

Trash and Recycling

Residents of Anthem have their property serviced by Republic Services once a week. Residents need to make sure that their trash/recycling container is out for collection the night before or prior to 6 a.m. on their designated collection day. The containers should be placed on the street and not the sidewalk. Residents should allow 3 feet between each container that is out for service. Make sure to check here to understand the kind of materials that can and cannot be recycled. Understanding these procedures helps keep the community clean and organized, which is why you need a dumpster for efficient waste management.

Curbside Recycling and Trash Service Schedule for Anthem Arizona

Curbside Recycling and Trash Service Schedule for Anthem Arizona

Bulk Trash

Bulk trash pickup is provided through Republic Services. This is defined as any item that does not fit into a garbage container which includes: furniture, trees, appliances, beds, etc.

Electronics, Hazardous Materials, Shredding

The waste removal company in Anthem also provides recycling of hazardous materials and paper shredding. Typically in the spring and fall of each year Republic Services sets up a shredding and hazardous waste disposal drop-off at the Anthem community center. All that home owners need to bring is proof of residency to take advantage of this fantastic free service.

Important Dates

Holiday Service Schedules

Labor Day – September 3 2018 – Services Monday through Thursday will take place on the following day.

Thanksgiving Day – November 22 2018 – Services Thursday through Friday will take place on the following day.

Christmas Day – December 25 2018 – Services Tuesday will take place the following day.

New Years Day – January 1 2019 – Services Tuesday will take place the following day.

Christmas Tree Drop Off

In Anthem after your tree has begun to fade away with the holidays you can get rid of it for free! Republic Services provides services on December 29 2018 and January 5 2019 at Anthem Community Park to get rid of your Christmas tree.

Rates

The quarterly rate for Republic Services once-weekly pickup of trash and recycling is $55.89 for service dates between Jan 2018 and Dec 2020.

  • New Account setup is $0
  • One time free container repair or replacement per year
  • Service for an extra container $15.18 per quarter
  • Additional Bulk Pickup $125 and must be scheduled in advance.
  • Additional unscheduled service $15.
  • Vacation hold request no charge. Residents must be gone longer than 10 days, but no longer than 6 months. Resident will receive prorated statement for next billing period.
  • Walk-up service $75 per quarter.

Information Provided Courtesy of Republic Services 

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

 

Real Estate Market Statistics July 2018

Real Estate Market Statistics

 

Real Estate Marketing Statistics July 2018

Cost of Waiting to Buy Means Less Space or Higher Payment
More New Homes Sell in Low $200’s This Year

For Buyers:

Hearing cries for more affordable housing supply, developers have sold more new homes in the low $200’s this year; selling 35% more than they did last year within the same time frame. However, the under $200,000 market remains neglected for additional supply.  As of May 2018, only 6% of new homes sold were under $200,000, 37% were between $200,000 and $300,000 and 41% were between $300,000 and $500,000. This means that properties under $200,000 will continue to appreciate faster than any other price point and homes sold in this price range are only getting smaller.  The annual average home size sold between $100K -$200K, new and resale combined, is currently 1,390sf compared to 1,454sf last year.  That’s a loss of 64sf and roughly the size of a couple of closets.  Since 2014, the annual average home size sold has consistently hovered around 1,975sf.  Those buyers who didn’t want to sacrifice living space paid an average of $22,000 more for a 1,975sf home in the past year.

For Sellers:

Greater Phoenix is officially in the seasonal summer slowdown and contracts in escrow are expected to continue declining overall until the end of the year.  The peak of the market for contract activity usually hits at the end of April, as it did both this year and last year.  So far levels have dropped 17% from the peak, which is closely following last year’s drop of 18% between April and July.  If the 2018 market follows last year and previous years, we can expect contracts in escrow to drop about 4% per month until the end of the year.  This would be considered perfectly normal, anything more could indicate a non-seasonal drop in demand.

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

Close of Escrow

Close of Escrow

What is the Close of Escrow?

Close of escrow in Arizona is the way that title is transferred in a real estate transaction in Arizona. When a buyer and seller enter into a purchase agreement escrow is opened. The process from opening of escrow to closing of escrow typically takes 30-45 days, but in some cases might be less. The close of escrow is marked by the transfer of funds from the buyer to the seller, and the transfer of ownership (title) from the seller to the buyer.

How is Title Transferred?

Unlike other states that use bankers and attorneys to process the transfer of ownership Arizona uses title agents to prepare all documents. The title agent will coordinate with the lender, the buyer, and the seller to prepare a settlement statement through a post-settlement funding service. Once the settlement statement has been reviewed by all parties the buyer and seller will sign. The final step is for the title agency to record the deed and title is transfered to the buyer.

The Settlement Statement

The settlement statement is an accounting of all of the costs in the transaction. The title agency prepares this document which accounts for every single cent involved in the purchase of the home. The buyer, seller and lender all receive the settlement statement. This is important because the settlement statement is required by the lender to fund the loan.

Closing Escrow

Once the title agent has given the settlement to the lender, the lender funds the loan, and title is recorded escrow is closed. The seller and buyer both receive any funds that were indicated on the settlement statement and the buyer moves into their new home. Before you understand and proceed with settlement, you need to get to know what is a pre-settlement cash advance and the advantages offered by it!

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.

Selling a Home in Arizona

Selling a Home in Arizona

Selling a Home in Arizona

Ways to Sell A Home

Selling a home in Arizona starts the same as many other states. This process usually starts with a seller signing an agreement with a broker to market their property and represent them in the sale of their home. The seller can also choose to sell their home on their own. However, enlisting the help of a qualified, experienced Real Estate Professional will often yield better results.

Opening Escrow

Selling a home in Arizona is similar to many other Western states. Arizona is a what is called an “escrow state” where title is transferred through a title agency that prepares the documents necessary to sell your home. This is a little different compared to the east coast where title is transferred is differently. On the east coast most states are “title states” which require a law office prepare the documents to sell your home.

Buyer’s Inspections

An important part of the home selling process is the buyer’s inspection period. During this period the seller must provide the buyers and their inspectors access to the property. The buyers get to have their time to look through the property and assess what they would like repaired/replaced, for example, Garage Spring Replacement, Plumbing System Repairs, etc. Major property issues like roofing repairs or commercial roof replacement should also be addressed and repaired with the help of a professional roofing contractor.

There are special cases where a buyer will not perform inspections, however these are explicitly pronounced by a waiver of inspections or an AS-IS Addendum. The AS-IS addendum means that the buyers are willing to purchase the property without any corrections and without providing the seller and opportunity to correct any items.

The BINSR

The BINSR is an acronym used in the Phoenix Real Estate Purchase Contract that stands for “Buyer’s Inspection Notice and Seller’s Response“. This is the instrument that the buyer uses to communicate what they request to be fixed to the seller. The seller then responds to the buyer’s request and the buyer chooses whether or not they accept that request.

If the buyer is not pleased with the repairs that the seller is willing to perform pursuant to their requests they have the option to cancel the purchase of the home. This is why it is important as a seller to have a good strategy when responding to a repair request. Depending on the market agreeing to fix too little can cause a buyer to cancel their purchase all together.

Signing and Closing

By this time the seller has had to review many documents, respond to BINSRs, and sign their name a lot. One of the final documents the seller and buyer will need to review before signing is the ALTA Settlement Statement. After the ALTA Settlement Statement has been reviewed and the parties agree that all information is correct the seller and buyer can sign.

Once the seller and buyer have signed the loan will fund, title will distribute funds, and the new deed will be recorded at the county. Then the seller will have successfully sold their property.