Real Estate Market Statistics – March 2018

Phoenix Real Estate Market Trends in 2018

Median Sale Price up $20,000 over March 2017

17% of Sales are Closing Over Asking Price

Phoenix Home Buyers:

The percentage of seller concessions awarded to buyers has dropped down to 24% in the first quarter of 2018 after 2.5 years of consistently landing between 26%-28%, yet another indicator of dwindling buyer negotiating power in a prolonged supply shortage.

The highest percentage of closings with seller concessions in the last 30 days were sale prices between $150K-$250K at 30-36%. Buyers were most likely to get closing costs in Youngtown at 54%, followed by Buckeye at 52%.

Cities with the smallest percentage of closing costs were in affluent and retirement areas such as Paradise Valley, Sun City West and Sun Lakes at 2-3%.

Phoenix Home Sellers:

The percentage of successful sales over asking price is increasing. So far in March, 17% of sales closed over list price, last March it was 14%. Properties sold between $100K-$200K had the highest percentage at 24%, followed by the $200K-$300K range at 18%.

The market between $300K-$1M is the most improved with 12% sold over list compared to only 7% last March. There were zero sales over list in the market over $1M. Areas with the highest percentage are El Mirage and Youngtown, both at 50%, followed by Tolleson with 45.5% of sales closing over asking price.

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.

Anthem Charity Classic Give, Golf, Dine

Anthem Charity Classic

The Anthem Charity Classic kicks off on March 11th at the Anthem Country Club as part of the 2018 Charity Classic Month. For the entire month of March the Anthem Country Club and Golf course will be open to the public!

The purpose of the event is to raise money for the charities Augie’s Quest, Clubcorp Employee Partner’s Care Foundation, and the Foothills Foodbank.

The Events

This month long event includes a Golf Tournament, Bocce Ball Tournament, Pickle-ball Tournament, Men’s Doubles Tennis Tournament, Mixed Double’s Tennis Tournament, a Dinner Dance and Silent Action, and a ST. Patrick’s Day walk.

Golf Tournament: March 11 | $125 donation per player

Dinner Dance & Auction : March 16 | $100 donation per person

Bocce Ball : March 12-18 | $10 donation per player| 10 teams or 10 people

St. Patrick’s Day Fun Run: March 17th | $10 donation per participant | 6 prizes

Pickleball Tournament: March 24-25 | $35 donation per player

Men’s Doubles Tennis Tournament: March 16-18 | $35 donation per player

Mixed Doubles Tennis Tournament: March 24-25 | $35 donation per player

If any of these events interest you click Here to Sign-Up.

For a Good Cause

To participate in the events you will need to make the appropriate tax deductible donations which will be split equally between the three foundations below.

Augie’s Quest is an aggressive fundraising effort focused on finding treatments and cures for ALS by supporting the work of the ALS Therapy Development Institute.
ClubCorp Employee Partners Care Foundation (E.P.C.F.), a 501(c)3 fund established to help to help Employee Partners of ClubCorp’s family of Clubs in need of financial assistance in times of crisis.
The Foothills Food Bank, a 501(c)3 food bank and resource center that provides food for those in need, financial assistance to individuals and families in the foothills area and referral information for any number of programs and helpful organizations.

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.

HOA Who, What, Where, Why?

If you live in Phoenix you probably know that HOA stands for Home Owner’s Association, but what is a Home Owner’s Association? What does it mean to live in a community with an HOA? And why might you want to live in one?

First thing’s first, a clear cut definition: the HOA has power and authority to impose the rules set forth by the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), and the CC&Rs define the scope at which the HOA can act within the regulation of the Federal law and the individual State Laws.

In short the Home Owner’s Associations act as an a governing body that oversees the enforcement of the CC&Rs.

The Who: Board of Directors

The board of directors are members of the community that are either appointed or elected by the others in the community. You can think of them as being similar to the Board of Directors for a company, or like a mini-government underneath acting below the local government. They are typically made up of a President, Vice-President, Treasurer, Secretary, and the Board Members.

The President and Vice President both serve leadership roles and have an in depth knowledge of the CC&Rs. They are in charge of running the HOA meetings, appointing committees to address issues brought forth by the community, and deciding when other members of the HOA are allowed to speak to the meeting.

The Treasurer oversees the financials, securities, and funds available to the associations. Typically they will be in charge of billing, collections, how to spend the money, and are tasked with the job of creating the annual budget for the community. At meetings they will give an updated report of where the community’s finances are and their projections for the rest of the year.

The Secretary is the person that members look to when they need to fact check what happened at the last meeting. They are in charge of taking the notes for the meetings, securely storing the notes, and having the notes available to members should they need them.

The What: Home Owners Association

A HOA is an organization that enforces the CC&Rs, collects dues, and creates a budget for the community. The structure of the organization is laid out in the articles of incorporation and the bylaws created by the organization. The Home Owner’s Association is usually comprised of the members of the community, but in some planned development communities the builder will have control over the association until a certain number of lots are sold.

Association Dues

If you are thinking about buying a home located in a HOA you will have to take into consideration that you will be paying HOA dues along with your regular mortgage payment. The HOA membership dues are used by the association for maintenance and improvements to the common areas. Common areas are typically anything that is not part of a HOA home owner’s house, but still a part of the community. This can include: recreation centers, pool areas, parks, parking management like parking lot striping, and walkways within the community.

Covenants, Conditions, and Restrictions

These are the rules that govern the community and put limitations on what the home owners in the community can do with their property. Just like in grade school when the teacher had written on the board that there was “No chewing gum allowed in her classroom” the Covenants, Conditions, and Restrictions (CC&Rs) can do the same for home owners. But instead of no gum chewing it can be “No business vehicles can be parked on the street” or “Your rocks can only be this color of brown” or “No wooden fences”. However, if you violate these rules you won’t be sent to detention and instead you might find yourself facing fines or a lawsuit depending the severity.

Checks and Balances

Although there is no regulatory body that oversees HOAs there are multiple federal and state statues that affect them. I’ll break down how these two levels of government see the HOA.

The federal laws concerning HOAs are focused on their organization and their financials. That means they need to be organized for the purpose of managing the property and that the money collected is going towards that goal.

There are many state laws affecting HOAs in arizona. The main one that regulates them is the Planned Communities statues of 1994 which address the formation and operation of master planned community HOAs. “these statutes address assessment increases, penalties, open meetings, disclosure of association records, resale disclosure, penalty and assessment liens, foreclosures, flag and political sign display, vehicle parking, solar energy restrictions, rental property requirements, architectural and design review committees and certain affairs of the boards of directors.” (Arizona State Senate Issue Brief)

The Why: Property Values

The main reason to own a home located in a HOA is protecting your property’s value. All of the rules, restrictions, and enforcement can sound overbearing for a community that want you live in, but as a home owner these rules can help maintain your home’s value. They can ensure that the neighborhood that you fell in love with will stay the same or improve!

That is where the association dues come into play as they are used to improve the community. This can be either through the maintenance of the common areas or improvements to the common areas. A good example of the common area maintenance is landscaping of parks and walkways. Say your community wanted to add a new jungle gym for the kids at the community park with the HOA you can make it happen. New water slide at the community pool? HOA can make that happen. Cut down that overgrown tree that’s hanging on your favorite walking path? HOA can make them go away by hiring a tree removal expert.

But what if that tree was hanging into your yard from your neighbors yard? Or what if your neighbors were storing their 40 foot motor home on the street in front of your home and you were worried you’d never see your front door again? The HOA can enforce the rules set forth in the CC&Rs so that you won’t have that tree hanging in your yard and you’ll see your front door again. Being in an HOA can give you the peace of mind that even if you get new neighbors the homes around you will still abide by the same rules. And this security can also be a benefit when trying to sell your home further down the line.

In Conclusion

HOAs are organizations created and developed from the CC&Rs that were made when the planned community was founded. This association is run by a board of directors comprised of members of the community. When you purchase a home in an HOA you are subject to the CC&Rs that apply to the property. Being in a HOA means that you have to pay HOA dues to the association. A HOA provides a number of benefits to the home owner such as common area maintenance, community improvements, and making sure the CC&Rs are followed.

What Impact Will The New Tax Code Have on Home Values?

Every month, CoreLogic releases its Home Price Insights Report. In that report, they forecast where they believe residential real estate prices will be in twelve months.

Below is a map, broken down by state, reflecting how home values are forecasted to change by the end of 2018 using data from the most recent report.

As we can see, CoreLogic projects an increase in home values in 49 of 50 states, and Washington, DC (there was insufficient data for HI). Nationwide, they see home prices increasing by 4.2%.

How might the new tax code impact these numbers?

Recently, the National Association of Realtors (NAR) conducted their own analysis to determine the impact the new tax code may have on home values. NAR’s analysis:

“…estimated how home prices will change in the upcoming year for each state, considering the impact of the new tax law and the momentum of jobs and housing inventory.”

Here is a map based on NAR’s analysis:

According to NAR, the new tax code will have an impact on home values across the country. However, the effect will be much less significant than what some originally thought.

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.

If You’re Considering Selling, ACT NOW!!

Definitely an aggressive headline. However, as the final data on the 2017 housing market rolls in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME!

How did we finish 2017?

New-home sales were at their highest level in a decade.
Sales of previously owned homes were at their highest level in more than a decade.
Starts of single-family homes were their strongest in a decade and applications to build such properties advanced to the fastest pace since August 2007.

And Bloomberg Business just reported:

“America’s housing market is gearing up for a robust year ahead. Builders are more optimistic, demand is strong and lean inventory is keeping prices elevated.”

And the National Association of Realtors revealed that buyer traffic is stronger this winter than it was during the spring buying season last year.

The only challenge to the market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a four-month supply of inventory. This represents a decrease in supply of 9.7% from the same time last year.

With demand increasing and supply dropping, this may be the perfect time to get the best price for your home. Let’s get together to see whether that is the case in your neighborhood.

Things to Do January 2018

BEYOND THE BRICKS

Head down to Hayden Square Amphitheater every Thursday for Live Music, Beer + Wine, and Food from Downtown Tempe Eateries. Bring a blanket and get ready to listen to some tunes or round up your work squad for the best happy hour ever. Best of all, Beyond the Bricks, Thursday Night Live is completely free to attend. 5:30pm – 7:30pm

December 29 – April 27

downtowntempe.com/events/beyond-the-bricks

ARABIAN HORSE FARM TOUR

Scottsdale’s prominent Arabian horse farms open their doors, welcoming the public to enjoy National Champion horses, meet top trainers, and learn more about this breed.

December 29 – January 1

arabhorsefarmtour.com

MEET ME DOWNTOWN PHOENIX

SOCIAL WALK/RUN

Meet Me Downtown (MMDT) brings people of all ages to downtown Phoenix for a weekly social walk/run, engaging individuals and businesses in a vibrant event that showcases downtown Phoenix as a prime location for healthy activities.

January 1

meetmedowntownphx.com

ARIZONA FINE ART EXPO

See designers, painters, sketchers and sculptors at work. Demonstrations and workshops, fine wines and cuisine.

JANUARY 12 – MARCH 25

arizonafineartexpo.com

ROCK ‘N’ ROLL ARIZONA MARATHON

Also, 5K, 10K, Kids Run, Expo. Live music along the entire route.

January 12 – 14

runrocknroll.com/arizona

MARICOPA COUNTY HOME & GARDEN SHOW

Hundreds of exhibitors. Seminars, demonstrations, and displays at the Arizona State Fairgrounds.

January 12 – 14

maricopacountyhomeshows.com

SURPRISE FINE ART & WINE FESTIVAL

The City of Surprise and Thunderbird Artists are once again partnering for another spectacular Surprise Fine Art & Wine Festival.

January 12 – 14

thunderbirdartists.com

CELEBRATION OF FINE ART

Scottsdale hosts over 100 artists from Arizona and elsewhere in its big white tents. There is a Café, restrooms and free parking on site.

January 13 – March 25

celebrateart.com

BARRETT-JACKSON CLASSIC CAR AUCTION

Every January at WestWorld in North Scottsdale people, including the rich and famous, flock to the Barrett-Jackson Classic Car Auction. It is billed as the world’s most valuable classic car auction.

January 13 – 21

barrett-jackson.com

RUSSO & STEELE CLASSIC CAR AUCTION

European sports cars, American muscle cars, hot rods and customs. Salt River Fields.

January 17 – 21

russoandsteele.com/scottsdale

RM AUCTIONS

Arizona Biltmore Resort and Spa. Bringing together some of the world’s finest vintage automobiles with some of the world’s most discerning collectors.

January 18 – 19

rmsothebys.com

ARIZONA DERBY DAMES

All-girl roller derby since 2006. Now playing on a banked track. Phoenix.

January 19

arizonaderbydames.com

CAREFREE FINE ART & WINE FESTIVAL

Arts, crafts, entertainment, wine. Over 155 artists will have displays. This is one of Arizona’s largest wine tasting events, featuring wines from Arizona, California, Australia, Germany, Austria, France and Italy.

January 19 – 21

thunderbirdartists.com

PAWS IN THE PARK

Talk to experienced pet professionals, visit information booths, learn about dog adoptions, get great giveaways and hear a variety of entertainment. Dog food donations will be accepted and will benefit Vista del Camino’s Pet Pantry and rescue agencies.

January 20

scottsdaleaz.gov

ARIZONA BALLOON CLASSIC

Hot air balloons, family entertainment, vendors and more. Goodyear Ballpark.

January 26 – 28

abcfest.com

ARIZONA MUSICFEST

A winter music festival covering many genres, held at various locations in Scottsdale.

January 26 – March 16

azmusicfest.org

TACOLANDIA

Taco samples and live entertainment. 21+ only. Margaret T. Hance Park, Phoenix.

January 27

tacolandiaphx.com

MILITARY VEHICLE SHOW

Display of jeeps from World War II, Korea, Vietnam, Desert Storm, conflicts in Iraq, Afghanistan, along with troop carriers and armored cars. Swap meet of armed service collectibles on both days. Tempe Diablo Stadium, Tempe.

January 27 – 28

armytrucks.org

WASTE MANAGEMENT PHOENIX OPEN GOLF TOURNAMENT

In North Scottsdale the pro golfers will get together for the first PGA tournament of the year. The PGA Waste Management Phoenix Open Golf Tournament is held at the TPC Scottsdale course at the Fairmont Scottsdale Princess. This tournament attracts the largest crowds of any PGA event.

January 29 – February 4

wmphoenixopen.com