by JONATHAN BODEEN | Sep 28, 2015 | Bodeen Team Blog, Real Estate News
Not What You’d Expect
I’ve had an upsurge of millennial clients in the last few months. My dad (The famed Mike Bodeen) asked me the other day, “So what’s your generation looking for in a house?”
Most of us have watched the HGTV shows featuring a young professional couple cooing over beachfront property or seeking an “urban lifestyle.” For these it seems a long list of must haves come into place, like views, built in barbecues, fancy kitchens etc. They seem to be all about an experience. To be honest I haven’t met any millennial clients like this yet.
The clients I have worked with so far in this age group have much more practical guidelines. The first andmost important piece of the puzzle for these is price (which of course you could see about pretty much any buyer). They ask the question what’s our top price we can afford? Without exception, each millennial I have represented so far has been under the $200k price range. For most of them, this has been their first home purchase.
While there is a lot available for under 200k in the phoenix Metro Area, it can be limiting and push buyers to certain areas of the valley. Three of these clients of mine have bought on the west side in the Surprise area, a tremendous value.
Beyond price, the second thing they are looking for is space. Will this fit my family? I should also mention that most of the millennials I have represented so far have had young families. I think there is a big difference between those who have children and those who do not when it comes to criteria.
For example I’ve seen a few studies that suggest that by in large people in my generation want to live in downtown areas. I think that may be true for single millennials or those without kids, but my experience is that most of the ones who are actually serious about buying a home don’t fit that category.
The third thing they look for is location, aka time it takes to get to work. After that, the list of must haves are usually very slim because in this price range, once you have found all of the above, it’s like striking gold and you better put in a good offer before someone else steals it from you.
I will say that there is truth in this idea that millennials are looking for experiences and a certain lifestyle. Many clients have been very excited about the idea of a wet bar in their home, or about being close to downtown. But I think the truth is that once these folks are actually ready to settle down, a lot of that just goes out the window in favor of practicality.
Ultimately many may be surprised how similar the desires of millennials with families are to those of other generations.
The real difference (in terms housing wants) between millennials and other generations is, I think, that we are on average “settling down” much later than our parent’s generation did. Once a couple of kids get hitched and have a bun in the oven, they begin to act much more like any generation before them in their house buying habits.
by JONATHAN BODEEN | Aug 24, 2015 | Bodeen Team Blog, Mike's "Real State" of the Market, North Scottsdale News, Real Estate News
Stocks Versus Real Estate?
At last glance this Monday morning, the stock market’s DJIA was off 200 points. That’s really good news considering it started the day being negative by 1000 points — something about China’s slowing economy affecting our market. Hmm.
What usually occurs when this happens is people begin to consider where they should put their investment monies if they were to sell off their stock. Is there a safe harbor out there? What’s interesting to me is that this global stock selloff is confirming what gold and silver investors have known for the past month, that world instability is good for them as the shaky markets drive up the price of precious metals. These commodities have risen 7% in the past 30 days. There are some however who are not as bullish on these metals as they used to be.
An industry expert told me today that Phoenix real estate should perform relatively well with the sort of deflation that many fear we will be driven into based on China’s current economic trend. This, he said, was because of our chronic short supply in relation to our growing population, which if you have been following us for a while, you probably have heard us talk about more than a few times!
I wonder if many will see Phoenix real estate investments as that safe harbor. Why? We have rapidly rising rent prices, low mortgage rates, and even though it’s a seller’s market for most investor price ranges, prices are still competitive compared to other metropolitan areas in the country. It’s a market that many see stability and future growth in.
Though my near 40 year career has been in real estate, and I’ve always been an advocate for Real Estate investment, my intention is not to bash stocks. In fact, my father’s success in investing utilized a balance of both real estate AND stocks. He was a common butcher with uncommon trust in his advisors who helped him select singular stocks based on their individual merit. He kept them for the long haul and never seemed to worry about the day to day gyrations of his stock because he was secure with the inherent strength of these selected companies. In the end he was financially well cared for and more importantly he lived life well, relatively free of worry, excepting of course for some of his wayward children – present company included. The point being, I’m not going to sit here and tell you that Real Estate is always better than stocks.
While real estate and the stock market are entirely different animals, they do both share that quality where the little guy is most successful when he plays the long term buy and hold strategy, like my father did.
“In the end…my father was financially well cared for and more importantly he lived life well, relatively free of worry…”
These are fascinating times we live in – in every corner of the globe.
Let us know if we can help you. If you or someone you know is considering a rental investment, or a first time home purchase, have them call me at 602-689-3100. We can help.
By
Mike Bodeen
by JONATHAN BODEEN | Jun 1, 2015 | North Scottdale Zip Code Information, North Scottsdale News, Real Estate News
85254 – Zip Line Report
North Scottsdale zip code 85254, known as “The Magical Zip Code,” is showing that listings have increased compared to last summer but modestly. Pending Sales are up 33% over 2014 and likewise over 2013. Home sales have increased 17% and the median sales price increased 9% compared to 2014.
2015 2014 2013
Active Listings: 308 281 186
Pending Listings: 60 45 44
Sales Per Month: 77 66 104
Sales Per Year: 752 719 966
Median Price: $413k $378k $391k
85255 – Zip Line Report
One of the strongest and most popular North Scottsdale zip codes is 85255 and the recent numbers for these communities suggest it’s remaining so. For example North Scottsdale 85255 currently has 72 pending sales compared to 57 last year, an increase of 26%. Sales have likewise increased. The 2015 median sales price increase over last year is among the strongest in Scottsdale at 26%.
2015 2014 2013
Active Listings: 629 509 371
Pending Listings: 72 57 73
Sales Per Month: 86 74 91
Sales Per Year: 901 896 1045
Median Price: $765k $633k $685k
85258 – Zip Line Report
The Ranches and Lakes of Scottsdale which include McCormick Ranch, Scottsdale and Gainey Ranches, Lake Serena, Mountainviewlake, and the Bay Club is one of Scottsdale’s most attractive communities, especially if you like the colors of green and blue. Like North Scottsdale’s 85255 zip communities 2015 is having a strong sales year as well. With Pending home sales up 25% over last year and a sales increase of close to 10%, these special communities have soared in their median price – now at $601,000 compared with $520,000 in 2014 – an increase of 16%.
2015 2014 2013
Active Listings: 175 146 111
Pending Listings: 24 18 23
Sales Per Month: 42 38 36
Sales Per Year: 367 379 413
Median Price: $601K $520k $480k
85259 – Zip Line Report
Though you won’t hear it called this, the 85259 zip code is really “East” Scottsdale as it
2015 2014 2013
Active Listings: 258 230 157
Pending Listings: 36 33 39
Sales Per Month: 53 38 43
Sales Per Year: 426 425 501
Median Price: 663k $595k $530k
85260 – Zip Line Report
Perhaps North Scottsdale’s most central and (next to 85254) it’s most affordable zip code. The median price is pretty much mirroring August of last year, while sales were exactly the same from last year at 48 for the month.
2015 2014 2013
Active Listings: 222 215 145
Pending Listings: 32 33 37
Sales Per Month: 52 48 48
Sales Per Year: 524 481 579
Median Price: $447k $423k $430k
85262 – Zip Line Report
North Scottsdale’s most expensive and one of its nicest community’s, the median price is up slightly from last year. Pending listings are down slightly.
2015 2014 2013
Active Listings: 522 352 308
Pending Listings: 42 35 40
Sales Per Month: 40 32 42
Sales Per Year: 398 420 467
Median Price: $697k $740k $735k
85266 – Zip Line Report
These very popular and upscale communities which are the North of North Scottsdale, and which is home to the newest zip code being added to Scottsdale, has seen appreciation of almost 20% from one year ago. Pending sales and August sales are down slightly from one year ago.
2015 2014 2013
Active Listings: 274 150 121
Pending Listings: 32 18 20
Sales Per Month: 40 21 25
Sales Per Year: 279 268 374
Median Price: $650k $735k $620k
85253 (Paradise Valley) – Zip Line Report
The Valley’s most upscale, prestigious, and expensive town currently has 274 homes for sales compared to 150 one year ago. That’s interesting because usually when you get that much of an inventory increase, prices tend to go down. Not so in this case. Pending sales are way up (32 vs 18).
The median sales price is currently $1,450,000 – up a whopping 17% from one year ago.
2015 2014 2013
Active Listings: 423 301 258
Pending Listings: 38 19 24
Sales Per Month: 37 22 30
Sales Per Year: 338 352 386
Median Price: $1,450k $1.235k $1.270k
85268 (Fountain Hills) – Zip Line Report
Scottsdale’s most immediate eastern neighbor is accurately named for its mountain slopes and town fountain. For those wanting a small town feel, it doesn’t get much better than here.
2015 2014 2013
Active Listings: 175 236 193
Pending Listings: 24 21 27
Sales Per Month: 42 32 43
Sales Per Year: 367 450 531
Median Price: $601k $369k $375k
85331 (Town of Cave Creek) – Zip Line Report
Cave Creek has done a great job of standing strong in value. The median sales price of $424,000 for August is up 13% from 2013 and pending sales are about the same as last year too.
2015 2014 2013
Active Listings: 366 292 243
Pending Listings: 55 58 59
Sales Per Month: 75 56 61
Sales Per Year: 664 609 697
Median Price: $420k $424k $375k
85377 (Carefree) – Zip Line Report
The delightful and small town of Carefree is almost too small to accurately compare year to year stats. Having stated that, sales are slightly up from August 2014 at 60 – this compared to 115 one year ago. The median sales price brings one word to mind: BARGAIN!
2015 2014 2013
Active Listings: 122 114 92
Pending Listings: 18 6 12
Sales Per Month: 12 6 14
Sales Per Year: 77 87 104
Median Price: $689k $642k $773k
85086 (Anthem – North Phoenix) – Zip Line Report
Welcome to newer homes with beautiful mountain views in an unspoiled north Phoenix environment. These communities are the bargains of the north valley. Prices are affordable and only a 30 minute drive time to Sky Harbor Airport. Inventory is down from last year, pending sales are up dramatically (61%) from one year ago and the median sales price has increased by 8%.
2015 2014 2013
Active Listings: 307 376 281
Pending Listings: 106 66 101
Sales Per Month: 98 96 122
Sales Per Year: 948 936 1273
Median Price: $297k $275k $275k
*With thanks to Michael Orr and the Cromford Report for the Statistics used.
by JONATHAN BODEEN | Mar 9, 2015 | Bodeen Team Blog, Buying a Home, North Scottsdale News, Real Estate News
Last week my dad talked about the upward trends in the rental market. Well since then the numbers have been getting even crazier, almost to the point of jaw-dropping! What is especially interesting is the huge demand for traditional single family homes. Now be forewarned, we only can track rentals that are advertised through the MLS, which here in Maricopa County is probably less than half of all the rentals available. The rest are marketed through places like craigslist or rentals.com. Still, we can get a pretty good idea of what’s going on in the rental market by watching the MLS numbers.
This time last year there were 2,760 listings available. Today there are only 1,988. That’s almost a 30% drop in the available supply. On top of that, Rental prices are surging. The average rental price on MLS this time last year was $1,598. Today it is a whopping $1,971! That’s about a 20% increase in value!
Summary: Landlords be feeling good! Tenants… not so much.
What does this mean for homeowners and potential buyers? A lot. With only a 25 day supply of available rentals in the valley, increasing demand for single family homes to rent, and rental prices surging, it’s not difficult to imagine a whole host of would-be-renters drawn toward becoming a buyer. We have already seen an improvement in the residential for sale market in the last month, but we feel even better times may be ahead.
Sellers: The buyer drought seems to be over for now and it may be time for you to get back in the game.
Buyers. Increase in demand and decrease in supply makes for rising prices. Don’t forget that with an improving economy interest rates rise as well. It seems as though the best days of the buyer’s market may be nearing its’ end. You may want to think about making your move before the sellers’ market is in full swing and you have to start competing with other buyers again.
Thank you to Michael Orr and the Cromford Report for all the statistics used here in.
