by MICHAEL BODEEN | Jul 27, 2015 | Bodeen Team Blog, North Scottsdale News, Real Estate News
I met Pam (an alias) at a home listing I was holding open about three years ago in North Scottsdale. Pam liked the home but it wasn’t the one for her. She lived in SoCal and for the next few years she made an annual trek to look at patio homes. Each time she came out there would usually be one home that rose to the top of her interest list, but really she wasn’t quite ready to make the move – until now.
On this recent visit, she found the home! It was very close to a community she loved, it was a great floor plan, was a larger lot than others, and it was within her price range. The house had been on the market for almost 5 months, though they had a deal on it before but a poor home inspection sank the escrow. We came in with a lower priced offer, and through a series of counter offers, which took extra time, we agreed verbally on a price.
There are a number of risks in negotiating a home sales transaction that we explain to the buyer as we start to go down this road. With a willing buyer and seller most everything can be negotiated, and most of the time emotions are held in check, but the one thing we can’t control is what sank our deal – and that was another offer. Just before the seller was going to sign our deal another offer came in for more money. The seller accepted the other offer. We lost.
To say that Pam was bummed out was an understatement! After three years, she had finally found the right home and was thrilled she was going to be making this move soon. I explained to Pam that in my almost 40 years’ experience, there were countless times that when something like this happened, that there was a better home right around the corner. Pam, however, wasn’t really too interested in hearing my sermon right then.
To say that Pam was bummed out was an understatement! … She wasn’t really too interested in hearing my sermonette right then.
Over the next ten days, communication had pretty much stopped from her end. Calls and e-mails were not being responded to, and I was suspecting the worse – a lost business/friend relationship due to huge disappointment. Well, it wouldn’t be the first time for sure, but my own disappointment was gnawing on me as well.
I’ll be honest, sometimes I don’t think God’s too interested in my lost business deals, or more importantly, I remind myself, my clients loss. But this time, I asked. “Lord, could you actually make this work out for Pam? Either bring this other house back into the picture or bring her another one?” Yes, my faith wasn’t big enough to ask for a better one.
But guess what? A better one came. I got an e-mail from her last Thursday which simply said, “This is it!!!!!!” with a link to a new MLS listing we had automatically set up for her. It was in her favorite gated community, was located on a private golf course viewing huge pine trees and a pond, had a vaulted floorplan, terrific large patio with sunken spa and built in BBQ. She saw the photos online, saw that it was her first choice neighborhood, saw the mapped location and wanted it. But she was now back in California.
How do I get it she asked? This is where adrenaline takes over. I went over to see the house to make sure that it’s everything it seemed to be online. (Actually it was better). While I was there another agent was previewing. I knew this was going to go fast. The home was very well priced even under-valued. I called the listing agent who told me that she was having lots of action on the home and that a cash buyer was contemplating an offer, but she had nothing at that point. I reported to Pam my findings and she gave me a thumbs up on my recommendations.
Long story short we crafted an offer as best we could considering Pam was not a cash buyer. We came in over full price by $2500. We reduced the term of the inspection period to 7 days. We eliminated the appraisal as a condition of the purchase and we tripled the earnest money deposit. Another came in, also for more than asking price, but it wasn’t cash. Pam’s offer was accepted. The other buyer was bummed.
To say that Pam was ecstatic was an understatement. The same goes for me.
By
Mike Bodeen
by MICHAEL BODEEN | Jul 20, 2015 | Bodeen Team Blog
Sales Climbing + Prices Rising + Inventory Sliding = Buyer and Seller Gulf Widening
The June Sales Report
The Phoenix Metro communities continue a solid and progressive home sales trend that on the one hand places us in the enviable position nationally of balance and strength, but on the other hand a sales market that may be approaching an even stronger price acceleration period than we witnessed this past year, which was double digits.
First, the June 2015 numbers:
- Home Sales: 8674 (20.2% one year increase; 4.3% one month increase)
- Homes For Sale (listings): 19,596 (20% less than one year ago)
- Months of Inventory Available: 2.69 (4.00 this time last year)
- Median Sales Price Increase: $214,900 (Up 10.2% over 2014)
- Average Sales Price Increase: $271,000 (up 5.8%f over 2014)
- Foreclosures Pending: 5048 (22% Drop from one year ago)
The interesting and continuing saga of steady demand but decreasing inventory is what is fueling price acceleration especially in the sub $200,000 market. The market continues to amaze me for its longevity in price stabilization (until recently) and decreasing distressed properties, such as foreclosures, which are now among the lowest in the country.
It’s important to point out, however, that there are still solid numbers of inventory available in the higher price ranges, though we’re seeing that change changing downward also. (With thanks from the Arizona Regional Multiple Listing Service Information Market)
The Full Report with charts can be accessed at: http://www.armls.com/docs/stat-2015/stat-july-2015
By
Mike Bodeen
by MICHAEL BODEEN | Jul 13, 2015 | Bodeen Team Blog, Real Estate News
Home remodeling is making a comeback. Is it in full swing? Not yet, although companies like Home Depot and Lowes would have a better grip on that than I would.
As the economy appears to be improving (notice the word “appears”) homeowners are more willing to plunk down some serious dollars to upgrade their homes to the latest design trends for 2015. And as they do, they’re asking questions about what’s in style and what’s not. These are important questions. No one wants to waste money.
Well, my wife Karen knows that I’m not a design expert, but I know how my clients respond to what they’re seeing in homes. Today I’ll discuss design trends in flooring. In the next few weeks, we’ll look at countertops. These are two of the more expensive items in a remodel, but make a huge impact with buyers and owners.
First, the flooring. Flooring quality has taken positive steps in recent years and is pretty affordable. Whether it’s real or engineered wood, laminate, vinyl or tile, you’ll be amazed at the value and look that’s out there.
A local website of Scottsdale based Amy Wolf Interiors (http://amywolffinteriors.com/hardwood-tile/) has some great info on it and you can click on this link to get her many good insights. One of the huge design trends for 2015 and one that has resonated well with myself and clients is hardwood tile. A quality hardwood tile is almost impossible to distinguish from good hardwood. (see tiled floor photos below) but it has the durability of tile which sets itself against the recent perennial favorite of Travertine tile. Travertine is a gorgeous look, but due to its porous nature will scratch, chip and crack. Refinishing it is not cheap either. Travertine is no longer the “in” stone, but the “look” remains fabulous.
Solid and engineered woods are very popular right now as well, as in who doesn’t like real wood, right? The latest issue of Consumer Reports (CR-Aug 2015) has terrific flooring information and ratings. If you’re considering a major investment in home remodeling, do yourself a favor and pick up a copy of it.
Overall, what’s the best bang for the flooring buck according to CR? Tarkett, Congoleum, and Armstrong brand vinyls scored highest and sell for less than wood, and the look is also incredibly stone and wood-like.
Oh and by the way Mr. Realtor, do you get your money back at resale with any of these flooring investments? Great question and not an easy answer. I can tell you though that if you have an outdated looking floor that begs “get rid of me” then you’ll take a hit at the checkout counter. Regrouped costs are an important consideration for sure, but more importantly is your day to day enjoyment. If you spend higher now to be able to achieve that, you win and your ROI (return on investment) returns every day of the year.
Personally, I’d go with the tile. It’ll go the distance and keep its look.
by MICHAEL BODEEN | Jul 6, 2015 | Bodeen Team Blog, Real Estate News
The 8,721 closed listings in June were the highest since May of 2013. Overall market demand remains normal, but again, diminishing listings remain the story. Experts, including Michael Orr of ASU/Cromford report indicate that demand-wise there will be little change in the near future.
Per Orr, with the listing supply dwindling, the most interesting thing to watch is for which price ranges is supply increasing and which are reducing.
For single family active listings within Greater Phoenix:
- Under $100,000 – down to 251 from 277 last month
- $100,000 to $199,999 – up to 2,672 from 2,605 last month
- $200,000 to $299,999 – down to 3,412 from 3,542 last month
- $300,000 to $499,999 – down to 4,315 from 4,408 last month
- $500,000 to $999,999 – down to 2,525 from 2,705 last month
- $1,000,000 and over – down to 1,346 from 1,622 last month
Here are the local MLS numbers for July 1, 2015 relative to July 1, 2014 for all areas & types:
- Active Listings: 19,548 versus 24,440 last year – down 20.0% – and down 3.9% from 20,351 last month
- Pending* Listings: 7,007 versus 6,426 last year – up 9.0% – but down 10.4% from 7,819 last month
- Under Contract* Listings: 10,747 versus 9,681 last year – up 11.0% – but down 10.9% from 12,063 last month
- Monthly Sales: 8,721 versus 7,228 last year – up 20.7% – and up 5.6% from 8,261 last month
- Monthly Average Sales Price per Sq. Ft.: $135.79 versus $129.67 last year – up 4.7% – but down 0.3% from $136.16 last month
- Monthly Median Sales Price: $214,990 versus $198,000 last year – up 8.5% – and up 0.9% from $213,000 last month
- *”Pending” and “Under Contract” are two terms both expressing a sold listing that has not yet closed.
Our take away? Not much really. June was relatively calm. Sales were up, median sales prices rose slightly and there was a slight decrease in the average price per square foot.
Mortgage rates are still low. If you’re looking for a loan with a REAL LOW down payment, give us a call. There are some current programs out there that provide amazing down payment assistance through grants. 602-689-3100. Historically we’re at the mid-year peak in the amount of monthly sales and sales will continue dropping slightly each month till the end of the year. Unless of course I’m wrong.
(Thank you Michael Orr/Cromford Report/ASU for the numbers – you’re the best!)
by MICHAEL BODEEN | Jun 22, 2015 | Bodeen Team Blog, Buying a Home, Real Estate News
It was bound to happen and now it’s beginning. Millennial buyers are starting to move into the market in earnest. This is good news for our overall market for a number of reasons.
But first, an expert’s statement: Tom Ruff of The Information Market (owned by our MLS) said that FHA financed loans accounted for 32% of all home sales in April. This is a significant rise in the use of these loans. Ruff stated:
“The biggest change in homes financed occurred with FHA loans. In 2014 FHA loans accounted for 18.4% of home loan purchases, in April 2015 this percentage grew to 32%. The percentage of home purchases financed continues to trend higher which translates into an improving housing market.
Obviously we don’t have exact demographics about who these FHA buyers are, but it’s a pretty safe bet that they are the millennials (born from early 1980’s to early 2000’s or Gen X’ers) who need help with down payments, closing costs and qualifying ratios, which is what is attractive about FHA.
The good of this trend for Phoenix Metro is the continued solidification of our local real estate market. With more millennials buying this frees up the lower to mid-price range sellers to get their home sold and to then “move up” the home buying ladder. Move up buyers are another part of our market that we have sorely missed. If the $150K to $300K sellers can now sell, they can “move up” to the $300K to $500K price ranges. And then these sellers can move up or out, or whatever. This is all about a market getting “freed up” to do what it normally does in a healthy economy.
As we’ve mentioned before what’s good for sellers is not so good for buyers. This same lower to moderate price range is getting skimpier on inventory creating price increases, fewer buyer selections, with hyper buying activity.
More evidence? Well, on a personal level, millennial son and partner Jonathan had to offer on three homes before getting the home that he and Sarah just moved into. Jonathan then just sold a home to millennial friends Travis and Autumn who also experienced feverish activity in their home search before finally securing one last week.
All in all, we feel it’s a very healthy market for buyers and sellers and by all appearance it’s getting even stronger.
by MICHAEL BODEEN | Jun 1, 2015 | Bodeen Team Blog
Last week we reported that the current Phoenix Metro Pending sales may indicate a decrease in the average sales price in the next few months – that may still be the case. But this last month registered the highest price per square foot (PSF) since August of 2008 – $130 PSF.
Since the price PSF bottomed out in 2011 at $82 PSF, there have been 42 months of consecutive increases including this last month. The peak of the market was $184 PSF back in November of 2008, so we are still well below what the top of our market reached just under 7 years ago.
Listing Supply Continues Dropping ~ Sales Looking Strong
Supply continues to fall – we have just 20,847 active listings, down another 1,000 from this time last month. Sales are looking strong – 9,319, and this is the first time we have seen a sales number over 9,000 in almost two years – June 30th 2013. Per the MLS, the year to date for all ARMLS sales is 12.5% higher than at the same point in 2014.
Foreclosure Sales Rate Drops Down to Early 2000’s
May’s foreclosures (Deed Transfer after foreclosure sale) are in the books recording 348 during May. This is amazing, and all the more so considering that in March of 2010, we hit a monthly record of 5450 deed foreclosures!
And if you figure in our extreme Phoenix Metro population growth with hundreds of thousands of new homes that were built since the 1990’s, and over a million in population growth, this is an astonishingly low number
By
Mike Bodeen
