by MICHAEL BODEEN | Aug 19, 2014 | Bodeen Team Blog, Real Estate News
You probably don’t know Judy, Alan or Ruth. But they are three of many reasons why I love my work.
Bittersweet! This past Thursday afternoon Judy and I sat down at the closing table of Magnus Title as Judy was signing the deed for the sale of her Scottsdale Ranch Lake home. She’s owned it for 14 years and has had good memories in this home, but to be honest, I was still somewhat surprised that she expressed some emotion as we hugged goodbye. But in the past few hours as I’ve thought about this house closing, I’ve been thinking about some of the reasons why I still love what I do. And it has to do with people like Judy.
I was referred to Judy by her longtime friend Alan Dube. Alan was a Realtor with me at Realty Executives a number of years back when I managed the office at Scottsdale Ranch. At 80+- years of age, though he looked 70ish, Alan no longer wanted to be active in real estate, but he would nonetheless come by the office regularly to chat with me and others – it was therapy for his loneliness. I was so happy that he took the initiative to get out of the house to see people. I would meet with him periodically at Barnes and Nobel on Shea and the 101 where he would faithfully, daily, read the paper at the Starbucks lounge.
From time to time, Alan would refer these wonderful clients (friends really) to me. Judy was one of those referrals. Judy has this way about her that brightens up my day. She knows how to make people laugh. That’s the thing about our profession — often, if not usually, our clients become our friends. If you’re able to talk about personal finances with someone, you will usually talk about anything under the sun. Whether it’s anger, joy, sadness or happiness — it’s an honest expression of our humanity.
Alan and I had gotten to know each other pretty well. He had had some heart problems for which he had been hospitalized at Scottsdale (Shea) Healthcare. Alan, the consummate sales pro that he was then made fast friends with one of the hospitals finest ER nurses, Ruth. Alan then referred Ruth to me to sell her South Scottsdale home and then Ruth bought a new home in Surprise. Ruth is one of the sweetest people I know. Her heart for her family, friends, and those she helps at the hospital is amazing. She has a sweet passion for people.
Shortly after Alan got out of the hospital he started to attend Scottsdale Bible Church near his home. He would later mention to me how much he looked forward to Sundays – it was the best day of the week as he was getting to know some of the people there. He told me how much he enjoyed the hymns and the Pastor’s message. Alan loved to talk about these spiritual matters as it was a somewhat new dimension for him later in his life.
Without exception, these friends of Alan loved him. He was in a word, adorable! I don’t think he was even 5’ tall, which perhaps led to his loveable nature. He would always speak his mind though – you could count on that. Sadly, Alan passed away in 2011. I miss him.
So yes, I am a Realtor Professional – have been for over 35 years. There were a number of other directions I could have taken and some directions I did take that perhaps I shouldn’t have, but each time, I came back to what I know and love. I have met so many Judy’s, Alan’s’ and Ruth’s and I’m a richer man for having known them.
by MICHAEL BODEEN | Aug 11, 2014 | Bodeen Team Blog, Real Estate News
Hey is that a new word? Nah, but it seems to fit better.
As is our custom, we want to continue providing you with the very best and latest real estate market data available, and we’ve got it, via Michael Orr’s Cromford report that the Bodeen Team subscribes to. By doing so, Orr gives us permission to share with our clients and friends this cutting edge information.
What we appreciate about Orr’s data is that it often transcends the MLS, which is very good information, but much of the research by Orr goes into the public records, which the MLS does not, unless specifically mentioned otherwise, such as Orr’s following report for July 2014:
Here are the basic MLS numbers for August 1, 2014 relative to August 1, 2013 for all areas & types:
The Bodeen market summation for those not wanting to be bored by the minutiae:
— Fewer Buyers. Fewer Contracts. Less Demand. Marginal Price Drop —
- Active Listings: 23,900 versus 16,456 last year – up 45.2% – but down 2.2% from 24,440 last month
- Pending Listings: 6,079 versus 7,755 last year – down 21.6% – and down 5.4% from 6,426 last month
- Monthly Sales: 6,805 versus 8,076 last year – down 15.7% – and down 6.4% from 7,271 last month
- Monthly Average Sales Price per Sq. Ft.: $126.53 versus $119.65 last year – up 5.8% – but down 2.3% from $129.56 last month
- Monthly Median Sales Price: $196,790 versus $185,000 last year – up 6.4% – but down 0.1% from $197,000 last month
- 30 Year Mortgage Rate with 740+ Fico, 20% Down Payment: 4.00% (*Source: Bankrate.com)
Similar to last month, active listings rose 4.9% between July 1 and August 1 in 2013 but fell this year by 2.2%. This weakness in supply is very unusual, but is hardly getting noticed because it is overshadowed by the prolonged weakness in demand.
There are a few strong areas in this market where demand exceeds supply. These include Sun Lakes, Sun City West and Sun City. Clearly baby boomers are doing their bit. Paradise Valley, Scottsdale, Fountain Hills and Gold Canyon have all improved their balance because supply has declined faster than the rest of the valley. In general, the higher you go in price range the better demand has held up.
All the talk of loan underwriters getting more flexible has not resulted in much change in buying patterns so far. Mortgage applications are low. Perhaps potential buyers assume they will either get turned down or have to provide too much documentation. Nationally too, purchase loan application rates remain weak according to the July 30 report from the Mortgage Bankers Association.
All This is to say, “It remains a very opportune time to buy!”
by MICHAEL BODEEN | Aug 4, 2014 | Bodeen Team Blog, North Scottsdale News, Real Estate News
In updating one of our websites, NorthScottsdale.com, we have come to find that there has been a bunch of accolades recently lavished on Scottsdale that I’m guessing most people aren’t aware of. Even I wasn’t aware of them all. Pretty heady stuff. Let’s look at some of them:
- Scottsdale ranked No. 1 place to raise children, according to a study published in early June 2014 by MyLife.com. Cities were judged using five criteria: crime rate, public school rating, public parks per capita, average family salary and cost of living.
- Scottsdale ranked No. 6 safest city in America (out of 100 most populous cities) by Movoto.com. This study is ranked on per capita statistics relating to property crime, violent crime and the chance of being a victim of crime. In all of 2012, Scottsdale only had one murder and just 147 violent crimes making it on the safest big cities in America.
- Scottsdale earned the No. 6 spot on 24/7 Wall St.’s “Best Run Cities in America.” To determine the performance of the nation’s largest cities, 24/7 Wall St. reviewed the 100 largest U.S. cities by population and considered a variety of factors, including the area’s economy, job market, crime level, and welfare of the population.
- Top Ten Tech Savvy City: The Center for Digital Government recently honored Scottsdale as a top 10 tech-savvy city for using technology to eliminate waste, enhance service levels, improve transparency and engage with citizens in the digital world.
- Scottsdale named one of Top 100 Best Places to Live – Livability.com, a national website that ranks quality of life in America’s small and mid-sized cities, has named Scottsdale one of the Top 100 Best Places to Live. Scottsdale, touted for education and amenities, ranked No. 89 on the list. It is one of only two Arizona cities named to the list. The other is Tempe. 1,700 U.S. cities were considered and the factors that make them the best places to live, work and play.
- Google honors Scottsdale as Arizona’s 2013 “eCity”
Scottsdale recently captured the 2013 eCity Award from Google, an honor that recognizes the strongest online business community in each state. Google said, “The businesses in these communities are embracing the web to find new customers, connect with existing clients and fuel their local economies. Scottsdale joins the ranks of America’s leading cities in the digital economy.” For more information, visitwww.google.com/ecities
- Scottsdale ranks in top 20 of “America’s Thriving Cities”
The Daily Beast ranks Scottsdale 15th on a list of “America’s Thriving Cities.” To find the country’s top 20 thriving cities, the news reporting and opinion website looked at the 100 largest cities in the United States and compared them in various categories including: population growth; employment and earnings; market strength; infrastructure; and intellectual capital.
- Scottsdale ranks No. 1 spot for retirees
MSN Money named Scottsdale the No. 1 city to retire in. Here’s what it had to say, “The city packing the heaviest post-65 punch in America sits just off the northeastern fringe of Phoenix, luring newcomers — or retaining longtime locals — with plenty of play and rays. The biggest attraction is the weather (and) just how pleasant it is here.”
- Scottsdale recognized for top innovative green initiatives
NerdWallet, a San Francisco-based consumer advocacy website, recently featured Scottsdale as a top city for innovative green initiatives. The website applauded Scottsdale for protecting natural areas like the McDowell Sonoran Preserve, incorporating multiuse paths, and using compressed natural gas trucks, solar power to generate electricity and energy-efficient LED light fixtures.
by MICHAEL BODEEN | Jul 28, 2014 | Bodeen Team Blog, Real Estate News
The Cromford Report provides us with very interesting and timely reports regarding the local sales and rental market – as always. It’s our goal to pass on this information to our clients. Whether you’re a landlord, tenant, prospective buyer, or seller, this news today should be of interest.
One of Michael Orr’s (founder of Cromford) most recent reports deals with the effect that the low supply and high demand for rental housing is currently forcing rent prices up. Overall rates for closed leases, he reports, are currently averaging 74.7 cents per SqFt over the past month. In 2013 for the exact same time of the year, the rental rates were 69.6 cents. This is an annual increase of 7.3%.
Active lease listings, which Orr says are skewed towards expensive homes because they stay active longer than cheaper ones is 86.4 cents. Last year it was 81.2 cents – an annual increase of 6.4%.
We knew that rent price increases were going to start happening considering that many prospective home buyers who are currently renters and who would normally be in the buying mode, are choosing to remain renters. Also, many who are renting are still doing so because they cannot qualify for a home loan due to poor credit from foreclosure, short sales or bankruptcies.
As long as rental supply remains low and demand high, consistent rent increases will continue. So not only will renters pay more, but will have less choice in the amount of inventory. With 30 year mortgage rates in the low 4% range, it makes a lot of sense for some to look at the buying market.
And remember, Jon and I are NACA certified to help you get that amazing low rate (high 3% range), with no down payment, no closing costs, and no mortgage insurance too. Just give us a call at 602-689-3100 to get started.
by MICHAEL BODEEN | Jul 7, 2014 | Bodeen Team Blog, Real Estate News
You may recall that a recent blog discussed a home we have in escrow in the Desert Hills area of North Phoenix and that the VA (buyer’s lender) wanted a passing water quality test because it’s a private well. Well, (pun intended) we didn’t get the passing grade as this home had elevated arsenic levels. Come to find out that this was not uncommon in the North Phoenix areas serviced by private wells.
We then proceeded to find a company who could install a water purification system (Reverse Osmosis) that would reduce the arsenic to acceptable EPA levels. The problem was compounded when the buyer wanted to have the whole house treated, which could have cost tens of thousands of dollars, effectively killing the deal.
Further frustration ensued for us because no one from the buyer’s end was helping him to be reasonable. We couldn’t talk to the selling agents as this company’s system only allows for other Realtors (that would be me) to talk to the Transaction Manager, not the Realtors. This was a so called “Realtor Efficiency.”
So what did we do? I suggested that I and the Transaction Manager talk to the buyer directly on a conference call. This we did. I recommended that the buyer speak directly with the water company rep that I had spoken with so that the buyer would have confidence that by having one unit under his kitchen sink would provide him with excellent drinking water protection. He took our advice and contacted the rep and the rep was able to convince him that this was indeed the case. There were several companies that had R.O. systems that could likewise solve the problem, but in the end the buyer’s comfort level was with Kinetico’s brand.
So, did the deal finally get done? Well, the short answer is that the deal is ALMOST done, as we close on the 7th of July (sometime today), but the arsenic in the well water issue has been solved to the satisfaction of all parties.
by MICHAEL BODEEN | Jun 30, 2014 | Bodeen Team Blog, Real Estate News
With the sluggish Single Family (SF) market currently in place in the Phoenix Metro area, builders have slowed on SF construction and instead have been focusing on the Multi-Family market.
Michael Orr’s Cromford Report quotes the following:
“Multi-family permits were strong again in May 2014 with a total of 757 units for Maricopa and Pinal Counties. The permit numbers were confined to the 3 cities of Phoenix, Scottsdale and Tempe. The count of 757 is lower than the previous 3 months but the annual average has increased to 6,992 units. This is well up from the 4,792 we saw in May 2013. The “Blue Chip” consensus forecast for multi-family permits is currently 6,172, up from 5,906 three months ago. This is still looking too low and a 2014 total over 7,000 appears increasingly likely.
Phoenix (2,648), Scottsdale (1,933) and Tempe (1,698) are responsible for 6,279 (90%) of the total of 6,992 multi-family units permitted over the last 12 months. Chandler (446) is the only other city with a significant number of permits. All the other cities and county areas contributed less than 4% of the total.
Permits are reflecting a strong swing towards rental units and away from homes to purchase. This is also happening in the rest of the market so is unsurprising. The unknown question is how long this trend will continue.”
We’re seeing another market correction that attempts to fill the vacuum caused by the consequences of our hot rental/slow resale market. Rents will continue to increase, which landlords are thrilled about and renters not so much. This often gets the resale market in gear when people can actually see that home ownership is more cost effective than renting.
On that note, due to the continued sluggish economy, mortgage rates have been dropping again, now down in the low 4% range for the typical 30 year fixed rate product.
