Spring Cleaning

Spring is a notorious time for getting your home organized and sparkling clean. On top of the usual purging and cleaning most people do, here are a few, sometimes forgotten items, I try and tackle every Spring.

 Kitchen

• Clean/Descale coffee pots and makers

• Wax wooden cutting boards

• Clean out utensil drawers and dividers where crumbs, dust, and other debris might settle

• Purge expired pantry, refrigerator, and freezer foods

 Bathroom

• Machine wash your shower curtains (yes, even plastic or vinyl)

• Toss expired medications, cosmetics, lotions, etc.

• Vacuum exhaust vents

• Clean sink drains by removing stoppers and clearing debris

 General

• Vacuum soft/cloth furniture

• Launder or vacuum cloth window treatments

• Replace fire extinguishers older than 10 years

Market Update March 2024

With many existing homeowners staying put these days, more attention is placed on first-time home buyers, affordability, and supply of homes.

As of 2/17/2024, there were 366 active single-family listings between 1,200-1,500 square feet, with 3+ bedrooms, under $370,000 in ARMLS. Of those, 312 listings were under contract. Using these parameters, the difference between buying and renting is only a couple hundred dollars per month* and doesn’t seem to be deterring buyers in this hot market segment.

So far in 2024, listings under contract over $1M are higher than 2022, which is the #1 record year for this price range. Active listings over $1M are also at record highs, which is offsetting the increased demand, keeping price appreciation stable. Retirement communities are not experiencing the same however, as this segment is highly sensitive to inflation.

As we continue into 2024, it’s important to note, the one market generally affected by an election year is the stock market. After the last 4 elections, it has responded positively afterwards, which affects luxury buyers and retirees with a high percentage of cash purchases. If a cash buyer expects their investment portfolio to be worth more after an election, they may simply put off their home purchase until Spring. This can cause contract activity to stagnate for a couple months, but not enough to affect prices, and this mild affect can be offset by other mitigating factors, like seasonality, that would make the impact unnoticeable.

Statistics are pulled from The Cromford® Report, which provides detailed information to track the history and current status of the Greater Phoenix residential resale market and offers unique insight into its future direction.

Market Update March 2021

I feel like I’m starting to sound like a broken record, but here we are. Phoenix home values continue to appreciate, buyers continue to flock to Phoenix, and inventory continues to be scarce.

What does “low inventory” mean, beyond there are not as many houses for sale? On February 15, 2019, there were 3.3 months supply of active homes for sale. It has continued to decline until February 15, 2021, when there were 0.6 months supply of active homes for sale. So what is “months supply”? Basically, if not one single house came on the market again after February 15, every house would theoretically be sold by the time you’re reading this. To give perspective, an “even market”, meaning no advantage for being a buyer or a seller, has 6 months supply.

To say we are in a seller’s market is correct. But what I want my clients to remember is there are lots of advantages in this market for being a buyer. Low interest rates, programs allowing for lower down payments, and a strong Phoenix economy continuing to help homes appreciate in value are all great reasons to purchase a home right now. Because of competition, buyers need to be realistic in the process when submitting an offer, but there is no reason to be discouraged. Work with an experienced, professional agent who can walk you through the process and keep expectations in check while keeping morale and spirits high.

Carla Hancock explains why starting with a mortgage lender can be an important first step in the process.

“You may be hearing, “There’s not much Inventory out there”, right now. This is one reason why Kerrie will be requesting that you speak to me, a Mortgage Loan Professional, prior to house hunting. In this market, you must be prepared to put an offer in on a home quickly if you see something you like. If you aren’t prepared, the home may be under contract before you can get your pre-qualification letter, which is required when submitting an offer.

In addition to making sure you’ve submitted the necessary paperwork, the agent representing the sellers will often times contact the loan officer directly to verify the strength of the potential home buyer’s qualifications. Your loan officer will have obtained a complete, three bureau credit report, reviewed it along with income and asset documentation, and qualified you up to a maximum Purchase Power. This qualification is based on the size of the down payment, the maximum monthly mortgage payment someone can afford, or both, in addition to credit scores and debt-to-income ratios.

Having a loan officer who is able and willing to answer these questions quickly and thoroughly is a vital step in making you an attractive home buyer. In the market, buyers who are prepared, realistic, and ready-to-go are the ones who get an offer accepted!”

Statistics are pulled from The Cromford® Report, which provides detailed information to track the history and current status of the Greater Phoenix residential resale market and offers unique insight into its future direction.

Keeping Your Home Safe During the Holidays

The holiday season is upon us and with the holidays, there generally comes travel and gifts. Both of these can create higher risk situations at home.

The first risk is burglary. Sometimes, thieves will scope out an area and look for big packages being taken from a car into the house. When you’re away, they break in and search for the things they now know you have. If possible, close the garage door before you carry your items in, so your new purchases are not broadcast all over the neighborhood. We also tend to leave our curtains and blinds open this time of year so our Christmas trees can be seen. What can also be seen are all the belongings in your home. If you have expensive or valuable items in the rooms that are on display, it’s a good idea to put them away for the holiday season. You don’t want robbers to think they could hit the jackpot by hitting your home. On that same note, on trash pickup day, break down your boxes and put them inside the trash can. If you put the empty 50- inch TV box out at the curb you're letting everyone know what is now in your home.

The second risk is water damage. For some reason water hoses, lines, and pipes tend to break or spring a leak when you’re not home. A half-inch pipe carries about 50 gallons of water per minute. Imagine if you aren’t home for a few days or weeks, the amount of damage this could cause. The easiest way to avoid this is to turn off the water at the main line if you’re going to be gone for more than a day. If you can’t turn off the water make sure you have someone dependable checking on the home at least once a day, every day. Another solution, are home alarm companies that have water sensors. If water touches a sensor for more than a few seconds the alarm will sound off and contact the monitoring company. (This actually happened to me. An ice cube fell and went under my refrigerator, when it melted and reached the sensor the alarmed sounded off. At least we know it works!) This is a great solution if you don’t mind the small additional cost.

There you have it - a few ideas to keep your home and family happy and safe through the holidays.

-Guest Editor, Sharmen Roos, State Farm Insurance

Rudolph Sandwiches

I don't think you can consider this a recipe, but it sure is fun to make. These were a staple growing up in my house in December and I've never met a kid who doesn't love them!

• Sliced sandwich bread

• Smooth peanut butter (or any nut butter or sunflower seed butter)

• Raisins or dried cranberries

• Stick Pretzels

• Maraschino cherries, patted dry

Spread peanut butter on a slice of bread and decorate, using raisins for eyes, stick pretzels for antlers, and of course, the maraschino cherry for Ruldoph's nose. Don't overthink it - kids love them even if they aren't "pinterest-worthy".

Use cookie cutters and your imagination for more holiday-themed sandwiches. Avocado toast Christmas trees and Wonder Bread Snowmen would also be fun!

Tips to Survive a Stressful Holiday

The Holidays are here and it’s time for some comfort and celebration on the heels of a very challenging year. While each of us prefers different amounts of festivity and relaxation, we can all agree that a bit of both is ideal. If you and your loved ones disagree on how best to strike this balance, consider using a few of the following ideas from a family therapist:

• Be Proactive: Rather than trying to problem solve when you’re experiencing big emotions, consider waiting until your brain and body feels calm. This one change, changes everything.

• Get Curious: We are all pretty good at expressing our own perspective, but listening can be harder. Try shifting into their perspective, asking more questions and seeking to understand.

• Validate Concerns: Even if you whole-heartedly disagree, consider what the other person may be thinking and feeling, responding by finding the truth in their experience. When someone feels seen and heard, conflicts often soften.

• Share Values: Get clear about your priorities, expressing what matters most to you, affirming common values and mutual respect.

• Collaborate on Solutions: Get creative compromising toward workable options that take both of your perspectives into account, arriving at a mutually agreeable plan together.

• Track Progress: Monitor how it’s going, celebrating successes, learning from mishaps and making adjustments as needed along the way.

The year has been tough, but the Holidays can bring some much needed comfort and joy. Wishing you and your loved ones a balance, both now and in the new year. We’ll get through this, but we don’t have to do it alone. If you or someone you know might benefit from family counseling, please reach out. I offer free phone consultations and Telehealth options.

Warmly,

Amy Guido, LCSW

Child & Adult Counseling

602-743-5299

AmyGuido.com

Market Update December 2020

A lack of inventory and increasing demand for homes in the Phoenix-metro area continues. In the past 4 months, the average monthly price-per-square foot (the standard measure for valuing appreciation) rose 12.4%. As of November 15, homes in the Valley were recording an average $208.58 per square foot. This rose 3.2% from October 15, 2020 alone and is expected to continue rising through mid-December. The luxury market can be a factor for these average increases, but the lack of inventory and high demand are definitely contributing to the swift rises. Not since July have we seen this little inventory. COVID surges, the election, and the Holidays may all be playing a part in the lack of people wanting to sell.

But even with everything going on, this upward trend of appreciation isn’t expected to shift any time soon. As Tina Tamboer reports, “The housing market will not crash in 2021 regardless of the (2020 election) outcome. It may be hard to believe, but the new and resale housing markets don’t move quickly. Unlike the stock market where it takes a push of a button to sell a stock and record the price, it takes longer to sell a home between the marketing time and escrow process.

"To put things in perspective, the Arizona Regional MLS should seasonally have between 25,000-30,000 listings active at this time of year; as of November 9th there are under 8,600. That type of shortage doesn’t happen overnight and new construction will not be able to fill the gap quickly. Even if demand were to scale back in 2021 and return to a normal level, the market would not see a massive drop in prices; just a slowing in appreciation.”

In mortgage news, Carla Hancock reports, "Renting vs. Buying has become heavily in favor of buying over the last 5 months. Leases in the MLS have increased by 17% and home values have risen 16%. With the declining interest rates keeping monthly mortgage payments level (while rents just rise), it could potentially save someone hundreds of dollars while building equity."

"A lot of Home Buyers are still under the impression they need a 20% down payment to purchase a home. Even though 20% down avoids the added expense of mortgage insurance, it is certainly not necessary. There are so many options available now, including down payments as low as a 3% or even 0% for VA loans. It is always worth exploring the various options with a mortgage professional to see if the timing is right for homeownership or to plan what will work for you in the future."

If you want specific information on your zip code, contact me at 602-451-6329 or kerrie@northandco.com.

Market Update September 2020

The housing market in the Greater Phoenix-area continues to break records.

The monthly average sale price per square foot broke the record in August, standing at $190.97. The previous record was held in May 2006 at $190.61. Many Valley residents remember after the peak in 2006, there was a drastic fall from June 2006-March 2009, leaving a lot of people wondering – have we hit another peak, only to expect another fall?

The short answer is, no. Experts say signs are pointing to the housing market being a strong survivor within the recession, actually helping the economy recover.* In fact, the luxury market, which usually peaks in the second quarter and falls in the third (likely due to everyone escaping the heat) has been opposite. We saw the luxury market fall during the height of uncertainty at the start of the pandemic, only to have recovered stronger than ever.

The issue buyers are facing right now is low inventory causing a feeding frenzy with available homes. Buyers need to come prepared with their pre-qualification letter and in many cases, be prepared to submit their offer with multiple other offers on the property already received. So why is inventory so low?

Phoenix Market Expert, Michael Orr points out, “In Maricopa County between 2007 and 2020, the population grew 18%. If we examine the County Assessor's database, we can see that there was only 12% growth in inventory in the county during that same period. Even if we see significant rises in foreclosures and evictions, there are still not enough homes to match the population growth numbers.”

Because of the State and Federal programs in place, many homeowners have protection from foreclosures for now. Maricopa County just recorded the lowest number of pending forecloses this month. If these assistance programs go away, we will likely see that number increase, but not like we did in 2007.

My bottom line is, be patient if you are trying to buy. Be reasonable and prepared to move if you are trying to sell.

Mortgage Market Minute with Carla Hancock with Bay Equity Home Loans:

• Great News: Interest Rates are still at an ALL-TIME LOW.

• Economic News: The Federal Housing Finance Agency (FHFA) announced an imposing 50-basis point loan-level adjustment for all refinance transactions.  In everyday language, interest rates are slightly higher on Refinance loan products then on Purchase loan products at this time.  The good news is rates are still extremely low and should have pressure on them to stay low for an extended time period.

• More good news: Jumbo Loan Investors (loans that are above $510,400) have overall improved their interest rates and have backed-off from their once conservative stance during COVID financial uncertainty.

• Did you know that Reverse Mortgage products assist clients at or over the age of 62 with purchasing a home or for the refinance of their existing owner-occupied home?  This loan product could be an attractive alternative to traditional home financing alternatives.

Staying Organized This Holiday Season

The holidays can be stressful, our tips will help you relax and enjoy the holidays. Here are 10 Tips to enjoy the Holidays and stay organized, from the professional organizers at Dependable Divas:

1. On your phone start a note titled Holidays. During the year while you are out and about, as you see a gift idea, grab your phone and jot it down before you forget, or take a picture.

2. Bake cookies and other yummy treats early in the season and freeze them. That way you can grab and go when you need a hostess gift or unexpected company stops by.

3. When you get out your holiday decorations, donate anything you no longer use or love.

4. Once you’ve finished decorating, take a picture so you can recreate it for next year.

5. Make a plan and don't over-schedule. Ask your kids what events and tradition are their favorites. You might be surprised!

6. Create a gift wrap station in a specific area. Keep the wrapping paper, tape, scissors and labels all together. Wrap the presents as you buy them.

7. Clean out  your kids’ toys. Ask your kids what toys they longer use and explain that you will donate them to a charity. It’s a great time to help people who are not so fortunate and make room for the new presents.

8. Divide and concur! Share duties with  family members. Have one person in charge of breakfast and another one dinner.

9. Create a holiday binder and divide into sections: Favorite holiday recipes, Gifts/Budget, Holiday card contact list, Party planning (ideas torn from magazines). Pinterest has some divider pintables’, already designed for you.

10. When the holidays are over, it's okay to recycle the cards you received. Take a picture with your phone and use it as the sender’s contact. Every time your phone rings throughout the year you will see their picture.

Favorite Spots (For a Cool Treat!)

I have a confession - I'm not a fan of ice cream. Very rarely, it will look decent enough to steal a bite of someone else's dessert, but it's not something I crave or order. That doesn't mean I don't like my own sweet treats to stay cool in the hot summer months. Here are my go-to goodies for a keep-me-cool treat:

Wow Wow Hawaiian Lemonade
Multiple Valley Locations
There's nothing more summery than a glass of lemonade and Wow Wow's Lavender Blackberry is my favorite.

Breezy Pop
Natural Freeze Pops
Check Their Social Media for Farmer's Market Locations
The best way to keep cool at the Downtown Phoenix, Uptown Phoenix, and Gilbert Farmer's Markets. Not only are the pops packaged in a nostalgic tube, but they are way tastier than the ones you ate as a kid. (And with all-natural ingredients!)

Mahalo Made
Shaved Ice
Check Their Social Media for Food Truck Locations and Daily Flavors
Lady La is a Phoenix radio icon, but she's also made a name for herself in the food realm. Her food truck Mahalo Made has become a popular hotspot, usually parked around Indian School and 20th St. The Guava is out of this world!

Churn
Sorbet
5550 E Central Ave, Phoenix, AZ 85012
I may not like ice cream, but I do love sorbet. Churn's flavors are in constant rotation, but my favorite is their Sparkling Elderflower Sorbet.

R&R Gastropub
Frozé
3737 N Scottsdale Rd, Scottsdale, AZ 85251
When you brunch here in the summer months, skip the bottomless mimosas (gasp!) and get the Frozé. But still get the cinnamon roll the size of your head.

Market Snapshot June 2019

Median Sales Price up 5.9% to $270,000 in Greater Phoenix, Sales Rebound, Up 3.7% Over Last Year

 Low interest rates are continuing to fuel buyer demand and there are now 2.5% more listings under contract today than there were last year at this time and 3.7% more sales. All-in-all, an impressive rebound as interest rates have remained below 4.2%, keeping affordability stable for the time being. Increased demand in the 2nd quarter has resulted in strengthening the weakening seller market after a full 7 months of decline. May is typically the highest month for listings under contract and buyer activity is expected to decline from here through December as it typically does every year. Don’t think you’ve missed the boat if you need to list however. On average since 2001, about 52% of all sales happen in the first half of the year and 48% in the second.

- Tina Tamboer, Senior Housing Analyst with The Cromford Report ©2019 Cromford Associates LLC and Tamboer Consulting LLC

On the mortgage front, Guardian Mortgage VP, Steve Howard (NMLS # 997898) reports, “Many non-bank lenders continue to roll out more aggressive non-qualified mortgage products. Higher loan to values, lower credit score requirements, and alternative documentation types are adding additional buyers to an already competitive landscape.  Time will tell if these type of lending products will be good long term for the housing market." My advice is, talk to your lender, see what programs are available, and make an informed decision. Now is a great time to buy a house in Phoenix.

Spring Checklist, by Sharmen Roos, State Farm

As we approach Spring there are a few things you can do to keep your home and your personal belongings safe and in good order. Here are my Top 3 Spring To-Do’s.

Spring is a great time to de-clutter and it’s also a good time to create a home inventory record. Back in the old days people would literally write down all the contents in each room of their house. This way, if there was ever a fire and all your things were destroyed, it would be very easy to tell the insurance company what you had and what needed to be replaced. Nowadays, it’s much faster and far more efficient to create a personal property inventory record. Start by opening all the doors, drawers, and cabinets in each room of your home. With your cell phone, stand in the middle of each room, turn around in a slow circle and film all of your contents.  Once you have done this in each room, send the videos to yourself by email. Why email it to yourself? If you have a fire in the middle of the night, you want to get out immediately. You may not have the time nor presence of mind to grab your cell phone.

Twice a year, check the smoke detectors in your home. I do mine in March and September because that’s also when the time changes. Even though we don’t change our clocks here in AZ, we’re usually aware of it because just about everyone else does. Did you know that 60% of home fire deaths, that’s 3 out of every 5, were due to non-working smoke detectors? Just a few minutes and maybe a couple dollars every 6 months could save you and your family’s life.

Now that temperatures are starting to rise, get your AC unit serviced.  If you wait until summer, it can cost you two to three times more and units are not usually covered by insurance because when it breaks down, it’s typically a maintenance or age issue. The last thing you want is to have your AC go kaput when it’s 100+ degrees out. In the summer in AZ, it can take days, if not weeks, to get a service company out. Once they do, if they don’t have the parts on hand it can be several more days to get the parts in and the unit fixed. Being proactive can save you time and a lot of suffering, so schedule that AC maintenance appointment today!

Market Snapshot March 2019

This information is from March 1, 2019…

This year got off to a slow start for Phoenix real estate. While January is always a slow month for closings, this year started slower than normal, thanks to the low number of contracts signed during the end of 2018. The slow start didn’t last long, though, and we saw listings under contract in the second half of January nearly 37% higher than the start of the year. Now, even though it’s still not a balanced market, both buyers are sellers are enjoying opportunities. 

January saw a significant increase in active listings, which has been great for buyers. With more inventory, higher FHA loan limits, and lower interest rates than in late 2018, buyers are certainly benefiting. For sellers, Phoenix is at a 5.2% appreciation, which is a normal year-over-year appreciation rate. Sellers need to be realistic in setting their listing prices as appreciation is moderating, but there’s no reason to think home prices have fallen. Well-presented homes up to $1M, in good condition, and priced well should have no difficulty selling. 

On the mortgage front, Guardian Mortgage VP, Steve Howard (NMLS # 997898) reports, “The most recent Federal Reserve minutes were interesting. Several of the members are now against future increases to short term rates.  Further comments from St. Louis Fed President James Bullard has led some to speculate that the Fed may even start reinvesting in Bonds and Treasuries once again. If this does in fact happen we could see a dip in interest rates, which could bring more new home buyers to market.”