Scottsdale AZ Real Estate & Lifestyle

Live Better in Scottsdale - eXp Realty

Heather Tawes Nelson

Scottsdale AZ Single Family Home Sales – June 2020

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– June 2020 Scottsdale Homes for Sale and Home Sales –

What a month! Things certainly turned around in June. The demand that was put on hold in March and April translated into a very strong housing market for June.

I believe that sales could have been even higher if there were more homes for sale. Inventory is the lowest I have seen and I have been tracking these figures since 2007.

SCOTTSDALE HOME SALES ACTIVITY – JUNE 2020

We track these sales metrics on a monthly basis.

– Single-family homes for sale – Orange Line – This is how many homes were for sale at the end of the month.
– Under contract, but accepting backup offers (UCB) – Gray Line – This is the number of homes that were in UCB status at the end of the month.*
– Pending home sales – Yellow Line – This is a count of the pending sales at the end of the month.*
– Home Sales – Blue Line –  This is the number of closed sales for the month.

JUNE 2020 RESULTS

  • Scottsdale Homes for Sale: This is the lowest I have seen our inventory in Scottsdale. The fewer number of homes for sale will definitely hold back upcoming sales activity.
  • UCB (Under contract, accepting backup offers):  We saw a solid increase of 10.2% in UCB contracts. (This is after we saw a huge 60.9% jump between April and May.) This is indicates sales will still be solid in July.
  • Pending Homes Sales in Scottsdale: Pending sales were up another 24.6% at the end of June. (End of May pendings were up 24.2%.) This is the second highest these have been in the past 12 months.
  • Scottsdale Home Sales:  Sales activity rocketed in June. There were 519 sales, which is a huge improvement over April and May.

Now we will take a look at two more sales metrics related to Scottsdale’s housing market.

Scottsdale housing market June 2020

Percent Change Month Over Month – The top information looks at the month-over-month performance of the four sales metrics we track. Look at the solds for June – Sales were up 62.2% over May!

Sales Price to List Price – This next one compares average sales prices to the average asking prices. As you can see, there has been a slight discount over the past twelve months. In June, buyers on average saw a discount of 3.4% off of list price.

*Figures for active homes for sale, UCB sales and pending sales are based on the numbers at the end of the month.

Search Scottsdale AZ Homes for Sale

Here is a sampling of some of the homes on the market, or click the link above to see all of the homes for sale.

Curious about your buying power? Click on the link to learn more.

Disclaimer: Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 7/1/2020. Information deemed reliable, but not guaranteed. There may be new home inventory in these figures if the developer is using the MLS to market its homes. This post represents the opinion of the author. No warranties express or implied.
Copyright © 2020 Heather Tawes Nelson | Joyce Tawes

Add Value To Your Home With These 9 DIY Improvements

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Add Value to Your Scottsdale Home

Whether you’re prepping your house to go on the market or looking for ways to maximize its long-term appreciation, these nine home improvement projects are great ways to add function, beauty, and real value to your home.

The best part is, once you’ve secured the materials, most of these renovations can be completed over the course of a weekend. And they don’t require a lot of specialized skills or experience. So grab your toolbox, then get ready to boost your home’s appeal AND investment potential!

  1. Spruce Up Your Landscaping

Landscaping improvements can increase a home’s value by 10-12%.1 But which outdoor features do buyers care about most? According to a survey of Realtors, a healthy lawn is at the top of their list. If your lawn is lacking, overseeding or laying new sod can be a worthwhile investment—with an expected return of 417% and 143% respectively.1

Since we live in the desert and grass is not always the preferred landscaping choice, an aesthetically-pleasing low-maintenance yard is a great alternative. A combination of cacti, lantana, succulents and/or desert sage is a great start. 

Planting flowers is another great way to enhance your home’s curb appeal. And if you choose a perennial variety, your blooms should return year after year. For an even longer-term impact, consider planting a tree. According to the Council of Tree and Landscape Appraisers, a mature tree can add up to $10,000 to the value of your home.2

  1. Clean The Exterior

When it comes to making your house shine, a sparkling facade can be just as important as a clean interior. Real estate professionals estimate that washing the outside of a house can add as much as $15,000 to its sales price.3

A rented pressure washer from your local home improvement store can help you remove built-up dirt and grime from your home’s exterior, walkway, and driveway. Just be sure to read the instructions carefully—and only use it on surfaces that can withstand the intensity. When in doubt, a scrub brush and bucket of sudsy water will often do the trick.

  1. Add A Fresh Coat Of Paint

New paint can have a big impact on both the appearance and value of a property. In fact, it’s one of the most effective ways to revitalize a home’s exterior, update its interior, and make it appear larger and brighter. The best part? Painting is relatively easy and inexpensive!

To get the maximum return at resale, stick with a modern but neutral color palette that will appeal to a broad range of buyers. According to a recent survey of home design experts, cool neutrals are a safe bet when it comes to interior paint. And respondents chose white and gray as the best exterior paint colors to use when selling a home.4 However, it’s important to consider a property’s architecture, existing fixtures, and regional design preferences, as well.  

  1. Install Smart Home Technology

In a recent survey, 78% of real estate professionals said their buyer clients were willing to pay more for a home with smart technology features.5 The most requested smart devices? Thermostats (77%), smoke detectors (75%), home security cameras (66%), and locks (63%).6

The good news is, many of these gadgets are fairly easy to install. And some of them, including smart thermostats and light bulbs, will pay for themselves over time by making your home more energy-efficient. In fact, many manufacturers report that smart thermostats can cut back on heating and cooling costs by 10-20%7, and with Arizona’s summer heat, that is something you want to stay on top of!

If you already own a smart speaker, like Amazon Alexa or Google Home, choose devices that will pair with your existing technology. This will enable you to create a truly integrated (and in many cases voice-activated) smart home experience.

  1. Modernize Your Window Treatments

Smart—or motorized—blinds are also growing in popularity, and several manufacturers make models you can order and install on your own. But they’re not the only way to modernize your window treatments.

If you have old aluminum blinds, consider replacing them with plantation shutters, which are energy efficient, durable, and have strong buyer appeal.8 Roman and roller shades are another stylish alternative, and they come in a variety of colors and fabrics, which you can personalize to meet your design and privacy preferences.

Fortunately, upgrading your blinds has gotten easier and less expensive in recent years. There are a number of retailers that specialize in affordable window coverings that are simple to measure and hang yourself.

Updating bathroom fixtures

  1. Replace Outdated Fixtures

Drastically transform the look and feel of your home by swapping out dingy and dated fixtures for contemporary alternatives. Start by assessing your current light fixtures, faucets, cabinet hardware, doorknobs, and even switch plates. Then prioritize replacing those that are particularly outdated or in highly-visible areas, such as your entryway or kitchen.

Even if your home is fairly new, consider trading your builder-grade fixtures for higher-end options to give it a more upscale appearance. And forget the old rule about sticking to one metal tone throughout your property. According to designers, mixing metal finishes can add interest and character to a space.9

For more designer insights and decor trends, contact us for a free copy of our recent report: “Top 5 Home Design Trends for a New Decade.”

  1. Upgrade Your Bathroom Mirror

A minor bathroom remodel offers one of the best returns on investment, with a $1.71 increase in home value for every $1 you spend.10 We’ve already explored several improvements you can make to your bathroom: new paint, fixtures, and hardware. Now complete the look by upgrading your vanity’s mirror.

Before you purchase a new mirror, examine your existing one to see how it is attached to the wall. Some vanity mirrors are glued to the wall and difficult to remove without shattering the glass or damaging the sheetrock behind it.11

If you prefer to keep your existing mirror, you can paint the frame—or add one if it’s currently frameless. There are several online retailers that will send you the frame components cut to your specifications, which you can assemble and mount yourself. Much like a work of art, your vanity mirror serves as a focal point for your bathroom, so let your creativity shine through! 

  1. Shampoo Your Carpet

Carpet is notorious for trapping dust, dirt, and allergens. It’s one of the reasons that most buyers prefer hard surface flooring.12 But if you love your carpet, or you’re not ready to invest in an alternative, make an effort to keep it clean and odor-free.

To properly maintain your carpet, you should vacuum it weekly. Experts also recommend a deep shampoo at least every two years.13 Fortunately, this is a cheap and easy DIY project you can knock out in about 20 minutes per room. According to Consumer Reports, you can rent a machine and purchase cleaning fluid and supplies for around $90. With an average return on your investment of 169%, it’s well worth the effort and expense.14

  1. Customize Your Closet

Real estate professionals estimate that a closet remodel can add $2500 to a home’s selling price. And while a professional renovation can cost upwards of $6000, there are many high-quality DIY closet systems you can customize and install yourself.15

Experts recommend taking a thorough inventory of your wardrobe and accessories before you get started. Make sure frequently-worn pieces are easy to reach, and store seasonal and seldom-used items on high shelves. Place shoe racks near the closet entrance so they are easy to access.16 A little planning can go a long way toward building a closet that you (and your future buyers!) will love.

GET A COMPLIMENTARY ANALYSIS OF YOUR PROJECT
We’ve been talking averages. But the truth is, the actual impact of a home improvement project will vary depending on your particular home and neighborhood. Before you get started, contact us to schedule a free virtual consultation. We can help you determine which upgrades will offer the greatest return on your effort and investment.


Sources:

  1. HomeLight –
    https://www.homelight.com/blog/improve-curb-appeal-landscaping/
  2. National Association of Realtors –
    https://www.realtor.com/advice/home-improvement/landscape-renovations-that-pay-off/
  3. com – https://www.houselogic.com/save-money-add-value/add-value-to-your-home/adding-curb-appeal-value-to-home/
  4. Fixr –
    https://www.fixr.com/blog/2020/01/14/paint-color-trends-in-2020/
  5. T3 Sixty –
    https://blog.coldwellbanker.com/wp-content/uploads/2018/01/CES2018-Smart-Homes-An-Emerging-Real-Estate-Opportunity.pdf
  6. Consumer Reports –
    https://www.consumerreports.org/smart-home/smart-home-tech-upgrades-to-help-sell-your-house/
  7. American Council for Energy Efficient Economy
    https://www.aceee.org/sites/default/files/publications/researchreports/a1801.pdf
  8. Forbes – https://www.forbes.com/sites/trulia/2016/07/05/10-upgrades-under-1000-that-increase-home-values-2/#47b0d3162e60
  9. Insider –
    https://www.insider.com/home-design-rules-you-should-be-breaking-2020-1
  10. Zillow –
    https://www.zillow.com/sellers-guide/roi-for-bathroom-remodel/
  11. Lowes –
    https://www.lowes.com/n/how-to/remove-a-bathroom-mirror
  12. HomeLight –
    https://www.homelight.com/blog/what-flooring-increases-home-value/
  13. Angie’s List –
    https://www.angieslist.com/articles/how-often-should-i-clean-my-carpets.htm
  14. HomeLight –
    https://www.homelight.com/blog/projects-that-increase-home-value/
  15. National Association of Realtors – https://www.nar.realtor/research-and-statistics/research-reports/remodeling-impact
  16. EasyClosets –
    https://www.easyclosets.com/tips-ideas/2016/10/02/how-to-plan-your-walk-in-closet/

Things To Do In Scottsdale – July 2020

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– Scottsdale Things to Do in July –

Usually, this is the time of the year where I pull together a list of Fourth of July events around the Valley. Although some towns have canceled their fireworks and celebrations, many places are revamping and offering drive-in firework displays! Here is a link to 4th of July Fireworks Around Phoenix for 2020. 

Scottsdale Fourth of July 2020

There are two opportunities in Scottsdale to get up close to a firework display:

  • Scottsdale’s 7th Annual ​4th of July Celebration at WestWorld – For $25 per carload, you can experience the fireworks that are slated to start at 9PM. Before the fireworks, be sure to check out the Parade of Heroes, which honors our front-line workers, first responders and medical personnel.
  • Scottsdale Princess Fourth of July Freedom Fest – This is the 10th Anniversary of this fun celebration and it runs from July 2nd – 4th. In order to attend, you must be a guest of the hotel or have had a meal at one of the many restaurants on-site. There will be fireworks nightly, a vintage air show, movies on the lawn and more. There are also drive-in movie options where you pay per car. 

Other Things to Do in and Around Scottsdale in July 

  • Drive-in Movies at the Scottsdale Princess – July 2nd – 4th – Three family-friendly movies will screen as we head into the 4th of July. Price is per carload and includes the movie, some popcorn and cotton candy as well as four waters. 
  • Art + Chocolate Summer Spectacular Gold Palette ArtWalk – July 9th – Stroll the streets of Old Town and explore our top local art galleries. Enjoy chocolate tastings or other special treats.
  • Butterfly Brushstrokes at Night – July 17th – The Desert Botanical Garden is back open and they are offering an evening painting class. All the supplies are included and you will walk away with your own masterpiece. 
  • Arizona Boardwalk (formerly OdySea) – The Arizona Boardwalk is now open with safety protocols in place. Most of the attractions are open, but you will want to check and see if reservations are required for a specific attraction.
  • Great Wolf Lodge – The Great Wolf Lodge is open. Cool off in one of the many indoor and outdoor pools and enjoy all of the water park activities. 
  • Visit the Musical Instrument Museum – The MIM is back and open. Enjoy learning about music from all over the globe. 
  • Top Golf Scottsdale – Ready to work on your golf game while having fun? Top Golf Scottsdale is open! And when you are ready for a full round, local courses are open.
  • Take a Hike (on a cooler day!) – Whether you want to explore the McDowell Sonoran Preserve or tackle Pinnacle Peak or Camelback, the trails are waiting for you!
  • Visit a Lake or River – There are lots of bodies of water located around the Phoenix Metro area. Take a look at this list and see which one or ones most appeal to you.

If you have any other ideas, we would love to hear about them in the comments!

Quick Video Update of the Scottsdale Real Estate Market – May 2020

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– May 2020 Scottsdale Housing Market Video –

May 2020 – Video

May 2020 still felt the impacts of people staying in place and this is reflected in the sales for the month. However, on a positive note, the number of homes that went under contract in May rebounded to much healthier levels. 

Here is a one-minute video overview of the Scottsdale, Arizona real estate market that covers the month of May.

 

Scottsdale Active Listings

Scottsdale homes for Sale May 2020

The number of homes for sale remained pretty level between April and May. At the end of the month, there were 1,259 homes on the market. 

This inventory figure is quite low for our market, meaning there is more competition for homes, especially in the lower price points. 

Median List Price for Scottsdale Homes

Scottsdale homes median list price May 2020

If you are not familiar with this metric, the median list price tells you the midpoint of all home prices with one half being higher and one half being lower. (People like to track this metric versus average price, because a very high or very low price can skew the average.)

May’s median list price was $1.1 million. This is really up from May 2019’s $880,000, and also up from April’s $975,000. When the crisis hit, many of the luxury homes were taken off of the market. I am guessing this jump in median sales price can be attributed to these homes coming back onto the market. 

Days on Market

Scottsdale homes Days on Market May 2020

This next metric, Days on Market (also seen as DOM,) measures the pace of sales in a particular market. When you see a high DOM, homes are taking longer to sell. A low DOM means homes are selling at a faster pace.

May’s DOM was 75 days. This is a 20% decrease from the same time last year, showing you the demand in the market.

Median Sales Price for Scottsdale Homes

Scottsdale homes median sale price May 2020

The median sales price in Scottsdale in May was $629,000.

It was modestly up over May 2019’s median sale price of $609,000. But the median sales price was down over April’s price of $710,000.

Number of Homes Sold

Now we will look at homes sold compared to the same time last year as well as last month. 

Scottsdale homes sold May 2019 versus 2020

Sales saw an enormous drop (49%) between May 2019 and May 2020. May typically shows strong sales activity, so you can definitely see the impact of COVID-19 on the market for the month. 

Scottsadale home sales May 2020

Sales activity picked up again in May, but the sales figures are based on contracts that were most likely signed in April. So while sales were down month-over-month, this is a good sign. 

We hope that you found this video and commentary helpful as you gather more information to make smart informed real estate decisions.

For more Scottsdale real estate information or if you have any questions about the local area, feel free to contact Joyce at (480) 209-7843 or Joyce@LiveBetterinScottsdale.com.

Click to watch other videos on our Live Better in Scottsdale YouTube Channel.

Interested in other stats for our market? Visit our Real Estate Market Update page.

 

Disclaimer: Data deemed to be accurate, but is not guaranteed.

Phoenix and Scottsdale AZ Luxury Condo Sales – May 2020

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– Luxury Condo Sales in Scottsdale and Phoenix – May 2020 –

May, typically a still-brisk sales month, continued to show the impact of COVID-19 on the luxury home market. Sales activity was somewhat lackluster.

In this report, we are defining luxury as condominiums with asking prices above $1 million.

ACTIVE LISTINGS AT THE END OF MAY

There were seventy-seven luxury condos on the market at the end of the month, up one from April. The majority of these listings (60) were located in Scottsdale and the remaining seventeen were in Phoenix.

  • The highest-priced luxury condo on the market is a carryover from last month. Priced at $5 million, it is the highest-priced condo the market has seen. This penthouse at the Scottsdale Waterfront Residences has4,493 square feet, four bedrooms, four and one-half bathrooms, plus a 640 square foot guest suite located on the ground floor. The panoramic views are incredible.
  • The least expensive luxury condo for sale is also a carryover. The unit, located in Optima Camelview comes with two bedrooms, two bathrooms and 1,955 square feet. It was on the market for an even $1,000,000.

UCB* LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There were no UCB contracts at the end of April. However, May closed out with two condos in UCB status. Both homes were in Phoenix.

The first unit to go under contract was in Fairway Lodge at Biltmore Estates (8 Biltmore. )This unit had two bedrooms, two and one-half bathrooms and 2,748 square feet. It was on the market for $1,099,000

The second UCB was at One Lexington Ave. This corner penthouse had two bedrooms, two and one-half bathrooms and 2,022 square feet. It was on the market for $1,200,000.

*UCB status means a condo has an accepted contract, but that the seller has requested that they accept backup offers. Most times you will see this status when the contract is in the inspection/due diligence period.

PENDING LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There were six condos in pending status at the end of the month. With the exception of one unit, they were all located in Scottsdale’s Optima Kierland community.

Scottsdale Pending Luxury Condos

  • Five of the pending sales were located in the under construction Optima Kierland community.
    • Two bedroom and two bathrooms with 1,636 square feet. It was listed for $1,195,000.
    • Two bedrooms and two and one-half bathrooms with 1,956 square feet. It was listed for $1,750,000.
    • Three bedrooms and bathrooms with 2,704 square feet. It was on the market for $1,816,000.
    • Three bedrooms and bathrooms with 2,018 square feet. It was on the market for $1,939,000.
    • Three bedrooms and bathrooms with 2,704 square feet. It was listed for $2,080,000.
  • The final pending sale was in Icon Silverleaf. This home had three bedrooms, three and one-half bathrooms and 3,173 square feet. It was on the market for $1,490,000.

LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

Two luxury condos sold in May and both of them were located in Optima Kierland in Scottsdale.

  • Two bedroom, two and one-half bathrooms with 2,086 square feet. It had been listed for $1,350,000 and sold for $1,335,000
  • Two bedroom, two and one-half bathrooms with 2,162 square feet. It had been listed for $1,995,000 and sold for $1,890,000

Learn More About Phoenix and Scottsdale Luxury Condos

Search Phoenix and Scottsdale Luxury Condos for Sale

Disclaimer: Days on market figures are cumulative days on market. Information herein deemed reliable but not guaranteed. Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 6/1/2020 and can change at any time. The analysis looks at resale luxury condos in Scottsdale and Phoenix over the past 12 months. Information deemed reliable, but not guaranteed.  There may be new condo inventory in these figures if the developer is using the MLS to market its homes. This post represents the opinion of the author. No warranties express or implied.
Copyright ©2020 Heather Tawes Nelson | Joyce Tawes

Scottsdale Homes that Work for Working From Home

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photo

Over the past few months, many of us have found ourselves working from home. Perhaps you already had an office in your home and the transition was not that hard.

However, many people found themselves trying to create a workspace somewhere that would give them a place to get things done.

Since it looks like most of us will not be returning to a traditional office for the foreseeable future and many companies are now allowing permanent telework, we decided to pull a list of Scottsdale homes for sale that have offices, dens or even a separate structure like a casita which will allow you to separate work life from home life. 

Feel free to browse them below and contact us if you have any questions. And if you would like us to do a video walkthrough or you would like to see any of these in person, we would be happy to arrange that!

Scottsdale AZ Single Family Home Sales – May 2020

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– May 2020 Scottsdale Homes for Sale and Home Sales –

Here is a look at last month’s real estate market in Scottsdale. During May, things started to open up a little bit and we saw contract activity pick up nicely. However, sales were muted due to the lower number of contracts in April.

SCOTTSDALE HOME SALES ACTIVITY – MAY 2020

Each of the four items below are tracked monthly:

– Single-family homes for sale – Orange Line – The number of homes for sale at the end of the month.
– Under contract, but accepting backup offers (UCB) – Gray Line – How many homes were in UCB status at the end of the month.*
– Pending home sales – Yellow Line – How many pending sales there were at the end of the month.*
– Home Sales – Blue Line –  The number of homes sold.

MAY 2020 RESULTS

Scottsdale home sales April 2020
  • Scottsdale Homes for Sale: Inventory fell to the second-lowest level we have seen in the past year. Our market was already in a low inventory state prior to COVID-19 and the fewer number of homes for sale will hold back sales activity.
  • UCB (Under contract, accepting backup offers):  UCB contracts were up 60.9% between the end of April and May. This is good news for the market as this figure is exactly where we ended May 2019 with UCBs.
  • Pending Homes Sales in Scottsdale: We also saw a rebound of pending sales. Pendings were up 24.2%. This is still quite below 2019 levels though where there were 366 pending sales at the end of May.
  • Scottsdale Home Sales:  Since we had low UCB and pending levels as we entered the month, we knew home sales would be impacted. There were 320 sales in May 2020, compared to 529 in May 2019.

The next two sections look at how the market is changing as well as home prices.

Scottsdale real estate April 2020

Percent Change Month Over Month – This metric looks at how things are changing on a monthly basis. For instance, sales were down 4.5% between April and May.

Sales Price to List Price – This metric looks at what homes sold for relative to their asking prices. In May, homes on average sold for 96.9% of what they were on the market for. Looking at it from the buyer’s perspective, buyers saw an average discount of 3.1% off off list price.

*Figures for active homes for sale, UCB sales and pending sales are based on the numbers at the end of the month.

Search Scottsdale AZ Homes for Sale

Here is a sampling of some of the homes on the market, or click the link above to see all of the homes for sale.

Curious about your buying power? Click on the link to learn more.

Disclaimer: Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 6/1/2020. Information deemed reliable, but not guaranteed. There may be new home inventory in these figures if the developer is using the MLS to market its homes. This post represents the opinion of the author. No warranties express or implied.
Copyright © 2020 Heather Tawes Nelson | Joyce Tawes

Is Now a Good Time to Buy or Sell Real Estate?

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Buy or Sell Real Estate Now or Later?

Traditionally, spring is one of the busiest times of the year for real estate. However, the coronavirus outbreak—and subsequent stay-at-home orders—led many buyers and sellers to put their moving plans on hold. In April, new listings fell nearly 45%, and sales volume fell 15% compared to last year.1

Fortunately, as restrictions have eased, we’ve seen an uptick in market activity. And economists at Realtor.com expect a rebound in July, August, and September, as fears about the pandemic subside, and buyers return to the market with pent-up demand from a lost spring season.2 In fact, the preliminary numbers from May in Scottsdale show a huge resurgence of activity.

But given safety concerns and the current economic climate, is it prudent to jump back into the real estate market?

Before you decide, it’s important to consider where the housing market is headed, how it could impact your timeline and ability to buy a home, and your own individual needs and circumstances.

WHAT’S AHEAD FOR THE HOUSING MARKET?

The economic aftermath of the coronavirus outbreak has been severe. We’ve seen record unemployment numbers, and economists believe the country is headed toward a recession. But people still need a place to live. So what effect will these factors have on the housing market?

Home Values Projected to Remain Stable

Many Americans recall our last recession and assume we will see another drop in home values. But the 2008 real estate market crash was the cause—not the result—of that downturn. In fact, ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that home prices actually went up in most cases. Only twice (in 1990 and 2008) did prices fall, and in 1990 it was by less than one percent.3

Many economists expect home values to remain relatively steady this time around. And so far, that’s been the case. As of mid-May, the median listing price in the U.S. was up 1.4% from the same period last year.4

Demand for Homes Will Exceed Available Supply

There’s been a shortage of affordable homes on the market for years, and the pandemic has further hindered supply. In addition to sellers pulling back, new home starts fell 22% in March.5 In fact, Fannie Mae doesn’t foresee a return to pre-pandemic construction levels before the end of 2021.6

This supply shortage is expected to prop up home prices, despite recessionary pressures. Fannie Mae and the National Association of Realtors predict housing prices will rise slightly this year7, while Zillow expects them to fall between 2-3%.8 Still, that would be a far cry from the double-digit declines that occurred during the last recession.9

Government Intervention Will Help Stabilize the Market

Policymakers have been quick to pass legislation aimed at preventing a surge in foreclosures like we saw in 2008. The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress gives government-backed mortgage holders who were impacted by the pandemic up to a year of reduced or delayed payments.10

The Federal Reserve has also taken measures to help stabilize the housing market, lower borrowing costs, and inject liquidity into the mortgage industry. These steps have led to record-low mortgage rates that should help drive buyer demand and make homeownership more affordable for millions of Americans.11

HOW HAS THE REAL ESTATE PROCESS CHANGED?

As the pandemic hit, real estate and mortgage professionals across the country revised their processes to adapt to shifting safety standards and economic realities. While these new ways of conducting business may seem strange at first, keep in mind, military clients, out-of-state and international buyers, and others have utilized many of these methods to buy and sell homes for years.

New Safety Procedures

The safety of our clients and our team members is our top priority. That’s why we’ve developed a process for buyers and sellers that utilizes technology to minimize personal contact.

For our listings, we’re holding online open houses, offering virtual viewings, and conducting walk-through video tours. We’re also using video chat to qualify interested buyers before we book in-person showings. This enables us to promote your property to a broad audience while limiting physical foot traffic to only serious buyers.

Likewise, our buyer clients can view properties online and take virtual video tours to minimize the number of homes they step inside. Ready to visit a property in person? We can decrease surface contact by asking the seller to turn on all the lights and open doors and cabinets before your scheduled showing.

The majority of our “paperwork” is also digital. In fact, many of the legal and financial documents involved in buying and selling a home went online years ago. You can safely view and eSign contracts from your smartphone or computer.

Want to learn more about how we can help you sell your home or buy a new one using many virtual tools? See our Virtual and In-Person Real Estate page.

Longer Timelines and Higher Mortgage Standards

The real estate process is taking a little longer these days. Both buyers and sellers are more cautious when it comes to viewing and showing homes. And with fewer house hunters and less available inventory, it can take more time to match a buyer with the right property.

Securing a mortgage may take longer, too. With forbearance requests rising, lenders are getting increasingly conservative when it comes to issuing new loans. Many are raising their standards—requiring higher credit scores and larger down payments. Prepare for greater scrutiny, and build in some extra time to shop around.13

Photo by Got Credit

 

 IS IT THE RIGHT TIME FOR ME TO MAKE A MOVE?

The reality is, there’s no “one size fits all” answer as to whether it’s a good time to buy or sell a home because everyone’s circumstances are unique. But now that you know the state of the market and what you can expect as you shop for real estate, consider the following questions:

Why do you want or need to move?

It’s important to consider why you want to move and if your needs may shift over the next year. For example, if you need a larger home for your growing family, your space constraints aren’t likely to go away. In fact, they could be amplified as you spend more time at home.

However, if you’re planning a move to be closer to your office, consider whether your commute could change. Some companies are rethinking their office dynamics and may encourage their employees to work remotely on a permanent basis.

How urgently do you need to complete your move?

If you have a new baby on the way or want to be settled before schools open in the fall, we recommend that you begin aggressively searching as soon as possible. With fewer homes on the market and sometimes a lengthier closing process, it’s taking longer than usual for clients to find and purchase a home.

However, if your timeline is flexible, you may be well-positioned to score a deal. We’re seeing more highly-incentivized sellers who are willing to negotiate on terms and price. Talk to us about setting up a search so we can keep an eye out for any bargains that pop up. And get pre-qualified for a mortgage now so you’ll be ready to act quickly.

If you’re eager to sell this year, now is the time to begin prepping your home for the market. Even though buyers hit pause over the last couple of months, we are seeing the number of new contracts increase week over week.

How long do you plan to stay in your new home?

The U.S. real estate market has enjoyed steady appreciation since 2012, which made it fairly easy for owners and investors to buy and sell properties for a profit in a short period of time. However, with home values expected to remain relatively flat over the next year, your best bet is to buy a home you can envision yourself keeping for several years.

Fortunately, at today’s rock-bottom mortgage rates, you can lock in a low interest rate and start building equity right away.

Can you meet today’s higher standards for securing a mortgage?

Mortgage lenders are tightening their standards in response to the growing number of mortgage forbearance requests. Many have raised their minimum credit score and downpayment requirements for applicants. Even if you’ve been pre-qualified in the past, you should contact your lender to find out if you meet their new, more stringent standards.

Is your income stable?

If there’s a good chance you could lose your job, you may be better off waiting to buy a home. The exception would be if you’re planning to downsize. Moving to a less expensive home could allow you to tap into your home equity or cut down on your monthly expenses.

Sell my Scottsdale home

WHEN YOU’RE READY TO MOVE—WE’RE READY TO HELP

While uncertain market conditions may give pause to some buyers and sellers, they can actually present an opportunity for those who are willing, able, and motivated to make a move.

Right now, only motivated players are out in the market. That means that if you’re looking to buy, you’re in a better position to negotiate a great price. And today’s record-low mortgage rates could give a big boost to your purchasing power.

If you’re hoping to sell this year, you’ll have fewer listings to compete against in your neighborhood and price range. But you’ll want to act quickly. Economists expect a surge of eager buyers to enter the market in July—so you should start prepping your home now.

Let’s schedule a free virtual consultation to discuss your individual needs and circumstances. We can help you assess your options and create a plan that makes you feel both comfortable and confident during these unprecedented times.

 

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

 

 

Sources:

  1. Forbes – https://www.forbes.com/sites/ellenparis/2020/05/08/latest-housing-market-update-from-realtorcom/#20bf7829113e
  2. HousingWire –
    https://www.housingwire.com/articles/realtor-com-housing-market-will-bounce-back-this-year-but-the-rebound-will-be-short-lived/
  3. Curbed –
    https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates
  4. com –
    https://www.realtor.com/research/weekly-housing-trends-view-data-week-may-9-2020/
  5. com –
    https://money.com/coronavirus-real-estate-home-prices/
  6. Fannie Mae –
    https://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_051320.pdf
  7. HousingWire –
    https://www.housingwire.com/articles/pending-home-sales-tumble-on-covid-19-shock/
  8. HousingWire –
    https://www.housingwire.com/articles/zillow-predicts-small-home-price-drop-through-rest-of-2020/
  9. Federal Reserve Bank of St. Louis –
    https://fred.stlouisfed.org/series/CSUSHPINSA
  10. Consumer Financial Protection Bureau –
    https://www.consumerfinance.gov/coronavirus/cares-act-mortgage-forbearance-what-you-need-know/
  11. Bankrate –
    https://www.bankrate.com/mortgages/federal-reserve-and-mortgage-rates
  12. National Association of Realtors –
    https://www.nar.realtor/sites/default/files/documents/2020-05-11-nar-flash-survey-economic-pulse-05-14-2020.pdf
  13. Forbes –
    https://www.forbes.com/sites/alyyale/2020/04/17/buying-a-home-during-the-pandemic-dont-expect-your-everyday-home-purchase/#fadad3d33b0c

 

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