Category Archives: Real Estate

Arizona, Real Estate

January Real Estate Update

This year is off to a good start. Activity has picked up after a somewhat slower fall season. Like clockwork, our sales are best in the first quarter of the year. I’m not sure if it’s end of year bonuses, New Years’ resolutions, snowbirds or what, but it’s always welcome to be busy again.

The discouraging part is the sales prices. We’re still seeing what I consider “vulture pricing.” The sales today are often at depressed prices. The hope is that these will finally sell, (and the truth is that there are less in the basement price-wise now,) and we’ll be able to see an uptick.

Meanwhile, in the cities, the prices have continued to rise in Mohave County as we experience an exodus from California. At some point, the purchase of raw land will make more and more economic sense and the prices should rise. One can always hope anyway…

Real Estate

Real Estate Update October 2019

The weather has cooled from summer heat to a pleasant time of year, and even some nights are chilly.

Meanwhile, the phones are ringing again after the briefest of lulls this year. There are still quite a few good values at Stagecoach Trails, and around Yucca, but they are selling.

We typically see a slowdown in August and September particularly in the more modest price ranges, as the kids are back in school, and the snowbirds are yet to arrive. With all of the cold up north, it won’t be long…

 

Real Estate

Mortgage Rates Drop Once Again

Mortgage rates fell yet again on a weekly basis thanks to the declining yield on Treasury notes. The 30-year fixed-rate mortgage averaged 3.57% during the week ending Oct. 10, down 8 basis points from the previous week, Freddie Mac reported Thursday.

This is a stark change from a year ago when the 30-year fixed-rate mortgage averaged 4.90% The 15-year fixed-rate mortgage dipped 9 basis points to an average of 3.05%, according to Freddie Mac. The 5/1 adjustable-rate mortgage averaged 3.35%, down 3 basis points from a week ago.

Source: Mortgage Rates Drop Once Again—Sparking More Interest in Loan Refinancing | realtor.com®

Real Estate

New-Home Sales Up 7.1% in August, Near 12-Year High

The numbers: Sales of newly-constructed homes in the U.S. increased 7.1% on a monthly basis in August to a seasonally-adjusted annual rate of 713,000, the government reported Wednesday.

That’s up from a revised rate of 666,000 in July, and is just shy of the 12-year high set in June. Compared with August 2018, new-home sales were up 18%.

Because of the small sample size used to produce the new-home sales figures, the report is fairly volatile and prone to large revisions. For instance, the pace of new-home sales in June was later revised to 729,000 after an initial reading of 646,000.

Source: New-Home Sales Rebounded 7.1% in August, Flirting Again With a 12-Year High | realtor.com®

Real Estate

Real Estate Update September 2019

It’s been an unusually busy summer in Mohave County, with brisk activity in the cities, and even renewed activity in the land market such as Yucca and Golden Valley.

While we’re not selling raw land like hotcakes, we are at least seeing more interest. The sales unfortunately seem to belong mostly to the under-priced and those with either power, septic, or even a basic structure such as a shed.

The weather has cooled (it’s in the 60s today!) As the weather becomes cold up north, but pleasant here, we expect quite a bit more activity as we move into fall and into the first quarter of next year.

Pending home sales jumped nationally in August, perhaps as many buyers took advantage of today’s historically low interest rates.

Pending home sales August 2019 (Source Bloomberg)

I believe that all of the long term dynamics of Arizona and Mohave County will continue to drive more residents to this area. Those dynamics being: low taxes, lower housing costs, good quality of life, and rural yet near Las Vegas, Phoenix, and Southern California.

Continue reading Real Estate Update September 2019 →

Real Estate

Mortgage Market Reopens to Risky Borrowers

Whenever the lenders get easier, and especially when they start loaning on vacant land, you know we’re in “bubble time.”

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The risky mortgage is making a comeback.

More than a decade after home loans triggered the worst financial crisis in a generation, the strict lending requirements put in place during its aftermath are starting to erode. Home buyers with low credit scores or high debt levels as well as those lacking traditional employment are finding it easier to get credit.

The loans have been rebranded. Largely gone are the monikers subprime and Alt-A, a type of mortgage that earned the nickname “liar loan” because so many borrowers faked their income and assets. Now they are called non-qualified, or non-QM, because they don’t comply with postcrisis standards set by the Consumer Financial Protection Bureau for preventing borrowers from getting loans they can’t afford.

Borrowers took out $45 billion of these unconventional loans in 2018, the most in a decade, and origination is on track to rise again in 2019, according to Inside Mortgage Finance, an industry research group. Such mortgages aren’t guaranteed by government agencies and typically charge higher interest rates than conventional loans.

Source: Mortgage Market Reopens to Risky Borrowers | realtor.com®

Real Estate

Be Safe with DIY Home Security Systems and Sensors

Good article on the many security systems today that can be customized for every security need.

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With today’s wireless connections, homeowners can build their own network of cameras, sensors, and interconnected hubs without being tied to a single vendor or ongoing contracts.

Owners can even monitor the home themselves or set up a month-to-month contract with a monitoring company. Today’s systems give your clients peace of mind. They’re even great for vacation properties and rentals.

“DIY systems give customers the flexibility to build the system they want and the freedom to include the devices and sensors that fit their specific needs. This is important because no two households are the same,” says Chris Carney, CEO of Abode.

SimpliSafe, for example, was one of the first self-install home security companies that came on the market 10 years ago. Now, new technology is helping the market grow and making advancements in the products available, according to SimpliSafe CEO Chad Laurans. “With our app, for example, you can stream video from your doorbell or cameras on your phone, or you can see alerts and let people in and out of your house,” he says.

These affordable DIY security solutions also provide real estate professionals and home sellers a competitive edge when listing a home for sale. “This can increase the marketability of the home and potentially increase the value of the listing,” says Carney. “An agent can easily deploy a whole-environment solution built around an Abode system including a smart lock, thermostat, and connected lights, all for under $1,000 and all easily controlled by one app.”

A system can also be given as closing gift to protect the new home and “help establish the real estate agent as someone that buyer will call on again or recommend to a friend,” he adds.

Via Realtor.com

Real Estate

Mortgage Rates Near Record Lows

The 30-year fixed-rate mortgage continued to hover near historical lows this week, lowering borrowing costs for home buyers and refinancing homeowners.

Freddie Mac reported that the 30-year fixed-rate mortgage averaged 3.60% this week, unchanged from last week’s average. “The sound and fury of the financial markets continue to warn of an impending recession; however, the silver lining is mortgage demand reached a three-year high this week,” says Sam Khater, Freddie Mac’s chief economist.

“The decline in mortgage rates over the last month is causing a spike in refinancing activity—as homeowners currently have $2 trillion in conventional mortgage loans that are in the money—which will help support consumer balance sheets and increase household cash flow. On top of that, purchase demand is up 7% from a year ago.”

Source: Mortgage Rates Hover Near Record Lows | Realtor Magazine

Arizona, Real Estate

Home Prices Gain in Second Quarter

We have a great need for housing in Mohave County. Prices have risen to “bubblicious” levels once again. Most who grew up here can no longer afford to own a home. No relief yet…

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Home prices in the second quarter continued to rise in the majority of housing markets across the country.

Ninety-one percent of 178 metros tracked saw home price gains in the second quarter, according to the latest report from the National Association of REALTORS®, released Wednesday.

5 Priciest Markets in Q2

San Jose-Sunnyvale-Santa Clara, Calif., metro area: $1,330,000 (median existing single-family price) San Francisco-Oakland-Hayward, Calif.: $1,050,000 Anaheim-Santa Ana-Irvine, Calif.: $835,000 Urban Honolulu, Hawaii: $785,500 San Diego-Carlsbad, Calif.: $655,000.

5 Lowest Cost Markets in Q2

The five least expensive metro areas in housing in the second quarter were: Decatur, Ill.: $97,500 Youngstown-Warren-Boardman, Ohio: $107,400 Cumberland, Md.: $117,800 Binghamton, N.Y.: $119,300 Elmira, N.Y.: $119,400.

The national median existing single-family home price was $279,600 in the second quarter, up 4.3% from a year ago.

Ninety-three of the 178 metros tracked saw price growth of 5% or more. Ten metro areas posted double-digit increases, mostly in more modestly priced markets like Boise City-Nampa, Idaho; Abilene, Texas; Columbia, Mo.; Burlington-South Burlington, Vt.; and Atlantic City-Hammonton, N.J.

Tight inventory conditions, particularly at lower price points, are prompting home prices to accelerate in several markets, notes Lawrence Yun, NAR’s chief economist.

Source: NAR: Home Prices Post More Gains in Second Quarter | Realtor Magazine

Land, Real Estate

Would you pay top dollar for your own property?

Great article about the importance of viewing your home or other property through the eyes of your buyers. It’s so easy to ignore the little cosmetic things that over time we take for granted.

It’s also very important to use lighting to your advantage, and neutral colors often influence buying decisions in residential sales. Clean, neat, and smelling good are vital to sales.

With vacant land, there are many factors that go into pricing, but any property that at least has a small driveway leading to a parking/camping area already has a leg up on the competition, and it can be accomplished with just a few hundred dollars.

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Most sellers realize they are expected to do a few things to “spruce up” their home before they sell.

Do you understand exactly what you need to do and why? This information is vital to understand to positively position your house to sell.

This is just one part of the larger “total home transition”, but a critical part that will directly affect the list price, DOM (days on market) and ultimate sales price of your house.

The biggest mistake sellers make is not looking at their house through the eyes of the BUYER and not making the necessary visual and cosmetic updates in order to meet BUYER expectations.

Ask yourself, would you pay top dollar for your own house? If not, you need to understand why not and what to do about it.

We strongly encourage sellers to do a thorough (buyer-based) interior and exterior assessment of the house and property, in order to determine what “negative” issues need to be addressed to entice todays buyers.

Be objective and non-emotional when you do the assessment to create a task list and remain in control of the process. Gather the estimates to make a decision on which items will create the most positive impression and ensure the highest ROI (rate of return) on your investment.

Don’t get overwhelmed or be discouraged, it’s just a list. You have control of what you will ultimately decide what you will do and what you are willing to spend to do it. Understanding the financial impact of the decisions you will make is part of the process.

Source: Would You Pay Top Dollar for Your Own House? – Realty Times