Tag Archives: Real Estate

Arizona, Real Estate

Some Heading to Arizona, What States People Are Leaving

Living on a fixed income, retirees are looking for ways to make their budgets stretch—and New Jersey’s high home prices and property taxes don’t make it an attractive place to stay.

The Garden State’s median home list price of $389,050 in November was about 21% more than the national list price of $309,000. It’s also a lot more than Arizona’s median price of $350,050 and Florida’s median price of $335,050.

But the high cost of living isn’t dissuading millennials from moving in. The state offers plenty of high-paying jobs, as well as many towns within commuting distance to New York City that are attractive to those just starting out and establishing their careers. There were still more folks aged 34 and under moving into New Jersey than out of the state, according to United.

Top states folks are fleeing

  1. New Jersey

2. Illinois

3. New York

4. Connecticut

5. Kansas

6. Ohio

7. California

8. Michigan

9. North Dakota

10. Iowa

Source: The State That Americans Are Fleeing—and Where They’re Winding Up | realtor.com®

The article says that Arizona is the #3 destination overall. Anecdotally, many Californians are buying residential in Mohave County. According to the Title Company, the vast majority are from California.

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

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

August Real Estate Update

It’s the dog days of August, we can see the two dogs in the morning skies, that is Canis Major & Canus Minor. Canis Major has the brightest star visible from earth, Sirius.

This month we would normally be shuffling papers, and trying to get chores done before the heat gets too oppressive, like say by 8:00 am. Surprisingly, this year the calls and emails have continued through the summer, which has been mercifully nicer temperature wise too. We’ll see if sales follow; one can always hope. We have had a noticeably better year  overall with a good positive trend that we’ve needed here.

The monsoon rains are very late this year. We had rain for about a minute one night last week, but that’s been about it. The humidity is higher now though. We had been 6-10% humidity most of June and early July, but now it’s more typically 25-35%. This weekend will see temperatures a high as 111 degrees in Yucca. We’ll be a precious few degrees cooler where we are, but it’s hot!

I believe that Yucca is the last great bargain in the West. We’re relatively close to smaller, but centrally located small cities, and those (Kingman, Lake Havasu City, and Bullhead City) are becoming pricier as we see an influx of new residents. While it’s 2-2 1/2 hours to Las Vegas, that leaves many possibilities for visits from family and friends. California is just 20 miles from Santa Fe Ranch Rd., and one can be at the beaches in a little over 5 hours (avoid rush hour!)

The opportunity today I believe is in trying to extend infrastructure (as in grid power,) or by finding good property and adding septic, well and even a home.

There is a need, but many don’t have the wherewithal or physical capability to take on a home building project. To me it’s a young man’s dream, but the builders do work very hard, and are often subject to the whims of the market as we’ve seen over the years.

Considerable electric and phone infrastructure already exists around Yucca, and one can easily envision more development. Sun City, Yucca? Don’t laugh. We have water, power, rail, interstate, and thousands of acres of inexpensive (relatively) land.

Meanwhile, as we’re more than 20 miles out, I don’t think we’ll have a Circle K at the corner any time soon.

 

Arizona, Real Estate

Short Term Vacation Rentals Divide Sedona Residents

Julieanna Bottorff has lived in her quiet Sedona neighborhood for 20 years. A deer path that runs behind her house and across the street was regularly trafficked by wildlife.

Then a developer moved in across the street and ripped up the path, she says. The developer plans to build as many as five 6,000-square-foot homes to be used as short-term rentals, neighbors say.

The once quiet street is now punctuated with the steady noise of construction. The move comes as residents of the tourist hotspot grapple with the consequences of a two-year-old state law that restricts how cities and towns can regulate short-term home rentals advertised on websites such as Airbnb or VRBO.

On Wednesday, more than 150 people attended a city meeting. The Sedona residents grilled state Rep. Bob Thorpe, R-Flagstaff, about how the state plans to address the law’s consequences.

Among them: investors moving into neighborhoods to buy up multiple homes, vacation renters driving up housing costs and the changing neighborhood dynamics.

Several homeowners supported the recent law that allowed vacation rentals to flourish in Arizona. They spoke about how the short-term rentals made it possible for them to pay their mortgages.

Source: ‘They killed our city’: Locals feel helpless as vacation rentals overrun Sedona, Arizona

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We have had an Airbnb, and have also used them. The problem is in the popular areas many can become just modern day flophouses.

Personally, I feel that the property owners’ rights to full use and enjoyment should never be infringed, but rather any control of property use is best left to the individual, or past that,  a small carefully supervised HOA or better yet neighborhood council.

Once we get to the municipal level, the rules get more ridiculous, and the monies wasted in trying to enforce the new laws just end up creating more bureaucracy (which taxpayers have to fund, defeating the whole exercise.) Continue reading Short Term Vacation Rentals Divide Sedona Residents →