REAL ESTATE
GILBERT SUN NEWS | MARCH 21, 2021
re1
Winds of change gently blow in housing market BY MINDY JONES NEVAREZ GSN Guest Writer
A
s an Arizona native, I don’t know when Spring officially starts but I do know that I had to manually change the clock on my Alexa, so we must be getting close. Day light savings time has always eluded me but figuring out what time it is now in other places has always been the signal for good weather, baseball and more outdoor events here than anyone could possibly schedule. COVID obviously has left its impact on
Melanie Nemetz
all of these things except the weather – and it has been a big player in the real estate market, something else that typically ramps up this time of year. We’re also marking the one year anniversary of the Feds committing to buying up mortgage-backed securities, starting the buying frenzy as average interest rates dropped into the low and mid 2s (I’m not quoting rates here, just to be clear). We would ultimately see some fluctuation but for the most part, we stayed in the 2s until this month – when we popped up over the 3s again. The intention, of course, was to ensure that nothing derails our housing market, which has otherwise been doing well – thanks in part to builders under-building
Beautiful 5 bedroom, 3 bath home in Coronado Ranch. Sale Pending! $460,000
See Page 7
for the last 10 years and population growing. Put simply, we don’t have enough houses for the people who want to buy them. But even as we celebrate the anniversary of the best interest rates in history and the greatest jump in appreciation we’ve ever recorded (north of 20 percent in just 12 months), we’re also experiencing a much different market than we were just six months ago. Last summer, as we started to see interest rates hold steady and resale options
decline in availability, we shuffled all of our ready buyers to new construction. Many of them are actually moving into their houses over the next couple of months – with a ton of equity and gratitude that they masked up and gloved up to look at model homes. Back then, you could still walk into a builder, hand them a check and pick your house. Today you’ll likely be added to a list, given the option of offering highest
see MINDY page RE5
SPO OTLIGHT home
Amy Jones Group
Welcome to the highly sought after community of Power Ranch! See Page 4 Listed for $460,000!
Our extensive, high quality marketing of your home combined with our thorough preparation of listing the home for sale, will help your home sell faster and for more money. Here is a sample of the marketing for our listings: ◆ Home Staging Report by Interior Designer & Stager ◆ Professional video of home ◆ Professional photos of home ◆ Twilight photos ◆ Community photos ◆ Aerial drone video/photos ◆ 3D Interactive floor plan - Matterport www.fosteringre.com Each office is independently owned and operated ◆ Open house first weekend on the market
480.221.3034
re2
REAL ESTATE
GILBERT SUN NEWS | MARCH 21, 2021
In the buy-rent debate, Phoenix in middle GSN NEWS STAFF
T
o rent or to buy? That is the question these days in the Valley. And the official website for the nation’s largest Realtors group last week said that Phoenix straddles both sides of the question. “Since the coronavirus pandemic took the shine off expensive (and cramped!) urban living, rents have tanked in some of the nation’s top cities,” Realtor.com reported. “But when it comes to whether it makes more financial sense to buy a home or rent one, it turns out that, in many cases, buying is still your best bet.” In more than 15 of the 50 largest metros, buying a home was as or more affordable than renting in January 2021, according to Realtor.com. That was up from 13 markets before the pandemic. And, on top of that, there are several “borderline” cities where the monthly cost of buying a home is within 5 percent of the cost of the local median rent.
And that’s where Phoenix sits in the report. Of nine metro areas, Phoenix’s $455,000 cost of buying a home – including price and related costs – was ahead of Atlanta, Orlando, Washington, D.C., and Birmingham, Alabama, in affordability, but behind Buffalo, Memphis, Las Vegas and Milwaukee. “Even with the historic growth in home prices over the past year, the monthly cost of buying a home in many cities across the United States hasn’t changed – mostly because of incredibly low interest rates that dropped to 2.88 percent in January,” the report noted. But the Cromford Report, the leading tracker of Valley housing prices and trends, doesn’t see a debate between renting and owning – although it foresees a new trend in the future. “For anybody who thinks homes are getting too expensive to buy, I would ask - what are the alternatives?” it said earlier this month.
“Rents in Greater Phoenix have risen from an average of $1.01 per sq. ft. per month to $1.22 per sq. ft. per month over the last year. That is a 21 percent rise - the highest we have ever recorded. The third option of being homeless is not very attractive. So I think we are going to see a large increase in the number of people taking the fourth option sharing with friends or relatives,” it continued, adding: “This seems to be the only practical solution to keep the cost of shelter down. This will build up latent demand for the longer term, as many of these people will have ambitions to create their own independent household when they can afford to. “For those who are drawing parallels with 2005, I would point out that rents FELL 6 percent between March 2004 and March 2005. This is because there were huge quantities of vacant homes that had been bought by speculators with nobody available to live in them.
@AmyJonesGroup Each office is independently owned and operated
In those days, the pace of home building had exceeded the rate of population increase – the opposite of the situation today.” The economics team at Realtor.com looked at the 50 largest metros, ranked by the number of households, to put together the report. It compared the monthly cost of buying a home with a 30-year fixed-rate mortgage at each city’s median listing price, including taxes and insurance, against the monthly rent for two- to four-bedroom apartments and houses in the area. Then the team ranked those numbers to see how they stacked up to local incomes. Metro areas typically include a city and smaller nearby municipalities. Cities in the Midwest and South tend to offer cheaper homes and a lower cost of living than coastal California and other big tech hubs like Austin, Texas, and Se-
...a Tradition of Trust
see RENT page RE3
REAL ESTATE
GILBERT SUN NEWS | MARCH 21, 2021
RENT from page re2
attle. That’s because land is often cheaper and more abundant, construction is less expensive, zoning regulations are often fewer, plus some cities just don’t have as much demand for housing. “Some of these, they’re Rust Belt markets. Each one of these markets has a net population loss, so that, of course, is going to create an abundance of supply and lower demand than a place that has a net population gain,” said James Wise, host of HoltonWiseTV. And yet overall, the number of places where it makes more sense to rent is higher. Looking at the 50 largest metros, the monthly cost to purchase a median home in January 2021 was $1,988, compared with the median monthly rent of $1,727. But notoriously expensive California and other West Coast metros lead the list of the highest-priced cities where, financially, it makes more sense to rent because the monthly cost of a mortgage far exceeds the median rent. These places also tend to have incomparable natural beauty and outdoor access and are
popular vacation destinations. Two had median list prices over $1 million. These more expensive markets tend to have a higher share of well-paying (often tech) jobs occupied by a high concentration of young professionals who have plenty of cash to spend. “Wherever there are high-paying jobs and employers supporting them, you’re beginning to see higher-end rental complexes that can start at $3,500,” said Ramesh Rao, an agent based in Silicon Valley. “When these people start looking at buying a median price home, their total cost toward any kind of roof over their head goes up two times.” But for many of these folks, Rao says, it just feels better to pay $3,500 toward equity than give it to someone else. Throw in the tax savings and potential appreciation, that’s what keeps people buying these pricey places despite the monthly math. So where are the best places to buy a home, or to rent one? The top 10 metros to buy a home were Cleveland, at $198,000; Chica-
go, $338,000; Pittsburgh, Pennsylvania, $245,000; Riverside, California; $485,000; Miami, $400,000; New Orleans, $320,000; Baltimore, $325,000; Tampa, $302,000; Hartford, Connecticut, $303,000; and Detroit, $265,000. Renting is the better option in San Jose, California, $1.2 million; Austin, $460,000; Sacramento, California, $599,000; Seattle, $665,000; San Francisco, $990,000; Los Angeles, $1.2 million; San Diego, $850,000; Portland, $525,000; Oklahoma City, $278,000; and Richmond, Virginia, $388,000.
GOT NEWS? Contact Paul Maryniak at 480-898-5647 or pmaryniak@ timespublications.com
Check us out and like the Gilbert Sun News on Facebook and follow @gilbertsunnews on Twitter.
Gilbert Real Estate Snapshot Provided by the Amy Jones Group Your Local Real Estate Team
(480) 250-3857 | www.amyjonesgroup.com
7 YEARS BEST OF OUR VALLEY
re3
$700M+ SOLD REAL ESTATE
2,300+ SOLD HOMES
• Average Days on Market: 28 days Down from 29 Days Last Month
• Active Listings: 78 Down from 108 Listings Last Month
• Monthly Sales: 303 Down from 414 Sales Last Month
• Listings Under Contract: 392 Up from 367 Listings Under Contract Last Month
• Average Sales Price: $474,177 Down from $488,971 Last Month
• Monthly Supply of Inventory: 0.3 Same as 0.3 Monthly Supply Last Month
re4
S
REAL ESTATE
P ALE
EN
G DIN
GILBERT SUN NEWS | MARCH 21, 2021
!
$460,000
There were more buyers than we could accommodate, so if you are thinking of selling, we can help you with that.
SOLD
3353 E. Baranca Court, Gilbert
Welcome to this beautiful home in Coronado Ranch, Gilbert AZ with a North/South orientation situated next to an open space. Offering 5 bedrooms + playroom/loft/office (with doors), plus 3 baths - this home will check all of your boxes. Grand staircase makes a statement at the entry. The kitchen offers lots of cabinet and counter space and a walk in pantry that is amazing! The downstairs offers one bedroom + bath with shower. Upstairs offers 3 secondary bedrooms - one with a walk in closet. You will love the spacious bonus/playroom/loft/office room. The master bedroom includes a sitting room, access to the balcony and an ensuite with dual sinks, separate tub and shower, and walk in closet. Enjoy Arizona outdoor living with the paver patio and pond. You will want to see this home!
Melanie Nemetz
480.221.3034 • www.fosteringre.com Each office is independently owned and operated
SEL
Sold above asking price, multiple offers, sold above appraisal and the seller saved over $18,000. Call me TODAY and let me show you how I save you THOUSANDS, and sell your home fast. You won’t be disappointed! Need to lease back? No problem. Sell on your terms!
Janet Rogers
602-565-0192
SPO OTLIGHT home
UNDER CONTRACT FIRST WEEKEND ON THE MARKET!
Nestled in the highly sought after community of Power Ranch, this two story, 4 bedroom with a den, 2 bath home offers a great room floor plan with 2,360 sf of living space. Located right across the street from a park and playground, this home is a dream! The beautiful kitchen features an island with granite countertops, a tile backsplash and a large pantry. Showing fun upgrades including surround sound in the great room and dimmer & sensor lighting throughout. Upstairs, a loft with desk space and window seat overlook the nearby park. The spacious master bedroom highlights a sitting area and the master bathroom is complete with dual sinks, shower, soaker tube & roomy walk-in closet. The large 2 car garage features a handy Tesla charger, work space and overhead storage racks for extra storage. The designed low maintenance backyard features a covered patio, artificial turf and mature shade trees for shade and privacy. The community amenities boast heated pool, playgrounds and parks, ponds, walking paths, outdoor volleyball, tennis and basketball courts & a clubhouse. Listed for $460,000 4491 E Melrose St, Gilbert, AZ 85297
(480) 250-3857 www.AmyJonesGroup.com
LE
E AV S R
! 000 , 8 1 D$
REAL ESTATE
GILBERT SUN NEWS | MARCH 21, 2021
and best, or be entered into a raffle. You won’t be just handing a check and picking out your house. With the loss of options in new construction, everyone turned their heads back to the resale market and the buyers just started stacking up – literally, 10 for every house. A year ago, being prequalified for a mortgage was important; the market was moving fast and you had to be ready. Today being prequalified is just part of the winning strategy. You also need to understand escalation clauses, appraisal waivers and have cash – or strategies to leverage cash – to pay over-appraised value, provide lease backs to the sellers and really get creative with how you are going to stand out from the 10 other offers they’ve received. But why try so hard? Because with demand so high and inventory so low, YOU will get much of the same windfall of appreciation that they got once you move in. So, how long can this go on? How long can every sale in a neighborhood be $40K more than the last? How long can a list price be used only as a marketing tool and not an indication of how much a house will sell for or how much the seller even expects to get? How long can everyone exhaust every option they have for every dollar they have just to get into the house? Probably not much longer. It’s too hard to say exactly when things will change but we are starting to feel the early breeze and it’s enough to grab a sweater. We’re seeing some slight downward movement in demand – so slight that your neighbors won’t believe it but it’s happening.
We are making our way through the people with the $50,000 in their pocket to pay over-appraised value, we have some buyer fatigue and we’ve got some very well qualified people who can’t compete. At the same time, we are finally starting to see an uptick in the number of listings. We’re years out from having enough for the people who live or want to live here. But with more listings comes more competition for sellers, with less buyers comes less competition for buyers. And so we start the long road to some semblance
of balance. We’re watching our town’s numbers like a hawk. But as one of the hottest seller’s markets in the Valley with just two weeks of available supply and homes selling on average at least 2 percent over asking with many pushing 8-10 percent over asking, Gilbert will be one of the last to FEEL these tides changing. But they are a changing. While the numbers have only slightly shifted, we’re seeing more active listings
re5
than we saw a month ago, fewer pending listings than we saw a month ago, fewer sales per year than we saw in the previous 12 months from a month ago. This is putting supply up in Gilbert and demand down. Our overall gauge of the market is only 6x stronger than your average market. See why numbers are relative? The key takeaway is that as you start to see early indications of change, it’s often
see MINDY page re6
MAKE THE MOST OF HOME ©2021 Ferguson Enterprises LLC 0221 2367404
MINDY from page re1
48" Dual Fuel Range
YOUR LOCAL SHOWROOMS: MESA | SCOTTSDALE Shop online or schedule a personalized appointment from the comfort of your home today at fergusonshowrooms.com.
ARE YOU LOOKING TO SELL YOUR HOME? And Keep Money In Your Pocket? Our Listing Fee Can Help You Do That!
JANET ROGERS
1355 S. Higley Rd., Suite 111, Gilbert, 85295
602-565-0192
Fax: 888-892-6490
janetrogersgroup.com janet@janetrogersgroup.com
SE
R LLE
SAV
E
! 000 18, $ D
Make The Call and We Will Get You Moving!
• • • • • • • • • • • •
Flat fee listing and You decide buyer compensation 100% representation - not limited service Professional Photos Secure lockbox (no contractor box) Open house kick off Scheduled showing times blocks Sell with certainty Sell with no repairs Sell on YOUR terms Most homes sell higher than asking First peek program for your home Limited showing hours
3,995
$
Call Today For More Details
re6
REAL ESTATE
GILBERT SUN NEWS | MARCH 21, 2021
MINDY from page re5
Top seller
This 3,500-square-foot home on S. Ranchos Legante Drive in Gilbert was one of the town’s top sellers in recent weeks at $1.3 million. Built in 2000, the five-bedroom house sits on a 1.1-acre lot and has an 11-car garage , five fire pits, 2,000 square feet of covered patio, heated diving pool and other amenities. (Special to GSN)
the best time to act in real estate. Sellers looking to push their price point should get in on the action while there are less of you to choose from. Buyers looking to maximize their firstyear equity in their home should get in on the action before interest rates go any higher and before appreciation slows to 10 percent a year (gasp!) instead of 20 percent a year. And investors should just keep on course - buying properties to rent out as rents are on the incline will continue to be a way to have someone else pay your own mortgage. Which brings me to my last point, if you are paying someone else’s mortgage, let’s find out how not to leave you behind with the rest of the 2020 remnants we are still trying to shake off. Mindy Jones Nevarez, a Gilbert Realtor and owner of the Amy Jones Group at Keller Williams Integrity First, can be reached at 480-250-3857, Mindy@AmyJonesGroup. com or AmyJonesGroup.com
Google’s #1 rated window & door company in Phoenix!
Offers Expire Mar. 31, 2021
Buy 1 Window or Door, Get the 2nd
50
% OFF
PLUS
YES** 0 INTEREST FOR 12 MONTHS
YES** 0 PAYMENTS FOR 12 MONTHS
3837 E. Wier Ave., Suite 4 Phoenix, AZ 85040 ROC#323748
Installation Required ** OAC minimum purchase required
CALL TODAY AND SAVE 480.382.2025 OR www.SIPHOENIX.com