REAL ESTATE
GILBERT SUN NEWS | MARCH 15, 2020
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Coronavirus may affect luxury home sales GSN NEWS STAFF
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he negative economic reaction created by the COVID-19 epidemic is having some effect on the Valley’s housing market – but not all that much. But buyers who have been frustrated by the continuing plummet in inventory likely won’t find much comfort in that development because it is apparently affecting only high-end housing. The Cromford Report, which closely monitors trends in the Phoenix Metro housing market, said that while home transactions for more than $1 million increased last month by 56 percent over February 2018, the trend is likely to hit the same wall the economy seems to
Melanie Nemetz Each office is independently owned and operated
have hit. “With the recent negative developments in the markets for stocks and commodities we would anticipate the demand for homes over $1,000,000 to be less impressive when we look at numbers for the next few months,” it said. But buyers of more modest means are still likely to be frustrated, with February closings involving homes up to $250,000 down almost 19 percent from a year ago. Sales of homes between $250,000 and $500,000 increased last month by 26.5 percent over February 2019 while closings on homes between $500,000 and $1 million were up 26.5 percent, Cromford said. The bottom line, it added: “The supply
Welcome to this beautiful, move in ready home with a pool. Listed for $385,000
situation is even more extreme than last month. Rapidly rising prices have done little to dampen demand.” Conversely, it added, “sellers are still gaining negotiation power in 14 out of 17” communities – including Gilbert. “Although there a few exceptions, the collapse in available supply in most ZIP codes is nothing short of remarkable,” it noted, although Gilbert is not among the 25 ZIP codes in the region where Cromford found the steepest inventory declines. Overall, it added, “the supply of active
listings without a contract is down 42 – making life extremely difficult for buyers. “New listings are still arriving more slowly than normal and year-to-date we have experienced a shortfall of 10 percent compared to 2019. Supply continues to fall quickly across most of the market with only the 55+ areas and the very high end maintaining a steady supply of active listings, albeit below normal,” it said. The report also noted that despite rising prices, “they have not risen nearly
see MARKET page RE7
SPOTLIGHT home
Welcome Home to the desirable community of Marbella Vineyards!
See Page 6
Amy Jones Group
Listed for $425,000!
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
See Page 6
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REAL ESTATE
GILBERT SUN NEWS | MARCH 15, 2020
Don’t lose sight of opportunity in this market
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inding the appropriate synonym for “not enough houses” has become my linguistic chal-
lenge of late. How many different ways can I say that there are simply not enough homes for people to buy or rent in the Southeast Valley before the opportunity to snag a precious piece of Gilbert real estate sounds like a once-in-a-lifetime opportunity? I’ve been focusing on what we don’t have and in light of some of the more recent global news headlines, it’s time we focus on what we do have. The issue is not the lack of housing but rather the incredible growth of infrastructure, jobs and entertainment that have created long term, continued interest and appreciation in what Gilbert has to offer and the under-building to support this growth. The demographic changes, seasonality
and even which generations are responsible for grid locking the inventory have all played a role in how we got here. This is not a short-term opportunity with short-term solutions; this is a longterm opportunity where home owners and prospective home owners have a unique chance to take part in one of the strongest real estate markets in the country. The timing of any current challenges to our market is optimal as we head into historically the strongest buying season of the year and the strongest seller’s season in over a decade. With more than $170 million in residential real estate exchanged in the last month in Gilbert – and over $2 billion in the last year – there are no indications that the Gilbert market is slowing down. It is not the right time for everyone to make a move – but it is absolutely the right time for everyone to understand what options they have because they may never have more than they have today. Despite fewer houses, we have more op-
tions for accessing equity, more options for greater purchasing power due to low interest rates and an incredibly volatile stock market and more options for creating wealth through an investment or rental portfolio where rental prices continue to soar, vacancy rates are nearly nonexistent, and appreciation continues to offset monthly HOA fees or maintenance accounts. How do cancelled events, limited travel and school closures impact the real estate market? Historically they don’t and given our unprecedented low inventory and above average demand, any softening in the market would provide a little more wiggle room for buyers but not enough to plunge us into a balanced market. When the missing piece is inventory, even telling all of your neighbors to put their house on the market won’t do the trick. It’s going to take the building, occupying and selling of some of that new construction you see on every corner to add
new inventory into the market and loosen things up a bit. What we’re challenged with in the market now is uncertainty – about how long low interest rates will last, how prices will change if mandatory closures continue and how the balance between supply and demand will be impacted by these changes. The truth is, this is always the uncertain piece of our market – how long will it stay this good? What we are certain about is that homes are more affordable today than they were in 2006 due to lower interest rates, active listings continue to plummet while under contract listings continue to soar, showing that seasonality is alive and well in our market, the median home price continues to rise and everyone still needs a home. Especially here in Gilbert. - Mindy Jones Nevarez, a Gilbert Realtor and owner of the Amy Jones Group at Keller Williams Integrity First, can be reached at 480-2503857, Mindy@AmyJonesGroup.com or AmyJonesGroup.com
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Expect someone who will put you and your concerns first. Never an obligation. Experience a “Platinum Level” of service, providing you with expert guidance. Professionalism backed by years of experience as brokers, managing brokers and real estate educators.
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Questions about REAL ESTATE?
Az
BY MINDY JONES NEVAREZ GSN Guest Writer
Margaret Daly Licensed Sales Associate in Arizona, Licensed Broker in Washington State, Certified Instructor
360-718-1680 ASL Services Realty Executives Ocotillo 2551 W. Queen Creek Rd. Suite 3 Chandler , AZ 85248 Office Phone: 480-963-6000
Louise Strother Licensed Broker in Arizona, Licensed Managing Broker in Washington State, Licensed Broker in Oregon, Certified Instructor, Previous real estate school owner
360-901-6085
Want to Buy but Don’t Qualify? Let us help you with a Lease Purchase Option With Home Partners of America. Margaret Daly - 360.718.1680 Certified agent with Home Partners of America
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GILBERT SUN NEWS | MARCH 15, 2020
The following sales associates of the Russ Lyon Sotheby’s International Realty Southeast Valley office are being recognized as a top producer for their contribution to a successful 2019.
David Arustamian Lyon’s Elite
Cindi DeWine Lyon’s Elite
Stacie Neumann Lyon’s Elite
Jennifer Schumacher Lyon’s Elite
Christopher Tiller Lyon’s Elite
Mary Wolf Lyon’s Elite
Christine Anthony Chairman’s Board
Randy Berg Chairman’s Board
Jean Grimes Chairman’s Board
Anthony Guerriero Chairman’s Board
Roger Johnson Chairman’s Board
Laurie Moore Chairman’s Board
Sharon Steele Chairman’s Board
Sherri Stella Chairman’s Board
Nicole Walker Chairman’s Board
Jeremy Wilson Chairman’s Board
Danny Baker President’s Club
Genette Edwards President’s Club
Christine Fox President’s Club
Brad Freeborn President’s Club
Josh Gonzales President’s Club
Shelia Long President’s Club
Stephanie Petka President’s Club
Jeff Shier President’s Club
russlyon.com // 480.750.7424 275 E Rivulon Boulevard, Suite 409, Gilbert, AZ 85297
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REAL ESTATE
GILBERT SUN NEWS | MARCH 15, 2020
Real estate investing in metro Phoenix is hot BY TONY JULIANELLE GSN Guest Writer
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he Fed intends to keep interest rates stable for the foreseeable future, though the possibility of modest rate cuts in 2020 is not out of the question. This interest rate environment presents a particularly viable opportunity for those looking to invest in real estate. Lower rates mean reduced interest payments, meaning potential buyers can afford more. However, to have long-term success in real estate investment, potential investors must select a location very carefully. The Phoenix real estate market offers affordable and achievable investment opportunities. A strong job market keeps rental demand high so landlords can generate regular cash flow. Arizona also offers low property taxes and landlord-friendly regulations, making Phoenix a market every potential in-
vestor should strongly consider. In real estate, it’s more important to be patient. Rental properties are less liquid than stocks, it takes time to improve properties and rental units located in the right markets provide cash flow worthy of a long-term hold strategy. As with stock market investors, real estate investors know it is likely property values will be higher in 20 years, despite short-term ups and downs. The difference between Phoenix and an oversold market like Southern California is in 20 years, Phoenix has enormous room to appreciate.
In a market like Phoenix, 20 years of cash flow can be followed by a highly profitable sale. PwC ranks Phoenix as one of the top real estate markets in the United States. The Phoenix market provides ample opportunities for homeowners and top-level investment properties for landlords. Phoenix’s rental market ranks number one in the country, which factors in a region’s economy and rental affordability. Because Arizona boasts a 4.2 percent economic growth rate, plenty of newcomers flock to its biggest metro area to find work. When they arrive, they find affordable rental units located in the downtown metro area and across the larger valley. From the landlord’s perspective, this means profitability. The cost of rental properties is lower and units are filled faster; hence, there is a greater assurance of positive cash flow. Arizona offers a landlord-friendly environment. The state puts fewer onerous
@AmyJonesGroup Each office is independently owned and operated
restrictions on landlords making compliance less expensive and time-consuming. For example, San Francisco hurts landlords with highly restrictive zoning regulations, making it impossible to develop new and affordable rental units in certain areas. As part of its landlord-friendly philosophy, Arizona passed a January 2017 law prohibiting any city or town from restricting short-term rental services such as Airbnb, allowing Arizona landlords to benefit from the short-term housing boom. As a prime winter vacation spot, Phoenix has a regular influx of snowbirds, many of whom need rentals ranging from weeks to six months, a boon for landlords. In contrast to short-term rentals, clients tend to purchase their future snowbird homes now, but typically as an in-
...a Tradition of Trust
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REAL ESTATE
GILBERT SUN NEWS | MARCH 15, 2020
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How to preserve your home for later life BY BARBARA MASON GSN Guest Writer
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e want our home to be a cozy and comforting place but things such as clutter, renovations and safety hazards can make it difficult to relax. As we get older, there are certain things we should be aware of and maintain to ensure we can spend more healthy and happy years in one’s home. It is a good idea to conduct a yearly inspection of your home and property and plan ahead for maintenance and repairs. Here are a few areas to examine: • Conduct a yearly walk of your property and home exterior and check the following: • Siding or exterior paint – check for splits, cracks or gaps. • Retaining walls, cinderblock fencing or chain link fencing – check for holes,
loose parts or torn links. • Chimney, gutters and downspouts check for debris, animals and any general dilapidation that will need repairs as these structures age. • Foundation - check for cracks and bulges and look at any exterior wood for signs of termite damage or rot. • Roof – check for missing tiles, cracks or crumbling pieces. • Sidewalks and driveways – look for overgrown tree roots interrupting the concrete and any additional cracks or fissures that could be a tripping hazard. • Outdoor landscaping – check for tree branches and roots that can damage your roof and housing foundation. This also includes yearly palm tree maintenance. Doors and windows can be very costly to replace. In a yearly inspection, you should have someone look for: • Loose hinges or doorknobs. • Holes, snags or interruptions in weather stripping and window screens.
• Cracks around windowpanes and in shutters. • Peeling paint or other signs of water damage. It can be a rough wake-up call if you don’t check the following: • Loose bits and popped nails in your flooring. • Stains on the ceiling, which may indicate a leak. • Cracks above doorways, which may be a sign your house’s foundation has shifted. • Scorches or burns in your breaker box, which may mean you have a loose or sparking wire. Maintaining your appliances can be easy to overlook, but you can follow these tips to keep everything in good working order: • Drain your water heater to remove any sediment at the bottom. • Wiggle around the base of your toilet to see if it rocks or sways. This may be a sign that a leak has damaged the sur-
rounding floor tiles. • If you have a septic tank, make sure it is emptied regularly. • Check around radiators for leaks or signs of damage and examine vent covers for missing screws. • Turn on all your stove burners and check for functionality, sparks or flame bursts. • Regularly change your air and water filters. • Check your smoke and CO2 detectors every month. Batteries should be changed annually and detectors replaced if more than 10 years old. If you have a membership with a Life Care at home program such as Sun Health At Home, you have access to a vetted vendor list, which assists in hiring a reputable outside company or handyman to help. Information: SunHealthAtHome.org.
- Barbara Mason is the executive director of Sun Health at Home and has over 20 years in the healthcare industry.
Gilbert Real Estate Snapshot Provided by the Amy Jones Group Your Local Real Estate Team (480) 250-3857 | www.amyjonesgroup.com • Average Days on Market: 47 days Same as 47 Days Last Month
• Active Listings: 466 Down from 469 Listings Last Month
• Monthly Sales: 376 Up from 324 Sales Last Month
• Listings Under Contract: 551 Up from 482 Listings Under Contract Last Month
• Average Sales Price: $427,959 Up from $410,776 Last Month
• Monthly Supply of Inventory: 1.2 Down from 1.5 Monthly Supply Last Month
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REAL ESTATE
GILBERT SUN NEWS | MARCH 15, 2020
Ready for a Better Mortgage Experience? 4555 E OXFORD LANE Welcome to this beautiful, move in ready home with a pool. Located in Gilbert AZ, this two story home offers 3 bedrooms, 2.5 baths and a spacious loft. Stylish kitchen with stainless steel appliances, an island, granite counters and a window above the sink overlooking the pool. Open floor plan ideal for entertaining. Master Bedroom offers all you need with space, beauty, two walk in closets and privacy. Master Bath includes dual sinks, vanity, and a separate tub & shower. Enjoy Arizona outdoor living in this backyard offering multiple patios, fire pit, and a sparkling swimming pool. Come see this beauty today.
Local Expertise and Market Knowledge An In-Person Mortgage Experience Full Explanation of the Mortgage Process& Continued Guidance Help for Those with Past Credit Issues
Let’s Talk! Christine Wenger Sales Manager | nmls. 261653 480-232-4972
christine.wenger@nationslending.com
Listed for $385,000
Melanie Nemetz
480.221.3034 • www.fosteringre.com Each office is independently owned and operated
SPOTLIGHT home SPECTACULAR Welcome Home to the desirable community of Marbella Vineyards! This classic 3122 sf, 4 bedroom, 3 bath, office, loft & 2 car garage home sits on a premium lot with the green belt behind. The formal living space is open & airy with soaring ceilings. The spacious kitchen overlooks the family room with picturesque windows to the lush outdoors perfect for entertaining & enjoying family time. There is a private office and full bedroom & bath located downstairs in this popular floor plan. The upstairs roomy master, with ensuite bath, has a private balcony, walk-in closet, dual sinks, large tiled shower & garden tub with tile accent throughout. 2 additional guest bedrooms, a full guest bath & additional loft space complete the upstairs living. The lush backyard is filled with mature landscape grass, covered patio, fire pit & bench & backs to the greenbelt filled with trees, walking paths & open space. 4 Beds / 3 Baths / 3,122 Square Feet. Listed for $425,000!
3383 E Aris Dr, Gilbert, AZ 85298
(480) 250-3857 www.AmyJonesGroup.com
FHA ■ VA ■ Conventional ■ Jumbo ■ Purchases ■ Refinance
REAL ESTATE
GILBERT SUN NEWS | MARCH 15, 2020
3 things to consider for backyard improvements BY CAROL SAMPSON GSN Guest Writer
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or most Arizonans, this is the favorite time of year when we expand our living space to the outside. In the next four or five months we cherish and take pleasure in our exterior retreats, our covered patios and diverse gardens. Each season a new facet can be added to improve the beauty of our gardens by inserting something unique. There are three possibilities when considering yard improvements. Hardscape choices consist of irrigation systems, waterfalls, retaining walls, raised planters, walkways, benches, a fire place, a koi pond, a ramada or an outdoor covered structure. Outdoor kitchens and extended entertaining areas and can have elaborate
designs involving major investments in time and money. Lighting is considered an important mood creating feature for evening enjoyment. Various lighting designs have gained popularity to enhance garden paths, uplight trees and throw shadows against decorative walls. Plant development is less involved and incorporates the preparation of the soil and planting of trees, foundation shrubs, assorted perennials, annual flowers and sod. This approach can be a faster way to improve the beauty of any garden. Decorative items can be added at any time which include garden art, sculptures, fountains, umbrellas, shade banners and wind chimes. Decorative pottery is a must in every garden to add splashes of colorful flowers interspersed in different locations.
INVEST from page 4
vestment property. By renting it out for years leading up to retirement, they’re able to own a second home in a warm locale largely, if not entirely, paid for by the time they reach retirement age. They benefit from immediate positive cash-flow, pay down debt associated with the property and establish an appreciating asset they can either continue to rent full-time, or use as their own vacation home. Being a landlord has its challenges, so you want to invest in a location where the potential profits are high and the risks are low. Phoenix provides safety because its properties are affordable and its rental market is robust, offering the potential for good cash flow and appreciation. The key is finding properties in desirable locations at the right price, and from Phoenix to Mesa to Peoria, there are plenty in the Valley of the Sun.
- Tony Julianelle is the CEO of Atlas Real Estate. Information: realatlas.com.
HASTINGS FARMS – CREEKSIDE
Queen Creek, AZ | Starting from the $300s
NOW SELLING! Hastings Farms Creekside Series (Parcel-B) is a Master Planned Community located in Queen Creek at the corner of Ellsworth Road and Chandler Heights. Hastings Farms Creekside Series features six distinctive floor plans offering 3 and 4 bedroom layouts with 2 and 3 car garages. These floor plans range from 1,638 square feet to 2,884 square feet. Come visit our new model homes at Hastings Farms; Queen Creek, AZ.
WE BUILD THE PLACES WHERE LIFE’S BEST MOMENTS CAN HAPPEN. Within each Cresleigh neighborhood, you’ll find new homes thoughtfully designed to suit the needs of any generation and any lifestyle, with energy efficiency and reliability at their core. Every Cresleigh team member is passionate about building a new home that you can rely on and a new home that helps you to focus on what truly matters: creating memories with the people you love.
Welcome to the neighborhood. 23440 S 210th Street, Queen Creek, AZ 85142 Phone: (480) 888-1025 www.cresleigh.com
MARKET from page re1
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enough to have any effect so far” on demand. In February, the median sales price of homes in the metro area was $307,000 – up 12.5% from $273,000 a year ago. The new home median price was $362,324, up 6.5 percent while the re-sale median was $294,6000, 13.3 percent higher than last year. In Gilbert, the average price of homes sold by ZIP code in the last 90 days, according to Cromford was: 85233, $364,827; 85234, $402,678; 85295, $385,333; 85296, $391,225; 85297, $440,784; and 85298, $476,600. The personal finance website smartasset.com ranked Gilbert the 10th best community in the nation for home sellers – behind the Valley communities of Glendale (2), Mesa (4) and Phoenix (8). Smartasset said Gilbert ranks the 18th-lowest among 165 communities across the country for homes sold for a loss, at approximately 2.8 percent. It also ranks 35th out of 165 for relatively low closing costs – measured at the county level – at $3,436.
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GILBERT SUN NEWS | MARCH 15, 2020