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Although we started the year off in January with less than stellar sales, Single Family Sales were down 19% from 2012. Even with sales down values rang in from Jan 201-Jan 2014 with 10.1% to 25.8% appreciation which covers sales from new, re-sale, investor flips, short sales, HUD sales, and trustee Sales.   Continuing from January the average price per sqft is $126.12. Which is a 18.8% appreciation from 2013.

 

For more stats on the March 2014 Market update please visit

 

http://cleartitleaz.com/images/PDF/marketupdate032014.pdf

 

 

Chalyce McQueen

CTS Realty

Associate Broker

With 2013 and January wrapped up, the numbers are in. In January 24,185 active listings were on the market, which is up 10% from what CTS Realty experienced in 2013. Median Home prices rang in around $202k which is averaged over the months of Oct-Dec 2013. CTS Realty is thankful to report that foreclosure in Arizona are still down a -43% in December. Although in December home sales rose 13% higher than the previous month of October, sales were still down 16% from the previous year. However thanks to the raising prices between 2012 and 2013, values concluded with a 2% increase.

Below CTS Realty references the shift in supply and demand.

Demand has been a struggle since July 2013. The struggle derives from Investors, and second home Buyers.

2012-2013 Sales

To the surprise of CTS Realty despite the lack of demand for single family homes under $500k the luxury market has made a splash. Luxury homes consumed the market in December with 25% of sales.

Pricing


2014 and CTS Realty started out the year with FHA Loan limited dropping, and supply increasing. Despite the national wide recording off home sales down 5%, Arizona is still seeing prices increase.

Chalyce McQuee
CTS Realty
602-525-5665

Surprisingly enough we have a giant buyer missing from our real estate market. Guess who, Millennials! For those of you who aren’t familiar with the term Millennial. Millennial is a generation also known as generation Y, which consists of a demographic following Generation X’ers. Millennials include birth dates in the early 80’s through the early 2000’s. From the beginning of time, the process of life consists of finishing school, getting married, buying a houses, etc. Well for some reason, these Millennials are redefining the process, one of which consists of buying a house, or shall I say not buying a house. Why is this? The answer is simple; Millennials are taking their time in life, and living at home longer. There is no rush for Millennials to get married and buy property. The questions is why, why has the process of adulthood changed? I posted a question on Trilogy Realty’s Facebook page asking, “Why are Millennials not buying real estate”? I received quite the response. Turns out the general consensus is,Millennials are not financially responsible or motivated. Even though I am part of the Millennial era I do not take offense to this consensus. The truth is I couldn’t agree more. It seems as though Millennials are more interested in the car they drive, and spending their money frivolously then investing in real estate. Before you panic and think the real estate market as we know it is coming to a halt, bear in mind, everyone eventually grows up, and let’s face it there are still plenty of buyers out there.

I’ll give you a penny for your thoughts.

Chalyce McQueen
Associate Broker
Trilogy Realty

Welcome to 2014. As a way to keep all of our investors informed, I have compiled all of the rental stats from 2013.

First things first, 2013 was a great year for Maricopa County. Last year 43,111 rentals were closed, which is a 12% increase from 2012 with 37,941 rentals closed. The average closed rental price in 2013 was $1,279 which is a 19% increase from 2012. Rentals in 2013 averaged 48 days on the market, with an average lease price of $1474, and a median price of $1095. What does this mean? Well despite the monthly inventory on average of 3,593, rentals are still kicking and continuing to appreciate.  Interestingly enough as of RIGHT NOW the percentage of closed sales vs closed rentals are 49%. If you were thinking of listing your property for sale, or you have been unable to sell your property, it may be wise to list the property for rent instead.

If you have any questions on the current market values of your property, or would like a rental analysis, please feel free to reach us at Trilogy Realty.

Chalyce McQueen
Associate Broker
Trilogy Realty

Effectively as of today January 1st, 2014 the new FHA loan limits have been set to decrease significantly. The new FHA loan limit is $271,050 which is $75k less than its previous limit of $346,250. Although the limit has decreased, FHA is still more than attractive for potential Buyers.  FHA offers low interest rates, and is easier to qualify for than conventional. Despite the lower loan limit, FHA still offers loans with only 3.5% down.

Looking to buy a home in 2014? Trilogy Realty has a network of Sellers along with access to thousands of properties that FHA approved. Trilogy Realty and its agents are all experienced with negotiating the best deal for our Buyers. We will make sure you not only get your dream home, but you also get your dream home at the price and with the most favorable terms. If you use Trilogy Realty you will not only receive the upmost in customer service, but we will also pay for a home warranty for your home. With you in mind, and Trilogy Realty by your side, you will be taken care of while looking, to buying, and beyond.

To access our inventory and more, please feel free to reach us at Trilogy Realty. We can also set you up on a 24/7 portal which will give you the first look on brand new listings, and access to all the active properties.

Chalyce McQueen
Associate Broker
Trilogy Realty

Why rent your house? Well the answer is simple, renting your house will allow you to keep your investment on track, and turn your liability into an asset.  Renting your house will afford you the ability to maintain your property, while the tenant’s rental payments assist with paying down your mortgages, and expenses.  Below you will find 5 simple steps that are necessary in the success of renting your house.  If you follow these steps the renting process should go from a head ach to success.

1)    Advertising

You want to makes sure your house is properly advertised. First things first, you must have Signage.  Make sure you not only post a sign in the yard, but also on surrounding streets that receive constant traffic. Your sign should include a brief description of the property, price, and your contact information.   Moving on, with the advantage of the internet, advertising has never been easier.  You want to take advantage of all the websites that are consumer used and orientated. A few examples are as follows: craigslist, backpage, facebook, and postlets just to name a few. Guess what, these websites are all 100% free, and user friendly.

2)    Qualify Prospects

Although you are not a professional, and may not have access to running credit reports, etc. It is important to make sure you properly qualify any prospective renters. To qualify a renter you should consider the following: income, credit, employment, and rental history. Income and employment are the most important. You want to make sure your prospective renter has sufficient income to handle not only the rent, but also all of their other bills. As a rule of thumb your renter should make at least 2 ½ times the monthly rent. In terms of their employment, how long have them been employed? Did they just start a new job? These are all questions to look for within their application. The next important qualifier is rental history. As a landlord you want to make sure the renter you are placing in your property, have a history of paying on time, and have maintained the property in its upmost integrity. To find out a prospective renters rental history you will contact the prospective renter’s current and past landlords. After gaining knowledge of renter’s rental history you should have enough information to move forward with approving their application or declining.

3)    Writing The Lease

The most common mistake landlords make is trying to draft their own lease agreement. Real Estate Brokerages like Trilogy Realty all use a uniform AAR Lease Agreement.  Why, because it works. Don’t try and get crafty, I promise you the AAR lease is all you need to protect yourself.  You can access this lease by going online, or by asking any real estate professional such as Trilogy Realty.

4)    Collecting Funds and Exchanging Keys

Assuming steps 1-3 have taken place, it is now time to exchange funds and keys. But first you want to make sure all prospective utilities have been transferred out of your name and into the renters. You would be surprised how many renters forget to do this. I would call the utility companies the day prior to ensure that all of the accounts have been transferred. Once you have received confirmation, I would make arrangements to meet the renters at the property. There is no set time as to when a lease should start. The time is completely negotiable.  As a recommendation, I would require your renters to have their move in funds in the form of certified funds. This could be a money order or a cashier’s check. I would not accept cash or a personal check. In the future months a personal check acceptable, until there is a problem, such as bounced checks.

5)    Move In Check List

Before leaving the property, I would provide your renters with a move in check list. A move in check list is a list where your renters can mark down any items that are damaged or require repair. I would recommend a move in checklist not only for your protection, but also to avoid any confusion down the road. Generally the renters will have a week or so to complete and return this check list to you. Upon receipt it is important to acknowledge any and all items and handle accordingly. You can locate a sample of a move in check list on the web.

In closing, although renting your house can be a scary situation it doesn’t have to be. As long as you follow the above steps, you should have a fairly smooth ride. In the event you are having trouble locating a qualified prospective tenant, Trilogy Realty and I are happy to assist. Trilogy Realty takes an aggressive approach to advertising, and utilizes over 80 different websites to advertise your property, in addition to of course the MLS, Realtor blasts, and signage. Trilogy offers an unmatchable customer service and it’s all included at price below our competitors.

Chalyce McQueen
Associate Broker
Trilogy Realty

Based on CoreLogic’s research Arizona is making its way back up. From 2012-2013 foreclosure sales are down a whopping 50%. This drop in foreclosures competes as the second largest drop with California taking the lead as number 1.  Our foreclosure rate in Arizona is less than 1% which is the 9th lowest in our great nation. With our foreclosures down we have had the time to start our much needed recovering in 2013. As of October we have realized a 27% appreciation in values from the year prior.  Median Phoenix home price reached $200k. This appreciation was a direct result of our lack of supply and of course the ever growing demand.  As of October we had 17,851 listings on the market, with a 40% increase from a year ago. Don’t be alarmed by the growing inventory, as there is still an imbalance of Buyers to Sellers.