Phoenix Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

July 8, 2021

How to Buy Before You Sell

New opportunity for you to buy your next home before you sell your current house.

Click here to see if your home qualifies

 

Timing can be incredibly tricky in real estate, especially when you’re selling your current home and buying a new one. It’s even more difficult now due to low home inventory and high demand. Due to this, many sellers are choosing to buy a new home before selling their current one. If they sold their home first, they could easily end up without a new place to live.

 

The last thing we want is for sellers to find themselves homeless, so buying before selling is definitely the best route to take in today’s market. How can you avoid having to pay for two separate mortgages at the same time?

 

"You get the certainty of buying the new home you want first and then selling your old one."

 

We’re excited to introduce you to Home Swap, our new offering that allows you to buy your next home before listing your current one. A Home Swap provides you with the down payment and up to $25,000 toward updating your current home; even better, you only pay one mortgage at a time. You’ll pay the mortgage on your new home, immediately building equity, while the Home Swap covers the monthly mortgage payments on your old house.

 

Moving first and then selling is the best way to come out on top in our market, and the a Home Swap makes it easier than ever. It’s also a service you can’t just find anywhere, as we are two of the only Knock-certified agents in the Phoenix area. If you’re interested in learning how the program can make your next move convenient, cost-effective, and simple, feel free to reach out to us. We look forward to hearing from you soon.

 

Click here to see if your home qualifies

Posted in Buying, Selling
April 22, 2021

Wishing Dave the Best of Luck

Here’s a quick message of thanks and good luck to Dave Garcia.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

Dave, one of our team members, is moving on to a job in the corporate world. We want to take a moment to say thank you and good luck. I met Dave when he was managing a local restaurant where we became friends. Eventually, he became part of the 10X Home Team family. Although we’re going to miss him, we wish Dave the best in his future endeavors. On another note, we have some pretty cool programs coming out to help buyers and sellers win in this market. We’ll be talking about them in future videos.

 

As always, if you have any questions for us, please reach out by phone or email. We're here to help and look forward to talking with you soon.

Posted in Team
March 24, 2021

Is It Wise to Renovate Before Listing?

Should you renovate before listing? Find out today.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

Should you renovate your home before listing it in today’s market?

As you’re already aware (unless you’ve been hiding under a rock), the market is hot for sellers right now. There aren’t enough homes available for all the buyers out there, which puts you in a very good position. The main thing you need to consider before making a decision, though, is which renovations to make. Is it something as simple as repainting, or do you need to remodel your entire kitchen and/or bathrooms? This consideration depends on your situation, price point, and the desirability of your home (although all homes are desirable to buyers at the moment).

If you have questions about which renovations to make in your home, my team and I would be happy to help you decide where to spend your money. It all comes down to getting the best return on investment, whether you’re spending $100 or $10,000.

As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’d love to speak with you.

Posted in Selling
March 10, 2021

Will Real Estate Crash Like 2008?

6 Simple Graphs Proving This Is Nothing Like Last Time

6 Simple Graphs Proving This Is Nothing Like Last Time | MyKCM

Last March, many involved in the residential housing industry feared the market would be crushed under the pressure of a once-in-a-lifetime pandemic. Instead, real estate had one of its best years ever. Home sales and prices were both up substantially over the year before. 2020 was so strong that many now fear the market’s exuberance mirrors that of the last housing boom and, as a result, we’re now headed for another crash.

However, there are many reasons this real estate market is nothing like 2008. Here are six visuals to show the dramatic differences.

1. Mortgage standards are nothing like they were back then.

During the housing bubble, it was difficult not to get a mortgage. Today, it’s tough to qualify. Recently, the Urban Institute released their latest Housing Credit Availability Index (HCAI) which “measures the percentage of owner-occupied home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.

The index shows that lenders were comfortable taking on high levels of risk during the housing boom of 2004-2006. It also reveals that today, the HCAI is under 5 percent, which is the lowest it’s been since the introduction of the index. The report explains:

“Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market.”

6 Simple Graphs Proving This Is Nothing Like Last Time | MyKCMThis is nothing like the last time.

2. Prices aren’t soaring out of control.

Below is a graph showing annual home price appreciation over the past four years compared to the four years leading up to the height of the housing bubble. Though price appreciation was quite strong last year, it’s nowhere near the rise in prices that preceded the crash.6 Simple Graphs Proving This Is Nothing Like Last Time | MyKCMThere’s a stark difference between these two periods of time. Normal appreciation is 3.8%. So, while current appreciation is higher than the historic norm, it’s certainly not accelerating out of control as it did in the early 2000s.

This is nothing like the last time.

3. We don’t have a surplus of homes on the market. We have a shortage.

The months’ supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued appreciation. As the next graph shows, there were too many homes for sale in 2007, and that caused prices to tumble. Today, there’s a shortage of inventory, which is causing an acceleration in home values.6 Simple Graphs Proving This Is Nothing Like Last Time | MyKCMThis is nothing like the last time.

4. New construction isn't making up the difference in inventory needed.

Some may think new construction is filling the void. However, if we compare today to right before the housing crash, we can see that an overabundance of newly built homes was a major challenge then, but isn’t now.6 Simple Graphs Proving This Is Nothing Like Last Time | MyKCMThis is nothing like the last time.

5. Houses aren’t becoming too expensive to buy.

The affordability formula has three components: the price of the home, the wages earned by the purchaser, and the mortgage rate available at the time. Fifteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased, and the mortgage rate is about 3%. That means the average homeowner pays less of their monthly income toward their mortgage payment than they did back then. Here’s a chart showing that difference:6 Simple Graphs Proving This Is Nothing Like Last Time | MyKCMAs Mark Fleming, Chief Economist for First Americanexplains:

“Lower mortgage interest rates and rising incomes correspond with higher house prices as home buyers can afford to borrow and buy more. If housing is appropriately valued, house-buying power should equal or outpace the median sale price of a home. Looking back at the bubble years, house prices exceeded house-buying power in 2006, but today house-buying power is nearly twice as high as the median sale price nationally.”

This is nothing like the last time.

6. People are equity rich, not tapped out.

In the run-up to the housing bubble, homeowners were using their homes as personal ATM machines. Many immediately withdrew their equity once it built up, and they learned their lesson in the process. Prices have risen nicely over the last few years, leading to over 50% of homes in the country having greater than 50% equity – and owners have not been tapping into it like the last time. Here’s a table comparing the equity withdrawal over the last three years compared to 2005, 2006, and 2007. Homeowners have cashed out almost $500 billion dollars less than before:6 Simple Graphs Proving This Is Nothing Like Last Time | MyKCMDuring the crash, home values began to fall, and sellers found themselves in a negative equity situation (where the amount of the mortgage they owed was greater than the value of their home). Some decided to walk away from their homes, and that led to a wave of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area. With the average home equity now standing at over $190,000, this won’t happen today.

This is nothing like the last time.

Bottom Line

If you’re concerned that we’re making the same mistakes that led to the housing crash, take a look at the charts and graphs above to help alleviate your fears.

If you’ve even been entertaining the idea of selling your home at all this year, we invite you to follow this link to instantly calculate your home’s value in today’s market based on recent Phoenix area sales:

Enter your address here to find out what your home is currently worth

If you have any questions about potentially selling your home, feel free to give us a call at 602-352-3600 any time. We're talking to both buyers and sellers in the Phoenix market every day, and we can help you make the right decision for whatever you decide to do.

 

Posted in Buying, Selling
Dec. 30, 2020

How to Submit a Competitive Offer

Here are the five keys to making a successful, competitive offer.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

As you may know, our current real estate market has very high demand and extremely low supply. With so many buyers competing for a limited number of homes, it’s more crucial than ever to know the ins and outs of making a confident and competitive offer. Here are the five keys to success when submitting an offer:

 

"It’s more crucial than ever to know the ins and outs of making a confident and competitive offer."

 

1. Let your agent or team guide you. Don’t allow your emotions to steer this process. Your agent’s support will help you avoid compromising what you truly want in a property for future financial stability; it can be a challenge to balance these. Your agent’s expertise will keep you competitive, so take their advice. Your agent should ensure that you’re informed and your offer is based on the home’s market value, condition, comparable properties, and the current market. 

 

2. Understand your finances. Knowing your budget, how much house you can afford, and how much you want to spend are imperative. Getting pre-qualified by a lender shows the seller that you’re serious, capable of buying, and can give you a competitive edge in a bidding war. 

 

3. Be ready to move quickly. Right now, the average home in our market is sold in just one to three days with multiple offers, so time is of the essence. 

 

4. Make a fair offer. It’s only natural to want to get the best deal possible on a house. However, submitting a low offer in a seller’s market can cause the seller to doubt how serious you are as a buyer. Don’t submit an offer that could be tossed out as soon as it’s received.

 

5. Be a flexible negotiator. After you submit your offer, the seller can accept, reject, or counter it. In a competitive market, you must stay flexible throughout the negotiations. Your position can be strengthened with an offer that includes flexible moving dates, a higher price, or minimal or no contingencies. 

 

Today’s competitive market makes it more important than ever to submit a strong offer, and a trusted real estate expert can help you rise to the top and get your offer accepted.

 

If you have any questions about making offers or real estate in general, please reach out to us via phone or email. We’d love to be your real estate resource.

Posted in Buying
Dec. 15, 2020

Happy Holidays From 10X Homes!

Here’s our special holiday message to you for this joyful season.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

Our team and I decided to shoot a short holiday video where everyone could say a few words. Watch the video above to hear each of our messages to you. We all wish you a joyful holiday season. Stay safe, and we look forward to seeing you next year!

Posted in 10x Homes Update
Nov. 19, 2020

Wishing You the Best This Thanksgiving

Our team wanted to stop by and express our gratitude for all of you.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

We’re reaching out today to say thanks for your support. Ben Orozco, Dave Garcia, and I each recorded individual messages of gratitude, which we’ve compiled into this video. We’re grateful for your support, referrals, and trust in our team above all else. This has been a turbulent year, but we’re grateful to have our health and the ability to continue helping you buy and sell homes. To see what else we’re thankful for this year, watch this short video.

Posted in 10x Homes Update
Nov. 12, 2020

How Can You Get the Best Appraisal Possible?

Here’s how to get the best appraisal possible on your home.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

How do you get the best appraisal possible on your home? Whether you’re selling or refinancing, your first step should be to make sure that your home is in top condition. Stage it, clean it, and do whatever else you need to do to make it as much of a showpiece as possible. 

 

Second, provide a list of improvements (with receipts) to the appraiser. Don’t just hand them a bag of receipts the same way you would with your accountant during tax time, either—your receipts should be organized. 

 


Although your agent may be present during the appraisal, we recommend that you not be.


 

If you’re refinancing and plan on being present during the appraisal, be friendly but not overbearing to the appraiser. You don’t want them thinking that you’re trying to influence the appraisal. If you’re selling, allow your agent to provide comparable sales to the appraiser as needed. Also, although your agent may be present during the appraisal, we recommend that you not be. After all, that’s why you have an agent in the first place. 

 

If you have questions about the appraisal process or there’s anything else I can help you with, don’t hesitate to reach out to me. I’d love to hear from you.

Posted in Selling
Nov. 2, 2020

4 Reasons Why the Election Won't Dampen the Housing Market

Tomorrow, Americans will decide our President for the next four years. That decision will have a major impact on many aspects of life in this country, but the residential real estate market will not be one of them.

Analysts will try to measure the impact feasible changes in regulations might have on housing, the effect of a possible first-time buyer program, and any number of other situations based on who wins. The housing market, however, will remain strong for four reasons:

1. Demand Is Strong among Millennials

The nation’s largest generation began entering the housing market last year as they reached the age to marry and have children – two key drivers of homeownership. As the Wall Street Journal recently reported:

“Millennials, long viewed as perennial home renters who were reluctant or unable to buy, are now emerging as a driving force in the U.S. housing market’s recent recovery.”

2. Mortgage Rates Are Historically Low

All-time low interest rates are also driving demand across all generations. Strong demand created by this rate drop has countered other economic disruptions (e.g., pandemic, recession, record unemployment).

In addition, Freddie Mac just forecasted mortgage rates to remain low through next year:

“One of the main drivers of the strong housing recovery is historically low mortgage interest rates…Given weakness in the broader economy, the Federal Reserve’s signal that its policy rate will remain low until inflation picks up, and no signs of inflation, we forecast mortgage rates to remain flat over the next year. From the third quarter of 2020 through the end of 2021, we forecast mortgage rates to remain unchanged at 3%.”

3. Prices Continue to Appreciate

The continued lack of supply of existing homes for sale coupled with the surge in buyer demand has experts forecasting strong price appreciation over the next twelve months.

4. History Says So

Though it’s true that the market slows slightly in November when it’s a Presidential election year, the pace returns quickly. Here’s an explanation as to why from the Homebuilding Industry Report by BTIG:

“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty. This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”

Ali Wolf, Chief Economist for Meyers Research, also notes:

“History suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year as long as the economy stays on track.”

Bottom Line

There’s no doubt this is one of the most contentious presidential elections in our nation’s history. The outcome will have a major impact on many sectors of the economy. However, as Matthew Speakman, an economist explained last week:

“While the path of the overall economy is likely to be most directly dictated by coronavirus-related and political developments in the coming months, recent trends suggest that the housing market – which has basically withstood every pandemic-related challenge to this point – will continue its strong momentum in the months to come.

 

Posted in 10x Homes Update
Oct. 22, 2020

Should I Buy a Home Now or Wait?

I’m discussing whether now is a good time to buy or if you should wait.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

Should you buy a home now or wait? This is a question we’re getting asked often these days. The answer is no, you don’t have to wait, especially if you’ll be getting a mortgage. With rates in the 3% range, your buying power is much greater now than ever before. It’s only a matter of time before rates increase again. 

 

Here’s a good example: Not long ago, rates were at 6%. For a $300,000 mortgage, you would pay $1,800 per month, including principal and interest. Today, that same $1,800 mortgage payment correlates to a house worth $425,000. That means your buying power is $125,000 greater (or more) with today’s rates. 

 


It’s only a matter of time before rates increase again.


 

If you’ve been thinking that prices are too high or the real estate market is too competitive, think again. Even if prices were to drop by $50,000 but rates rose, you’d likely still pay more monthly, and you’ll regret not making a move now. Buyers are in a good place these days.

 

If you have any questions or want to discuss real estate, please reach out to us via phone or email. We’d be glad to help you.

Posted in Buying