Arizona 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!

Sept. 10, 2020

Why You Need Expert Guidance in a Bidding War

Posted in General Tips
May 20, 2020

Housing Market Positioned to Bring Back the Economy

All eyes are on the American economy. As it goes, so does the world economy. With states beginning to reopen, the question becomes: which sectors of the economy will drive its recovery? There seems to be a growing consensus that the housing market is positioned to be that driving force, the tailwind that is necessary. Some may question that assertion as they look back on the last recession in 2008 when housing was the anchor to the economy – holding it back from sailing forward. But even then, the overall economy did not begin to recover until the real estate market started to regain its strength. This time, the housing market was in great shape when the virus hit. As Mark Fleming, Chief Economist of First Americanrecently explained:

“Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.”

Fleming is not the only economist who believes this. Last week, Dr. Frank Nothaft, Chief Economist for CoreLogic, (@DrFrankNothaft) tweeted:

“For the first 6 decades after WWII, the housing sector led the rest of the economy out of each recession. Expect it to do so this time as well.”

And, Robert Dietz, Chief Economist for the National Association of Home Builders, in an economic update last week explained:

“As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt…Based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”

Bottom Line

Every time a home is sold it has a tremendous financial impact on local economies. As the real estate market continues its recovery, it will act as a strong tailwind to the overall national economy.

 

Commentary by Keeping Current Matters

Silver Alliance Realty is here to help you with all your real estate needs.

We make buying and selling your home SIMPLE!

Contact Silver Alliance Realty today.

 

Mary Platt

Designated Broker

(602) 618-6764

 

Mary@PlattTeamAZ.com

May 20, 2020

Phoenix Valley Real Estate Market Snapshot | May 2020

Month-over-month Active Listings remained the same and the good news is in the 6.1% increase for the Listings that went under contract this last month. Closed sales decreased by 22.1% but this drop was expected due to the forced unemployment and furloughs which resulted in buyers not qualifying for financing. This will be an important number to watch to see if these buyers come back to the market. Median Sales Price was down by 3.3% but this was driven by the decrease in home sales that were greater than $500K.

 

Silver Alliance Realty is here to help you with all your real estate needs.

We make buying and selling your home SIMPLE!

Contact Silver Alliance Realty today.

 

Mary Platt

Designated Broker

(602) 618-6764

Mary@PlattTeamAZ.com

May 4, 2020

COVID-19 Aftermath: Good News for Normal Buyers

 

For Buyers:

The kickoff of 2020 was developing into a nightmare for normal buyers who just wanted to find a place to live. Extreme competition for homes between wholesalers, cash buyers, vacation rental investors and traditional buyers depleted supply and created an environment consisting of multiple offers, appraisal waivers and an increasing number of sales over asking price. The Greater Phoenix housing market was on the precipice of seeing price appreciation accelerate at an alarming rate and had analysts wondering what could possibly slow it down. Well, they have their answer; an act of nature.

The COVID-19 pandemic came in like a wrecking ball in March shutting down tourism and crashing the stock market single-handedly over the course of a few weeks. Hedge funds and iBuyers (funded by Wall Street) bowed out of purchases and vacation rental buyers put their plans on hold. This is providing much needed relief to normal homebuyers, if only they could leave their house.

Stay-at-home orders to stem the impact of the pandemic has “pinched the hose” on what is arguably one of the hottest housing markets in the country. This is causing a build-up of pent up demand that will undoubtedly return with some gusto when travel restrictions are lifted and a level of stability returns.

Don’t expect prices in Greater Phoenix to drop like they did in 2008, however. Back then when investors pulled out of the market, prices were so high that families making the median income could only afford 27% of what was selling. This time around as investors once again pull out of the marketplace, families making the median income can afford 68% of what’s selling with today’s incomes and interest rates. This is well within normal range and puts regular homebuyers in a better position to pick up the pieces left by Wall Street and vacation rental investors.

 

For Sellers

Lock downs and travel restrictions across the country are causing buyers who need to relocate to Arizona, either for a job or to retire, to put those plans on hold for now. The effects of COVID-19 span the job market, stock market, corporate profits, and exchange rates. This has had the highest impact on high-end luxury market buyers. Not only are these buyers restricted from leaving their home cities at the moment, they have instability in their portfolios as well. Under these circumstances it should not come as a surprise to see that weekly contract activity over $500K has slowed down by 64% since their peak on February 24th while price points under $500K have only seen a 30-40% slow down.

Sale prices are not declining at the moment, but seller expectations are adjusting. Upticks in weekly price reductions tell us that sellers are beginning to ease up on pushing market value. Sellers are also beginning to realize that it will take longer to sell their home under these conditions. Weeks ago, some listings were receiving multiple offers within a matter of hours, but that’s not a reasonable expectation now. Active listings that would’ve flown off the market 4 weeks ago could be on the market for weeks, maybe even months at this rate. Information, communication and strategy will be important during the course of the pandemic response. It’s situations like these where professional Realtors get to show the value of their experience and service.

Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report ©2020 Cromford Associates LLC and Tamboer Consulting LLC

 

Silver Alliance Realty is here to help you with all your real estate needs.

We make buying and selling your home SIMPLE!

Contact Silver Alliance Realty today.

 

Mary Platt

Designated Broker

(602) 618-6764

Mary@PlattTeamAZ.com

April 16, 2020

Arizona Real Estate Update - Effects of COVID-19

Silver Alliance Realty would like to update everyone with what we are seeing in our local real estate market. The information presented is supported by recent industry reports, webinars and our years of experience.

We are implementing the newest tools to help our buyers and sellers with their sales transactions including Virtual tours, Virtual Open Houses, Zoom and Facetime on-line meetings, etc.

Effects Of COVID-19

In general, the Valley’s Active Inventory (available homes for sale) is historically low today but we have seen a slight increase because of COVID-19. We are seeing several things affecting sales volume and inventory:

1) iBuyers are pulling out of the market causing less buying and selling. This is not the market for iBuyers (e.g., Open Door, Zillow Offers, Redfin and other Wall St investors) that profit by quick turnaround and high fees. iBuyers make up 9% - 10% of our real estate market.

 

2) AirBnB / VRBO owners see many of their homes sitting empty due to the abrupt change in the tourism industry. Some AirBnBs are either turning their properties into long term rentals or list- ing their properties for sale. When these homes are listed for sale, it is helping keep our market active and increasing available inventory. AirBnB / VRBO buyers are not purchasing at this time.

 

3) The luxury home market consists of second home purchases. Fewer buyers are coming to the Valley due to travel restrictions resulting in fewer sales transactions.

 

4) Some buyers have delayed their purchase plans.

 

5) Some people can no longer qualify for home purchases due to temporary loss of employment or furloughs.

 

6) Relocations are not happening because of travel constraints causing less sales volume.

 

7) Recent stock market drop may have delayed buyers and they are waiting for the stock market to rebound. The stock market is currently rebounding.

 

In Conclusion

1) Added inventory is actually healthy for the Phoenix area market giving buyers more choices (we are still historically low).

2) With low inventory and a healthy demand, we project that prices will continue to increase, just at a slower rate.

3) Days on market will increase slightly as there are fewer buyers and somewhat higher inventory.

4) We are not going back to 2008

- a. Lending practices are much better today.

- b. Phoenix Valley area job market is much more diversified (more companies have moved to Phoenix and surrounding cities – we are less dependent on tourism and real estate).

- c. Employment levels are higher with higher paying jobs.

- d. Homeowners have equity and fixed payments (not the adjustable mortgages that were so common at one time).

- e. We have real demand for housing, not a bubble.

5) We still see a healthy Phoenix area real estate market.

Our goal as real estate professionals is to keep everyone well informed. Currently the real estate market has slowed down but it has not stopped. We are still helping people buy and sell homes. And we can help you buy or sell a home or answer any questions you might have at this time.

Silver Alliance Realty is here to help you with all your real estate needs.

We make buying and selling your home SIMPLE!

Contact Silver Alliance Realty today.

 

Mary Platt

Designated Broker

(602) 618-6764

Mary@PlattTeamAZ.com

 

March 26, 2020

Things To Do At Home

Here is a list of 9 positive activities we all can do while staying home this spring during the COVID-19 pandemic. 

 

1. Complete Your "Honey-Do" List

Now is a great time to complete home renovations to beautify your home and yard.

 

2. Spend Time with Your Families

Plan a movie or game night with your kids and an at-home date night with your partner.

 

3. Update Your Home Office

If you are now working from home, your home office could use some improvements.

 

4. Learn a New Skill

Learn a new language or instrument. There are a ton of online classes as well.

 

5. Build Your Business

Use this time to strategize or create content for social media.

 

6. Healthy Habits

Support your immune system by eating healthy and working out.

 

7. Start Spring Cleaning

It is the perfect time to become organized and give your home a fresh spring clean.

 

8. Make a Photo Album

Create a photo album online with Shutterfly. This is a wonderful way to document memories.

 

9. Rest

During these times, reduce anxiety and stress by resting and catching up on sleep.

 

Silver Alliance Realty is here to help you with all your real estate needs.

We make buying and selling your home SIMPLE!

Contact Silver Alliance Realty today.

 

Mary Platt

Designated Broker

(602) 618-6764

Mary@PlattTeamAZ.com

Posted in General Tips
March 26, 2020

Essential Services in Arizona

GOV DUCEY ANNOUNCED ON MARCH 23rd, 2020

https://azgovernor.gov/governor/news/2020/03/list-essential-services

Here is what the essential services will include:

• Health care and public health operations, including hospitals, public health entities, distributors of personal protective equipment and biotechnology companies;

• Human services operations, including those that provide services for the elderly, those with developmental disabilities, foster and adoption children and the homeless;

• Infrastructure operations, including food production, utility operators, construction and internet providers;

• Government functions, including first responders, emergency management personnel, 911 operators, child protection staff, welfare providers and more;

• Business operations, including grocery and medicine providers, outdoor recreation;

• Organizations that provide charitable and social services, including religious and secular non-profit organizations and food banks;

• Media organizations, including newspaper, television, radio and other media services; 

• Gas stations and other transportation-related businesses;

• Financial institutions, including banks and credit unions; 

• Hardware and supply stores;

• Critical trades, including plumbers, electricians, cleaning, sanitation, HVAC and security staff;

• Mail, post, shipping and logistics; 

• Education institutions, including public and private K-12 schools, universities and research entities; 

• Laundry services; 

• Restaurants for consumption off-premises; 

• Supplies distributors that enable telework and work from home and those that supply essential businesses; 

• Transportation, including airlines, taxis, and ride-sharing;

• Home-based and care services, including for seniors and those with developmental disabilities;

• Residential facilities and shelters, including those for children, seniors or at-risk populations;

• Professional services, including legal, real estate and accounting services; 

• Day care centers for employees exempted though the order;

• Manufacturers, distribution and producers of supply chain-critical products;

• Hotels and motels;

• And funeral services.  The idea is to allow workers and companies to utilize teleworking so that essential services are met. 

 

 

 

March 26, 2020

A Message About COVID-19

 

Dear Clients, Friends, and Colleagues,

The Platt Team here at Silver Alliance Realty would like to update everyone about our current business practices in light of the COVID-19 pandemic.  We have several transactions that are moving along well towards their scheduled closing dates.  

In a March 23rd press conference, Arizona Governor Doug Ducey identified essential and non-essential services in the State of Arizona.  Real Estate services were identified as essential services.  If you would like to see the full list of essential services, please click on Essential Services for State of Arizona.  

Silver Alliance Realty will continue to keep working on all current and new transactions while taking the necessary precautions and steps as outlined by the CDC, Federal, State and local governments including the following:

  • We will be practicing responsible social distancing and disinfecting. 
  • We will support and obey the changes in our industry that have taken affect over the last two weeks that have occurred such as title companies, lenders and new home builders who have limited agents and visitors to their offices or have started working at an office at their home during this time. 
  • We will obey the restrictions for Open Houses.
  • We will support the efforts of our inspectors and contractors in taking necessary precautions for everyone’s safety.  

More than ever, we believe in the strength of our community and are here to help or answer questions in any way we can.  Please feel free to reach out to us at any time.    

Sincerely,

Mary & Tom Platt

(602) 618-6764 / (602) 615-8470

 

March 24, 2020

Spring 2020 Phoenix Valley Real Estate Market Update

The chart below quickly outlines and compares the general Phoenix valley (Maricopa County) real estate market between 2019 and 2020.  If you have more questions about a specific market, contact Silver Alliance Reatly (602) 615-8470.  We are always available to help our clients. 

Affordability for Buyers has Improved Thanks to Lower Mortgage Rates:

Even though home prices increased over the last twelve months, the home price affordability for Buyers has improved from the prior year. It’s interesting to discover that although the U.S. median sales price in December 2019 ($225,723) was up 4.0% year over year, the typical mortgage payment fell 6.8% because of a 20% decline in fixed mortgage rates, from 4.64% in December 2018 to 3.72% in December 2019. (Source: CoreLogic.com)

 

Silver Alliance Realty is here to help you with all your real estate needs.

We make buying and selling your home SIMPLE!

Contact Silver Alliance Realty today.

 

Mary Platt

Designated Broker

(602) 618-6764

Mary@PlattTeamAZ.com

Feb. 26, 2020

Four Things to Think About When Selecting a Tax Preparer

It happens every year. Like ants at a picnic, pop-up storefronts for tax-prep firms are suddenly everywhere. The airwaves are saturated with advertisements for the latest tax software and commercials for tax pros promising fantastic returns. Even some car dealerships get in on the frenzy, promising to prepare your tax return if you'll just use your refund to purchase one of their vehicles.

With so many tax preparers, how do you know which one to choose? When you're searching for a tax preparer you can rely on, keep these four things in mind:

1. Preparer Tax Identification Number

Anyone can prepare a tax return. The IRS does not have any requirements regarding qualifications, and many people choose to complete their returns themselves. However, if someone is accepting payment for tax preparation, there is one credential that is an absolute must: a preparer tax identification number.

Commercially preparing tax returns without this IRS-issued number is against the rules. If a potential tax preparer is willing to break this rule, can you trust them to prepare your return accurately? Remember, if the IRS discovers a problem with your return, you'll be the one stuck paying for it.

2. Professional Qualifications

There isn't one specific qualification that signifies excellence in a tax pro, and their professional backgrounds can vary widely. Employees of big-box tax firms may simply have a few weeks training in how to complete simple returns. Bookkeepers and other financial professionals may have extensive experience but lack formal credentials.

Certified public accountants, enrolled agents, and tax attorneys typically have the greatest amount of training, so if your situation is complex, you might want to select one of these professionals. CPAs hold a college degree, have passed a rigorous exam, and are required to complete regular continuing education coursework. However, not all CPAs specialize in taxes, so you'll want to check that the professional you have in mind is willing to tackle your tax return before taking it to them. Enrolled agents have demonstrated their mastery of the tax code by either passing the IRS's Special Enrollment Exam or having spent five years working directly with taxes as an IRS employee. Tax attorneys are highly educated professionals who have passed the bar exam and chosen to specialize in complicated tax matters.

3. Accessibility

Will you want to talk with your tax preparer again after your return is complete? Would discovering that you're being audited change your answer? While interactions with the IRS are mostly limited to tax season, they aren't always, so it's worth discovering whether your tax preparer will be available at other times of the year.

Why would you want to talk with your tax preparer outside of the traditional tax season? The IRS might contact you to request more information or notify you of an audit. Alternately, you might want to talk about steps you can take to reduce your tax burden, a discussion that most tax pros don't have time for during the hustle and bustle of tax time. This can be especially true if you buy a house, start a business, get married, or become a parent, because the way you handle these major life changes can affect your taxes.

4. Areas of Focus

No one would mistake the tax code for light reading, so it's smart to find a tax professional who is well versed in the sections of it that apply to your particular situation. While some tax preparers handle all kinds of returns without breaking a sweat, others focus on returns for one segment of the population. Do you want someone who's a master of individual returns, a preparer who specializes in returns involving complicated financial investments, or a pro who's an old hand at business returns? For the best results, identify your needs and select a preparer who focuses on meeting them.

Geography should also influence your choice of a preparer. While the guidelines for federal tax returns remain the same, crossing state lines can shake things up for your state return. Have you moved to a different state? Do you reside in one state and have a business or property in another one? If so, things quickly become more complicated, so you'll want to make certain that your tax preparer is capable of dealing with all the ins and outs of your locale.

At tax time, finding someone to prepare your taxes isn't hard. But finding the right person to do the job is a more difficult task. Keeping these factors in mind will help you select a tax preparer you can trust.

 

Article by Any Presentations

 

Silver Alliance Realty is here to help you with all your real estate needs.

We make buying and selling your home SIMPLE!

Contact Silver Alliance Realty today.

 

Mary Platt

Designated Broker

(602) 618-6764

Mary@PlattTeamAZ.com