With over 25 years of true full time Real Estate experience in the entire valley and 1700 transactions here is our assessment. Buyers coming from other parts of the country are shocked to see block fences and homes 10’ apart. 
With land cost continuing to go up builders are forced into squeezing more homes per acre. As long as lot premiums are reasonable, and that’s subjective, then of course the value should always be there. All buyers want a non-standard lot but a large percentage do not see the value upfront. If not in your budget maybe consider an upgraded lot but back off 200 Sq. Ft or so of floor place to make up the difference or take a closer look at options that can be added down the road. We’ve never run into a past client who does not love some type of open space around their home. For more information and feedback reach out to our fabulous resale team located in the model gallery.
Phoenix Metro area-Market Snapshot March 2019
Starting with the basic ARMLS numbers for March 1, 2019 and comparing them with March 1, 2018 for all areas & types:
- Active Listings (excluding UCB): 18,959 versus 16,924 last year – up 12.0% – but down 0.4% from 19,040 last month
- Active Listings (including UCB): 23,197 versus 21,474 last year – up 8.0% – and up 2.4% compared with 22,655 last month
- Pending Listings: 6,119 versus 7,158 last year – down 14.5% – but up 22.1% from 5,012 last month
- Under Contract Listings (including Pending, CCBS & UCB): 10,357 versus 11,708 last year – down 11.5% – but up 20.1% from 8,627 last month
- Monthly Sales: 6,480 versus 7,067 last year – down 8.3% – but up 18.6% from 5,462 last month
- Monthly Average Sales Price per Sq. Ft.: $168.57 versus $167.59 last year – up 6.1% – and up 0.6% from $167.59 last month
Monthly Median Sales Price: $264,000 versus $252,000 last year – up 4.8% – and up 0.8% from $262,000 last month
The second half of February saw momentum building in the market, though it will need to build even more to catch up with last year when it was running on all cylinders.
Supply without a contract is up 8% from a year ago. However it has already declined between February 1 and March 1, something which usually only occurs in years when the market is doing rather well. That is just one of several good omens that suggest the weakness in demand that started in September is now dissipating.
Another positive sign is that sales increased by over 18% between January and February. This compares favorably with last year which gave us a 14.4% increase. The annual sales rate continues to fall, but the momentum of this trend is fading just a little.
Under contract listings grew over 20% since last month, Again this is better than in 2018 when the increase was 16.6%.
It is early days in the improving cycle so we should not get carried away with enthusiasm. Demand could fade again if we get a significant increase in loan interest rates. However, if this is signaled ahead of time, it could encourage buyers to make their minds up before the rates go into effect.
Anyone who is expecting prices to fall is likely to be very disappointed by the current state of affairs. Yes, asking prices are being cut at quite a high rate, but asking prices are often overly optimistic anyway, especially for homes that have just been listed.
Actual closed prices are looking very strong, as we can see in the numbers above. The mix is changing in favor of higher end homes too, since the low end below $200,000 remains chronically under-supplied. The usual upward cycle in average price per sq. ft. during the spring looks like it has turned up as usual in 2019.
The market looked uncertain at the end of January, but now we are seeing an upward trend in the Cromford® Demand Index and any day now we should see a mild declining trend in the Cromford® Supply Index. Both of these are good news for sellers and not-so-good for buyers.
Source: ARMLS, Cromford Report, Altos Research
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Real Estate teams or a single agent, which benefits you the most?
Real Estate teams or a single agent, which benefits you the most?
Teams have been dominating the industry over the past 10 years. With so many moving parts with contract changes, lending and tax laws, and the nearly 50 pages of documents from contract to closing, when a team of 4-5 full time professionals work together it’s a much smoother process for a buyer or seller. Add home inspections, termite reports, lending delays, insurance requirements, HOA issues and delays, and then suddenly it becomes overwhelming for a single agent to handle. Want to see how our team operates and the reason we continue to be in the top 1% of all Realtors? Stop in our on-site office and see TJ, Ben, Lacey, or Michelle at Shea Preferred Realty Group.
Representing a buyer in a resale home and what does that involve?
After being on site since Encanterra was a dirt lot and representing over 500 buyers and sellers; we have it down to where we can tell you within 1% what a home should and will sell for. We see MANY buyers grossly overpay for homes that were likely mislead in an open house or by an agent that has never sold a single home in the community.
We have access to builder stats for each series and plan, what’s selling, what are the trends, pricing history and other key factors. We’re always getting new models with updated floor plans. Some of our plans were truly designed in the mid 1990’s and some plans we have sold 150 of the same model. What does it look like when 20 of those want to sell at the same time? We can provide you, your friends, and anyone wanting to buy resale comprehensive consulting that could save them tens of thousands of dollars. What are you waiting for? Stop by the office in the model gallery (2nd home on the left) or send us some buyers today.
Have family members, friends, or others looking to buy a new build home?
Why not refer them to your pros at Arizona Experience Realty? We have represented over 400 buyers in new construction throughout the Valley and have attended every single design center appointment, walked every homesite, and offer expert advice on design options based on the hundreds of resale’s we have sold in the community.
If we represent a buyer, we perform a detailed pre-drywall walk on your behalf ensuring everything is to our high standards and an even more detailed final walk. We will make sure they do not over buy or under spend based on our nearly 10 years of being onsite. If you would like to see how we work with new build buyers please be sure they see us if they have not been to the community in the past. They will never regret it. The best part? It’s FREE to all buyers! That’s right, the seller pays our commission so it doesn’t cost our buyers a dime!
Why does the same floor plan sell for $30,000-40,000 more or less than another?
Look no further than the design studio where it all starts. Years ago when we first opened at Encanterra® it was common to see buyers spend $100,000 or more on options and upgrades. Today we see buyers cutting back on those options as the builder is no longer offering large incentives. If you just moved here from another region in the country, what was popular and expected back home may have limited value in a community like Encanterra®. We have seen St. Tropez plans with $60,000 pools and golf course homes with base cabinets and no design upgrades. There are so many design variables that have an effect on the value of a home. Shea Preferred has access to all of these design details. Contact our on-site sales team to learn more.
New Home Checklist
Aerial tour – 2334 N Waverly, Mesa
