Archive for Real Estate Trends & Statistics
Will Increased Loan Limits Unstick the Market?
Posted by: | CommentsTemporary Conventional Loan Limit Increase for Fannie Mae and Freddie Mac
HR 5140, the Economic Stimulus Act of 2008, has passed through the House and the Senate and is awaiting the President’s approval. This bill could have some very positive effects for home buyers and sellers.
What does this mean to the home buyer? Loans that conform to Fannie Mae and Freddie Mac loan limits have significantly better interest rates. The increased loan limit could definitely inspire more home buyers to take action as it will make home ownership in the higher price ranges more affordable. Let’s hope it works.
I’ve heard the phrase "getting the market unstuck" and that seems appropriate. Policy makers believe that the increase in the conforming loan limit will open up the market to more homebuyers and I certainly hope they are right as the average home price in Scottsdale is significantly higher than the current limit of $417,000. (See table below for current home prices in Scottsdale)
HR 5140 itself doesn’t determine the new limits however it does state that these limits are temporary. The window of opportunity will end December 31, 2008 according to this bill. I believe the new limits will be set by the Secretary of Housing and Urban Development and I have heard that the limits will be as high as $635,000 to $730,000.
This is a huge increase by normal standards. The annual increases are historically minimal. In 2002, the limit was $300,700, and the increases through 2005 were between $10,000 and $25,000 annually. The last increase in 2006 of $57,350 brings us to the current limit of $417,000. An increased limit of $730,000 is $313,000 or 75% higher than the current limit.
Prices of Scottsdale Single Family Homes for Sale
| Home Price Range | # Active Listings |
| $175,000 – $500,000 | 893 |
| $500,000 – $1,000,000 | 1734 |
| $1,000,000 – $5,000,000 | 1537 |
| $5,000,000 – $16,000,000 | 65 |
First Quarter 2007 Ranks Arizona at 25 with a annual 5.22% appreciation
Posted by: | CommentsI just read the latest statistical report from OFHEO (Office of Federal Housing Enterprise Oversight) and it’s always nice to read good news about Arizona real estate. Now, granted, the news isn’t as good as it is for Utah, Idaho or Washington – but we had our day. If you have held property for the last five years, you experienced 93.76% appreciation and if you are an oldtimer (since 1980), then you have seen 332.35% increase. Let’s keep things in perspective – not bad! Arizona currently ranks as number 25 with a .13 % appreciation for the first quarter of 2007 and an annual appreciation (2nd Q 2006 - 1st Q 2007) of 5.22%.
The housing market is never static in the United States and this report just shows how varied it can be. Seven states show double digit appreciation while seven other states had less than 2% appreciation and even some depreciation.
First all the good news:
- Nationally, home prices grew faster over the past year than did prices of non-housing goods and services reflected in the Consumer Price Index. House prices rose 4.3 percent, while prices of other goods and services, excluding shelter, rose 1.6 percent.
- The states with the greatest rates of appreciation between the first quarter of 2006 and the first quarter of 2007 were: Utah (17.0%), Idaho (12.3%), Montana (11.7%), Wyoming (11.7%), and Washington (11.6%).
- The Metropolitan Statistical Areas (MSAs) with the greatest rates of appreciation between the first quarter of 2006 and the first quarter of 2007 were: Wenatchee, Washington (25.6%), Provo-Orem, Utah (19.7%), and Salt Lake City, Utah (19.1%).
- Of the 20 cities with the greatest four-quarter appreciation, five are in Washington state.
- Utah’s three largest metropolitan areas (Salt Lake City, Provo-Orem, and Ogden-Clearfield) were among the five fastest appreciating cities in the U.S.
Now – the bad news:
- The states with the lowest rates of appreciation for the same period were: Michigan (-0.7%), Massachusetts (-0.6%), Nevada (0.6%), Ohio (0.8%), and New Hampshire (1.1%).
- The MSAs with the lowest rates of appreciation for
the same period were: Punta Gorda, Florida (-4.6%), Sacramento-Arden-Arcade-Roseville, California (-4.4%), and Modesto, California (-4.4%).
One sure thing is that for most homeowners in the United States, the historic trend of housing, just like the stock market, goes up.
For more details about the OFHEO report, click here. For maps and the full ranking of U.S. cities, and states, click here.
First Quarter 2007 Ranks Arizona Appreciation #25
Posted by: | CommentsFirst Quarter 2007 Ranks Arizona at 25 with a annual 5.22% appreciation
I just read the latest statistical report from OFHEO (Office of Federal Housing Enterprise Oversight) and it’s always nice to read good news about Arizona real estate.
Now, granted, the news isn’t as good as it is for Utah, Idaho or Washington – but we had our day. If you have held property for the last five years, you experienced 93.76% appreciation and if you are an old timer (since 1980), then you have seen 332.35% increase. Let’s keep things in perspective – not bad! Arizona currently ranks as number 25 with a .13 % appreciation for the first quarter of 2007 and an annual appreciation (2nd Q 2006 – 1st Q 2007) of 5.22%.
The housing market is never static in the United States and this report just shows how varied it can be. Seven states show double digit appreciation while seven other states had less than 2% appreciation and even some depreciation.
First all the good news:
- Nationally, home prices grew faster over the past year than did prices of non-housing goods and services reflected in the Consumer Price Index. House prices rose 4.3 percent, while prices of other goods and services, excluding shelter, rose 1.6 percent.
- The states with the greatest rates of appreciation between the first quarter of 2006 and the first quarter of 2007 were: Utah (17.0%), Idaho (12.3%), Montana (11.7%), Wyoming (11.7%), and Washington (11.6%).
- The Metropolitan Statistical Areas (MSAs) with the greatest rates of appreciation between the first quarter of 2006 and the first quarter of 2007 were: Wenatchee, Washington (25.6%), Provo-Orem, Utah (19.7%), and Salt Lake City, Utah (19.1%).
- Of the 20 cities with the greatest four-quarter appreciation, five are in Washington state.
Now – the bad news:
- The states with the lowest rates of appreciation for the same period were: Michigan (-0.7%), Massachusetts (-0.6%), Nevada (0.6%), Ohio (0.8%), and New Hampshire (1.1%).
- The MSAs with the lowest rates of appreciation for the same period were: Punta Gorda, Florida (-4.6%), Sacramento-Arden-Arcade-Roseville, California (-4.4%), and Modesto, California (-4.4%).
One sure thing is that for most homeowners in the United States, the historic trend of housing, just like the stock market, goes up.
For more details about the OFHEO report, click here. For maps and the full ranking of U.S. cities, and states, click here.
11 Acres of Trust Land Will be Auctioned This Week
Posted by: | CommentsOnline Listing Presentation A Valuable Tool For Out of State Homeowners
Posted by: | CommentsGoToMeeting.com is a Great Tool for Online Real Estate Listing Presentations
Several times in the last few years, I have dealt with homeowners who live out of state but need to sell their Scottsdale homes. It has been frustrating for both the client and me. I send email documents and then we talk on the phone. I’m looking at photos and statistics trying to explain something and make a point, but we find out we just are not looking at the same page. Those days of frustration are over.
Welcome to the cutting edge of technology in the real estate industry. I have my first listing appointment tomorrow using online meeting technology from www.GotoMeeting.com.
How does it work? I have done all my homework: previewed the listings that the home will be in competition with, reviewed the market trends and statistics for that neighborhood, prepared a market analysis and the listing agreement and made a document of our strategy to sell the home. I emailed my client an invitation to “join the meeting” at 10:30 on Wednesday with an explanation of how it works. Her email invitation has a web link and an access code. Since she is new to this technology, she will need to spend a few minutes downloading the viewer. Then once she has entered the access code, she will essentially be looking at my computer screen. As soon as I call her on the telephone, we will have freedom to not only discuss, but view all my detailed information and charts.
There is no doubt that the homeowner has to put a lot of trust in his real estate advisor when he is out of state. I always try to put myself in the homeowner’s situation and that is how I came up with the online meeting idea. Short of being in the same room together, I can’t think of a better solution to bridge the distance.
The Arizona State Land Department announced the sale of 269 acres of land in the North Phoenix Desert Ridge area as the highest land sale in department history. Rightpath Limited Development Group purchased the parcel for $149.45 million, which is $555,535.00 per acre, and is planning to develop a residential community.
This comes as good news in our Arizona market as the last record land sale set in August 2005 when Toll Brothers and Pulte Homes also purchased land in the Desert Ridge area for $135 million.
Arizona State Land Commissioner Mark Winkleman proudly proclaimed, “This is a remarkable sales price and a milestone for the State of Arizona which sends a clear message that the market is strong and very interested in the lands Trust has to offer.” Read direct from State Land Commissiioner
Snowbirds Continue to Buy Scottsdale Luxury Homes
Posted by: | CommentsWhy Scottsdale is One of The Greatest Places to Live.
Have you ever heard of an Arizona snowbird? The wikipedia describes the snowbird as people from Canada and the Northeastern or Midwestern United States who spend a large portion of the winter months in Arizona, Florida or other regions of the Sunbelt. Snowbirds typically come just for a few weeks or a month and before they realize what has happened, they become addicted. Addiction to Scottsdale results in spending their leisure days searching for the perfect winter home which is usually defined as a luxury home whether it is a condo or a single family residence. Snowbirds and winter visitors have been buying second homes in Scottsdale since before Scottsdale became a city in 1897 and I don’t see any change in this trend.After living in Arizona for 14 years, I can easily understand why Scottsdale is inundated with snowbirds every winter. Scottsdale is a wonderful place to live for many reasons. Apparently the majority consensus agrees with me as Scottsdale was just ranked 7th in the Money magazines list of top 100 places to live. Money magazine’s reasons are based on statistics but there are other reasons that are more subjective but just as true. Here are my reasons and those expressed by my clients over the years why Scottsdale is a great place to live.
- The weather is fantastic 75% of the year – Imagine eating outside in balmy dry weather with no bugs or an early morning bike ride along the Scottsdale green belt bike path with breakfast along the way.
- The color of the sky is incredibly blue.
- The horizon stretches forever.
- Sunsets are spectacular.
- Desert plants and animals are unique and lush in their own way
- Outdoor activities in abundance include golf, hiking, jeep rides, bicycling, hot air balloons, etc.
- Some of the best golfing in the world.
- An art mecca with more than 125 art galleries in Scottsdale alone.
- Numerous choices for fine dining – I guarantee you won’t get bored.
- Scottsdale real estate is still affordable. California hosts 23 of the top 25 places with the priciest homes, with median home sales prices ranging from $678,500 to $1,362,500. Scottsdale’s median home price is only $370,000 and you can still buy a 3 bedroom 2 bath home for $325,000. In fact some of these older areas will be not always be so affordable because of all the redevelopment happening in downtown Scottsdale.
- Good public schools and superb private schools.
- Fantastic shopping.
If you like living in Scottsdale, I’m sure you could add to my list. Email me with your suggestions and I’ll include them. Don’t forget to let me know if I can use your name.If you visited the Money magazine website you may have noted that several of the blog comments were negative. Let me state for the record that as a real estate consultant specializing in Scottsdale, I have met mostly wonderful people who I would love to have as my neighbors. In any city, especially one that offers a high standard of living, there will always be those people who are too materialistic and too full of themselves that no one wants living next door. But as one blogger said, “we need to make our own reality”. My reality says: People are people and every city has all kinds. Scottsdale is a wonderful place to call home and I think Scottsdale is fortunate to have a diverse population of very friendly and authentic individuals from all over the country and world. Life is what we make it, right?
| Median Family Income | $84,747 |
| State Income Tax (highest bracket) | 5.04% |
| Job Growth (2000-2006) | 8.75% |
| Median Home Price | $370,000 |
| Home Price Gain (2004-2005) | 25.4% |
| Personal Crime Risk (100 is national average) | 52 |
For more Money magazine statistics click here
Scottsdale Luxury Home in a Small Package
Posted by: | CommentsNorth Scottsdale’s Hidden Hills Community Offers Luxury Homes With Easy Maintenance
Many boomers are looking to downsize from their 4000 – 6000 square foot luxury home in order to simplify their lives and perhaps do some traveling. This usually creates a significant challenge because those homeowners are used to luxury amenities that are often hard to find in smaller homes.
Hidden Hills in the east Shea Corridor of North Scottsdale is one of the few communities of newer homes that is a perfect fit for those who are looking for quality built homes with luxury amenities.
The Hidden Hills community is nestled at the base of the McDowell Mountains and offers spectacular mountain and city light views from many of the homesites. Production homes were built between 2001 and 2005 by Golden Heritage and are of superior construction and offer some of the most innovative floor plans I’ve seen in the Scottsdale and Phoenix metro area. The most popular models have private interior courtyards, great rooms and ensuite bathrooms. (floorplans will be posted next week).
Several sections of the community are gated. There are also 3 gated custom home neighborhoods within Hidden Hills.
Hidden Hills is located about 12 minutes from the 101 Loop with close proximity to the Scottsdale Mayo Clinic, Desert Mountain High School, Basis Scottsdale School, and adjacent to the McDowell Sonoran Preserve. Here is a link to the hiking trails map. Sunrise Trail starts right in the community of Hidden Hills. In addition, Rio Montana Neighborhood Park is at the corner of 130th Street and Via Linda.
Homes in Hidden Hills range from $650,000 to $1,200,000. Custom Homes range up to $2,500,000. Click here to see homes for sale in Hidden Hills.
March 2007 Home Sales Statistics for Scottsdale, Arizona and Phoenix Metro Area
Posted by: | Comments|
Real Estate Statistics show more homes are selling in Scottsdale, Arizona
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| If you are thinking of buying or selling a home in Scottsdale, Arizona, I’d like to offer you some good news for a change. But, to keep everything in its proper perspective, let’s take a look at the overall real estate statistics in the Scottsdale and Phoenix Metro area.
Home inventories in the Greater Phoenix Metro area are still high for a total of 48,811 homes for sale (condos not included). Although there were 5,479 homes that sold in the month of March, we are still left with an absorption rate of 8.9 months. “Absorption Rate” simply indicates the time it will take to sell the current inventory of homes based on the current rate of home sales. Obviously, this figure can change daily as more homes go on the market and the number of sales fluctuates. If you would like to sort through all the statistics, click here for more numbers Read More→ |