In my capacity as state representative for this district and along with my seat-mate Lela Alston, we were thrilled to nominate one of our favorite local retailers (and regular Phoestivus vendor) Practical Art (owner Lisa Olson) for the Retailer of the Year award from the Arizona Retailer’s Association.

Lisa has been a great asset to the community. Practical Art focuses on featuring the work of local Arizona artists.

I first met Lisa almost 10 years ago when we hosted one of our monthly Get Your PHX events at Practical Art Those events were designed to introduce folks to attractions, spaces and businesses that they might not have ever seen before. We wanted to support local businesses at a time when the economy was in the dumps, while giving folks in the community an insider’s view of these folks.

Lisa and Practical Art also gives back to the community by hosting Pie Nights and special exhibitions, which raise more than $10,000 per year for local charities.

At a time when people gravitate to purchasing gifts on line, Rep. Alston and I felt that it was crucial to support a business that really supports our community.

I made a point at the award ceremony, sponsored by Walmart, to make mention that every dollar you spend at a local business results in 30% more of your money going to the local economy and tax base. What can I say, we are proud members of Local First Arizona and I could not help myself!

The story behind how Lisa came to own Practical Art is particularly touching, as well. But I’d like to encourage you to read about that here and here.

Congratulations Lisa!

The Cromford Index shows who has the advantage and by how much. Seller advantage has been slipping since May.

We are fairly certain that the seller’s advantage in the market is slipping right now.

See this blog post from last month about the seller’s market and the Cromford Index for more information about.

It does not necessarily mean that houses will drop in price drastically. Frankly, we won’t know how permanent this change is until the end of January. It is very possible that buyers are staying away because they were watching the elections, the dropping stock market and the President’s trade wars.

However, because there is still a shortage of homes in CenPho, I don’t think any price drop will be too drastic –certainly not as much as it could be in the suburbs.

I’ve predicted a drop of between 5% and 7% over 2019, if the market drops at all.

However, if you are waiting to purchase because you’ve been hearing rumors of an over-heated market, you might want to consider this important point: you may lose any savings from a lower market when interest rates go up. See this article that I wrote a couple years ago on the issue.

And to be sure, the Federal Reserve is making strong noises that it will raise interest rates throughout 2019.

In short, if you purchase a $300,000 home today at 4.5% interest and 5% down, your P&I will be about $1,444, depending on the lender. If that home were listed at 5% less next summer ($285,000) but interest rates go up to 5.5% with 5% down, your P&I will be about $1,537! 

So, if you are waiting, you could end up paying more. If you get in now and make an aggressive offer while sellers are feeling the slow market you could save money and avoid the higher interest rates.

I happen to know a couple realtors who are really good at negotiating offers, by the way. Call us at 602-456-9388.