I ran in to some interesting items in the news recently that I thought I’d share. In some ways, they are more of action steps than anything else. If you find any of these compelling, take action.

1) More dirty air? No thanks!
I encourage you to take action right away to tell Salt River Project that they should not go through with plans to build an 840MW (that’s a lot, folks) new, air-polluting, water-wasting, methane gas-fired power plant. Learn more about it from former SRP board member, Paul Hirt, who is speaking out against it. This will add to bad air quality and will add more CO2 to the atmosphere at a time we should be ending use of CO2.

There are a few things to keep in mind here. First, the $1 BILLION price tag does not count the cost of gas fuel, pumped here from Texas, for the next few decades. Remember when methane gas prices jumped when Texas had bad weather? Gas is a volatile fuel in terms of price and its price will only go up as fewer people transition away toward clean renewable energy. Second, Pinal county, where this facility expansion is to take place, is restricting water use and shutting down farms. But somehow sucking millions of gallons up for dirty energy is okay? Third, the price of renewables and storage is coming down so quickly, that this plant will be an expensive stranded asset by the end of the decade, burning an expensive fuel, which SRP customers will continue to pay for. If you want to some easy action steps, have a look at this web link.

2) Bravery from a Local Politician
To celebrate US Constitution Day on September 17th, come see Maricopa County Recorder Stephen Richer speak about the election process. Richer is best known as the Republican election official who has stood up to conspiracy theorists in his own party, who have been weaving ever-increasingly absurd theories about how the 2020 election was stolen. Richer is the type of elected official who shows the backbone to stand up to people who are abusing our electoral process for personal or political gain. He will be speaking from noon to 1pm at Phoenix College Bulpitt Auditorium.

3) Understanding the Navajo and Hopi Perspective
Imagine you own a beautiful, big plot of land. It has a stream, trees and beautiful views. You notice over just a few years that your stream has dried up, the vegetation looks sad and you can’t feed your animals on it anymore. This is what happened to Navajo and Hopi people over just a few decades of coal mining and coal plant operations in their community — for coal plants that send power hundreds of miles away to Phoenix and Tucson. It is a very real thing to them, which we have heard little about. I’ve been captivated over the last year or so in this story and telling it.

This article in Time Magazine features a woman from the Navajo Nation who can speak to this reality and who has some sage advice for us as we all over the US begin to see the real damage from years of poor planning.

4) Electric Buses
In a similar way, here is an inspiring story about how parents of children with respiratory illnesses banded together to get their school district to purchase electric busses. Electric busses don’t have the pollution problems that diesel buses do and last much longer, with fewer maintenance costs. Here’s an action step. Support Chispa AZ, the group that supported the parents. Just inspiring to see.

Other than those 120 degree days in June, we’ve been lucky with our monsoons this summer. It means your September events will be a little more bearable if they are outside. It’s not that the days will be cooler, necessarily. But it means the summer has been broken up in to smaller, more survivable bits.

At least, that’s how I get through the summer.

Now, on to our curated list of things we think look pretty fun.

The 2021 Edible Backyard Summit will be September 14th-16th. Imagine growing healthy, rich food in your own back yard, free from pesticides while creating a peaceful space for yourself. I do some gardening, but I am certain I would benefit from this annual summit. Register at the Urban Farm website for more information and prices.

The 2021 Historic Preservation Conference is coming up October 27th-29th at the Doubletree in Tempe. See this registration page for both the Historic Preservation Conference (HPC) and the Site Steward Program’s (SSP) Annual Conference. In the past, both conferences would occur at different times and locations. Now that the SSP is under the SHPO Office, we decided to bring both conferences closer together.

Drop by Build It at the Arizona Science Center. Walk through the giant cardboard castle into a world that’s waiting to be built with nothing but your wild imagination and engineering skills. Practice the principles of innovating, designing, and constructing at this engaging exhibition. From buildings to bridges (and everything in between), Guests will be able to create their own unique experience. Build the ultimate cardboard fort, design sturdy bridges, or even create your dream house—it’s completely up to you and your wild imagination. $5 plus general admission. Daily.

Get a little Wine Education at the Hidden Track Bottle Shop, September 8th from 2pm to 6pm. I’m one of those people who will happily tag along if you wanna go wine tasting. But I won’t pretend to know anything about wine. If you are like me, this may be for you. Hidden Track will feature two to four wines during education hours and will allow up to six customers into the shop at a time. This will be a maximum of a 10-minute experience, during which they will discuss the wine, region, winemaking, varietal, etc. $5. The $5 can be put towards a purchase of anything in the shop and credited as a $5 discount for any purchase of $10 or more. How much can you learn in ten minutes, though?

Try this High Vibration Gong Sound Journey Meditation. Sounds hippy dippy to you? I can see how it might. But if you’ve never tried this, it’s worth it. Healing can be achieved through gentle, natural methods such as sound and vibration. Ancient civilization and Eastern Cultures have been utilizing some of these methods for centuries, such as Sound Healing or Vibration Medicine. $30 at the Japanese Friendship Garden on September 19th at 8:45 am.

When I saw “Lerner & Loewe’s Camelot” announced for September 15th at the Phoenix Theatre, I thought of the discount trial lawyers, frankly. Different people. Shows what I know. In actuality, this is an epic story of love and betrayal, freshly reimagined, with nothing to do with suing your doctor for malpractice or whatever those other guys do. The legendary love triangle of King Arthur, Guenevere and Sir Lancelot leaps from the pages of T.H. White’s novel in Lerner and Loewe’s award-winning, soaring musical. This small cast version is ideally scaled for the more intimate theatrical experience of the Mainstage Theatre. $44 – $94.

Take the kids to see Red Herring perform their rhymed version of the classic Aesop’s Fables at the Great Arizona Puppet Theater with original music and large tabletop puppets. These timeless stories address bullying, selfishness, competition, ingenuity, and the affirmation that little beings can achieve great things. Each performance includes The Lion and the Mouse, The Tortoise and the Hare, The Owl and the Grasshopper, The Fox and the Crow, The Crow and the Pitcher, and The Stork and the Fox. This production has earned an UNIMA citation of Excellence – the highest honor in American puppetry. $8 – $12.

And for even more ideas for September, check out this poster from our friends at Old Republic Title Company.

I’m saying this as a realtor who has helped clients buy and sell properties that they use for short term rental (STR) investments: it’s long past time for us to reform STR laws.

When I was a legislator in 2016, I even voted for the law that centralized STR rules at the state level, created a structure for taxation and restricted how localities could make their own laws.

I regret that vote. At the time, I thought it was a good thing that regular people had an opportunity to make money renting out rooms in their own property and I had little concern that the Hiltons and Marriots of the world would have to forego that new yacht purchase as a result of regular people making money for a change.

I also remember at the time predicting that we would need to re-visit the new law to update it and adapt it with the times.

This is where we must squarely put the blame on Governor Ducey. I even agree with some of the most conservative members of the legislature who attempted to pass laws since then to allow localities more power to restrict STRs.

Never did I expect that the governor would resist the will of the voters, neighborhood leaders and housing experts.

Let’s review the damage that STRs have done:

1) Fewer Homes Means Higher Prices. The most damaging affect has been that STRs remove homes from the market so that families have fewer choices. Over the last decade purchases of STRs (and residential homes being turned in to long term rentals) have shrunk the over-all supply of homes to the tune of millions of homes.

Most homes come back on the market every 7-10 years. So, when you take a big chunk out of the inventory over the course of a few years, the price of the remaining homes goes up. People can’t afford to purchase a home. Older people who want to downsize don’t sell because they fear they won’t be able to afford a smaller home for what they paid for their larger home.

Let me say this as clearly as I can. Much of the housing crisis in America right now rests squarely STR investors. Millions of homes are no longer available for people because they are being used for commercial businesses. We can also look to the investors after the crash of 2008 who were buying homes 100 at a time to turn in to rental properties.

2) Damage to Neighborhoods. Healthy neighborhoods stay healthy when people know each other and respect each other. When upwards of a third of the homes in some neighborhoods are turned in to STRs, the health of the neighborhood is undermined. We’ve all heard about the parties and harm to peace and quiet. This has been particularly acute in historic neighborhoods. For an entire generation, people have been working to preserve historic homes only to find STR investors coming in with no respect for the historic beauty of the neighborhood.

3) Neighborhoods are not Commercial Zones. Have a look at this map of Sedona from 2019. This was presented to the city council and showed how many vacation rentals have been located in Sedona. According to Sedona Assistant City Manager Karen Osburn, “We never anticipated at the Capitol that someone would go into a neighbor­hood, purchase a home and basically turn it into a mini-hotel. So that’s the chal­lenge. You have a home that’s basically purchased as a business but you don’t have someone living on site, and managing it, I think you have a problem.”

4) Who is hurt the most? I spoke with a potential client once who was from Spain. He told me how the STRs in the middle of Madrid changed the entire town. The cute little corner shops nearly all closed down because the people who lived full time in those areas moved out. There was nobody left to buy groceries eery week. Similarly, when whole sections of town, which were previously affordable, are no longer affordable, the working population must move further our, or to less desirable housing.

5) Price escalation. The math is simple. The STR investor can pay quite a bit more for a home because they are making a lot of money from rentals. So, they drive prices up and families are left out –sometimes literally outside.

Have a look at this great open letter to the owners of AirBnB. As the author points out, the creator of AirBnB originally started the app because they needed a way to find people rent out a room in their expensive apartments in San Francisco. The app has moved away from just renting rooms and now has exacerbated the very problem that the founders of the company attempted to remedy.

I’m not judging, folks. I’ve use AirBnB and I’m going to re-think that.

Further, I understand the excitement of investing in a property that makes a lot of money for you and your family.

We are duty bound to work for our clients. If they want to purchase a home as an investment, we will work for them. But from here on, I will attempt to educate them about the damage that STRs do to neighborhoods and families.

I can recommend, perhaps investing instead in the growing renewable energy and battery technology industries. That’s growing and will help more than it hurts.

To be fair, I’m calling them “September Sales”, even though two closed in August and one will close at the beginning of September.

But, alliteration is always more fun than accuracy.

As usual, keep an eye on our live listings page to see all updates.

First, though, I want to reiterate our warning about “ibuyer” companies or investors who approach you with offers that seem too good to be true. An agent who promises to sell your home for a 1% commission most likely does not give you the quality of work that you deserve, or pushed most of the work off on you.

You may not be protected by an agent on your side who will protect your interests. That is our fiduciary responsibility to you. Investors don’t have that responsibility.

Sales

1) We sold this 2br/1ba, 1,008sf property, located at about 3rd Ave and Camelback, in just a couple weeks to a family with ties to the neighborhood who plan to renovate the property for themselves. The property sold for just under $400,000.

We expect this one to go quickly. The final list price has not yet been announced, but expect it to come on right around $400,000 later this week. The previous owner is an architect, who already prepared plans for an addition off the back of the property, to add a room and a bathroom.

The back yard also backs up to an abandoned alley. So all the new owner has to do is petition the city to claim half of that abandoned alley and they will add valuable square footage to the back yard –maybe enough for a guest house.

2) We went quickly under contract on a four-bedroom, 2 bath 1,858sf investment property with a pool in Tempe, which was beautifully renovated just a few years ago.

The seller had prepared the property to sell either to investors or buyers who wanted to a plug-and-play (or is that plug-and-live?) property.

Since purchase, the owners have made over $58,000 in improvements, including new exterior siding, pool resurfacing, pool heater and automation, panel installation , replacement of old Orangeburg sewer line, new washer and dryer, new pool pump and back yard landscaping with high quality turf installation. They have also added over $55,000 worth of home furnishings and accessories.

3) In mid-Augusts, we also closed on this 900sf 2br/2ba condo, across from all the great restaurants at Montebello and 7th St. This property went under contract quickly and above list price. It is nearly impossible to find a property at this price in this market, located next to so many great uptown restaurants and shopping. This shady condo community is stable and well-managed. The property has been partially updated with new flooring and paint, so you can make it your own.

If you have specific questions about these properties, please contact us at 602-456-9388.

Donna Reiner, a local historian and a good friend of Get Your PHX, has written many articles over the years for the Arizona Republic and others about Phoenix history and memorials.  This month, Donna tells us about the time that famous architect Ralph Haver saved some historic columns from demolition and incorporated them in to his building.

Do you have a favorite building here in Phoenix?  Or do you just love a certain part of a building? Now imagine that you learned it was to be demolished. What would you do?

That dilemma faced Ralph Haver, a well-known local architect in 1960. He had long admired a particular feature of the Lescher and Mahoney 1927-designed St. Joseph’s Hospital located on Fourth Street between Polk and Taylor. In that fateful year, Haver learned that the old hospital building was to be razed as it was no longer needed and the property had been sold. A new and larger St. Joseph’s Hospital complex had already opened on the north side of Thomas Road near Third Avenue in 1953.

Haver quickly set out to purchase twelve of the Solomonic columns that supported the arcade on the third floor of the building. Those magnificent twisted columns soon became his, but now what to do with them?

Haver’s name may be quite familiar to many valley residents, especially if you are fortunate to own or live in one of his homes. But he also designed a number of significant commercial buildings (think the former Arizona Bank that is now The Vig). Twice Haver tried to include these columns as an element of a new project. But both projects never materialized. So, he finally settled on a means to use these beloved pieces: design a building for his architectural firm.

And thus the new home for Haver and Associates came to be located at 1133 E. Missouri. It may seem odd to construct what we now label a midcentury modern two-story office building that features columns from a 1927 building; but Haver did just that.

These columns are definitely a noticeable feature on the two sides of the lower level and seemingly supporting the walkway of the second floor. You will see them much better if you are driving east on Missouri.

Haver compensated for the short stature of the columns by mounting them on a base and having them brace open beams. In a quirky way, this design works. In the long run, it’s nice to know that at least one person appreciated a piece of Phoenix’s architectural history enough to purchase items that most likely would have become rubble.

Today this building is the home of the Phoenix Boys Choir.

There is hope in our efforts to protect humanity against the damage it has caused to itself and to the planet. What does this have to do with real estate?

Well, if you are a regular reader of this newsletter, you know that I draw a direct connection between the future value of your home in Arizona, in particular, and how quickly we stop pouring carbon in to the atmosphere.

There are two rays of hope that I’d like to share with you.

New report indicates accelerated adoption of renewables.

I’m a big fan of this super-nerdy, quintessentially British YouTube channel called “Just have a think.”

You kinda have to say that channel title to yourself with an English accent to feel the full “Britishness” of it. Like, “just have a think about this detailed description of the difference between lithium-ion batteries and fuel cells while you chomp on some fish and chips and sip on a room temperature Bass Ale.”

In any case, the report that the host talks about is the most hopeful take on renewables that I’ve seen in a while. It takes on the issue of clean technology from the standpoint of disruptive technologies. Specifically, he considered how quickly other disruptive technologies throughout history took over the market once they hit a saturation point, such as cars and smart phones.

The report shows how much more quickly prices dropped for solar and wind over the last 10 years than ever predicted, and how batteries are not far behind. They believe that we could reach 90% carbon reduction by 2035.

It’s worth a look, especially if you are feeling blue about the rate of our current efforts.

Now, for those of you who might say, “See? We just needed to leave the markets to themselves and it all would have been fine.” Not true, we needed utility commissions and governments to lead the way in adopting these technologies to give the boosts to the industries, and, thus, the economies of scale.

Organizing to pass the Build Back Better Plan

A bunch of folks who were organizing in support of clean energy in 2020 are bringing the band back together to organize to educate decision makers about the importance of the Build Back Better Plan in congress. We have put together an Arizona chapter of the Clean Energy for America effort.

This plan is essential, both for clean energy but for infrastructure and new economy jobs. It incentivizes essential growth in clean energy production, electric vehicle adoption and reduction of methane gas use.

Here’s the hard truth. Because of climate change denial and the muscle of the fossil fuel industry, we are a solid 20 years behind where we could have been had we taken this seriously when we first learned about it. Very little of the technology in this plan is new or something we would not have adopted had we invested in R&D in 2001.

But, looking forward, Arizona is central to passing this act. So, please join us as we write letters to the editor, call our members of congress and educate them about the importance of a clean energy future.

Our list of August events comes to you after some cooling rains in July and the hope for a few more while we wait for the next two months for that first moment one early morning when you feel a wisp of cool(ish) air foretelling the coming of the end of summer.

Enjoy

Pop! The Science of Bubbles is the Arizona Science Center’s latest exhibition. It will have the whole family bursting with excitement as they learn about concepts like color, elasticity, surface tension, chemistry, and even geometry. Come make some bubbles (and memories) in a newly-reimagined outdoor space. Cost is about $20.

First Friday is a thing, in case you forgot over the last year and a half. And it’s still wonderful. But I wanted to point out that the Phoenix Art Museum celebrates First Friday this Friday, with voluntary-donation hours for general admission and reduced rates to view special-engagement exhibitions. Consider making a donation to support your Museum and this free-access time for our community. The Heard Museum also has free admissions on First Friday. So, stroll on up –or down, depending on where you start, I guess.

Jazzy Brunch is a recently new feature at El Charro Hipster Bar & Cafe Restaurant. I don’t know if you’ve been to Grand Ave recently, but it is absolutely hopping. It kinda reminds me of what Roosevelt Row used to be like, before all the monolithic apartment buildings came in and turned it into Roosevelt Canyon.

Some Nudity Required is a film about the world of low budget films where unscrupulous film makers try and get female actresses to appear in the nude. To be honest, I’m sharing this event with you not so much based on the topic of the film and more as a reminder that Film Bar survived and you can see movies there again! But I got you with the title, huh? Regardless, watch for it August 8th.

Local First Arizona is hosting an event called How to Strengthen The Links in Your Supply Chain on August 11th. The pandemic revealed the weaknesses in supply chains (e.g., milk and produce delivery) of which most of us were not aware. Local First Arizona’s CEO Thomas Barr will join Tempe Mayor Corey Woods, and other business and government leaders in providing information and recommendations. There are a limited number of in-person tickets for the event, so follow the link above to sign up.

Rapunzel will be at the Great Arizona Puppet Theatre on August 19th. An enchanting version of “Rapunzel” magically unfolds from an antique trunk. This beautiful tale is based on the original story The Brothers Grimm and is recommended for ages 5 and up. $8 – $12.

Neko Case spent many years entertaining in Arizona. Specifically, Tucson –way before Phoenix had the music scene that it does today. I have a friend who will tell you, with very little prompting at all, about how she stayed on his couch one night. So, in honor of his story, I figured I’d share that she will be at the Van Buren on August 22nd.

The Wrigley Mansion Wine Festival is new to me, so I figured I’d share. The Wrigley Mansion is that impressive home on top of a protruding hill, right next to the Biltmore Resort. If you’ve not been in there, it is worth a visit. Plus the history and the tie to the gum-making family is interesting. Funny, though. While it is a mansion, it speaks volumes that it seems to a fraction of the size of mansions we see today –even some McMansions. Not sure what that says about what it means to be rich these days. But worth a thought.

For more, see this handy calendar prepared for us by my friend Cynthia at Old Republic Title.

Our August listings and solds remain strong. As usual, keep an eye on our live listings page to see all updates.

There are so few listings out there that agents are scrambling to pick up sellers. We have listings now because we have a proven track record of working hard for our clients’ interests. That’s a true measure of value.

Beware of offers to sell your property that seem too good to be true. An agent who promises to sell your home for a 1% commission most likely does not give you the quality of work that you deserve, or pushed most of the work off on you.

Beware of “ibuyer” firms that offer to sell your house quickly for cash. You will not be protected by an agent on your side who will make certain you are not provided with price data that undervalues your property, or that will fight against unreasonable inspection requests, or any number of tricks that these companies play on unsuspecting sellers.

Coming up…

Coming this week is a 2br/1ba, 1,008sf property with a beautiful pool. This property is located at about 3rd Ave and Camelback –so within stone’s throw of a whole array of some of the most interesting restaurants, stores and coffee shops in Central Phoenix.

We expect this one to go quickly. The final list price has not yet been announced, but expect it to come on right around $400,000 later this week. The current owner is an architect, who has already prepared plans for an addition off the back of the property, to add a room and a bathroom.

The back yard also backs up to an abandoned alley. So all the owner has to do is petition the city to claim half of that abandoned alley and they will add valuable square footage to the back yard –maybe enough for a guest house.

This is the first of our August listings. So, stay tuned for more.

Sold

We went quickly under contract on a four-bedroom, 2 bath 1,858sf investment property with a pool in Tempe, which was beautifully renovated just a few years ago.

The seller had prepared the property to sell either to investors or buyers who wanted to a plug-and-play (or is that plug-and-live?) property.

Since purchase, the owners have made over $58,000 in improvements, including new exterior siding, pool resurfacing, pool heater and automation, panel installation , replacement of old Orangeburg sewer line, new washer and dryer, new pool pump and back yard landscaping with high quality turf installation. They have also added over $55,000 worth of home furnishings and accessories.

We just closed on this 900sf 2br/2ba condo, across from all the great restaurants at Montebello and 7th St. This property went under contract quickly and above list price. It is nearly impossible to find a property at this price in this market, located next to so many great uptown restaurants and shopping. This shady condo community is stable and well-managed. The property has been partially updated with new flooring and paint, so you can make it your own.

If you have specific questions about these properties, please contact us at 602-456-9388.

The August Shortage Update is showing things getting a little better. Not a lot better. More like “better” in how the new Suicide Squad sequel will certainly be better than the first soggy rag of a movie that the first one was.

To put that in real estate terms, watch how the Cromford Index is dropping right now. That’s an indication that the sellers’ advantage is shifting.

Cromford Report eggheads, take it from there…

“Here are the basics – the ARMLS numbers for August 1, 2021 compared with August 1, 2020 for all areas & types:

• Active Listings (excluding UCB & CCBS): 7,105 versus 8,477 last year – down 16.2% – but up 24.7% from 5,699 last month
• Monthly Average Sales Price per Sq. Ft.: $250.93 versus $191.21 last year – up 31.2% – but down 0.5% from $252.15 last month
• Monthly Median Sales Price: $400,000 versus $315,000 last year – up 27.0% – and up 0.8% from $397,000 last month

Supply continues to move higher. We would usually consider a 24.7% increase in one month to be an exceptional growth rate. However, we are rising from a very low point and the number of active listings without a contract is still down 75% from what would be considered normal. We are witnessing new listings arrive at a faster rate than we usually see at this time of year, especially those priced between $400,000 and $1 million. This is helping buyers, but there are still far more buyers than homes for sale.”

My “normal person language” interjection here for the August Shortage report: If you have been thinking of selling, do it now before a bunch of houses come on later this year to compete with you.

To continue with our Cromford Analysis…

“I still read articles describing demand as exceptionally strong. This is absurd. Demand is only slightly above normal and has been getting weaker over the last several months. This is obvious both from the pending and under contract counts (down compared with last month and last year). and from the monthly sales counts (down compared with last month and last year). If demand were strong, then all these numbers should be responding to the increase in supply. They are not.

The large majority of market commentators have not grasped that demand is not the issue. Interest rates are not the issue either. Everything today is about supply. Even after a rise of almost 25% there is nowhere near enough supply to take the stress out of the market.

Demand has changed its make-up since the start of the year. Owner-occupiers are down, while second-home buyers are up, particularly those from out-of-state. Also more active are iBuyers and all types of investors, with fix and flip and buy-to-rent investors filling the gap left by owner occupiers. Many buy-to-rent operators are buying from each other, and a few are building neighborhoods entirely for rent. This practice started in Phoenix in 2012 and the original local company that built the first rental neighborhood in Gilbert has just sold it complete to one of the large institutions. The build-to-rent business does not affect our numbers since the entire neighborhood is owned by a single company and the homes are never listed for sale. It is similar to the multi-family apartment block market. The only difference is that the homes are physically more separated from one another, an attractive benefit during a pandemic.”

Gonna interject here again with my August Shortage Update perspective and tell you, “I’ve been saying this for a while. The combination of rental buying companies, individual rental investors and short-term rental buyers have crowded out regular buyers and have driven prices up. Not sure how this ends.”

Cromford continues…

“Over the last year, prices have not been rising because of strong demand or low interest rate, as often stated by the media. They have been rising because of extremely poor supply. Buyers do not pay more for a home because they can. They pay more because they have to. Multiple bids make them pay more, unless they drop out. Low interest rates merely allow them to compete. If there were more homes for sale, they would get the home for less than the asking price. During July the average buyer had to pay 1.4% over the asking price.

New home builders currently experience elevated demand because so many buyers have given up on trying to find a re-sale property. But the demand they perceive is due to the low supply of re-sale homes, not some unusual build up of buyer demand. The new and re-sale markets are not really separate because almost every buyer can switch from one to the other based on personal decisions. Buyers are spilling over to the new home market that would normally have chosen a resale home.

The market remains hot but has been cooling for 4 months now and this is reflected in a large array of measurements. For example:

• In June, buyers were paying 1.8% more than list price on average, well above the current 1.4%
• The listing success rate is down to 89.3%, having peaked at 93.1% in May
• The contract ratio is down to 155, having reached 332 in March

Prices have been leveling off over the past month. This is consistent with the seasonal trend that weakens prices during the third quarter in most years. It is caused a by a slowdown in high end sales during the hottest months (May through September) We did not see that effect last year because of the lock-down, but this year we expect 3Q to be nothing like the explosive 2Q. There is still no long-term downward pressure on prices and this pressure is unlikely to emerge until supply rises much higher than current levels.”

I know this August Shortage Update has been a lot longer than I usually write these. But there is a lot of nuance that the regular media is missing.

Give us a call at 602-456-9388 if you are making plans to buy or sell. We can help build the best strategy.

Donna Reiner, a local historian and a good friend of Get Your PHX, has written many articles over the years for the Arizona Republic and others about Phoenix history and memorials.  This month, Donna tells us about some of the distinct hidden gems that you can find if you look among all of the warehouses and tall buildings downtown –still standing like that little house with balloons in the movie Up!.

Perkins’ and Coble’s real estate ad promoted buying unimproved and improved lots in Montgomery Addition in 1890. The Montgomery Addition, located between 7^th Avenue and Central, and Harrison and Apache, was one of the larger parcels subdivided at the time. It is also one place where we can still find those hidden gems of Phoenix history from the pre-1900 and circa 1900 era.

While long time valley residents lament the loss of historic, or at least very old buildings, Phoenix is losing even the “newer” post-WWII structures. So, finding clusters of our older buildings is an adventure and certainly provides a lesson in the growth and development of Phoenix since its inception.

But we should remember that over time certain styles have fallen out of favor and many people, ages ago and now, often prefer something shiny and new. It’s the “out with the old and in with the new” and not everyone was or is going to be happy with that attitude.

The late 1800s are notable for the Victorian style of architecture and all its quirks, gingerbread ornamentation, and tower rooms. The most common types of this architecture are classified as Queen Ann (like the Evans House at 1100 West Washington), Eastlake (like the Rosson House in Historic Heritage Square), and Shingle (like the Smurthwaite House at 1317 West Jefferson).

Some of the key homes from this turn of the 19^th Century still reside on South First Avenue starting in the 700 block. Look for the Queen Ann/Neo-Colonial Revival style in the E.S. Turner House at 704 South First Avenue. 818 South First Avenue is much simpler, but still a “grand” vernacular, once a common type in Phoenix.

But near the end of the 19^th Century, changes had already started with a movement away from these fanciful Victorian styles or a combination of styles.

The vernacular designs have certain elements of what one might have found on the East Coast. The brick house M.C. Sharp built for Ernest Howard in 1903 at 1012 South First Avenue is a delightful example with its gable roof and the long side of the house facing the street. A rather simple version of a cottage. Across the street at 1009 South First Avenue was M.C. Sharp’s brother’s house. W.J. Sharp had his Queen Ann/Neo-Colonial Revival house built c. 1899. While this house looks good from the street, unfortunately it has lost a lot of its Victorian accoutrements in the past 20 years.

Today Phoenix has less than 50 buildings built prior to 1900 with a remarkable portion in Montgomery Addition. We need to be careful not to lose any more.