For the September 2017 Market Update, we check in again with Tina at the Cromford Report.
“Supply remains lower than last year, but the gap closed slightly compared with last month in terms of active listings with no contract. We are starting to see more new listings than last year. The third quarter is up 2.5% from last year and up 5.5% from 2015. So far the extra supply is not having much effect, but if it continues for several months finding a property could start to get a little easier for buyers.
The monthly sales rate is up only 1.8% compared with a year ago. Both August 2016 and August 2017 had the same number of working days (23) so we have a fair comparison to draw. Since the year over year growth was 5.7% in June and 3.0% in July we again see a continuing slow downward trend in the advantage that 2017 has over 2016 in sales volume. Growth in the annual sales rate has almost stopped with 95,000 proving to be a difficult line of resistance. All these point to a gradual fading of demand. The serious shortage of supply obscures that fade.
We experienced a seasonal price drop between June and July, but prices have already bounced back during August and are likely to remain on an upward track for the rest of 2017 at least.
We still have a seller’s market in most locations and price ranges, but the current trends means the seller’s advantage has very little momentum. Before buyer`s get too excited, the trends are very mild in nature. As such we do not currently see major increases in buyer’s bargaining power coming anytime soon.
Of course, the market could change quickly, as it did in the summer of 2013, but there is not much sign of this in any of the numbers at the moment.”
Anecdotally, we are seeing a huge number of renovation project that seem to dominate the market. I would go so far as to say that they are probably driving prices upward, as the investors are seeking high profit margins and buyers are willing to pay, given a lack of options in CenPho.
In a way some renovations are sad for the historic neighborhoods. I’ve heard many concerns from neighbors that the renovators are taking this historic souls right out of the homes –turning them in to trendy replications of an Anthropology clothing store.
If you are thinking of purchasing a renovated property, please be certain to have a realtor represent you, even if its not us. Many people don’t know that renovators are still responsible for disclosing the condition of the property, even if they claim they never lived in it. You need an agent to protect your interests.
Call us and we can give you more details at 602-456-9388.
I’m calling this post the Get Your PHX Find for September 2017. I like this idea. Maybe I’ll do it more often –its an excuse to eat tasty food and they write about it.
I’m not sure that I’ll find a great new spot like this every month, but I’ve got one for this month!
Actually, I’ve been meaning to tell you about this Get Your PHX Find for a few months. Novel Ice Cream impressed me right away. Not only are they serving unique and well-made ice cream downtown, but they regularly have lines –despite having done NO advertising!
For the past six months Novel Ice Cream has been serving up ice cream stuffed donuts in the form of their signature Dough Melts from a little red cottage in the Grand Avenue Arts District. Boasting 12 unique flavors of small batch handcrafted artisan ice creams, retro cereal toppings, and craft glass bottle sodas by local supplier Pop the Soda Shop, all served in a colorful and quirky space featuring mural art by local artist Joe Gonzalez. Given its fun and decidedly different take on a dessert staple, Novel isn’t your typical ice cream spot… which is exactly why it fits in perfectly among the buildings on Grand canvassed in some of the most unique art in Phoenix.
Since opening in March, Novel has experienced firsthand our city’s love for the homegrown small businesses that are shaping local food and art culture by bringing high quality, unique items to Phoenix’s burgeoning food scene. This positive reception culminated in Novel being named the 13th Best Ice Cream Sandwich Shop in America by BuzzFeed and Yelp in July.
Owner/operators Brandon and Jennifer Douglas love the fact that Novel not only serves as an outlet for sharing their obsession with ice cream, donuts, cereal, and soda with their customers, but also love that their shop continues to bring people from all over the metro area (and all over the state) to Historic Grand. In addition to Novel, the Grand Avenue Historic district is home to several other well established and unquestionably unique food stops such as ThirdSpace, Grand Avenue Pizza, and Treehouse Bakery. All of which have embraced the community’s well known art-centric history. Many believe the recent influx of creative start ups making the downtown section of Grand Avenue their home mean it is primed to continue its path to becoming a major hub for exceptional food and art culture in our state.
Novel Ice Cream is located at 1028 Grand Ave #6 on the Southwest corner of 11th Ave. and Grand in the Red Cottage behind ThirdSpace. Their hours are Tuesday-Thursday 12pm-10pm, Friday & Saturday 12pm-1am, and Sundays 12pm-5pm, Closed on Mondays.
So, I encourage you to try out the Get Your PHX Find for September. I’m a fan. You’ll probably see me there, too.
If you have ideas for the next Get Your PHX Find, let me know.
Here’s your Green Cleaning Tip for August 2017 from Going GreenHouse.
Indoor air pollutants such as: dust mites, mold, pet dander, hair, secondhand smoke and common household cleaning products, can trigger asthma and other allergy symptoms. However, by using “green” cleaning products and processes, you can reduce the affects that pollutants have on allergies and asthma symptoms in your home.
The American Lung Association states that many standard cleaning products contain dangerous chemicals, such as volatile organic compounds (VOCs). These VOCs have been linked to occupational asthma and other respiratory illnesses, and can be found in cleaning products such as: bleach, ammonia, floor cleaners, bathroom and tile cleaners, air fresheners, polishes and more!
Not only are green cleaning products better for our environment, but they can also help reduce triggers that may worsen your symptoms. Below are a few examples of how you can keep your home green and free of allergens.
In your kitchen:
Baking soda is going to be your best option for a cheap, all-purpose, green cleaning solution. It is best to break down your cleanings and keep a regular cleaning schedule. Each week, floors should be mopped, and cabinets and appliances should be wiped free of dust and build up. Seasonally, wipe down the inside of your fridge/freezer as well as the inside of utensil drawers. In order to prevent moisture and fumes in your kitchen, remember to use exhaust fans while cooking and keep all food in sealed containers, making sure to dispose of expired and moldy food.
In your Living Areas:
Many living areas consist of bookshelves, tables, and little knickknacks. Be sure that these items are being dusted regularly with a microfiber rag, which will trap and remove dust without sending it in to the air.
In your Bedroom:
Dust mites are your bedrooms worst culprit. Do your bedroom a favor and invest in dust mite-proof covers for pillows, mattresses, and box springs. In addition, be sure to wash your bedding and blankets regularly (recommended once a week) in at least 130 degree water, in order to kill dust mites and remove allergens.
In your Bathrooms:
Start by making your own green cleaning solution of either 50/50 water and vinegar mix or baking soda and water paste. Bathrooms see their fair share of moisture. You can help control the amount of moisture in your bathroom by using an exhaust fan to eliminate moisture/steam and reduce fumes caused by aerosol sprays, such as hairspray and bathroom deodorizers. You may also reduce moisture retention by eliminating the use of carpeting in bathrooms and opting for wood, laminate, or tile.
Maintaining a green and clean home may seem like a daunting task, but when broken down into a weekly routine you may find it to be quite manageable. If not, your friends at Going GreenHouse are happy to help. Green cleaning is what we do best!
Thanks again to Phoenix urban gardening guru, Greg Peterson, here’s your urban gardening tip for August. This time, its about composting –whether you want to do it with the help of chickens or a tall pile of compost is up to you.
But, before we re-print excerpts from Greg’s article, which you can see in full at this link, I want to share my old video from about ten years ago. In the video, I reviewed the types of composters that I built back then while I showed off my terrible taste in clothing.
None of the composters, of course, are as successful as Greg’s. But, they were fun to build and I learned a lot. Currently I use a two-step box method, which has two open boxes that I can use to mix the composted materials back and forth in to keep it all aerated.
Here’s a few things Greg has to say on the topic:
Most of the time the heat and desert soils seem to consume organic material faster than we can add it. Building healthy soil by adding compost is the key to growing healthy plants…
Start by looking at the amount of organic material that you have to compost. If all you have are your kitchen scraps, traditional composting may not be your answer, as it requires a lot of organic material, which the typical homeowner generally does not have. Do not fret however, as there are several other ways to “compost” that are much simpler and still accomplish the same results.
My favorite way of noncomposting is to feed it to the chickens. I know, your first reaction is “I can’t keep chickens in my yard.” Now I am not talking about roosters, just hens and they are very easy to keep, are effective at weeding and controlling bugs, they eat your kitchen and yard scraps, provide lots of great compost material, and give you the added bonus of the occasional egg or two for your breakfast enjoyment. (See the full article for tips on owning chickens.)
Now if you aren’t quite up for keeping chickens, you might try worms, which are much more innocuous. They do their own kind of digging, provide their own kind of manure and do a really good job of munching on your kitchen scraps. They are as easy to keep as putting a bucket under your sink with some shredded newspapers and worms. Or, you can add an old bathtub in some corner of your yard and vermicompost away (the fancy word for worm composting).
One of my favorite methods of noncomposting is called lasagna gardening. It is a process by which you build the soil in your garden and compost at the same time. The name says it all. Start by putting down a layer of dry material usually 1 to 3 inches deep. I like using dried leaves, hay or straw. Then add a layer of manure to facilitate the slow composting, then another layer of dry material and manure. You can add layers to your heart’s content and if you want to plant right away, dig a little hole, add some soil and plant. Over the course of a few months the layers break down and create awesome slow-cooked composted soil. The added bonus, is that you can take your kitchen scraps and tuck them into the lasagna garden and let nature take over.
Now if you still want to take a stab at traditional composting, the first thing to know is that you need a critical mass of organic material in order for the compost process to begin. The minimum size for effective composting is a cube of material 4 x 4 x 4 feet. The organic material used needs to consist of approximately 25% green/nitrogen such as manure, kitchen scraps and green grass clippings and 75% dry/carbon such as dried leaves, hay and chicken yard litter. Next you need to build the pile by thoroughly mixing your items, making sure they are fluffed appropriately so the pile can breath. Then add just enough water so that when you squeeze the wet material like a sponge a little water comes out. Add water once a week and watch the compost happen. A great item to use for building the compost holder is old pallets. Wire three of them together in a “U” shape and add a fourth on the front to hold it all in. This makes harvesting it easy when it is done, as all you have to do is unwire the pallets and use the compost.
The composting process works when bacteria eat the organic material in the pile. This causes heat (and boy does it get hot, up to 160 degrees). As the bacteria eat the compost, the pile shrinks, up to 50% in just a few weeks. After about six weeks the temperature drops dramatically and the pile needs to be turned and watered and the process starts again. Turn the pile one more time and let it sit for an additional six weeks and you will have wonderful compost. As a general rule the smaller and more uniform the pieces of material going into the pile the faster the compost will cook.
One of the most abundant materials to use in composting as well as in my noncomposting examples is leaves, which fall abundantly in most neighborhoods. Alfalfa hay is high in nitrogen and is another great material to use in your composting and lasagna gardening. When using kitchen scraps I suggest only using vegetable matter as dairy and meat products don’t seem to break down as readily and can attract pests.
Noncomposting is easy it just takes some work to get it set up and running. At the Urban Farm composting happens, with chickens, worms, lasagna gardening and composting. The fruits of our labor arrive in great tasting food that we harvest just about every day of the year. Using one or all of these methods just about guarantee you a great crop. Remember though, composting takes time as does raising a great garden. Be patient and compost away.
This article was written by Greg Peterson and originally published in Edible Phoenix Issue 2, Summer 2006.
If you need help finding the perfect urban property so that you can compost, raise chickens, garden and still make it downtown quickly for First Fridays, give us a call at 602-456-9388. We know all the best urban garden spots.
The Low Income Historic Housing Rehabilitation Program was created to encourage the repair and rehabilitation of historic residential properties providing housing opportunities for persons and families with low-incomes. The program funds critical building maintenance; structural stabilization work; repair and rehabilitation of historic exterior features such as roofs, walls, windows and doors.
All projects are required to meet city historic preservation guidelines, as well as the Secretary of the Interior’s Standards for the Treatment of Historic Properties. The city will pay 70 percent for eligible work when the 30 percent match is paid by a non-profit organization and for projects where matching funds are provided by an outside agency or other city assistance program. The city pays 80 percent for eligible exterior rehabilitation work on projects where individual grant recipients do not receive funding assistance from a non-profit organization, another agency or assistance program to cover the remaining costs.
The minimum request the city will consider is $3,000 and the maximum funding amount is $30,000. In exchange for receiving funding assistance, owners convey a conservation easement to the city for a period of 15 to 20 years depending on the funding amount.
If you are interested in obtaining the complete application packet about the housing rehabilitation program, which includes the application, program guide and preservation philosophy, call 602-261-8699 or download the packet items from the City of Phoenix website here.
If you need help finding a property that you can fix up and make your own using this grant, give us a call at 602-456-9388.
Here’s your Green Cleaning Tip for August 2017 from Going GreenHouse. Their focus is often on green cleaning products and how to green-ify your home. However, it is important not to forget one important element to cleaning… YOUR LAUNDRY! So, people have been using these laundry detergents for years- is it really THAT big of a deal? Well, let’s look a little deeper and let you decide for yourself…
Regular detergents contain chorine, phosphates, and other artificial additives that are dangerous to human health. Not to mention, the synthetic dyes and perfumes that can be harsh on your skin and cause allergic reactions and skin outbreaks. Chemicals found in conventional laundry detergent emit fumes that are constantly inhaled throughout the day. Breathing in chemical fumes, even at minute concentrations, may have damaging consequences on endocrinological and neurological health.
Further, we need to halt the damaging effects of phosphate– a common chemical added to detergent for its ability to enable the cleaning components of detergent to act, by preventing interference by the “hardness” of water (mineral ions). This chemical has done significant damage to our environment in last 40 years, mostly due to the poisonous effects on fish and the environment.
Enough with the “problems” what about a “solution”?
Here is where you do your part… for your sake, your family’s sake, and the environment’s sake, let’s make a change. What if we stayed free and clear of these harmful ingredients and switched to a more natural option? You can find natural/organic detergents at just about any grocery store these days, but if you are looking for a more resourceful option, try making your own at home. We even have a recipe for you!
Natural Laundry Soap:
One bar of Dr. Bronner’s Pure Castille Bar Soap (try lavender, tea tree, or peppermint)- grate in a food processor until finely ground
In a large bowl, mix 1 cup washing soda (find in the laundry section of your local store), 1 cup Borax, and 1 bar grated soap
Store in a closed container (like a 1 quart or half gallon mason jar).
Use 2 tablespoons to ¼ cup per load of laundry.
If your loads of laundry need an extra boost, try these helpful tips:
– Remove musty odors from fabrics by adding ¼ cup white vinegar to the wash cycle
– Revive dingy whites by adding about ½ cup of baking soda 0r ¼ cup white vinegar to each load
– Soften clothes by adding distilled white vinegar during the rinse cycle (try sing a fabric softener ball for easy dispensing)
– Pre-treat stubborn organic stains, such as yellow caused by sweat, with a paste of baking soda and water before washing
For the August 2017 Market Update, we are turning to look at the role of rentals on the sales market, with the help of Tina at the Cromford Report.
For those of you who own rental property, or who are deciding what to do with your rental property, this month’s analysis is particularly relevant.
Here’s the Cromford take on the August 2017 Market Update.
For Buyers:
Good news for buyers, listings for sale between $150K and $300K stopped declining over the past 4 weeks. This is good news because as the summer progresses, there are fewer buyers to compete with in the marketplace which offers a seasonal relief for those still willing to brave high temperatures and scalding door knobs to view homes. Supply is still extremely low, but this slight improvement gives as much relief as a hot breeze on a July afternoon. It’s not much, but it’s something. Meanwhile, luxury buyers may notice fewer properties to look at this summer as demand was higher during the Spring season and overall inventory has been dropping due to a higher number of closings and seasonal cancellations/expirations. Expect inventory in price ranges above $500K to continue declining seasonally until settling into a stagnant level in August and early-September.
For Sellers:
There has been a lot of talk about the increased production of luxury apartments and what impact they will have on the residential real estate market. One segment that is starting to see their influence is apartment-style condominium rentals leased through the Arizona Regional MLS. While rents on single family homes and townhouses continue to rise, successful leases of apartment-style condominiums have dropped 11% in average rates from a high of $1.26/sf in January 2017 to $1.12/sf by June. The drop is consistent across all lease price ranges for this type of rental and is not seasonal. Areas that have been particularly affected are Tempe, Old Town Scottsdale and the Central Corridor including Downtown Phoenix. Considering the lack of supply for sale in affordable price ranges and the added competition from brand new apartment complexes, this may be a good time for landlords of apartment-style rentals to consider selling if they’re unwilling or unable to reduce their rental rate.
What we’ve seen for the August 2017 Market Update anecdotally may seem to contradict this analysis.
We had clients who purchased an affordable condo at about $90,000 in CenPho. We closed very quickly (three weeks) and, since the property was vacant, prepared them with resources to get ready to rent the property as soon as they closed. They advertised the condo for rent and had about 8 possible renters within days. They interviewed, chose and the new tenant moved in this week.
In other words, they were clamoring for an affordable rental.
The reason this does not contradict Tina’s analysis may have to do with price point. The new build apartment complexes that she is referring to are often renting much higher than a 40-year old condo. We have often felt that the new rentals are priced too high for the market, and I think that is why the rental rates for the new properties have dropped. As we’ve said before, the apartments are over-built.
That will probably continue to depress rental rates. If you own an older property, however, you are probably right where the rental rates need to be.
So, if you are thinking of purchasing a rental property, now may be the time. Give us a call at 602-456-9388 and we’ll help.
Y’all know that I’ve been critical of the number of apartment units that have been going up in Central Phoenix, as well as the fact that they are priced way above what is affordable here.
But, here’s the next question: What do these same renters need to earn in order to purchase?
Of course you would expect a realtor to ask that. We all just want to get everybody to buy a home, right?
Wrong.
I don’t actually believe that everybody need to purchase a home. However, the last I checked (about two years ago) there was a 6-to-1 ratio of apartments being planned downtown to owner occupied homes being considered. Those apartments have since been built.
While home ownership is not for everyone, I do think those numbers are way off.
But, I digress.
This article addressed what millennials need to save in order to purchase a home. The article is terribly misleading because it assumes that they need to save 20% of the median home price (about $27,000) to buy. So, it predicts that it will take them 13 years to save that.
Near the end of the article, they admitted that people can still get FHA and Conventional loans for 5% down, and under. But, very, very few people actually purchase with 20% down. So, why start the article on such a misleading point?
Oops. I digressed again.
The reason I asked what that same apartment renter needs to purchase a home is because I know that apartment companies are charging much more than what these folks would pay to own a home, if only they had good credit and down payment.
In other words, renters pay a premium for living space (more than owners) when they don’t have good credit and funds to purchase a home.
So, the question to be answered is what is the real minimum income that a person would need to make in order to purchase a home in Phoenix?
The answer, of course, depends on where in Phoenix they purchase and how much they have to put down.
Let’s assume they are making just enough to afford the county-wide median home, at $245,000. Let’s assume they bring the minimum down payment for FHA at 3.5% and that they have just enough to cover closing costs. Let’s also assume about $8,600 for down payment an another $4,500 for closing costs.
That $245,000 home (assuming no HOA fees) will cost you about $1,500 per month, depending on property taxes. I think that many, if not all of the apartments downtown cost more than per month that AND are probably smaller.
Just a disclaimer: I’m not a lender. So, this is just an illustration. If you are thinking of buying a home, I can share some leads for you of great lenders.
So, what is a minimum of that renter needs to earn in order to purchase? According to my calculations, about $40,000. Again, I could be off, so talk to a lender. But, my point is that home ownership is much more attainable than many think –and that’s where the apartment builders get you!
If you are thinking about purchasing a home, please call us first at 602-456-9388.
We were inspired this month to tell you about Teen Lifeline, an organization with a confidential crisis hotline where teens can call or text and talk to someone just like them about their problems. These Peer Counselors receive rigorous and clinician-lead training so that they are able to answer any call from a teen, and help them find hope. Sadly, 1 in 3 of the calls that come over the hotline are from a teen contemplating suicide. However, they find a connection of hope talking to someone their age who can connect with them and understand what they are going through.
Teens in the community learn about Teen Lifeline as a service through prevention education in the form of class room presentations. Students also learn about what warning signs to look for in their friends, and how to develop healthy coping skills and help seeking behaviors. By spreading awareness of Teen Lifeline’s resources, we are able to better reach more teens, and let them know they are not alone.
The Peer Counselors who answer the calls and texts that come through the hotline are volunteers, and undergo 70+ hours of life-skills training on various topics so that they can effectively provide help and hope to the callers, no matter what the reason.
One child is lost to suicide in Arizona every five days. The aftermath of suicide is devastating. It forever changes the family, the neighborhood, school, and the entire community. Without Teen Lifeline’s hotline, prevention education, and life-skills training, troubled teens would suffer in silence when they feel like giving up. Fortunately the community can help make sure there is always a place for teens to turn to, by investing in Teen Lifeline’s life-saving work.
Connections of Hope: an Evening to Celebrate Arizona’s Youth is an impactful and youth-centric event happening on Friday, October 6th at the Montelucia Resort & Spa. It is unique in that the event is centered around teens and the incredible things they are capable of. With an incredible silent and live auction complemented by entertainment by a teen band, and experiences shared from Teen Lifeline Peer Counselors, it is an evening that will have an enormous impact on saving the lives of our precious youth.
Some teens will call or text to talk, others reach out as a last resort. Whatever the reason, teens helping teens is what happens at Teen Lifeline every day.
You may have seen the following phrase on my email signature or in the Clark Report: “You refer, we donate. Call me today to find out how we can support your favorite charity. We appreciate your referrals!”
This is our attempt to focus positive attention on those charities that you care about, and which do so much good work here in Phoenix.
Here is how it works. If you send us a referral for a home sale or purchase, and that transaction closes, we will make a donation to the charity of your choice. We will post on our blog and on Facebook that your referral was instrumental in making that donation happen.
It is as simple as that. Thank you!
Please give us a call today at 602-456-9388 for more.
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MAKE YOUR PROPERTY MARKET-READY.
Support A Charity
“You Refer i donate, Call me today to find out how i can support your favorite charity. I appreciate your referrals! ” Call us at 602-456-9388 or email Ken at ken@getyourphx.com