I ran in to an old friend the other day who has been working in the solar industry for a couple decades.

He told me about this new business that he and some partners are starting. The business is the creation and deployment of vans and mobile shelters that combine both solar power and battery power.

Their ultimate goal is to have a product that the government or non-profits can deploy in emergency situations where people need access to emergency power. They are also marketing these mobile solar units to festivals, like Burning Man.

The business is called Rent.solar, and no, I’m not being paid to write about them. I just think what they are doing is innovated and could define the future of what we expect to see in places that need energy, or events that want to reduce their carbon footprint.

They describe these solar trailers and shelters as “nano-grid technology.

Well, I suppose that that a traditional gas generator could be described as “nano-grid technology”, too. But this is much more promising.

You can imagine a trailer pulling up to a disaster area, either packed with lithium ion batteries for emergency power, or also carrying refrigeration units that are powered by batteries and solar.

That can be a game-changer in how FEMA responds to some hard-hit areas.

It is tough to describe how much power they deliver. The average house needs about 3 to 4 kWs, for instance.

One trailer delivers only about that much. So, what good is it? Well, in a disaster situation, the use of power is much different. The trailer may power one piece of equipment that cools a large shelter where many people stay. Or, it may power medical services.

According to my friend, Lee, “Given the capital intensive nature of solar energy systems, we’ve adopted a cost-sharing approach to accomplish this mission by working with community partners who rent our solar trailers and shelters when they are not being used for this purpose.”

I was also impressed that this business started with one student, who was fulfilling a class requirement.

That gives me hope that the next generation will think more creatively about solving not only our climate change challenge, but also be able to deliver emergency services at the same time.

In this post I’m going to give you some crucial information that you need if you intend to own a property that you will use for short-term rental.

But first, an admission.

When I was in the legislature I voted in favor of Senate Bill 1350 in 2016, which prohibited cities and towns from banning short-term rentals. It also put in place a structure to tax the services and it specified what municipalities could do to regulate them.

So, blame me if you want for how people have abused our neighborhoods with ill-managed short term rental properties. I hear you and I empathize.

I know many of my neighbors in historic neighborhoods, in particular, are very concerned about whether these homes will be treated well while being used as short-term rentals.

I stand by the vote because I think we need to be creative in the new sharing economy. However, I also remember saying at the time that we will have to re-visit this in the future.

We knew that cities and towns would confront new challenges in regulating short-term rentals and I, for one, felt it was best to see what those challenges would be and prepare to respond to them legislatively, if need be. Good government should be able to adopt new realities like the sharing economy and should be responsive as we learn how to adapt to the needs of the public.

So, I support the new law passed by the Legislature and Governor this year, which gives more teeth to cities and law enforcement. In no rational interpretation of the law, should a residential home be a hotel where massive parties are thrown and the needs of the neighborhood cast aside.

So, I hope the law works and we see the owners of short-term rentals respecting their neighborhoods.

Even given that, I’ve been shocked by how many properties are being used for short-term rentals by large corporations, which have purchased gads of properties, with little attention paid to the health of the neighborhood.

None of us saw that specific problem coming. Perhaps we should have.

My friend Tina Tamboer at the Cromford Report has specific concerns about short term rentals, as how they relate to the over-all real estate market. Here are a few:

1. They can deprive families of homes.
2. They can drive prices up because a buyer of a short-term rental home values it based on ROI, not just as an affordable place to live.
3. If we don’t track which homes are short-term rentals, we won’t be able to predict a possible flood of homes on the market if the economy drops and the owners are not seeing the income they expected.

Having laid all that groundwork (and I felt like that context is important for anybody who wants to buy a home for this purpose), I want to cover what you need to know about this new law if you are going to operate a short-term rental property.

The new law, which you can read directly here, will make the following changes to current statutes:

1. It allows municipalities to restrict the types of events that happen at these properties –think weddings and huge parties that would require a permit if planned in most other spaces.
2. If you own and market a short-term rental, you must provide a primary contact to the municipality; a person that law enforcement or neighbors can call if there is a nuisance at the property.
3. If you provide that information to the city or town, they must make a reasonable attempt to contact that person in the case of an ordinance violation.
4. If you are cited and fined, but you don’t pay, then the citation gets forwarded to the Arizona Department of Revenue for collection and possible interest-based fees.

So, in short, if you need our help to identify a short-term rental property, we are going to refer you to these laws.

We believe in being good neighbors in our personal lives, and we have turned away business if we think they are not going to be good neighbors.

In the end, I think that we need solutions to our housing crisis in Arizona. While short-term rentals might be making that harder to solve, it is here to stay. As agents, we want to get you the best information about the laws and your responsibilities.

If you have more questions, call us at 602-456-9388.

This little snapshot of the market is really useful, and the folks at the Cromford Report put it out every month.

You can see that the active listings are down by 5.6%, valley-wide. At the same time the listings under contract are up by 7.4% and the number of closed sales is up by about 1%.

What does that mean?

It means we are burning through the available inventory. It also means that there continues to be an upward pressure on prices. That is why you see the Months of Supply graph going down from 2.5 months to 2 months.

The way to look at this particular snapshot of supply is to ask, “if no other houses came on the market and people continue to purchase at current rates, how many months would it take to totally exhaust the inventory?”

It’s a fanciful notion, to be sure, because people will always list homes. But it gives us an idea of how fast things are selling.

The listing success rate is about the same this July as it was last July and the July before that. So, the strong seller’s market is steady over three years.

If we turn to the Cromford Index, you can see that the seller’s advantage that had weakened at the end of last year is rocketing upward right now.

The big question will be what happens when the summer draws to and end and we see what is typically the second-busiest market time every year, between September and late November?

To be sure, this summer has been pretty busy. Will buyers hold off, waiting for prices to cool, or will they calculate that prices will continue upward?

I continue to predict that, if/when a market correction comes, it will be less dramatic in CenPho, where we can’t seem to find space for new construction. Inventory will continue to be tight.

If you need help building a strategy to sell or buy a home, call us at 602-456-9388.

A funny thing happened in July and it may affect the August market update.

Well, “funny” may not be funny for buyers.

Look at this chart of new listings that come on every day in July, compared over several years.

It’s hard to see, but there is a light blue line at the bottom of the grouping of lines, with the number 6,119. That represents the number of new listings in Maricopa county that came on in July.

Notice that the July 2019 number is at least 1,000 listings lower than the next closest line. So, we have had fewer listings coming on the market this July than any July since 2010.

I also turned on all years available in the system and it is the lowest July since 2001 –and there were fewer houses in the valley back then.

Now, when you look at just listings above $500,000, that difference disappears. But it is strong for homes under $500,000.

What does that mean? Should we be alarmed?

Well, we don’t know yet. (Sorry to those of you who like certainty. You won’t get it on this one.)

It could be a blip. This trend started in June and it could disappear in August. We need to watch it.

If it continues, then those of you who are thinking of listing your home should go ahead and list (especially those at or below $500,000). There is scarcity in the market in that case and it gives you an advantage. Further, people need homes, so they will be looking.

If you are a buyer, be patient, as it may take you a while to find what you need. Also, be ready to go see a house and write an offer immediately if you like the home.

There is still a scarcity in the market and this just happens.

NOTE! This dynamic does not seem to be happening in the CenPho historic zip codes. See the chart below. So, for these zip codes, the July listing numbers seem to be right in line with previous months.

So, if you need to build a strategy around selling or buying, please call us at 602-456-9388.

As realtors and long-time Phoenix residents, we know that light rail has helped improve neighborhoods, attract business and transport many people who would otherwise contribute to daily traffic jams.

So, it is alarming that Dark Money groups from out of state, backed by the Koch brothers, are putting money in to an effort to effectively shut down light rail growth in Phoenix.

Further, they are attempting to place arbitrary caps on the city’s ability to spend money on our priorities or recover from massive cuts made during the Great Recession.

City leaders such as Mayor Gallego, a majority of city council members and many non-profit and trade organizations have created a campaign to ask city voters to vote NO on Prop 105 and Prop 106.

See the website with information here.

Prop 105 would:

1. Create a prohibition agains further rail projects in Phoenix;
2. Redirect billions of dollars of federal support away from Phoenix infrastructure;
3. Threaten our ability to plan for population growth;
4. Increase crowding on our streets.

Prop 106 would make permanent any cuts that leaders will be forced to make during tough times. To put that another way, if we make cuts during an up-coming recession or economic downturn as we did in the Great Recession, those cuts would be permanent.

So, where the city has been restoring services and making the pension program stable again since the recession, Prop 106 would make those cuts permanent and would force drastic cuts to the services that our citizens and neighborhoods rely on. This is simply reckless.

IMPORTANT: This election has been forced on the ballot on August 27th, when many people are on vacation. Early ballots go out on July 29th. So, be certain to get request yours by calling 602-261-VOTE (8683). See the city website for more.

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 what came before us. We use her services when we list properties of historic significance to help us tell the stories behind the homes.

We are happy that Donna is allowing us to re-publish some of her articles on a monthly basis. If you or your business ever needs a historian, let Donna know at laydeescholar “at” hotmail.com.

“I have been influenced by the needs of Phoenix and by the fact that this is home.” With that, Celora M. Stoddard who had recently been discharged from the Army after serving in France during WWI, declared his intent to build a special complex. Arizona looked promising to Stoddard after the war.

Stoddard had originally come out west from Binghamton, NY as a young boy and spent some time in Stoddard, AZ, a small copper mining community northeast of Mayer which had been named after his father. When he moved to Phoenix along with his parents, he continued working for the family company. Later he formed his own firm and focused on investments rather than copper, but still maintained his managerial position with Stoddard Mining.

One of Stoddard’s investments was The Rose Tree, an exquisite confectionery shop and tea room which opened in October 1914. It certain gave Donofrio’s some competition although it was hard for Donofrio’s to surpass The Rose Tree’s twice a week dances. Stoddard also purchased lots in newly opened subdivisions as so many other Phoenicians were doing.

In 1917, Stoddard was part of the Great Western Film Corporation whose initial aim was to establish a film studio in Phoenix (Tucson was the competing site). Yes, Stoddard dabbled in a variety of businesses and then the European war changed things. Stoddard registered for the draft, entered the army, took officer’s training, and was shipped to France.

Recognizing that many soldiers who were returning home had moved to Arizona and had no place to live, Stoddard decided to build a “modern up-to-date bungalow court” the summer of 1919. Each unit had five rooms and an individual outdoor sleeping area on the roof which would be used in the summer months. The bungalow court would be “high class,” have janitor service, and a communal garage along with plenty of shade.

Ads touted that the complex of 10-units was located “in the most exclusive residential section.” And where might that be? It was Bennett Place encompassing Central to Seventh Avenue and Roosevelt to Fillmore. Now a portion of Bennett Place is part of Roosevelt Historic District.

One quirky event related to Alexandria Court (the rather romantic sounding name) occurred when Stoddard decided to sell the complex. In fact, he traded the bungalows with Isaac Rosenzweig a local jeweler for 80 acres of farm land near Scottsdale. Apparently both parties were quite satisfied with the deal.

If you ride the light rail down 1^st Avenue today, you go right passed Alexandria Court. Now 815 N. 1^st Avenue (even the numbering has changed from the original) is offices. A far cry from Stoddard’s vision, but they have not been demolished.

As realtors, we want all people to have roofs over their heads and we hate to see families evicted from homes, regardless of whether they purchase a home or not.

That is why you’ve seen me do some postings and videos about issues of homelessness.

There are so many destructive myths about homelessness and why people are evicted from rental homes, and why it happens.

“People are lazy and don’t pay the rent.”

“People don’t take care of the property they live in and deserve to be kicked out.”

“People are not financially responsible.”

What we are learning more and more, especially by analyzing huge amounts of data from around the country, is that there are myths about eviction, just as there are myths about poverty.

Why is it important to have a clear picture of why evictions happen? Well, because we make public policy based on these myths and those policies cost us billions of taxpayer dollars. Shouldn’t we get the causes right before we recommend a treatment?

This podcast on the topic of eviction bursts some of the myths is perfect for your summer listening list. I love podcasts as company when I’m driving or working in the garden. However, these, in particular, are very well-researched and bring out things that I’ve not thought of before.

So, these come highly recommended.

If you want another great series on poverty myths, check out this one from the same team.

Over the 11 years that I’ve been in business and the 6 years that Michelle Conley and I have been working together, we hear a few misconceptions more than once. They are not major issues, but I figured it’s worth correcting the record.

These misconceptions start with, “Oh, I thought you…”

So, just in case you were wondering, here we are to correct the record.

1. “Oh, I thought you only sell houses in… <insert one>, the historic neighborhoods, or downtown or in Central Phoenix.
   
   Fact: We work all over the valley, even though we specialize in historic.
   
   Further, we have relationships with quality agents all over the state. We are also building relationships with agents in other states, so we can get you the help you need.
   
2. “Oh, I thought you didn’t have time for real estate because of your political work.”
   
   Fact: I never stopped being a full-time professional realtor, all through my recent years in office. Thank goodness for Michelle Conley, who made certain the trains ran on time on those days when the legislature ran late.
   
   Regardless, I’m not in public office now. So, we are ready to help you!
   
3. “Oh, I thought I could sell that house for 1% commission, so I did not call you.”
   
   Fact: Most times, that “1% commission” turns into much higher costs to you. Plus you won’t have somebody to protect your interests. See my short video that details how those big wholesale buyers are taking advantage of sellers.
   
4. “Oh, I thought it would be easier to just purchase a home through the website because I don’t like dealing with people.“
   
   Fact: If you don’t have somebody to protect your interests, you are increasing the chances that the sellers will take advantage of you. You’ll definitely have to deal with people when you find out that there was major damage to the property, which was not repaired before they sold the house to you.
   
   Why pit yourself against people who have bought and sold hundreds of homes without protection?
   
5. “Oh, I thought realtors don’t do much work and just make tons of money. They sell a house and buy a new Mercedes.”
   
   Fact: Some are rolling dough, but very few. Realtor income looks much like the entire population: very few gobs of money, but most earn a modest living.
   
   Further, in order to be a quality agent we must invest years in to the trade and local knowledge. Further, typically, we sell homes that look like the community we live in.
   
   Regardless, there is a great deal more work that goes in to each transaction than most people know: needs analysis, market analysis, lending advice, neighborhood knowledge, smart home searching or listing marketing, negotiations, inspections, vendor coordination, closing preparation and post-closing availability.

So, we stand ready with decades of combined experience to help you meet your needs. Call us at 602-456-9388

“So, will there be a slow-down in the market over the summer,” people ask us almost every day.

You might think that it would, since it’s hotter than a snakes butt in a wagon rut. Who wants to look at homes?

Well, the answer is that the market in the summer typically looks much like it does the rest of the year.

If the market is hot coming in to summer, it will stay relatively hot. Sure, there are fewer people out there looking and typically fewer listings. But that does not mean that the number of sales changes much.

There seem to be fewer listings going in to this summer than there were last summer. That could be good for sellers and bad for buyers, but that also depends on the quality of the inventory, as we learned last year.

According to the Cromford Report, sales prices are continuing to climb slightly every month:

“Our mid-point forecast for the average monthly sales $/SF on June 15 is $173.61, which is 0.8% above the June 15 reading.

The average $/SF has been stronger than predicted over the last 5 months, and this has been largely due to the mix of homes that closed. High end homes were better represented than expected between January through May. The average $/SF for pending listings has risen again over the last month so we are expecting another gain in average $/SF over the next 30 days.”

Interest rates are also still floating just under 4%. So, there is no panic in that regard.

The tight inventory and low rates could be why the Cromford Index is going in to the summer looking like a rocket. Sellers don’t have as much competition and there are more buyers, attracted by low interest rates.

So, what does this market mean to you? If you are a seller, make your home look great and don’t be afraid to list during the summer. If you are a buyer, you might be able to take advantage of other buyers being away; this is a strategy that may work better in other parts of the valley than in others.

If you need help building a strategy, contact us at 602-456-9388.

We are a locally-owned business and we support locally-owned, independent businesses.

For every $100 spent at a locally-owned business, $43 stays in the local economy, versus only $13 for non-locally-owned businesses. That means more money for police, fire, schools and infrastructure.

Nobody expects you to purchase a car made in Arizona. But if you shift your spending by 20%, you can have a huge effect on our state.

So, Independents Week is a big deal for us. You can take this opportunity to shift your spending by 20% in support of our local economy.

Save 20% at your favorite local businesses during Independents Week!

Independents Week is Arizona’s week-long celebration of local businesses that lets you save money while shopping local. 

During June 29 – July 7, use your Golden Coupon to save 20% off at hundreds of participating businesses in every imaginable industry all across Arizona!

We can’t over-state the important of supporting local, independent businesses. Our legislature for years has been sending out tax dollars out of state in the form of tax credits to attract major corporations to Arizona –companies that employ far fewer people than locally-owned businesses.

As agents, we chose HomeSmart because it is locally-owned. We think that is important.