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? We’dbuying love to or selling Know of anyone help them. Just give us a or selling? We’d love to call them. and we’ll giveus them help Just give a the VIP and treatment. call we’ll give them the
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$27,721 The MUST PLAY Valley Golf Courses of 2017...
METRO PHOENIX BY THE NUMBERS
DAYS ON MARKET
LIST/SELL PRICE RATIO
# CLOSED
Surprise $244,610 $231,825 69 99% 1,989 Glendale $249,058 $231,317 57 99% 2,091 Mesa $273,794 $253,071 64 99% Troon 3872North Goodyear $282,978 $263,700 68 99% 1,022 Great weather year round, and over 150 golf courses in the Phoenix Phoenix $291,799 $277,550 67 9,291 area make it the perfect place for local and98% out of town golfers. Peoria $302,938 $279,842 69 98% 1,938 Tempe $318,273 $303,113 98% 874 We’ve compiled a list of fun65 golf courses to play on our website complete with links61 to schedule your tee time! 2,752 Gilbert $330,020 $306,823 99% Chandler $338,357 $318,920 61 98% 2,385 . .. The Valley has seen a huge increase in urban living. There are tremendous urban properties s Looking to buy or sell a home within a golf community? We e s our Cave Creek $493,734 $475,959 111 98% 395canwith luxury vorite C a F 0 ’s 0 5 m , a n e help all with that too. visit With 10xHomes.com/Golf where you ia amenties near entertainment districts around theJust valley. so many97% advantages likecan state-of-the10X Tprime e Phoenic 117 2,865 t Some of pago, Th okou$692,773 $660,677 PaScottsdale o , L o ll & ti , customize your home search or obtain your home’s value. o re c fi art Kfitness concierge services, social activities, dog parks, resort-like pools, etc... buyers from all ild ierland, O centers, a g Stick, W Valley $1,672,230 173 94% 229 lay $1,789,345 lkinParadise rrado, Ta u want P il if yo demographics are achoosing to take advantage of this latest lifestyle trend. Club, Ve all or em .C us! Golf with o Round f
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To Search for Condos and Other Urban Style Properties: Visit 10XHomes.com/UrbanLiving Days on market, ration and # closed based on 1/1/17-6/30/17. Statistics gathered from ARMLS. All 602-352-3600 information deemed reliable but not guaranteed. (Single-Family Residences) Call us list/sell Anytime, We’re Here to Help!
Call us Anytime, We’re Here to Help! 602-352-3600
Call us Anytime, We’re Here to Help! 602-352-3600
10X HOMETEAM 10XHOMETEAM RANDYLEWIS
randy@10xhomes.com
RANDYLEWIS RANDYLEWIS randy@10xhomes.com
randy@10xhomes.com
BENOROZCO
ben@10xhometeam.com
BENOROZCO BENOROZCO ben@10xhometeam.com
ben@10xhometeam.com
If your home is currently listed, this is not a solicitation for that listing.
METRO PHOENIX ECONOMIC SNAPSHOT
AVERAGE INCREASE IN SALE PRICE
AVERAGE SALES PRICE MID-2017 2016
CITY
MPES
DAVEGARCIA
dave@10xhometeam.com
DAVEGARCIA DAVEGARCIA
dave@10xhometeam.com
dave@10xhometeam.com
NIKIJACKSON niki@10xhomes.com
STEPHANIEROGERS STEPHANIEROGERS stephanie@10xhomes.com
stephanie@10xhomes.com
Produced by DLP Marketing • (480)460-0996 • DLPmarketing.com
MID-YEAR 2017
Finding Economic
MIDDLE GROUND in 2017
A
By Elliott Pollack Elliott D. Pollack & Co.
dvanced economies float on a sea of credit. Access to credit allows an economy to expand rapidly. Take away credit? The economy can only expand at a snail’s pace, the housing market shrinks dramatically, and the consumer can’t purchase big ticket items. Create too much credit, however, and the economy risks becoming overleveraged. The housing bubble and Great Recession are great examples of these consequences. A successful economy must walk the middle ground. This is a path that the U.S. economy has, for the most part, walked successfully for a long time. In the last 100 years, an event that forces us to use the term “for the most part” has only occurred twice. Both times were exceptionally ugly. The latest economic data for the U.S. shows that the country continues to walk this middle ground. The average amount of personal income used to pay for previously accumulated debt is now back down to where it was in the early 1980s and is way below where it was in 2007. Following a significant decline after 2008, revolving credit
(mostly credit card debt) is finally approaching its previous peak…nine years later. This is very healthy. On the other hand, non-revolving credit (mainly auto and student loan debt) has dramatically ballooned since 2011. Some point the finger at auto loans, but the fact is that the credit scores of auto loan borrowers are higher now than in previous cycles. Thus, the risks appear to be in the normal range. This is true despite the fact that some sub-prime auto lending is occurring. That leaves student loan debt, which continues to swell by the day. Student loan debt has affected the ability of many to buy homes, furniture, and other goods. Put another way, it has affected their ability to live “normal” lives. Especially unfortunate are those who took out student loans but did not obtain a degree at all or who did obtain a degree but not for a marketable skill that allows them to generate enough income to justify their loans. For these individuals, the debt burden will take a protracted amount of time to overcome and could end up creating a permanent problem for them as a borrower. Even for those students who earned a marketable skill allowing the repayment of their loans and more, it may still delay entry into the housing market and other consumer markets for years. Student loans are also not dischargeable in bankruptcy, so there is no way out like there was for excess housing debt during the last economic crisis. The bottom line is that credit accumulation by consumers remains, for the most part, well under control. The exception is student loans, which has and will continue to slow consumer markets and should be monitored carefully. Taking all of this into account, we still believe the remainder of 2017 will conclude as a good year for the economy overall. Employment should increase by an estimated 2.1% across Arizona and 2.6% in Greater Phoenix and the unemployment rate should continue to decline. We are expecting population to grow 1.6% this year and 1.7% growth next year for the state and slightly higher growth in Greater Phoenix. Housing should continue at a strong upward pace of roughly 10% growth per year for the next two years. And retail sales, especially auto sales, should grow by 3%-4% in the short term.
Greater Phoenix Economic Forecast Source: Elliott D. Pollack & Co.,July 2017
POPULATION 1.7% increase in 2017 1.8% increase in 2018
EMPLOYMENT 2.6% increase in 2017 2.4% increase in 2018
Mid-range demand is up strongly thanks to improved credit scores and significant easing of lender underwriting conditions. Appreciation is moderate for this price segment, but comfortably exceeds the CPI inflation rate which remains low. There are occasional problems for homes that have been neglected or in great need of modernization, but in general the market below $600,000 is buoyant.
RETAIL SALES 3.8% increase in 2017 3.4% increase in 2018
SINGLE FAMILY PERMITS 10% increase in 2017 10% increase in 2018
Residential Real Estate:
MAINTAINING MOMENTUM By Michael Orr Principal of The Cromford Report
T
he Greater Phoenix housing market started 2017 in a healthy state and has only improved since then, with sellers in a strong negotiating position across most geographies and price ranges. For the overall market across Greater Phoenix, as of July 2017, the annual price changes were as follows, compared with July 2016:
The annual average price per sq. ft. rose by 6% from $137.54 to $145.89 The annual average sales price increased 6% from $269,475 to $286,877
The lower end of the luxury market (below $1,500,000) has regained much of the momentum it lost during 2016. Sales volume is surging and prices are starting to harden. Over $1,500,000 the market remains relatively weak thanks to excess supply and little growth in demand. However in recent months there have been signs of improvement compared with 2016, particularly for the segment over $3,000,000. Despite some softness in the higher echelons of the luxury sector, the majority of the Greater Phoenix housing market is even healthier than it was 12 months ago and the prospect of steeply rising interest rates has faded. We have a large wave of baby boomers reaching retirement age and downsizing their homes, so demand for smaller and more conveniently located homes has grown while that for large and more distant homes has dissipated. However, the millennial generation is now a more significant pool of potential home buyers than the baby boomer generation and this dominance will increase over the coming decade.
SALES PER MONTH Greater Phoenix • ARMLS Residential • Measured Monthly
The annual median sales price gained 7% from $217,000 to $231,500 These are all annual averages, but the monthly median sales price has progressed to $245,000 in June this year. These price rises are consistent with a market that favors sellers over buyers, but the situation can depend on price range and the location and age of the home. The price range below $200,000 remains extremely short of supply and the number of hopeful buyers far exceeds the low number of homes for sale. Appreciation is strongest for these entry-level homes and condition is rarely a constraint. Location can be an issue, but the shortage of homes for sale in the central areas has encouraged more buyers to go looking in outer locations. This has led to much improved markets in locations like Buckeye, Maricopa, San Tan Valley, Florence, Casa Grande, Apache Junction and Surprise. Between $200,000 and $600,000, supply has improved over 2016 and is being replenished by new home builders. New single family home permits in Maricopa and Pinal Counties totaled 8,623 year to date by the end of May. This is an increase of 11% compared to 2016. However it is still inadequate to meet demand.
Lender Owned
Short Sales
SALES PRICE PER SQUARE FOOT Greater Phoenix • ARMLS Residential
Normal
Finding Economic
MIDDLE GROUND in 2017
A
By Elliott Pollack Elliott D. Pollack & Co.
dvanced economies float on a sea of credit. Access to credit allows an economy to expand rapidly. Take away credit? The economy can only expand at a snail’s pace, the housing market shrinks dramatically, and the consumer can’t purchase big ticket items. Create too much credit, however, and the economy risks becoming overleveraged. The housing bubble and Great Recession are great examples of these consequences. A successful economy must walk the middle ground. This is a path that the U.S. economy has, for the most part, walked successfully for a long time. In the last 100 years, an event that forces us to use the term “for the most part” has only occurred twice. Both times were exceptionally ugly. The latest economic data for the U.S. shows that the country continues to walk this middle ground. The average amount of personal income used to pay for previously accumulated debt is now back down to where it was in the early 1980s and is way below where it was in 2007. Following a significant decline after 2008, revolving credit
(mostly credit card debt) is finally approaching its previous peak…nine years later. This is very healthy. On the other hand, non-revolving credit (mainly auto and student loan debt) has dramatically ballooned since 2011. Some point the finger at auto loans, but the fact is that the credit scores of auto loan borrowers are higher now than in previous cycles. Thus, the risks appear to be in the normal range. This is true despite the fact that some sub-prime auto lending is occurring. That leaves student loan debt, which continues to swell by the day. Student loan debt has affected the ability of many to buy homes, furniture, and other goods. Put another way, it has affected their ability to live “normal” lives. Especially unfortunate are those who took out student loans but did not obtain a degree at all or who did obtain a degree but not for a marketable skill that allows them to generate enough income to justify their loans. For these individuals, the debt burden will take a protracted amount of time to overcome and could end up creating a permanent problem for them as a borrower. Even for those students who earned a marketable skill allowing the repayment of their loans and more, it may still delay entry into the housing market and other consumer markets for years. Student loans are also not dischargeable in bankruptcy, so there is no way out like there was for excess housing debt during the last economic crisis. The bottom line is that credit accumulation by consumers remains, for the most part, well under control. The exception is student loans, which has and will continue to slow consumer markets and should be monitored carefully. Taking all of this into account, we still believe the remainder of 2017 will conclude as a good year for the economy overall. Employment should increase by an estimated 2.1% across Arizona and 2.6% in Greater Phoenix and the unemployment rate should continue to decline. We are expecting population to grow 1.6% this year and 1.7% growth next year for the state and slightly higher growth in Greater Phoenix. Housing should continue at a strong upward pace of roughly 10% growth per year for the next two years. And retail sales, especially auto sales, should grow by 3%-4% in the short term.
Greater Phoenix Economic Forecast Source: Elliott D. Pollack & Co.,July 2017
POPULATION 1.7% increase in 2017 1.8% increase in 2018
EMPLOYMENT 2.6% increase in 2017 2.4% increase in 2018
Mid-range demand is up strongly thanks to improved credit scores and significant easing of lender underwriting conditions. Appreciation is moderate for this price segment, but comfortably exceeds the CPI inflation rate which remains low. There are occasional problems for homes that have been neglected or in great need of modernization, but in general the market below $600,000 is buoyant.
RETAIL SALES 3.8% increase in 2017 3.4% increase in 2018
SINGLE FAMILY PERMITS 10% increase in 2017 10% increase in 2018
Residential Real Estate:
MAINTAINING MOMENTUM By Michael Orr Principal of The Cromford Report
T
he Greater Phoenix housing market started 2017 in a healthy state and has only improved since then, with sellers in a strong negotiating position across most geographies and price ranges. For the overall market across Greater Phoenix, as of July 2017, the annual price changes were as follows, compared with July 2016:
The annual average price per sq. ft. rose by 6% from $137.54 to $145.89 The annual average sales price increased 6% from $269,475 to $286,877
The lower end of the luxury market (below $1,500,000) has regained much of the momentum it lost during 2016. Sales volume is surging and prices are starting to harden. Over $1,500,000 the market remains relatively weak thanks to excess supply and little growth in demand. However in recent months there have been signs of improvement compared with 2016, particularly for the segment over $3,000,000. Despite some softness in the higher echelons of the luxury sector, the majority of the Greater Phoenix housing market is even healthier than it was 12 months ago and the prospect of steeply rising interest rates has faded. We have a large wave of baby boomers reaching retirement age and downsizing their homes, so demand for smaller and more conveniently located homes has grown while that for large and more distant homes has dissipated. However, the millennial generation is now a more significant pool of potential home buyers than the baby boomer generation and this dominance will increase over the coming decade.
SALES PER MONTH Greater Phoenix • ARMLS Residential • Measured Monthly
The annual median sales price gained 7% from $217,000 to $231,500 These are all annual averages, but the monthly median sales price has progressed to $245,000 in June this year. These price rises are consistent with a market that favors sellers over buyers, but the situation can depend on price range and the location and age of the home. The price range below $200,000 remains extremely short of supply and the number of hopeful buyers far exceeds the low number of homes for sale. Appreciation is strongest for these entry-level homes and condition is rarely a constraint. Location can be an issue, but the shortage of homes for sale in the central areas has encouraged more buyers to go looking in outer locations. This has led to much improved markets in locations like Buckeye, Maricopa, San Tan Valley, Florence, Casa Grande, Apache Junction and Surprise. Between $200,000 and $600,000, supply has improved over 2016 and is being replenished by new home builders. New single family home permits in Maricopa and Pinal Counties totaled 8,623 year to date by the end of May. This is an increase of 11% compared to 2016. However it is still inadequate to meet demand.
Lender Owned
Short Sales
SALES PRICE PER SQUARE FOOT Greater Phoenix • ARMLS Residential
Normal
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$27,721
METRO PHOENIX BY THE NUMBERS AVERAGE SALES PRICE MID-2017 2016
CITY
MID-YEAR 2017 DAYS ON MARKET
LIST/SELL PRICE RATIO 99% 99% 99% 99% 98% 98% 98% 99% 98% 98% 97% 94%
# CLOSED 1,989 2,091 3872 1,022 9,291 1,938 874 2,752 2,385 395 2,865 229
Days on market, list/sell ration and # closed based on 1/1/17-6/30/17. Statistics gathered from ARMLS. All information deemed reliable but not guaranteed. (Single-Family Residences)
Call us Anytime, We’re Here to Help! 602-352-3600
10XHOMETEAM RANDYLEWIS
BENOROZCO
ben@10xhometeam.com
If your home is currently listed, this is not a solicitation for that listing.
METRO PHOENIX ECONOMIC SNAPSHOT
AVERAGE INCREASE IN SALE PRICE
Surprise $244,610 $231,825 69 Glendale $249,058 $231,317 57 Mesa $273,794 $253,071 64 Goodyear $282,978 $263,700 68 Phoenix $291,799 $277,550 67 Peoria $302,938 $279,842 69 Tempe $318,273 $303,113 65 Gilbert $330,020 $306,823 61 Chandler $338,357 $318,920 61 Cave Creek $493,734 $475,959 111 Scottsdale $692,773 $660,677 117 Paradise Valley $1,789,345 $1,672,230 173
randy@10xhomes.com
MPES
DAVEGARCIA
dave@10xhometeam.com
STEPHANIEROGERS stephanie@10xhomes.com
Produced by DLP Marketing • (480)460-0996 • DLPmarketing.com