Realty Executives of Northern Arizona
Very surprising on how little the real estate market shifted during these unexpectedly heavy winter months. Mid-January we had over 40 inches of snow in one week and had a couple of nice listings launch looking like igloos from the photos. But the Buyer base trudged through the snowbanks and made contract offers. February showed limited Buyer activity with interest rates rising to 7% on the 30-year fixed, and heavy snowfall. Now we are looking at March, with the interesting twist of a couple of bank failures, and our interest rates going down to the 6.375% to 6.5% range for a 30-year fixed rate-depending on dynamics of the bond market and the Federal Reserve actions.
Snow is melting, with high water and unfortunate flooding in store, until the first week of April. My key lender base is telling me there is a slight uptick in Buyers’ loan applications—which following a dormant and very quiet February is very welcomed by all in the industry. So, limited supply of homes and active Buyer base is returning and navigating all the water flowing on the streets now, and real estate prices have not shifted down much over the winter months.
Feel free to contact me to get more exact information on how Sellers are holding some steady value or how some Buyers are getting some great deals in this market right now.
Wayne McCormick
Broker, Realty Executives of Flagstaff
(928) 526-9300
The process of selling a home is always evolving and has changed tremendously in the past few years.
Available technology and rapidly changing market conditions are the driving forces primarily behind those changes. Photography and video are a big part of that. Here are five considerations when marketing a home for sale in 2023.
PROFESSIONAL PHOTOGRAPHY
This seems to be a basic concept to most home sellers, but professional quality photography is now the industry standard in all price ranges. And yet a recent national estimate showed that only 67% of homes marketed in 2021 had professional grade photos when it is considered a standard expectation of home sellers.
3D VIRTUAL TOURS
The current norm is a full 3D rendering of a home, its outbuilding, and even exterior grounds. During the pandemic, 3D walk-through tours were expected in most price ranges and now are very common. Zillow 3D and Matterport are the technologies most used.
VIDEO PRODUCTION
Full videos of homes also are becoming more and more common. Video offers more options to capture a unique setting, the outdoor appeal of a property, and they give the viewer a sense of how a property “lives.”
Some video productions are a “mini movie” with a theme and even actors to portray the qualities of a home and lifestyle.
DRONE PHOTOGRAPHY, VIDEO
Another consideration is drone images of a property. Drone photography and video are becoming much more common, especially in rural areas and for large homes and parcels.
These images can capture not only the setting of a home, but also outbuildings, nearby amenities, views and more.
Lot lines and roadways can be overlayed to enhance the marketing of a home. Care must be made that the drone operator is licensed and following federal, state and local guidelines.
WEB PRESENCE
The final consideration is that of an internet presence. All of the above is great but only if the homebuyers can gain easy access to it. Social media sites are ideal for this. Multiple Listing Service platforms have the ability to portray and disseminate images, 3D tours and video, but ultimately the end user must be kept in mind.
Websites and home listing aggregators always are wanting to provide the homebuying public high-tech and visually appealing content.
Gary Nelson
Delegated Associate Broker
Realty Executives of Flagstaff
928-600-4279
2022 AZ Realtor of the Year
One of the easiest ways to add value to any Northern Arizona home is to enhance its curb or street appeal.
This can include changes as easy as owner improvements but can also include renovations and major landscaping projects, as well.
Homeowners might want to keep in mind that these renovations can be accomplished to help offset water use and to enhance a home’s integration in the native environment. From low-water use and naturalized landscaping to a more traditional and lusher look, these improvements can add great value not only to a home’s aesthetics but also its market value.
The National Association of Homebuilders provides a quarterly remodeling index that indicates the strength of the remodeling industry. This shows a steady rise in remodeling projects throughout the western United States since the first quarter of 2020, capping in the first quarter of 2022.
It also shows that not only are homeowners remodeling their homes but giving their homes a street view “facelift,” too.
But not all renovations and landscaping projects need to be expensive.
Here are a few simple and low-cost ways in which greater curb appeal can be achieved simply — but with big impact:
Touch up the paint or stain while concentrating on windows and trim color. A Mountain Rustic look is very popular throughout Northern Arizona. With more traditional home styles, use three paint colors to provide extra contrast. Consider adding sustainable and long-lived siding and trim materials.
Enhance front landscaping with low maintenance in mind. Add splashes of color by using pots and small, raised flower and vegetable beds. Concentrate on Arizona native plant species for low-water use and easy maintenance.
In recent studies, curb appeal has been known to add up to 10% to the value of a home. Ninety-four percent of Realtors polled in Arizona stated that homes with appealing front landscaping not only have a shorter time on the market but also sell for a higher price.
Gary Nelson
Delegated Associate Broker
Realty Executives of Flagstaff
928-600-4279
2022 AZ Realtor of the Year
Imagine you’re chatting with your neighbors, and they ask, “Hey, do you happen to know a good dentist?”
How would you respond?
Well, you wouldn’t recommend just anyone, would you? Instead, you’d probably only recommend a dentist worthy of that recommendation… someone who is good at what they do and consistently provides great service.
In other words, someone who is referral-worthy.
That word – referral-worthy – is very important in our business. It describes the kind of real estate agents Jeff and I strive to be.
It’s why we work so hard for our clients, helping them sell their properties successfully, while working with them to find their dream homes.
It’s also why we continue to stay in touch with clients, and make sure we are always “there” for them when they have questions or need advice.
We hope you feel that qualifies us as referral-worthy! If so, please pass our names along to anyone who may be looking for an excellent real estate agent. We’d really appreciate it!
2022 was a changing year in Real Estate for Flagstaff.
Home prices at the beginning of the year raced out to a 28% increase the first two quarters of 2022 over 2021, but slowed to a -2.3% decrease for the 4th quarter of the year. Year over Year, we still showed a 14% increased, but only because of the strong 1st half of the year.
The attached chart will give you a lot of insight into how the year changed.
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Throughout 2022, the market did an ‘about-face’ in several categories.
At the end of the 2nd quarter, homes were selling at 4% higher than list price, but the end of the 4th quarter, that had changed to 2.38% less than list price. This also affected the price per sq ft, which dropped to $341.83 sq ft in 4th quarter 2022 down from $388.22 sq ft in 2022.
Days on Market started in the 1st quarter slightly less than the year before, but by the end of the 4th quarter grew to almost 2 weeks longer to sell. Though with this said, if we look back 5 years to 2018, the median Days on Market was 68 days, so just two days longer than 4th quarter of 2022 and still 5 days shorter than 2018 for the first 7 weeks of this year, which is at 63 days.
What is in store for 2023, well that Crystal Ball is still a little fuzzy,
We can say a few things,
Interest rates
We have reached out to Chris Hallows at Wallick & Volk Lending to help us in this ever-changing world of Home Mortgages. his Crystal Ball says:
"Mark May 10 in the calendars!
Based on year over a year inflation calculations, experts believe that the April inflation readings that will be shared in the May 10 report will show very positive and sustaining signs that inflation is lowering and this should move rates meaningly lower.
Experts anticipate that we will be in the mid-5’s by the summertime and possibly even Into mid-4's by the end of the year."
Again, an ever-moving target, so time will tell.
The number of homes on the market today is higher than we have seen over the past few years and sitting at 137 as we write this. This is up from somewhere in the 50’s during this same time the last couple of years.
Since the first of the year, Sold Prices are at 1% less than List prices, with Year-to-Date Median sold price sitting at $577,000, or down -6.9%
We do not expect this to change much the first half of 2023, since as the chart above shows Sales prices in 2022 up 28% over those first two quarters.
Once we get to mid-summer, depending on a lot of factors out of our control, we may start to see home prices trending slightly higher, but..... we would not expect to see the 28% increases we saw in the first part of 2022.
Am sure this brings up a lot of questions, so please never hesitate to reach out to either of us.
Best Wishes and be Careful during our impending Snow some coming.
Renée and Jeff
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Renee Gaun * Jeff Ross 928-606-6232 Renee
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15 E. Cherry Ave |
What’s the most important thing when it comes to real estate? Location, location, location as they say.
When it comes to the location of that perfect home you have always dreamed of, make sure there aren’t any challenges you didn’t expect. Make sure the area and the amenities will stay the way you expect them to.
Here are a few desirable locations that may have some great perks as long as you keep in mind the potential challenges.
National forest lands
Backing national forest is quite important to many people. Having your own great views and potential access to forest would make anyone happy.
Keep in mind that in remote areas, some utilities may not be available. Also, make sure your property is Fire Wise and can handle what Mother Nature might throw your way.
Bordering national forest in the intermountain west is like beachfront in the coastal areas; you will have to pay accordingly for those views and trees.
Golf course property
Spectacular views and meticulously cared for greens could be what you experience from your patio, deck or windows. Quick access to the greens, club amenities and activities can also provide a wonderful lifestyle.
Many people enjoy the social aspect of golf course living as well, with golfers enjoying a great game on a wonderful day. Whether on a public course or inside one of Northern Arizona’s gated and private communities, golf course living has tremendous benefits.
State forests and lands
Sometimes state trust lands are just as spectacular as national forest lands, but be prepared that this location may be temporary. In Arizona, trust lands can be sold with the proceeds going toward public school construction.
Although national forest lands may be traded, that would be very rare. State lands, however, are temporary, and some of the largest developments in the state were previously trust lands.
Undeveloped land
Keep in mind that undeveloped land may be developed in the future.
You may want to negotiate a building envelope with the owner of an adjacent lot or negotiate a view corridor to maintain that view you want. Many subdivisions have building envelopes built into the CC&Rs (covenants, conditions, and restrictions) or plat maps of the development.
But a negotiated view corridor or negotiated height restriction may go a long way toward preserving that wonderful Northern Arizona view you always wanted.
Gary Nelson
Delegated Associate Broker
Realty Executives of Flagstaff
2022 AZ Realtor® of the Year
Where the Experts are - Serving Flagstaff and Northern Arizona since 1977
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