By Jay Crandall
Posted on May 6, 2013 at 3:30 PM
Updated Monday, May 6 at 3:40 PM
PHOENIX — It is no surprise housing prices are going up, up, up here in the Valley, which is news we’ve all been waiting to hear. But are we preparing ourselves for another housing bubble?
The short answer is: No. Real estate analysts say our recovery is steady, in large part, because right now there are far more buyers than houses available.
From luxury homes in Paradise Valley to entry-level floor plans in Peoria, real estate agent Robert Joffe said across the state, Arizona homes are once again prized property.
“I’ve been doing this for 28 years, I would say this is the busiest I have ever been,” Joffe said.
A big turnaround from just a few years ago.
“We have actually really turned to a seller’s marketplace,” he said. “Some sellers getting multiple offers on properties; it definitely has changed very quickly. “
Joffe said a number of factors are helping Arizona bounce back from a foreclosure freefall.
“I think a combination of people coming back, wanting to live here, low interest rates, and a great living environment has caused Arizona to really prosper,” Joffe said.
But, he said the biggest factor driving the latest boom is a real estate squeeze.
“What we are really hurting on is low inventory of available homes,” he said.
Kuldip Verma, of Vemaland, agrees.
“And the inventory from 57,000 homes in 2008 has gone down to 16,000 homes in 2013,“ Verma said.
Vermaland is one of the largest landowners in the Phoenix area and Verma said that housing shortage has home builders on the hunt for land.
“And we anticipate the sales this year in raw land should exceed all the sales during 2008, 2009, 2010, 2011 and 2012,“ he said.
And while more homes could help keep prices affordable, especially for first-time buyers, Verma said there is a cost — location.
“The most raw land that is available is either in the West Valley or the southeast Valley.”
And he means far west, beyond the White Tanks or far southeast toward Casa Grande, because while it appears there is a lot of open space around the Valley, very little is open to development.
“Surprisingly, Arizona has only 17 percent land which is private,” Verma said. “The rest a checkerboard of state, local and federal lands, along with Native American reservations, so to find large tracts builders are going further out and driving up prices as they do.
“During the distressed time from 2008 to 2012, the land prices tumbled down to as low as 5 cents to 10 cents to the dollar,” Verma continued. “Now in the last three months, we are seeing land prices jump to 10 to 15 cents to the dollar and I feel we should see the firming up of this market by the end of the year.”
Joffe said the good news is that until that new land is developed there are still bargain-priced homes out there, but he said you need a good Realtor to find them. He also said get pre-qualified and be ready to jump when what you want hits the market.
“I think if someone is on the fence they should get off of it because next year they are going to be saying, ‘Why didn’t I buy this year,’“ Joffe said.
By Jay Crandall
Over the last 30 years we have seen many changes in watching Buckeye, Goodyear, Avondale, and Litchfield Park expand and grow into the Southwest Valley. If you wanted to purchase a new home the only option was Garden Lakes in Avondale. Goodyear population has gone from 2747 in 1980 to the present population of 65,000 today. From 2000 to the present, the Goodyear population has grown 245%!
When Keith and Cheryl Krone started selling real estate in the late 1980’s, I-10 ended at Dysart. The closest grocery shopping was a Smitty’s Grocery Store at 83rd and Indian School. Litchfield Road was a palm lined two lane road with no commercial businesses.
In 1987 Estrella Mountain Ranch in Goodyear, AZ. was a mere vision. The road was not paved; the potting soil to plant all the palm trees was piled almost as high as the Estrella Mountains.
Mortgage interest rates were 18-19%. The Savings and Loan industry collapsed causing many people to lose their homes. Remember the RTC?
Buckeye, Arizona was just a sleepy rural farm town with no commercial business except maybe a feed store or two.
Avondale, Arizona housing gem was Garden Lakes. It wasn’t until 1995 that Avondale began to hire and train personnel to be paramedics. By 1992 the Avondale Fire Department consisted of only five fire-fighters-paramedics on staff.
Litchfield Park, Arizona encompassed from Litchfield Rd to Dysart; and Indian School to Camelback. It was (and perhaps still is) “The Place” to live. Growth was really looked down on by the original Litchfield Park residents.
Loop 101 was non-existent. Travel from South to North was all surface streets and to get from Litchfield Park, AZ to Peoria or Glendale was a tedious drive.
There were no cell phones, no email, no internet, and very few faxes. Realtors were issued a book twice a month (which looked like a phone book). The only property pictures were one small thumb-nail, black and white photo. And Video’s of homes for sale, forget it!!!
We are very proud to have been a part of the explosive growth in the Southwest Valley; and cherish our years here watching Buckeye, Goodyear, Avondale, and Litchfield Park expand and grow.
When I am not selling Real Estate in the West Valley I took time out to go look at the variety of cars available to buy at the Russo and Steele Collector automobile auction in Scottsdale, Arizona. Over 700 cars of all makes and models were available for car enthusiasts and collectors from all over the globe to look at and bid on should it take their fancy.
Auction block excitement seemed never ending with Jaguar E type, Fait 500 Coupe, Alfa Romeo Spyder Veloce Convertible and MG Midget leading the way for the European cars. Whilst Chevrolet Belair Coupe, Ford Spcon Coupe GT40, and the spectacular fins on the Cadillac Eldorado Biarritz convertible heading the way for the American classics.
For 5 days under the white tents located at the intersection of the Loop 101 Freeway and Scottsdale Road, the hammer fell and some lucky person drove away in their new car with the open road awaiting.
Here is your first look at Principal Reduction Assistance in the form of the Permanent Mortgage Modification or HARP 2.0 Refinance. This video is brought to you by Keith Krone of Keller Williams Realty Professional Partners and Chris Papaccio & Bill Krone, Mortgage Bankers with Starboard Financial -The Right Way-. For more information please email Documents@kroneteam.com.
According to Catherine Reagor, of the azcentral.com article of Oct 27, 2012 “With traditional Sales coming back into play, metro Phoenix housing market continues to rise steadily. The housing market’s recovery is picking up steam in most neighborhoods acrossthe valley according the latest data for home values. Three fourths of all the valley ZIP codes saw home values climb during the first nine months of 2012, most of those jumps were in double-digit percentages and at least 20 ZIP codes posted jumps of more than 25 percent. Helping boost home prices has been a huge drop in the number of inexpensive foreclosure resales. In 2012 only 13 percent of all sales in the valley are homes taken back by lenders for resale, compared with 50 percent in 2011. In the west valley, Glendale saw home values climb more than 20 percent through August 2012. All of the neighborhoods are in north Glendale, near Arrowhead Ranch, an area with higher income residents. The Surprise ZIP code of 85378 was the other area in the northwest Valley to see home prices climb above 20 percent because it’s bisected by Bell Road, which has jobs and shopping”.
Currently in Maricopa County there are 10,834 available homes for sale. Buying a home should be a thrilling adventure and exciting opportunity. In today’s real estate market, you need to work with a real estate professional you can trust. I am dedicated to providing the absolute finest service and expertise possible for my clients. One of the reasons that many clients not only turn to me for the home buying needs, but also recommend my services to their family and friends, as I have a proven record that purchasing a home does not have to be difficult or frustrating. My returning clients choose to utilize my service and knowledge, because they know exactly what they can expect each and every time.
I would welcome the opportunity to sit down with you and discuss the market and your situation to determine how best I can be of service to you. Give me a call at 602-320-4167.
It’s that time of year again; holiday season is once again upon us.
I took time out from selling Real Estate to go to Verrado in the West Valley to join in the fun as the neighborhood came alive with the start of Christmas and hometown holidays celebrations.
The streets are lined with twinkly lights, reindeers and festive ornaments.
Verrado held their 9th Annual Tree Lighting celebration on Saturday December 1st. Many people gathered to enjoy horse-drawn wagon rides, marshmallow roasting, to play in the real snow and listen to school children sing carols and perform for their friends and families.
Santa Claus made a special visit and you could have a photograph taken to remember the evening.
The local grocery store and restaurants were available for drinks and food as well as vender stalls selling holiday treats.
It was a magical evening where the friends and neighbors mingled until after 9:00pm enjoying their time together.
As we have all said, where has the time gone? It was in 1983 that Keith and Cheryl started their real estate careers and it has been an amazing journey.
We have been truly blessed by the clients we have had the privilege to work with throughout our career. Many have turned into lifetime friendships. We have received many thank you cards throughout the years, but one card we hold dear was a card from a client who had purchased a home from us in 1986. In part, the card said, “It was 21 years ago this month (May, 1986) that two of the neatest people in the real estate business in Arizona sold us our dream second home. We couldn’t pass up this opportunity to thank you once again for 21 years of fun-filled, memorable hours of enjoyments. Thanks again so much!”..…
We’ve certainly seen many markets come and go throughout the years. Remember the interest rates at 19%? Remember the Savings and Loan crisis? Remember the real estate boom in the early 2000’s and the real estate crash which followed a few years later?
We have had to make many adjustments throughout the years, but the one thing we have never compromised; that’s our commitment to serving our clients with honesty and integrity.
Thank you all who have worked with us in the past and referred your family and friends to us. We feel so blessed!
From The Krone Team to your family, wishing you a fantastic 2013.
The Best inWestValleyReal Estate
By: Christopher A. Combs, Esq.
Any forgiveness of debt is generally taxable income. In 2007 during the height of the housing crisis the Mortgage Debt Relief Act was passed. Under this Act any debt forgiveness after foreclosure or a short sale by a mortgage lender on a loan used to purchase a primary residence, or to make improvements to a primary residence, is not taxable income. This Act is now scheduled to expire on December 31, 2012.
The Act had originally been scheduled to expire on December 31, 2010, but was extended for two years until 2012 because the housing crisis still existed. Although the housing market today is stronger, the housing market is still not healthy.
The Senate Finance Committee with bipartisan support has now approved a bill to extend the Act for one year until December 31, 2013. The cost of this one-year extension will be $1.3 billion dollars.
After the election the Senate is expected to approve the one-year extension, but there is significant concern that, due to the $1.3 billion dollar cost and the reluctance to “bail out” homeowners who overextended themselves in their home purchases, the House of Representatives may not agree to the one-year extension.
The website http://www.govtrack.us/ is available to track the potential passage of this bill in Congress.
As you may know by now my family and I have lived in Arizona for just over 5 years and in those 5 years we have tried every year to keep the electricity bills as low as possible. With soaring temperatures the air conditioning units are kicking in every few minutes constantly, 24 hours a day for approximately 4 or 5 months of the year. If you have 2/3 units, that can add up to a monthly bill of between $500-$600 dollars.
Having had solar energy before when we lived in Spain, we began to consider the possibility of utilizing the sun to help lower our electricity bills. Our research led us to one company…American Solar. After interviewing the competition, the decision was made. American Solar is not necessarily the cheapest on the market but their courteous, professional marketing made them number one on the list. In 11 years they have assisted over 3,500 people here in Arizona convert their homes to solar power. It was important to us to trust our home to a company that not only had experience but also guaranteed their workmanship for 10 years. They are a Better Business Bureau accredited business and have a clean history with the AZ Registrar of Contractors. Our next step in the process was to arrange an appointment with Ben Peryea, Senior Solutions Associate. Naturally we had a lot of questions, should we lease the panels or buy them outright for example. He assured us that he could answer any question we posed.
I look forward to telling you how our appointment went and the outcome.
Come back soon for Part 2 of our Solar System Experience……..