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2019 Real Estate Market Review and 2020 Preview

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Happy New Year! As we bid adieu to 2019, I would like to personally thank all of our clients for choosing Nolle Properties to help them with their real estate needs in 2019.

2019 proved to be a strong real estate market in the Metro Phoenix area. (All statistics are courtesy of ARMLS).

The year-over-year comparison in sales from 2018 to 2019 increased by 7%.  With an influx of residents from our neighboring state to the west (California) entering our market at a rate of nearly 200 people per day, it is easy to see why that figure reached 7%, and why we are bullish on the real estate market in 2020. 

Even though we saw a greater demand in housing, the metropolitan Phoenix real estate market saw its inventory drop by nearly 20% from 2018 to 2019.  The greater demand and smaller supply caused property values to increase in nearly every price point throughout the Valley. 

So, what does 2020 hold in store for the Valley’s real estate market?  We expect prices will continue to climb due to the limited supply of homes on the market and the higher demand for housing. If you are a homeowner and want to “cash out” on your equity, 2020 is certainly the year for you to do so! If you are a buyer, you will want to be fully prepared to move fast and present a competitive offer to secure the “home of your dreams.”

Whether you are looking to sell your home, buy a home, or invest in real estate in 2020, please contact Dylan Nolle at 602-750-7913 or Maria Nolle at 480-221-7847. We would love to earn your trust and business. 

This is Not Your Parents’ Guide to Real Estate

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I grew up in the typical middle-class family in America. My parents taught me to work hard and dream big. Under their guidance, I graduated from college and then law school – even though doctors predicted I would never be able to complete high school due to my physical disability. I am not your traditional realtor, but in today’s real estate market, you need someone who is sophisticated to help you with the biggest investment of your life.

Investing in Your Future

Being the father of 3 children, I find myself being more of a teacher than anything else. I try to show them through the game of chess that every move they make has a direct impact on their future moves. Investing in real estate is a lot like the game of chess. The moves you make today have a direct impact on your financial future.

I really try to impress upon our millennial clients the importance of leverage and the term ROI (Return on Investment). Our millennial clients are some of the hardest working people I have met. They also do not want to be confined to a desk job working 8-5, M-F. Typically, millennials are not interested in purchasing single-family housing. They would rather rent or live at home to save money to buy their first home that is not the typical starter home. I stress to them why that is a big mistake – especially here in Phoenix.

Apartment rents climbed faster in metro Phoenix than anywhere in the U.S. during the past year. Reagor, Catherine. (2019, March 22). “Apartment rents climb faster in metro Phoenix than anywhere in the U.S.” The Arizona Republic. Retrieved from http://www.azcentral.com. With the current average lease in the Valley sitting at $1,637, according to ARMLS, renters are feeling the squeeze and are being forced to add roommates to help offset the rising costs of rent. Conventional wisdom would have you believe that is the correct thing to do. However, all you are doing is living with some slob you don’t like and making your landlord rich. Are you one of those renters feeling the squeeze? Here’s how to get out of the trap.

Say Bye to Roommates and Buy Investment Properties

Suppose you are one of those renters that pays roughly $1,600 a month in rent. That’s the equivalent of a property with a mortgage of roughly $300,000. As current mortgage rates continue to drop, your buying power strengthens providing you with more bang for your buck.

The first thing I hear out of a first-time buyer or millennial’s mouth is “I will not qualify for a mortgage.” Think again! With a FICO score of only 580, you can put just 3.5% down, FHA financing, to buy a duplex, triplex, or fourplex provided you make it your primary residence for one year. Simply stay in one of the units for a year while renting the other(s) out – keep in mind the average rent in metro Phoenix is $1,637 and your mortgage for a $300,000 investment property would be around $1,500 – and start earning some income off your investment. You could literally live there for free!

We all hear about these real estate tycoons who purchase an apartment building or buy a group of 10 investment properties and think they must be lucky. The truth is most of them started out by purchasing one investment property at a time and leveraging it to increase their real estate worth.

When you study the last seven recessions only one had an impact on the real estate economy. Investing in real estate is generally one of the safest investments you can make. Stop throwing your money away by renting! Let us help you build wealth through real estate cash flow. Contact Dylan Nolle at 602-750-7913 or Maria Nolle at 480-221-7847 today and start enjoying safe returns on your investment for decades.

March Madness

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It’s that time of year again! No, I am not talking about alley-oops, slam dunks, and cutting down the nets. I am talking about Buying Season! Even though total home sales for the first two months of 2019 fell 9.4% off the pace of 2018, in just a few short weeks, we will see our first significant numbers for 2019. We look for the median sales price to rise, most likely through June, making home prices the center of conversations – instead of busted brackets – in break rooms throughout Valley offices. So, what can you do to make your home come out on top in today’s market? Here are three tips:

Make Your Kitchen Sizzle

Renovating your kitchen is THE biggest way to add value to your home. Everybody tends to gravitate to the kitchen and by simply adding a hefty amount of seating involving an island with barstools is something buyers will eat up! Even though a total remodel can be a major investment, smaller projects make a big difference! If you can’t afford to go all-out, simply adding nicer appliances makes a huge impact with buyers. If you do not want to go the appliance route, replacing finishes with fresh and neutral materials makes for a clean and timeless look. Replacing dated countertops with quartz and changing your flooring is also worth your time and money.

Freshen Up Your Bathrooms

The smallest rooms in your house have THE biggest impact on its value, so adding a second bathroom or upgrading existing ones to give your home at least two full baths really gives you great bang for your buck. However, if you are solely remodeling a bathroom to simply list your home, keep it simple by adding things like updated hardware or re-grouting tile to give it a fresh look.

Light It Up

Increase the watts in your lightbulbs to make your home look brighter and bigger. Take down dated chandeliers and update the fixtures to really make your house shine!

So, there you have our three tips to increase your home’s value. If you would like us to help you prepare to list your home for sale, please call Dylan Nolle at 602-750-7913, or Maria Nolle at 480-221-7847.

Jump Right In!

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Pop Quiz time! Can you name the #1 county in the United States for net population growth during the past year? Anyone? Hint: It starts with a “M” ends with an “A” and has nearly 4.5 million people living within its boundaries. Anyone? It’s Maricopa County! In fact, Maricopa County has won that title 2 years in a row now. Question number 2. On average, how many people per day move to Maricopa County? The answer is 223 – the majority of them being from our neighbor to the west, California.

With those figures in mind, do you think there are currently more homes on the market compared to last year or less? Surprisingly, the answer is less. Currently there are just over 19,000 homes on the market compared to a little more than 21,000 last year.

Even though interest rates have gone up and look like they will continue to go up, as the Fed tries to cool the economy down, the Phoenix Metro Real Estate Market is expected to remain strong for the next 2 years at least. Last question, why aren’t you selling your house to take advantage of a low inventory and a strong real estate market to cash out your equity? Only you can answer that question. However, when you are ready to list your home, please contact us at 602-750-7913 to discuss listing strategies to maximize your real estate investment.

August Arizona Real Estate Market Report

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Lately we’ve been seeing record-setting temperatures in the Valley and the Valley’s real estate market continues to be just as hot!

With a little more than a two month’s supply of inventory, the average list price hovers around $525,000 while the average sale price is approximately $323,000. This lack of inventory continues to put high pressue on prices. Putting it in layman‘s terms, it’s a sellers market. So, what does this mean if you are a buyer or seller?

First, U.S. home prices are expected to appreciate between 4.5 and 7 percent during 2018. That appreciation rate is happening at twice the speed of inflation. Arizona’s real estate market should easily meet those numbers.

Annual household earnings in Arizona is up 5.2% this year compared to 2.7% nationally. Arizona’s unemployment rate is sitting between 2% and 3% which is an 18 year low. Arizona’s job growth is just under 3% – which is almost double the national rate. People flock to where the jobs are and this is causing more people to move to Arizona. With all of these jobs being created in Arizona, people require either an apartment or a home to live in.

Arizona remains one of the top places to live because home affordability is so great. Maricopa County continues to lead the nation in population growth. It is the fourth most populated county in the nation. Out of the 7 million residents in Arizona, 4.7 million of them live in Maricopa County. As Arizona continues to grow over the next decade, we expect the real estate market to continue to be hot at least through 2020 and then a relative cooling off period for the seven years following 2020. So sellers, if you have been waiting for the “right time” to sell at the peak, we are almost there! Buyers, you may want to hold off until 2020 to find good value in your purchase.

As always, continue to follow our blog for the latest news in Arizona real estate. Please feel free to email any questions to us at dnolle@nolleproperties.com.