GSN Real Estate Guide May 2019

Real Estate Guide Sellers can rejoice: Valley housing market stays strong

BY PAUL MARYNIAK GSN Executive Editor

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ny gloom that prospective home sellers might have been experiencing late last year should be gone by now, judging by the latest word from one of the region’s major housing market analysts.

The Cromford report said the Valley-wide market is perking up with surprising strength — and turning 2019 into a big year for home sellers.

Citing a “massive number of homes closed” in April that exceeded April 2018 by nearly 500 homes – a 5.3 percent in-

crease — the Cromford Report stated: "This is a significant sign that the recovery in demand is growing in strength and the first time we have seen year-overyear sales growth since August 2018.

“As a result, the annual sales rate rose between March and April 2019. Another significant signal of market health,” it added.

Realtor.com’s latest housing market report last week somewhat supported that observation on a national scale, noting that “Despite a real estate slowdown gripping the nation, this year’s housing

see SALES page 4

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GILBERT SUN NEWS AN EDITION OF THE SUNDAY EAST VALLEY TRIBUNE | MAY 19, 2019

The sky isn’t falling – and neither are home prices

BY MINDY JONES NEVAREZ GSN Guest Writer

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s we headed into the 2019 real estate market, the buzz words flying around were “shift” and “shifting market.”

After nearly three years of a strong sellers’ market, a shift should be expected. The question is how big of a shift is it or will it be, when will it happen, and how quickly — so that buyers and sellers know best how to capitalize on it.

We braced sellers for buyers who were going to be more critical during the inspection period, concerns with appraisals and saw cancellation rates of contracts soar representing the inability of buyers and sellers to come together during the shifting market.

They say that a buyer is the first person to see a shifting market coming and the sellers are the last ones, so you can imagine the disconnect that can cause at the negotiation table. Buyers were willing to pay top dollar based on the increase in home values over the last three years but wanted the homes to be in new or like-

new condition.

Sellers got frustrated by being compared to newer inventory, a particularly hard hit for much of Gilbert as a plethora of new housing options entered the picture in 2018 and 2019 giving buyers plenty to compare their condition to.

Homes were still appreciating and the ones in good condition were still selling quickly and with multiple offers but with cancellations and price reductions running high, there were plenty of hurdles to cross before the sign came out of the yard.

We started to compare the 2019 market to the 2016 market in Gilbert — one that was healthy and on the upswing but without as much of the frenzy or expectation consumers had built up over the last few years about how quickly a home should be sold or how little negotiations needed to occur to come together.

You had a house in Morrison Ranch that you had remodeled and you wanted to sell it? Great. Get your Realtor’s sign in the yard and with good marketing and right pricing, it would be sold with multiple offers in the first day.

Purchased a starter home within walking distance to Downtown Gilbert a couple

of years ago and have since gotten hitched and have a baby on the way? No problem—your Realtor’s professional photos and video would have you sold AND give you enough down payment for your new house in no time even though you never made any improvements except the new paint you did in the living room.

We predicted that while 2019 would continue to be a profitable year for sellers, it may also allow give buyer’s a bit more of an advantage than they’d seen in several years.

With increasing inventory and decreasing demand, we anticipated the sellers market shifting into a very healthy balanced market where there was less of a swing in favor of either party, the playing field would be leveled a bit and buyers would have a little easier time finding inventory without having to make a line around the block for the one house in Power Ranch that was available under $300K. But then something happened. Well, a few things happened actually, and we started to see the numbers paint a very different story than we had expected.

The homes under contract went up in

March and again in April and for the first time in 2019, home sales exceeded their year over year month by 5.3 percent. Interest rates declined and available homes followed suit declining month over month signaling the early signs of a recovery from a very short lived slump.

The majority of the major metropolitan cities in the Valley including Gilbert inched deeper into a sellers market instead of slowly backing out of one and with the homes under contract nearly matching up to the numbers we posted in May 2018, we expect to see more of the same as we close out this month.

The key takeaway is that buyers who’ve been waiting for prices to fall might want to take advantage of summer incentives at new home communities and jump on that resale home in the perfect neighborhood, even if it needs a little work.

The sky isn’t falling and neither are the prices.

-Mindy Jones Nevarez, a Realtor and owner of the Amy Jones Group at Keller Williams Integrity First serving Gilbert, can be reached at 602-451-4975, Mindy@AmyJonesGroup. com or AmyJonesGroup.com

tion of Realtors’ leadership development program recently at its headquarters in Chandler.

They met every week from January to early April to learn about building their communities and becoming better leaders and Realtors.

Interested candidates have to apply and undergo an extensive review process. They must have been a SEVRAR member for the past 18 months in good standing and have been a Realtor for at

least that amount of time.

At SEVRAR’s office on East Northrop Boulevard in Chandler, they polished their public speaking skills and tackled group projects.

They also prepared, packaged and gathered stress balls, inspirational bookmarks, crossword puzzles, tumblers and other items to fill boxes with gifts and delivered them to veterans at the Arizona State Veteran Home – Phoenix.

Sarah Lossing, a Realtor with Platinum

Living Realty, enjoyed gaining leadership skills and getting to know other Realtors in the program.

“I see a lot of avenues to participate in our community and have been in different charitable organizations but just never had that official training in leadership,” the four-year Realtor said.

“One of the biggest things is being able to communicate with people,” she added.

Realtors with military experience give back

BY COLLEEN SPARKS GSN Staff Writer

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eterans, nonprofit activists and other East Valley movers and shakers used to taking charge on the battlefield and in their communities are expanding their leadership after participating in a Realtors association program.

A class of 12 people graduated from the SouthEast Valley Regional Associa-

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GILBERT SUN NEWS AN EDITION OF THE SUNDAY EAST VALLEY TRIBUNE | MAY 19, 2019

New home sells for $1.16M

REAL ESTATE

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This home in the 2700 block of Hummingbird Way in Gilbert's Whitewing neighborhood recently sold for $1.16 million. The semi-custom Toll Brothers house, built last year, is just under 4,900 square feet with four bedrooms that each have an en-suite full bath. With a 20-foot ceiling in the great room and ceilings that are 12 to 15 feet in the rest of the house, this corner-lot home has a gourmet kitchen with high-end appliances that include dual dishwashers and a dual-oven, 48-inch range.

Gilbert homes sold This is a list of homes sold in Gilbert for roughly the last month. Some ZIP codes showed no sales in that time period.

85234 $202,000 $205,000 $215,000 $225,000 $235,000 $253,000 $262,000 $265,000 $273,000 $280,000 $285,000 $289,000

1633 E. LAKESIDE DRIVE 170 E. GUADALUPE ROAD 217 E. BRUCE AVE. 4638 E. TOWNE LANE 226 E. LEAH LANE 1411 N. THUNDERBIRD ROAD 3961 E. CAMPBELL AVE. 1423 N. THUNDERBIRD AVE. 1834 E. ANCHOR DRIVE 3806 E. LEXINGTON AVE. 4324 E. PARK AVE. 4214 E. HARVARD AVE.

85295 $242,000 3330 E. FRANKLIN AVE. $245,390 4048 E. TOLEDO ST. $245,500 2770 S. PEWTER DRIVE $260,000 1435 E. JOSEPH WAY $260,000 3024 E. DUBLIN ST. $260,000 2496 E. BOSTON ST. $260,000 4334 E. OAKLAND ST. $262,000 4164 E. TYSON ST. $266,000 2816 E. MEGAN ST. $266,600 1266 E. CLIFTON AVE. $267,000 1859 S BALBOA DRIVE $270,000 2222 S BUCKAROO TRAIL $272,000 1712 E JOSEPH WAY $275,000 1731 S PARKCREST ST. $279,500 1847 E ERIE ST. $280,990 2720 S DECATUR DRIVE #101 $282,000 2575 E MORGAN DRIVE $282,700 4135 E TYSON ST. $283,000 3840 E FAIRVIEW ST. $286,000 1862 E SHANNON ST. $289,990 2723 S CAVALIER DRIVE #102 $292,990 1824 E BRIDGEPORT PKWY $295,000 1733 E JOSEPH WAY $295,000 4178 E ERIE ST. $298,500 4346 E TOLEDO ST.

85297 $270,000 $290,000 $294,000 $295,000 $295,000 $302,000 $312,000 $323,500 $328,000 $330,000 $340,000 $365,000 375,000 $385,000 $400,000 $423,000 $424,900 $432,000 $450,000

3934 S RIM ROAD 3815 S JOSHUA TREE LANE 3492 S BANDIT ROAD 1414 E ARROWHEAD TRAIL 4112 S GOLDFINCH DRIVE 4173 E CLAXTON AVE. 3456 E CLAXTON AVE. 3823 E CAVALRY CT. 4037 E TRIGGER WAY 4089 E WAGON CIRCLE 3864 E WILDHORSE DRIVE 3807 S COLT DRIVE 4733 E LARK ST. 2806 E TRIGGER WAY 3695 S POSSE TRAIL 3032 E SANTA FE LANE 4066 E TANNERY CT. 4474 E MARSHALL AVE. 877 E DORAL CT.

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3/6/19 5:40 PM

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REAL ESTATE

GILBERT SUN NEWS AN EDITION OF THE SUNDAY EAST VALLEY TRIBUNE | MAY 19, 2019

SALES from page 1

market is expected to be busier than Realtor.com economists originally predicted late last year. That means more home sales – and higher prices – are on the way.”

The website said lower mortgage rates were making homes more affordable for buyers – even though home prices are still predicted to rise.

“The economic team expected rates to climb to 5.5 percent in 2019, but instead they have hovered around 4 percent.” Realtor.com said. “Economists say rates are now likely to rise a little to 4.5 percent, still well below what buyers were dreading.”

But the Phoenix market apparently is outperforming the national trend – likely the result of a steady influx of new residents that has made Maricopa County the fasted growing county in the country.

Even with that population increase, the Cromford Report said, “Nobody would have predicted this strong a recovery back in January.”

“Last month we saw strong growth in listings under contract,” it said. “This month we see strong growth in closed listings. This is why listings under contract is such an important number – it gives us early warnings of a change in the market.

On this occasion, the change is strongly

positive for sellers.“ The Cromford Report and Realtor.com agree on the major driving factor what each sees on a national and local level.

– namely, lower-than-expected interest rates.

“New listings have been flowing a little more freely since March - we know sellers get encouraged by lower interest rates as well as buyers,” the Cromford Report said.

But slowpokes may be in for a disappointment, it cautioned, noting, “the new higher level of demand is making short work of the extra supply” of homes.

“Buyers waiting because they thought prices would fall have been left in the dust,” it added. “The market continues to strengthen and the likelihood of falling prices in the near term is minimal.

We have extremely low levels of distress,

chronic low supply and the best buyers can hope for is that the appreciation rate will trend lower. We think that is a reasonable expectation, but it shows no sign of turning negative.”

“All in all, the market is more vibrant now than almost anyone expected it to be,” the Cromford Report said. “This is good news for sellers, agents, title companies, lenders and developers. If interest rates start to rise again, then we may see another mild slowdown, like we experience from September 2018 to February 2019, but at the moment the market engine is firing on all cylinders once more.”

The assessment stands in sharp contrast to what’s going on nationally, judging by Realtor.com’s latest report.

“It’s still going to be a lukewarm year for the housing market,” said Danielle Hale, the website’s chief economist. “We’re going to see higher prices and slightly higher home sales than we expected. But home sales are still going to decline slightly as a result of the housing slowdown. There’s a gap between what sellers are looking for and buyers are hoping to pay.”

But even amid its gloomy assessment, Realtor.com sees no basic tilt in the market that favors buyers when it comes to price.

“The downside for buyers – and upside for sellers – is that prices are expected to rise more than Hale’s team originally forecast,” it said. "That’s because the swelling ranks of buyers motivated by those lower mortgage rates will increase demand – and therefore prices.

Meanwhile, Realtor.com’s economists predict the number of home sales will almost hold steady, dipping just three tenths of one percent. Originally, they predicted sales would fall by 2 percent.

“The market has slowed down from previous years because sellers, seeing an end to the good days of high prices, rushed to put their homes on the market,” the website said. “But this happened at the same time that many buyers backed off because of those same high prices. The glut in supply led to lower price growth and fewer home sales.”

Hale also noted that local markets could be acting distinctly differently from the composite national picture.

“In some markets there’s still not enough housing available, so buyers are likely to find a competitive market,” she said. “But in some markets prices are so high that buyers are choosing to be patient and sit on the sidelines.”

GILBERT SUN NEWS AN EDITION OF THE SUNDAY EAST VALLEY TRIBUNE | MAY 19, 2019

SEVRAR from page 2

“We learned about a lot of different personality traits.”

She said she is glad the group decided to help patients in the veterans home as her father is a Korean War veteran.

The community project was also close to the hearts of three leadership program students who had served in the military — Bruce Bouldin, Dave Rosenfeld and Angela Tauscher.

Tauscher of Queen Creek, a Realtor at West USA Realty’s Chandler office, served in the Army Reserve for six years and said she is glad the boxes were donated to the skilled-nursing care center that serves Arizona veterans and their spouses as the family members of military members sacrifice a lot.

“I think my family deserves more of a thank you than I do,” Tauscher said. “The fact that this community project is not just about the vets, it’s about the veterans and their families, for me is a big deal. It’s hard on the families.”

A married mother of a 19-year-old daughter, Justice; a 16-year-old son, Payton; and a 15-year-old son, Ethan; she is in her third year as a Realtor and previously owned a landscaping business.

Tauscher was deployed during Oper-

that did not happen.

Tauscher said after taking the leadership program, she wants to serve on a Rotary Club board and on one of SEVRAR’s committees. She has volunteered as a Queen Creek Chamber of Commerce ambassador.

Tauscher is also a chapter director consultant for BNI Absolute Business Builders.

“It’s been fun getting to know other Left to Right: Angela Tauscher, Dave Rosenfeld and Bruce Bouldin, Veterans in the Leadership Class (Pablo Robles/Staff Photographer) Realtors outside of my brokerage,” ation Enduring Freedom hours from her Tauscher said. “I really wanted to know home in the United States for about six more about the back of different departments, who does what; how could I possimonths, leaving her then 6-month-old bly volunteer and serve. It’s (a) paycheck child, who she was breastfeeding, and her of the heart. It’s a huge commitment but 3-year-old behind.

I know it’s for the better of the industry.”

She was a medical supply sergeant said She said the leadership program group she was “living in limbo” during her de- is diverse.

“I think some of the biggest eye openers ployment, expecting to go to Iraq, though

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Gilbert Real Estate Snapshot

see SEVRAR page 7

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for me are how we’re all in the same industry but we think so differently,” Tauscher said. “There’s a thousand different ways a transaction can be run. Sometimes being in real estate can be a lonely field.”

Rosenfeld, of Gilbert, a Realtor with RE/MAX Alliance Group, retired from the Army after 22 years.

He is in his second year as a Realtor and had also sold tactical equipment to the military and federal government before getting into the real estate industry.

The former paratrooper Rosenfeld said it was good being surrounded by others who wanted to be “achievers” in the leadership program.

“They all want to better help their clients,” he said. “The greatest takeaway here is we are all so different. I have to be cognizant that we’re all leaders.”

Rosenfeld is president of his homeowners association and vice-chairman of SEVRAR’s Community Outreach Committee.

He said the leadership program members had different ideas about what organization to help and he is glad someone recommended helping veterans.

Rosenfeld said some of the veterans at the home use wheelchairs and walkers

• Average Days on Market: 55 days Down from 58 Days Last Month

• Active Listings: 871 Down from 911 Listings Last Month

• Monthly Sales: 498 Up from 439 Sales Last Month

• Listings Under Contract: 682 Up from 638 Listings Under Contract Last Month

• Average Sales Price: $379,306 Down from $383,899 Last Month

• Monthly Supply of Inventory: 1.8 Down from 2.0 Monthly Supply Last Month

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GILBERT SUN NEWS AN EDITION OF THE SUNDAY EAST VALLEY TRIBUNE | MAY 19, 2019

4509 S Banning Drive Seller has put literally $100K into the home in the past 4 years.

Welcome to this custom built, oasis haven in the luxurious Weston Ranch gated community.

Beautifully manicured desert landscaping on huge 3 4 acre lot, with premium rock elevation and grassy area leading up to gated courtyard. Interior courtyard is complete with foliage and fountain, and features separate entrance to casita. Perfect for in-laws or a guest suite, casita has private bath, fridge, microwave and sink. Inside the main home, you’re welcomed by the majestic 12 foot high foyer to the separate formal living room to one side and dining room with butler’s pantry on the other. High 10-foot ceilings and chandeliers throughout, with carpet, tile and real hard wood inlay flooring in all the right places.

WOW, you have GOT to see this home! One of the absolute best in the East Valley. From the stellar curb appeal to when you walk through the front door you are greeted by a large open expanse that leads to formal living and dining rooms. Home has neutral paint and flooring throughout, espresso cabinets, granite counters, bay windows in kitchen, living room and master suite. Vaulted ceilings, updated fixtures through out the home. Master has an incredible view of your back yard oasis. Master bath updated with double mirrors, glass enclosed shower with tile surround. Backyard is ready for entertaining, grass area, sparkling pool that has all been redone from the equipment to the pebble tech, two garden areas, beautiful patio where you can relax and unwind. NO NEIGHBORS BEHIND!!

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GILBERT SUN NEWS AN EDITION OF THE SUNDAY EAST VALLEY TRIBUNE | MAY 19, 2019

SEVRAR from page 4

and have had limbs amputated.

“The biggest thing these guys want is somebody to talk to,” he said. “When somebody new walks in, it’s uplifting.”

The leadership group not only delivered the boxes to the patients at the veterans home but also participated in karaoke and visited with them for a while.

Bouldin, an associate broker for HomeSmart, has worked in real estate for 31 years and served in the Marine Corps for four years. His father had served in the military and his two sons are in the military.

He also volunteers as a public information officer for FEMA and the American Red Cross and previously helped wounded warriors through a program in another state.

Bouldin said the leadership program helped him.

“It has given me some contacts that I probably wouldn’t have had,” he said.

“It’s given me insight to things that happen behind the scenes. I think that sometimes to get ahead, you have to stop what you’re doing and help those around you.

It just can’t all be about you. In management you have to step back and become more humble.”

to “bring smiles to people’s faces” from someone out of state.

T.J. Maxx donated the shoeboxes, a member of the leadership team spraypainted them and everyone in the group contributed something, she said.

Duane Washkowiak, of Tempe, SEVRAR vice-presAndrew Dumas, left, Dave Rosenfeld and Katherine Schoville fill boxes for the ident and a broker veterans. (Pablo Robles/Staff Photographer) and partner with Realty Executives, Melissa Al-Rifai, of Gilbert, a loan offi- started the leadership program SEVRAR cer for Bell Bank Mortgage in Chandler, offers in 2004. He said SEVRAR program said the group project was one of her fa- helps participates become better at public speaking and to get a “better undervorite activities in the program.

“A lot of the folks in this class are type-A standing of the community and how the personalities,” she said. “In the past, I’ve community serves its citizens.”

“We basically set up a round robin of worked on a team where I’ve naturally evolved as a leader. I’ve learned to not visits for Realtors with different entities be that person and identify people’s that serve the community,” Washkowiak said. “We expect the people that go strengths.”

She said she is glad the group helped through to give back to the communities the veterans as she is happy to help “any- they serve. I think it’s very important for body in need.” Al-Rifai said she found them if they want to be successful.”

A panel reviews applications people the idea for “sunshine boxes” designed

REAL ESTATE

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submit to try to get in the program and asks applicants what they hope to gain from the classes, he said. This year 17 people applied for the leadership program.

“There’s a group project involved with every class,” Washkowiak said.

“The whole idea is to have something that would have a lasting effect. It’s all about growing as a leader, how do you take those things that you learn and turn them into actions that will have results.”

SEVRAR advocates for homeowners and leadership program and its members get “clued in to the big picture,” he said.

“The bottom line is, no one pays us to represent homeowners but we feel that it’s good for all people to support the home-buying industry because it’s where families spend most of their time,” Washkowiak said.

“Those people are much more engaged in the processes and have a better understand of what it means to be a Realtor,” Washkowiak said. “It’s not just about selling real estate, it’s about building clients for life and building relationships, being part of the community.”

Information: sevrar.com/leadershipprogram

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GILBERT SUN NEWS AN EDITION OF THE SUNDAY EAST VALLEY TRIBUNE | MAY 19, 2019

Andy Cooper Gentry Real Estate 3303 E. Baseline #119 Gilbert, AZ 85234 866.825.8399 andy@valuenation.com

3832 S STAR CANYON DR

Gilbert, AZ 852977

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Featuring low maintenance landscaping, 2 car garage, and front covered patio.

Listed for $340,000

Listed for $339,900