Gilbert Sun News Real Estate 10.17.2021

REAL ESTATE

GILBERT SUN NEWS | OCTOBER 17, 2021

re1

Leaves are falling, home prices aren’t

BY MINDY JONES GSN Columnist

T

here’s something that happens after the first of October in Arizona, it’s almost the permission for fall and all things pumpkin spice. Even if you aren’t a fan, you might find yourself bringing out your boots, your darker fall colors, or even just taking your coffee hot again in the morning.

As an Arizona native, I can’t get enough of this time of year and if you take a quick glance at the town’s activity calendar, you’ll see why.

ISTED!

From the launch of Gilbert Family Nights earlier this month at the Gilbert Regional Park, to the Trick or Treat Bash at Freestone, to the return of the Gilbert Days Parade in November, all the way to the big, jolly guy in a red suit coming to the Gilbert Community Center in December – this time of year is all about enjoying family, friends, and community.

Fall in real estate, however, typically signals a bit of a slowing in the Arizona market, which for 2021 just means that we are driving down the road at 75 miles an hour instead of the 120 miles an hour we were pushing the speedometer to in March.

While the options for outdoor events seem absolutely endless this time of

year, I wouldn’t describe the options for housing in quite the same way – although we have hit almost the same inventory levels in Gilbert that we had in the fall of 2020.

So why does it feel so different this year? We are actually seeing lower demand than we did in 2020 due in part to that jam-packed activity calendar, but also due to buyer fatigue with a racing real estate market, changing needs due to in-person school and the return to the office for many, and some simply feel

priced out of the market or challenged with loan limits that aren’t keeping up with property values.

In truth, the weakened demand is being masked in part by our friends over at Opendoor, Offerpad, Zillow and Redfin who are on an active buying spree across the Valley making our 75 miles an hour feel like a solid 90.

Much of the inventory that these iBuyers have accumulated over the last 60

see MINDY page RE5

SPO OTLIGHT home

JUST L

BESTOF

2021

Melanie Nemetz

Welcome to the highly sought after neighborhood of Cooley Station North in Gilbert.

Welcome to this beautiful home in Superstition Highlands in Gilbert AZ!

Call Melanie (480) 221-3034

See Page 4

Amy Jones Group

Listed for $365,000!

Our extensive, high quality marketing of your home combined with our thorough preparation of listing the home for sale, will help your home sell faster and for more money. Here is a sample of the marketing for our listings:

BESTOF

2021

◆ Home Staging Report by Interior Designer & Stager ◆ Professional video of home ◆ Professional photos of home ◆ Twilight photos ◆ Community photos ◆ Aerial drone video/photos ◆ 3D Interactive floor plan - Matterport www.fosteringre.com Each office is independently owned and operated ◆ Open house first weekend on the market

480.221.3034

See Page 4

re2

REAL ESTATE

GILBERT SUN NEWS | OCTOBER 17, 2021

Young buyers want to spend less on a home, Homie finds

BY J. GRABER GSN Staff Writer

T

oday’s younger generations are willing to spend less overall and put less money down on a home than past generations, according to a recent survey by digital real estate agency Homie.

Homie’s nationwide survey of 1,000 people aged 18-24 found Gen Zers are willing to spend $150,000 to $250,000 on a home. However, according to the National Association of Realtors, the median U.S. home price is over $360,000, meaning Gen Zers will need to spend well out of their comfort zone if they want to own a house.

The survey also found 57 percent of Gen Z participants were willing to make a down-payment of only 3-5 percent while 53 percent of millennials are willing to put down less than 15 percent on a home and 27 percent of millennials favored a down-payment of less than 10 percent. Millennials are current-

ly the most active generation of home buyers, accounting for 37 percent of all homebuyers.

“These findings showcase that we are on the right track in appealing to the next generation of home buyers through our combination of technology and a streamlined experience,” Homie CEO Johnny Hanna said. “Our mission is to change the way homes are bought and sold to make home ownership accessible for not only Gen Z, but for all generations to come.”

Founded in Salt Lake City, Utah, in 2015, Homie claims to have helped clients buy and sell over $4 billion in homes. It calls itself a “disruptive real estate technology company,” featuring homebuying and selling via a full-service app.

Prospective buyers can look up houses according to location and/or price on the app while also getting information on things like the school district serving the area.

The app even allows perspective buyers to sort houses according to a total

monthly payment – figuring in things like home owner association fees, homeowner’s insurance and the mortgage payment into the equation, to give one lump sum of what the owner can expect to pay every month.

“That’s a very popular new feature to the app,” said Homie Senior Vice President Dan Richards.

Homie’s is more of a self-service model for the younger generation, which is more comfortable using technology, and older generations that are more familiar with the home buying or selling process and don’t necessarily need hand-holding.

By maximizing the use of technology, Homie says it cuts down on fees and commissions.

Its newest offering, Homie Cash, gives prospective home buyers an edge over other bidders by backing a pre-approval for buyers with cash so they can make cash offers on a home.

When faced with a choice between cash and a typical offer, sellers are three times more likely to choose the cash of-

fer, Richards said.

Other findings from Homie’s survey include: • Gen Zers are willing to use technology to buy and sell homes. The majority of participants (67 percent) would consider using an online service or an app to buy a home compared to 39 percent of millennials.

• A lifestyle change was the number one reason for wanting to buy a home. Roughly 46 percent of participants said a new job, a growing family or relocating were the top reasons for wanting to purchase a home.

• The overall company experience trumps everything for Gen Z. When searching for a real estate company to buy or sell with, 52 percent of participants said the overall experience from start to finish is the most important factor, followed by technology at 33 percent. Millennials set the trend as the generation to value experiences over things and Gen Z is following along this path.

REAL ESTATE

GILBERT SUN NEWS | OCTOBER 17, 2021

re3

Real estate investors must avoid these pitfalls

BY PATRICK MACQUEEN GSN Guest Writer

O

wning real estate investment properties is often lucrative.

But, real estate investments, whether vacation rentals, long-term rentals, or “fix and flips,” can be disastrous if the investor fails to utilize an entity and/or fails to utilize an entity in the correct fashion.

Indeed, it is critical that investors structure their investment real estate, whether through an LLC, a limited partnership, or other entity, to minimize personal liability.

And, no matter the structure, investors with entities must avoid the following mistakes: 1. Failing to transfer an existing property, via deed, to the real estate entity.

Upon forming an entity, the real estate

20

investor must execute a deed transferring the real estate to their newly formed real estate entity.

The deed must be recorded in the county in which the investment property is located. Failure to do so will cause the investor to remain personally liable for property related issues and largely defeats the purpose of creating the real estate entity.

2. Failing to insure the property under the name of the real estate entity. It is imperative to have written proof that the real estate entity is insured, so that an insurance company is not provided with an easy reason to deny coverage.

3. Failing to comply with entity maintenance obligations. It is critical that you maintain your real estate entity’s good standing and have written records outlining various actions taken by the real estate entity. Additionally, some entities require the filing of annual documents in order to maintain “good standing.”

21

395 Down from 407 Sales Last Month $598,316 Up from $582,193 Sales Last Month

For example, certain Arizona entities are not required to file annual reports; whereas, some entities must file them.

Another maintenance issue that arises is the failure to keep accurate records, like segregating business banking activities and personal ones.

These are not the only mistakes that we see.

For instance, most real estate investors do not know that, upon transferring real estate to a real estate entity, the business must update its title insurance policy to reflect this new ownership. Failure to do so can result in a title

claim being denied.

Another common and avoidable mistake is failing to execute all contracts in the name of the real estate entity. This, too, can defeat the entire purpose of creating a real estate entity.

For questions about keeping your real estate entity in compliance with various laws, feel free to send me an email at patrick@mandglawgroup.com.

Ahwatukee resident Patrick MacQueen and Ben Gottlieb founded MacQueen @ Gottlieb PLC, one of the state’s biggest real estate law firms.

Check us out and like the Gilbert Sun News on Facebook and follow @gilbertsunnews on Twitter.

243 Up from 240 Listings Last Month 512 Up from 423 Listings Under Contract Last Month 0.6

0.6

re4

REAL ESTATE

Welcome to this beautiful home in Superstition Highlands in Gilbert, Arizona

GILBERT SUN NEWS | OCTOBER 17, 2021

Realtors group donates lockboxes to Gilbert GSN NEWS STAFF

JUST LISTED! Welcome to this beautiful home in Superstition Highlands in Gilbert AZ. Offering 4 bedrooms + den + loft, pool, & 3 car garage, this home will check all your boxes. You are greeted in the dramatic foyer with high ceilings and staircase. Separate living room and dining rooms allow flexibility in the use of space. Den located downstairs has double doors. Spacious kitchen with granite counters and stainless steel appliances, and a walk in pantry. 4 bedrooms located upstairs + a loft. Master suite has grey cabinets, dual sinks, separate tub & shower, and large walk in closet. Two of the secondary upstairs bedrooms have walk in closets. Backyard offers a swimming pool, covered patio, grapefruit tree and lemon tree. All this and just four doors down from the community park.

Call Melanie today (480) 221-3034

Winner for The Tribune’s Best of Gilbert 2021 in the following categories: BESTOF 2021 Best Realtor: Melanie Nemetz Best Real Estate Team: Melanie Nemetz Team and we work for the agency that won Best Real Estate Agency: Keller Williams Integrity First

Melanie Nemetz

480.221.3034 • www.fosteringre.com Each office is independently owned and operated

SPO OTLIGHT home

Cooley Station!

Welcome to the highly sought after neighborhood of Cooley Station North in Gilbert. This two story, 3 bedroom, 2.5 bathroom home features a downstairs great room floor plan with modern kitchen and stainless steel appliances, breakfast bar seating overlooking the full kitchen table and beautiful views of the expansive greenbelt outside. Upstairs you’ll find three bedrooms with a full guest bath, laundry room, and hallway niche perfect for an office or play space. WIth the downstairs half bath, two car attached garage and just steps to the community pool, park, and guest parking for the neighborhood - this one won’t last long. Take a stroll around Cooley Station North, pop over to the shopping and dining options in and around Gilbert - this is the perfect lock-and-leave property for you!

Listed for $365,000

3659 E Leslie Drive, Gilbert, AZ 85296

(480) 250-3857 www.AmyJonesGroup.com

R

ecently, the West and SouthEast REALTORS of the Valley (WeSERV) SouthEast Valley Community Involvement leadership and committee volunteers donated 65 combination lockboxes to the Town of Gilbert and City of Chandler to support its Lockbox Program.

The program helps fire and emergency personnel to enter a home during emergency situations without resorting to forced entry.

“The West and SouthEast REALTORS of the Valley prides itself on giving back to the community, especially to members who are in need of assistance more than others,” said Roger Nelson, WeSERV CEO. “Through our lockbox program, our volunteers hope that they can continue to serve their community.”

The Secure Lock Box Program has been a bridge uniting Realtors with their communities’ needs.

By providing mechanical lock boxes to our fire and police departments, emergency crews can be placed at the homes of the elderly and disabled, who may not be able to open the door. Thus, the program provides lifesaving comfort.

The program changed the way fire and rescue personnel can enter a home so that they cause no damage as they gain access to save lives.

“Above all people matter. When we have an opportunity to assist with safety of our community WeSERV believes in doing the right thing,” said Mandy Neat, 2021 WeSERV president. “Donating lock boxes that can make a difference in one’s life is a wonderful ability we have to en-

see LOCKBOXES page RE6

REAL ESTATE

GILBERT SUN NEWS | OCTOBER 17, 2021

MINDY from page re1

days has yet to be returned to the market.

So, the expectation is that we’ll see a rise in inventory in the new year. Combined with the potential for these iBuyers to pull from the market at any given time, that could mean selling conditions could look very different at the turn of the new year.

We often get asked if this is a sign that the bubble is going to burst. Our market is being driven by a lack of inventory and not demand –which is very different from the conditions that caused the bubble most are referring to when they ask about this.

But there is some volatility that could be caused by a change in direction for the iBuyer community.

With the rising interest rates, something we predicted would happen but couldn’t determine when we might see the change, and the expectation that prices will continue to rise another 3-5 percent by the first quarter, we’re having more and more conversations with buyers and sellers who took a little breather

This 5,249-square-foot house on East Robin Court in Gilbert frequently sold for $1.6 million, one of at least five seven-figure properties in the town that closed in recent weeks.

The five-bedroom, six-bath single-story house, built in 2014, boasted numerous amenities, including a guest casita. (Special to GSN) from the market frenzy of quarters two and three and are ready to get back in the game.

From a numbers’ perspective, Gilbert has 391 homes available on the market as compared to 355 last quarter and 655 two years ago. Our days on market is sitting at about 24 – which is up from

19 last quarter and down from 43 two years ago.

But our month’s supply is at a solid two weeks as compared to twice that two years ago due to the still insatiable demand for housing in Gilbert. For many, the increase in inventory, the expected increase in interest rates and the com-

petition from iBuyers make this holiday season one of the best times to consider making a move that we’ve seen all year.

We now have nine municipalities, including Gilbert, that have moved in favor of sellers in the last month. That means we’ve got a way to go before this lawn skeleton deflates.

We need about twice the inventory we have on the market to even be close to a balanced market. Prices will continue to rise until we have too many houses for the people who want them and with how packed North Italia and Flower Child were at their fall opening, I don’t see that happening any time soon.

Mindy Jones, a Gilbert Realtor and owner of the Amy Jones Group at Keller Williams Integrity First, can be reached at 480-250-3857. Mindy@AmyJonesGroup.com or AmyJonesGroup.com.

Mindy Jones, a Gilbert Realtor and owner of the Amy Jones Group at Keller Williams Integrity First, can be reached at 480-250-3857. Mindy@AmyJonesGroup. com or AmyJonesGroup.com.

Buying or Selling a Home?

Call Erik First!

1850 E Northrop Blvd #170 | Chandler AZ 85286 480-206-5592 cell | www.ErikGeislerRealtor.com Join me in supporting my charity partner,

CULTIVATE GOODNESS

Cultivate Goodness is a nonprofit organization that focuses on helping with needs in our community. We invite members of our community to get involved and wrap arms around those that could use a lift. We believe if everyone puts in their piece, whatever the size, it adds up to be a mountain of good.

Go to http://cultivate-goodness.org

re5

Serving the Valley, for over 15 Years!

Erik Geisler REALTOR® Your Real Estate Agent

re6

REAL ESTATE

GILBERT SUN NEWS | OCTOBER 17, 2021

Intel expansion likely to heat up housing market

BY EUGENE QUACKENBUSH GSN Guest Writer

I

ntel, the U.S.based semiconductor chip manufacturer, recently announced big plans to invest and expand its footprint at its Chandler-based power plant. The company is dedicating $20 billion to construction for two new facilities, bringing over 21,000 job opportunities to the area.

With this influx of jobs, many experts are saying the estimated three-year project will inevitably affect the residential real estate market within the East Valley.

Despite Chandler’s population of just over 250,000 people, the city has only been averaging 350 active listings per month that are on the market for a short

Miss a previous Real Estate section?

23 days.

Last month, the average home in Chandler was about $257 per square foot, bringing selling prices to around $564,000. Chandler has had a steady price increase within the last five years.

However, with the projected job influx from Intel, the prices are predicted to increase rapidly.

Currently, Chandler ranks #11 in terms of price per square foot – behind Paradise Valley and Scottsdale – but this demand could cause a spike.

Chandler won’t be the only city in Arizona affected by this influx. The real estate market in the Phoenix Metro area is currently very competitive, and prices are at record highs.

Valley home prices are up approximately 18 percent over this time last year, and Phoenix continues to be listed as one of the cities in the U.S. with the

highest year-over-year gains.

The Valley is down to an extremely low inventory with just under 12,000 homes on the market. In a regular market, we usually have a six-month supply, so the market is drastically short of a typical resale inventory.

This demand will eliminate the resale home infrastructure and will ultimately drive new residential construction sales.

While these new homes will help alleviate part of the housing crisis, another issue arises: the lack of developable land.

Gilbert and Chandler are quickly reaching build-out capacity, and in the surrounding area, Mesa is the only city left with land left to develop; in far east Mesa, there are large tracts of state land that could be used for residential development.

With the inventory of homes for sale falling short, Intel will drive rental de-

Check out our digital copies at www.GilbertSunNews.com

mand, but the outlook on rentals is grim.

Typical rental rates used to fall around $1.45 per square foot in 2020, but rental rates have shot up in recent months, reaching about $1.75 per square foot.

Inventory has reached an all-time low, with limited rentals available in popular neighborhoods. Build-to-rent is the new trend in the Arizona market, and developers are constructing new single-family homes at a rapid pace, but the projects in the pipeline aren’t enough to support this uptick in demand.

With Intel adding demand, the real estate market will likely remain hot. We saw homes in Chandler appreciate more than 25.3 percent year over year and with all these factors considered, it will likely continue to rise.

Eugene Quackenbush is a Valley broker and founding Opendoor employee who helped create getyournest.com.

LOCKBOXES from page re4

sure people are at the forefront of everything we do.”

Gilbert and Chandler residents can request a lockbox through a simple application process, and a volunteer visits the home to cover a few training tips.

Volunteers remain in contact with members who receive a lockbox to make sure that they are still living at the residence, that all the contact information is valid, and whether they still need the lockbox.

Information: southeast.weserve.realtor.

Napoli Island Range Hood

BRING YOUR VISION TO US

Any project, any style, any dream—bring your inspiration to Ferguson Bath, Kitchen & Lighting Gallery. Visit build.com/ferguson to schedule your personalized showroom experience today.

YOUR LOCAL SHOWROOM: MESA SCOTTSDALE

©2021 Ferguson Enterprises LLC 0921 2367404

GOT NEWS? Contact Paul Maryniak at 480-898-5647 or pmaryniak@ timespublications.com