Gilbert Sun News Real Estate - November 2020

REAL ESTATE

GILBERT SUN NEWS | NOVEMBER 15, 2020

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Building permits rise, but market remains tight

BY PAUL MARYNIAK GSN Executive Editor

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rustrated home buyers got some good news at the beginning of November, but it likely won’t make them smile.

The good news that building permits for new home construction soared in the third quarter is tempered by the fact that most of that new construction is in Pinal County, especially around Queen Creek, according to the Cromford Report, which closely monitors the housing market in the Phoenix Metro region.

And that good news likely will be erased by some of Cromford’s other findings – namely that listings began drying up in the latter part of October.

S O L D!

Budget-conscious buyers got still more sobering news: prices are “skyward” bound.

“The size of the market below $300,000 is shrinking fast, constrained by lack of supply and by the fact that last year’s home at $270,000 is now priced well over $300,000,” Cromford said. “However, any home priced under $300,000 is likely to see hordes of buyers. Is there any sign of the upward surge in pricing losing pace? In a word - No.” It also said that regardless of the pandemic, prices in the Greater Phoenix market are “unlikely to stop rising.”

Even seven-figure homes are seeing surging demand, it said, noting that in October, a record 37 homes priced over $3 million sold.

Cromford said that even though October “brought us a healthy flow of new listings,” many buyers are due for more disappointment because “the demand has strengthened so much these have done almost nothing to affect the chronic shortage of homes for sale.”

To put it bluntly, according to Cromford, home buyers can still expect to be looking for needles in haystacks.

“By the time we get to Thanksgiving, the flow of new listings is likely to slacken and we will probably see supply fall away even further as listings get re-

Melanie Nemetz

See Page 3

see MARKET page RE3

SPO OTLIGHT home

Ask us how we were able to get this home SOLD in one weekend, well over list price.

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moved for the holiday season,” it said.

“Whether this still holds true during a pandemic we will have to see. There is still no sign of any weakness developing in the market with buyers having to fight for every scrap of housing that comes available.”

“Despite all expectations for the market to cool, it keeps getting hotter, although at a slower pace,” Cromford added, forecasting a continued upward spiral in prices that already has put the

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REAL ESTATE

GILBERT SUN NEWS | NOVEMBER 15, 2020

No cooling off for town’s hot housing market

BY MINDY JONES NEVAREZ GSN Contributor

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he weather has been about as unpredictable as the real estate market this year, with both giving us more of the same when we expected to be cooling off by now.

Seasonality means about as much to a cactus-themed Thanksgiving table as it does to the Arizona real estate market amid historically low interest rates and inventory rates in 2020.

We kicked off the month with just 8,682

available listings – down just over 40 percent from last year – and while that number is up 4.5 percent over last month, the likelihood that a Gilbert buyer actively looking for a home in the area was able to feel that increase is nearly impossible.

With listings under contract up nearly 33 percent year over year – but again down .9 percent from last month – Gilbert sellers continued to see multiple offers at most price points, days on market less than a week and a new set of challenges in negotiations as buyers eager to have the winning bid feel pains of remorse during their inspection period

when faced with deferred maintenance that sellers don’t want to address.

Never before have emotions run so high when a market has been so good.

Sometimes just getting the house IS getting the deal and sometimes negotiating an extra concession or two as a seller allows you to close the deal in time to make up your profit on your next purchase.

Refraining from political discussion without ignoring the elephant in the room - the real estate transaction will always take reaching across the aisle and working together. But 2020 has put

EX-mayor selling ex-digs Former Gilbert Mayor Jenn Daniel has put her Morrison Ranch home up for sale, listing it at just a few bucks shy of $1 million. The four-bedroom, fourbath house on East Palo Verde Drive is 3,591-square feet with a big backyard and patio, complete with a heated pool and gas firepit. Built in 1998, the house sports a wall-size garage door-type window in the dining room and a massive island in a kitchen with a sleek contemporary design that includes white cabinetry, quartz counter tops and stainless steel appliances. The split floor plan has a private master suite with dual vanities, a garden tub and full shower in the master bathroom.

(Special to GSN)

a magnifying glass on the decisions that buyers and sellers have to make about how best to do that.

Hit the hardest at the onset of COVID, the luxury market is back with a vengeance with 37 closed homes over $3 million in October - the highest number in recorded Arizona history.

The low end of the market continues to be somewhat of an apparition, with a faint presence dominated by hungry first-time home buyers, individual and bulk-buying investors and the sheer lack

see MINDY page re 4

REAL ESTATE

GILBERT SUN NEWS | NOVEMBER 15, 2020

MARKET from page re1

Phoenix market close to the head of the pack in the rate of home price increases.

“Prices are certain to rise from their current level,” Cromford said. “It will take a massive increase in supply for prices to change direction and there is currently no sign of this happening. In fact, we would expect supply to deteriorate between now and year end.”

Phoenix has seen a year-over-year average price increase of 9 percent, it added.

Meanwhile, in looking at single-family home building permits issued in September, Cromford said, “The good news for buyers is that the rate of construction is increasing, which will provide a little more supply over the months to come.”

Across Pinal and Maricopa counties, it noted, a total 22,378 permits were issued in the first nine months of 2020 – a 21 percent increase over the total issued in the same time period last year and the highest number issued since 2006.

“It is almost the same as the 2007 figure, which was a year in which the

This 5,000-square-foot home on E. Aris Drive, Gilbert, recently sold for $1.4 million as the sale of luxury homes in the Phoenix metro market begins rising fast. Built in 2015, the six-bedroom home sports a “clubhouse style backyard” with a self-cleaning pool, waterfalls, 8-foot fire pit and a host of interior amenities, including 12-foot ceilings. (Special to GSN)

builders were hitting the brakes,” Cromford said. “Now their collective feet are firmly on the gas pedal as they try to respond to the very strong demand for single family housing in Central Arizona.”

For the third quarter of 2020, the number of permits issued underwent

146 E GAIL DR

SOLD! Ask us how we were able to get this home SOLD in one weekend, well over list price.

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“a dramatic acceleration,” Cromford said, noting that the most were issued in Phoenix, with 1,330, followed by Buckeye, then Surprise in the top three.

But Cromford also noted that more than 1,200 permits were issued for construction of single-family homes in unincorporated areas of Maricopa and Pi-

nal counties, mostly the San Tan Valley.

“Even though Queen Creek has a great deal of new home construction, the San Tan Valley areas outside its boundaries provide even more new housing,” Cromford said.

It also noted that “Florence is almost as active as Chandler and Coolidge and is almost as active as Scottsdale.”

That led Cromford to conclude, “Pinal is rising in significance and growing faster than Maricopa.”

Meanwhile, Cromford reported that there are bright spots on the mortgage scene nationally with fewer delinquencies appearing.

“Early stage delinquencies show strong improvement with many measures returning to pre-pandemic levels,” it said. “Loan pre-payment rose above 3 percent in September, the first time in 16 years.”

It also noted, “Home equity is at a record high and 45 million homeowners have positive (tappable) equity in their homes,” Cromford said. “This the largest number ever.”

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REAL ESTATE

MINDY from page re 2

of inventory.

That’s especially true in Gilbert, where the average monthly sales price hit $464,564 as compared to $387,784 just a year ago.

It’s not a surprise that experts are challenging CoreLogic’s modest price increase predictions, especially here in the Valley.

Gilbert currently sits in second place out of the 17 major metropolitan cities in Arizona as having the greatest gap between a deficient supply in inventory and a surplus of buyer demand.

While not ranked on the list of permit-pulling new construction communities as much of the building was locked and loaded going into 2020, builders in Gilbert from Waterston by Maracay to McQueen Landing by Lennar are burning the midnight oil trying to complete homes for prospective Gilbert residents who are hoping to have a new home for the holidays.

Closings usually pulled into years’ end are being pushed into the first quarter of next year because of everything from

GILBERT SUN NEWS | NOVEMBER 15, 2020

cabinet delays, lumber price increases, appliance manufacturing and labor shortages to the sheer volume of new construction, Then there are resale and refinance transactions being pushed through the lending, title and county pipeline.

Every home-related product and worker from furniture to handymen is impacted.

So, why brave the storm? Why not just sit back and relax, wait until this is “over”? Why not let buyers fall over each other for homes that need new roofs and wait until prices fall?

You may ask, why not hang on to your house and try to time the market? If we have this many buyers now, imagine what we’ll have when COVID is “gone”?

Well, my friends, let me be as factual as we can be amidst a global pandemic that has challenged every norm we have from walking around the mall with a coffee to editing common sayings like “put our heads together” or “we’ll hold your hand every step of the way” in light of social distance guidelines: there is no indica-

tion that this will be “over.”

In the meantime, renters are having the rug pulled out from underneath them as landlords are eager to sell the home that just last year they intended to keep forever.

In the meantime, buyers are watching their buying power slip away as home prices increase 15-20 percent annually and sellers are left wondering why even in the hottest market their home that has not been well maintained still isn’t selling.

We are buying, selling and moving for different reasons now – to be closer to family to help with home schooling, to get more space to accommodate two home offices, to have a pool and landscaped backyard with public recreation activities suspended, to ensure we have a place to call home because each month we pay ourselves back through our mortgage instead of paying someone else’s with our rent check.

And in the meantime, the opportunity to buy an interest rate under 3 percent, purchase a brand-new home that has the

@AmyJonesGroup Each office is independently owned and operated

potential to close under market value and the ability to get all of your asks met upon selling – including lease backs, appraisal waivers and maybe getting your dog washed as part of the deal – may never happen again.

Gilbert, there are still people struggling.

Local businesses need our support.

Political opponents need healing and unification. The real estate market is our foundation to stand on. United we stand on the beauty of our community and the opportunity it affords us. Remember our mission, Gilbert: to anticipate (the needs of others and ourselves), create (the solutions to the problems we have and the space to solve the ones we don’t understand) and help people (we know, we just met, and we’ve loved for a life time).

We’ve got the real estate market and pumpkin spice on our side.

We can do this.

- Mindy Jones Nevarez, a Gilbert Realtor and owner of the Amy Jones Group at Keller Williams Integrity First, can be reached at 480250-3857, Mindy@AmyJonesGroup.com or AmyJonesGroup.com

...a Tradition of Trust

REAL ESTATE

GILBERT SUN NEWS | NOVEMBER 15, 2020

Realtor finds success with new company

BY DAVID M. BROWN GSN Contributor

D

orrie Sauerzopf has found her career home at Homie.

The Gilbert resident posted $25 million in sales in 2019, placing her in the top 1 percent of agents in the Arizona Regional Multiple Listing Service, said the Salt Lake City-based full-service real estate company.

A Toronto native, she moved to Chandler in July of 2013 when the Ontario engineering company her husband Rick works for transferred him in October.

Homie brands itself an industry disrupter because it eliminates fees and commissions by combining technology tools with experienced real estate agents.

The company offers a flat rate of $2,500 compared to up to 3 percent on the listing side charged by traditional agents.

For example, a 3-percent commission on a $400,000 home is $12,000.

“Since expanding to Phoenix in 2018,

Dorrie Sauerzopf Homie has saved its customers more than $4.5 million dollars in real estate commissions in Phoenix,” said Joshua Miller, general manager of Arizona Homie. “Our agents don’t have to worry about a commission, and this results in less pressure and a better overall experience. They re-

Gilbert Real Estate Snapshot

ceive a full salary, and this frees them up to act in the client’s best interest.”

In addition, the company represents home buyers, offers financing and provides closing services.

Buyers receive a portion of the commission up to $5,000 if they utilize Homie Loans, which promises to beat any competitor’s locked loan estimate or it will pay the client $500, Miller said.

Sauerzopf attended college and university in Canada, where she worked in sales for the beauty-supply company CosmoProf.

She also bought and flipped homes after updating them.

“That is what initially got me interested in real estate, and when we arrived here in 2014, I had the opportunity to fulfill that dream after I received my real estate license,” she said.

She has since closed on approximately 150 properties.

Married for 10 years, the couple has four adult children in the blended family

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– three in Canada and another attending law school in Birmingham, England.

“We are so proud of all of them and miss them terribly,” Saurzopf said, noting that they have been unable to see the children since the pandemic began.

Homie opened in 2015 and reports a 525-percent growth in transactions from 2018 to 2019; for 2020, total sales already exceed last year.

Sauerzopf said that a low commission doesn’t mean less service.

Homie provides an experienced agent, professional photography, 3D virtual tours, a yard sign, professional market analysis, legal counsel and guidance and support throughout the transaction, she explained.

In addition, the commission fee covers marketing, including posting the listing to the ARMLS as well as other home-selling platforms and Facebook advertising.

Clients can also decide what commission

see HOMIE page 6

Provided by the Amy Jones Group Your Local Real Estate Team (480) 250-3857 | www.amyjonesgroup.com • Average Days on Market: 28 days Down from 30 Days Last Month

• Active Listings: 167 Down from 227 Listings Last Month

• Monthly Sales: 524 Up from 489 Sales Last Month

• Listings Under Contract: 578 Down from 612 Listings Under Contract Last Month

• Average Sales Price: $464,564 Up from $461,784 Last Month

• Monthly Supply of Inventory: 0.8 Down from 0.9 Monthly Supply Last Month

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REAL ESTATE

GILBERT SUN NEWS | NOVEMBER 15, 2020

EV-based Tweener Homes partners with Expedia weener Homes, a technology-based real estate company in Chandler, has partnered with Expedia’s vacation rental software, Escapia to make it easier finding temporary residence easier for people who are between permanent homes or are searching for or building their own.

Tweener Homes connects homeowners and property managers with renters in need of fully furnished rentals for one to

T

11 months.

“I was once ‘tweener’ myself and experienced firsthand the anxiety and frustration of where to look and find a comfortable temporary home until we could move into our new permanent home.

We are thrilled to announce this partnership which will give Tweeners across the country easy access to find and book a fully furnished home,” said Nick Calvi, CEO of Tweener Homes.

His personal experience and subsequent research led to his formation of the

company.

“I found furnished rental homes for short-term vacation stays but were cost prohibitive for a multiple month stay and unfurnished homes but required me to sign a year lease. For people in between a vacation rental and a one-year lease, there weren’t any options that made sense,” he said.

Escapia provides software tools allowing property managers to operate their businesses more efficiently by directly integrating their property details, availabil-

ity and rates.

The relationship with Tweener Homes offers exposure to a new audience of home renters, real estate brokerages and new home builder clients.

More than 14,000 vacation rental owners and managers can now list their properties through Tweener Homes to diversify their marketing plan, increase the visibility of their rental homes, and drive demand and bookings especially during

structure they want to offer the buyer’s agents.

Technology has facilitated the success.

“Through the Homie app and online systems, we have streamlined what used to be a complicated process. Thirty years ago, agents would search for a home for their buyers in a huge MLS book, map out multiple showings without the use of GPS or cell phones and have their clients sign

everything in person,” she said. “A 3-percent commission was warranted then.”

“The iBuyer business model is all about offering the absolute lowest price to turn it around and sell it at market value or higher,” said Sauerzopf.

Buyers are themselves searching and finding homes through the internet and contracts can be signed electronically.

Also, tools such as the Showing Time app

make it easy to schedule a home tour.

She noted that Homie contributes to a number of local charities has assisted some clients through difficult times.

One was Aaron Johns, who recently sold his former home and then purchased a Gilbert home with Sauerzopf’s help on both. His problem was at his doorstep.

“One day, my family and I were out running errands when Dorrie called us to let

us know that she had just received a call from another Realtor that had arrived at our home to show it to their clients.

“Turns out, our door handle with the lock box had been badly damaged. Without a second thought, Dorrie said that she and her husband would be at our house as soon as possible to help with the repairs.”

Information: homie.com/buy-now.

GSN NEWS STAFF

HOMIE from page re 5

SPO OTLIGHT home

UNDER CONTRACT first weekend on the market Welcome to the Gilbert community of Spectrum at Val Vista! This spacious 3 bedroom 3 bathroom with attached two car garage features soaring ceilings, a beautiful loft with builtin desk area, and a bonus den. The downstairs den and bathroom make for a perfect separate office area. This greatroom floorplan offers space for the entire family with tile and plank laminate flooring throughout 1st floor. The low maintenance backyard offers a quiet place to enjoy the outdoors. The master planned community boasts parks, walking trails, and tons of green space. Situated north of the 202 on Val Vista this location offers plentiful options for eating, shopping and recreation and is in the A+ rated Gilbert Unified School District.

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see TWEENER page 7

REAL ESTATE

GILBERT SUN NEWS | NOVEMBER 15, 2020

TWEENER from page re 6

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times when rental homes have lower occupancy.

The partnership offers benefits for renters, too. Rather than waiting days for a response from rent by owner property or other platforms, Tweener Homes provides up-to-date availability information so people can easily filter through the offering of homes and book online at their own convenience.

Many homes are offered with special monthly discounts and monthly payment options as opposed to paying the cost of the entire rental stay in advance.

Tweener claims to offer the lowest listing fee in the industry to keep rental rates as low as possible and does not charge any service or booking fees to the renter.

Information: TweenerHomes.com.

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REAL ESTATE

GILBERT SUN NEWS | NOVEMBER 15, 2020

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