Gilbert Sun News Real Estate - 2.20.2022

REAL ESTATE

GILBERT SUN NEWS | FEBRUARY 20, 2022

re1

What makes sense in this crazy real estate market

BY MINDY JONES GSN Columnist

Y

ou can’t stop into a coffee shop, settle into the reclining chairs at the movies, or pick up fresh produce at the farmers market without overhearing a conversation about real estate in Arizona: How expensive houses are, how hard it is to find one, how interest rates are rising and speculation about when it will all come crashing down.

Contrary to the universal law of gravitation, not everything that goes up must come down – which is likely going to be

a disappointing revelation to those who have spent the 18 months waiting for prices to start falling like Newton’s apple from the proverbial real estate tree.

In fact, in that time period, not only have housing prices gone up on average of 38% but interest rates have increased by 28%. That made the housing market in Arizona about 20% less affordable in that same time period according to the NAHB/Wells Fargo Housing Opportunity Index.

And yet, in that same time period Arizona home owners have accumulated more equity in their homes than their domestic peers topping the S&P/ Case-Shiller Home Price Index, making it one of the most profitable real estate markets in history.

So, what gives? Is it a good time to buy or not?

There’s a method in cognitive therapy, for those of us that geek out on personal development, that is roughly called facts and feelings. It includes the process of stating the facts, independent of the feelings, in an effort to control and clarify your response.

This would be a good exercise for all of us to follow when discussing the real estate market because so much of our interpretation of the data is skewed by our own personal feelings about mon-

ey, our upbringing and relationship to generational wealth, and our lived experiences around particularly triggering events like a stock market crash, the housing bubble, or even the inflation hikes of the early 80s which determine our risk profile.

What we know to be true about the real estate market is that supply is 75% below normal, demand is 19% above normal, the median sales price is up 2.5% over the last month alone, and re-

see MINDY page RE2

SPO OTLIGHT home

ISTED!

JUST L

Welcome to the highly sought after Bridges community in Gilbert, Arizona.

NEW Listing in Power Ranch, Gilbert, Arizona. 2,640 sq ft, 4 bedrooms, 2 flex rooms, 2.75 baths, directly across the street from the park.

Melanie Nemetz

Call Melanie (480) 221-3034

See SeePage Page 4 3

Amy Jones Group

Listed for $720,000!

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

SeePage Page5 4 See

re2

REAL ESTATE

Luxury living

This 4,500-square-foot house on E. Lark Street in Gilbert’s Whitewing at Germann Estates community recently sold for just over $2 million. The five-bedroom, 4 ½ bath home, built in 2019, features a courtyard entry with fountain and over $300,000 in exterior goodies, including a custom pool, spa, fire pit, outdoor kitchen and landscaping. Inside is just as stunning, with wood plan tile floors, high-end kitchen, a guest suite with separate entrance, a game room and an office. (Special to GSN)

GILBERT SUN NEWS | FEBRUARY 20, 2022

MINDY from page re1

gardless of whether mortgage rates increase or not (which they will), property values will continue to rise as long as supply remains below normal, and yet most consumers still FEEL now is not a good time to buy a home.

So, where is the disconnect?

The pressure of inflationary costs, supply chain delays and the extreme difficulty in finding and securing labor, appliances, and building materials are overshadowing the opportunities presented by a real estate market that is on a speeding, inclining train – until it’s not.

Think about this: many home owners have significant equity in their home but until realized, this unseen value carries no benefit just as your home price will not matter until you sell it. What if you could leverage that

equity you’ve accumulated in your home and hedge against the future of inflation by securing hard real estate assets that work over time every time and putting your money to work now?

Home owners who have done this are taking advantage of today’s values and today’s interest rates to pay off debt, build a portfolio of rental properties with historically low vacancy rates while accumulating more equity and increasing their cash flow, moving up into houses that meet the space demands of their families that may become unobtainable or unaffordable at higher interest rates, and downsizing while leveraging the funds to build savings accounts for retirement or other unexpected life changes – like

see MINDY page RE3

REAL ESTATE

GILBERT SUN NEWS | FEBRUARY 20, 2022

MINDY from page re2

when the market corrects itself, which it cannot do until supply rises to a point where it can satiate demand.

The alternative to home ownership is renting or homelessness, both populations being the most vulnerable at the current moment.

In addition to renters sitting on the sidelines while money is accumulated on paper or leveraged by their home owning peers, rental prices have increased an astonishing 30% in the last two years and supply of available rentals has plummeted to nearly 50% of normal. That means that affordability and supply issues extend to the rental market but without the benefit of equity accumulation.

Programs abound to help renters who qualify, but the ones who are bypassing home ownership by choice are leaving money on the table while a shortage of all housing types presents a unique challenge for particular sectors of our employees, recent graduates, low income, very low income, and our homeless population where the Family Housing Hub

has been reporting an eight-12 week wait list for emergency housing over the last two years.

While policy advocates work to encourage creative solutions for injecting supply into our market, we can expect prices to continue to rise whether consumers think it’s a good time to buy or not as long as we have deficient supply.

Buying will always win in the long game over renting and real estate will continue to be one of the most recommended investments for hedging against inflation. Separating facts from feelings is understandably difficult as real estate for primary home owners will always be deeply personal. The challenges of the current market are robust and the rewards can be life changing – as they say, the train is moving whether you are on it or not.

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.

30 Days Down from 31 Days Last Month 307 Down from 318 Sales Last Month $591,366 Down from $613,205 Sales Last Month

NEW Listing in Power Ranch, Gilbert, Arizona

JUST LISTED! This lovely home in the Vineyards of award winning planned community Power Ranch features 4 bedrooms, 2.75 bathrooms, 2 bonus rooms downstairs and a brand new HVAC system in 2020. Stepping in the home, the first bonus room is to your left and could be a den/office or additional bedroom, and is next to the 3/4 bath. Continue into the formal living/dining space with vaulted ceilings and an open staircase, then the family room connected to the kitchen, which features maple cabinets and an island. The primary bedroom and 3 secondary bedrooms are upstairs. Situated on an oversized lot directly across from a lush park with playground, this home has been well-maintained by its original owners. Enjoy the outdoors with the beautifully designed green backyard and balcony off the primary bedroom.

Call Melanie today (480) 221-3034

Winner for The Tribune’s Best of Gilbert 2021 in the following categories: 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

139 417 0.5 Same as 0.5 Monthly Supply Last Month

re3

re4

GILBERT SUN NEWS | FEBRUARY 20, 2022

SPO OTLIGHT home

Welcome to Bridges!

Welcome to the highly sought after Bridges community in Gilbert, Arizona. This beautiful single level 4 bedroom, 2.5 bath home plus den sits on a desirable North/South facing lot. Elegant yet casual kitchen features stainless steel gas range & appliances, stunning large granite island, glass tile kitchen backsplash & under cabinet lighting. Master suite has large walk in closet & upgraded oversized master shower. ‘’Disappearing wall’’ sliding glass door opens to an entertainer’s dram backyard with covered patio and private pool. In the front of the home you will find two bedrooms connecting through a Jack & Jill bathroom, while the 4th bedroom is currently used as a large office. Pristine flooring & plantation shutters throughout plus a RO & new water softener make this home ready for its new owner! Still looking for more? You can step outside and enjoy many of the amenities that the Bridges community has to offer. Catch and release fishing, walking trails, picnic ramadas with BBQ grills, 8 tot lots, 3 splash pads, plus volleyball, bocce ball and basketball courts all directly across the street from the extraordinary new Gilbert Regional Park which will be Gilbert’s largest park with 272 acres of family fun and entertainment when completed. Located in the top rated Higley School District and within minutes from shopping, dining and access to the 202 this home is perfect for any famly!

Listed for $720,000

3638 E Donato Dr, Gilbert, AZ 85298

(480) 250-3857 www.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

Serving the Valley, for over 15 Years!

Erik Geisler REALTOR® Your Real Estate Agent