The Valley's
Leading Agent
Russell Shaw
February 2023
Real
My team and I help more people move than any other agent or team in Arizona. I'm not bragging, I'm applying for a job. I want to be YOUR Realtor!


Kitchen Trends to Watch in 2023
With a new year comes new plans for your home. People are increasingly thinking about ways to stay in their homes because of high interest rates but make them more livable and in line with their needs.
      A kitchen redesign is one of the most desirable home projects for many people.
      With that in mind, the following are some of the biggest kitchen design trends to keep an eye on right now.
      Smart Technology The evolution of smart technology is impressive, and the integration of this technology in kitchens is likely to increase and expand in 2023. For example, appliances connected to Wi-Fi that are voice-activated will
MORTGAGE RATES
U.S. averages as of February 2023:


30 yr. fixed: 6.13%
15 yr. fixed: 5.17%
5/1 yr. adj: 5.42%






will be a big trend, and smart faucets that are touchless will be as well.
      The benefit of smart kitchens includes not only convenience but also the fact that
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The State of Spending on Home Improvements
     According to a new report, Americans spent $624 billion on home improvement projects between 2019 and 2021, but a potential recession and inflation could affect this going forward.
      There were around 135 million home improvement projects going on from 2019-21, according to the American Housing Survey, which the U.S. Census Bureau conducts. That represented approximately $100 billion in increased spending compared to the previous survey looking at the years between 2017 and 2019.
      The two-year period the survey looked at started before the COVID-19 pandemic and went through the lockdown periods when many people were taking on ambitious projects around the house. That was also when homes, even when they needed significant



What’s On a Rental History Report?
     A rental history report is something that a landlord or property manager will rely on pretty heavily to judge an applicant’s performance as a tenant in the past. If you have a positive rental history, you will be much more likely to secure a home, especially in a competitive market.
      Rental history reports are documents that a reporting agency compiles, which are a comprehensive look into your rental history. They could include information about evictions, past landlords, debts, addresses where you’ve lived, and other information relevant to you as a renter.
      There are a lot of reporting agencies that provide screenings for landlords.
      A rental history report isn’t the same as a credit report, but it’s pretty likely a landlord will use both to screen you.
      Specific Information That’s On Your Rental History Report While it can vary

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Real Estate Realty

𝗧𝗵𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 𝗬𝗲𝘁 𝗔𝗴𝗮𝗶𝗻

“The report of my death was an exaggeration” — Mark Twain

2022 ended in a whimper. After a promising spring buying season, the market sagged under the weight of affordability issues – largely courtesy of rapidly rising interest rates. The seemingly unstoppable sellers’ market that began the year, in fact stopped. By November and December of 2022, the valley’s market landed squarely in the buyer’s camp. That buyer’s market lasted approximately 4 weeks (qualifying for the shortest buyer’s market on record in the valley). But that is so 2022. Where are we in 2023?

Most buyers and sellers would be surprised to hear that the greater Phoenix real estate market is primarily a balanced market - and is now tipping in favor of sellers. But it’s true. Why doesn’t it feel that way? We think it feels unbalanced primarily for 4 reasons:

1. Appreciation has been strong since 2015 making the relatively minor 2022 price correction feel awful to sellers by comparison.

2. The number of transactions (market shrink) are much lower than normal as buyers and sellers headed to the sidelines. Sellers feared equity loss, buyer’s feared rising housing expense due to increasing interest rates.

3. Human emotion – it’s not what’s true but what feels true. Skepticism is the current market emotion. Therefore, improvement is viewed with suspicion.

4. Not all valley cities are having the same experience. Of the largest 17 cities, the Cromford Report shows 4 currently in a buyer's market (Goodyear, Queen Creek, Maricopa, Buckeye), 3 balanced (Gilbert, Peoria, Surprise) and 10 in a seller's market (Fountain Hills, Paradise Valley, Chandler, Cave Creek, Scottsdale, Phoenix, Avondale, Glendale, Mesa, Tempe, Gilbert)

𝗠𝗲𝘀𝘀𝗮𝗴𝗲 𝘁𝗼 𝘀𝗲𝗹𝗹𝗲𝗿𝘀: Now is a good time to sell if you have owned your home for 2 years or more. The Cromford report gives these appreciation numbers for sellers : “ The long-term appreciation rates for homes in Greater Phoenix are as follows using January sales to date: 25% for 2yrs., 50% for 3yrs., 63% for 4yrs., 70% for 5yrs., and 86%+ for 6yrs or more.” Balanced markets mean little to no downward pressure on pricing. However, demand is much quicker to shift than supply is. If interest rates rise, we could see a demand drop once again putting downward pressure on pricing.

𝗠𝗲𝘀𝘀𝗮𝗴𝗲 𝘁𝗼 𝗯𝘂𝘆𝗲𝗿𝘀: The buyer’s market lasted for a short 4 weeks – November/December of 2022. Interest rates have now settled back to below historic averages. In a balanced market, competition amongst buyers is minimal (i.e. no spiraling bidding wars). Prices declined around 13% in 2022 – providing buyers a better value. Don’t be caught waiting for further price drops when the market numbers don’t support that happening. As we mentioned above, balanced markets mean little to no downward pressure on pricing. Also, interest rates are still subject to change. They go up fast, and down slowly. Take advantage of the relative (and perhaps temporary) interest rate stability. Be skeptical of interest rate forecasts. To quote Michael Orr “No-one has ever been very good at forecasting mortgage interest rates more than a couple of weeks in advance. This includes the Mortgage Bankers Association and it especially includes Goldman Sachs whose track-record on interest rate forecasts is extremely poor. This is not saying much because there is no-one who gets them right more than by random chance. Any time spent listening to people making interest rate forecasts is time you could have spent more productively.”

None of us can predict the future. But at the moment – this market is a green light for both sides.

Russell & Wendy Shaw

(Mostly Wendy)



  Daily News and Advice

Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
More Articles
January Real Estate Roundup
What's the Rentvesting Trend All About?
In the Calendar Year, When Is the Best Time to Buy a House?
All-Cash Home Sales Soar
The Mortgage Go-Round


Russell Shaw, Realtor®
E-mail: russell@nohasslelisting.com
Website: http://www.NoHassleListing.com
602-957-7777
Toll-Free 866-357-3604
Realty ONE Group
602-957-7777
11211 N. Tatum Blvd., Ste. 100
Phoenix, AZ 85028


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