The Valley's
Leading Agent
Russell Shaw
February 2020
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!


The One Change You Should Make to Your Home in 2020
Splash a new color up on the walls. Redo your floors. Buy a new couch. They might be on the long list of things you’d like to do to your house in 2020. But you know what should be at the top of that list? Buying new plants. 
      So key are plants to the overall look and feel of the home that they made Elle Decor’s list of 2020 design trends. But we’re not talking about those faux, plasticky plants. It’s time for the real stuff.
      “Going green with nice, real indoor plants helps give personality and another layer to a space,” Linda Hayslett of L.H. Designs, told them. “For a while, it seemed like everyone was going faux. But
Mortgage Rates
U.S. averages as of February 2020:


30 yr. fixed: 3.51%
15 yr. fixed: 3%
5/1 yr. adj: 3.24%






But these days, it’s all real, all the time. “I can always spot a faux plant in a design. It may be great initially, but the character of a plant comes from how it organically grows. And
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3 Renovations That Will Help Get Your Home Sold
     When it’s time to sell your house, you want to do it as quickly as possible and for the most money, right? Of course you do. Nobody wants their house to sit on the market and they certainly don’t want to leave money on the table.
      You might not want to think about making renovations to your house because you’re spending money on a place you’re no longer going to live, which means you won’t even be able to enjoy the renovations! But here’s why you should re-think that: Smart renovations can actually help get your home sold quickly and for a higher sales price. Here are three to concentrate on.
      Quartz countertops  Quartz became the preferred choice in countertops several years ago and Elle



An Effective Home Listing Can Get Your Place Sold
     Where are you going to move to next? Will you find another house you love? Will the moving process go smoothly? They’re just a few of the dozens of questions you probably have if you’re getting ready to sell your home and look for another. But first things first: You have to find that buyer! The right real estate listing could make the difference between your home selling quickly, or not at all. 
      You may not have thought much about your real estate listing, but it’s a critical piece of the home-selling pie. Getting it wrong may not necessarily cost you a sale if your home is well-priced, located in a hot area, and you have great listing photos. But it could help you attract the right buyers if done well.
      If you’re working with a good, experienced real estate agent, they are probably already following these tips (and, if not, it might be time for another agent!). Which brings us to our first

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Sellers drag their heels

The market is on the cusp of the “spring buying season” and early prognostications are beginning to form.  As with all economic markets, supply and demand determine our market forecasts.  Typically we see one side of the equation having a bigger impact than the other – a situation that our market is currently experiencing. 

Demand  

Demand is staying in a normal range – about 1-2% above average.  This is always good news – given that it is the more elastic of the two factors.   It is all the more impressive considering the last quarter of 2019 saw a push up in price per square foot, typically a dampener of demand.  As Michael Orr mentions “…this comes after a rise of over 7% over the 4 months between September 15 and January 15. The market is generating strong upward pressure on prices.” A rise of 7% in 4 months is a fairly remarkable number. The fact that demand remains strong despite this rise, is fairly remarkable as well.

Supply

Supply is a very different story.  It should not be surprising that since demand is in a normal range, supply must be well below normal to see an upward push in pricing.  Exactly.  In fact supply is less than half of what is needed for a balanced market.  New listings are arriving to the market in much smaller than usual numbers.  Although it is a bit early to confirm a trend, the first two weeks of the year had 15% fewer new listings than 2018 did.  Add that to an already very low base supply of homes for sale, and 2020 is running at a 30% deficit of homes for sale compared to early 2019.  Obviously different price points can have different supply issues – but this shortage is impacting all price levels up to one million.  In fact it is the weakest start to a year since 2005.  

Seller Motivation

This lack of inventory has spawned some interesting theories as to why homes are not coming to market as usual –with theories ranging from “shadow inventory” (the theory that floated around erroneously during the mortgage meltdown years) to interest rates and pocket listings.  But let’s remember why people sell at all.  People sell for one of two reasons – personal motivation and market conditions.  Personal motivation encompasses things like job changes, household formation or disintegration, and retirement. The second reason -market conditions - encompass things like home values, interest rates, and consumer sentiment (fear/greed).   It is worth remembering too, that homeowners are keeping homes longer than in years past.  Why?  The average number of people occupying a home is less than in earlier decades and homes are generally larger.  Meaning they are staying longer because there is less personal motivation to move.  The average home today can accommodate the average number of family members.  If it is suitable, why move?  Hence, market conditions are left to impact home selling.  At some point pricing if it continues its move upwards will spark selling (i.e. market conditions) and ultimately dampen demand.  We saw that in the 2006/2007 market.  The real question is when. At the moment, 2020 looks to be firmly a seller’s market.  As always, we will keep you informed on market changes as they manifest.



  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.
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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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