Realty One Group - Michael Hodges

https://youtu.be/nZH5vRyT078

Mikes New Real Estate Video Where the market is going. Find out more right here

Just wanted to wish everybody a Fun filled Labor Day. Make it a great day!

Buyer demand is going down while supply is going up by 5%. Looks like bidding wars will be going away soon as houses sit on the market longer and appraisals start dropping. Prices are going to level off. If you are thinking of selling we had better get it done soon as the window of opportunity is shifting more towards the buyers side. Call me for details I am more than happy to discuss tour sitiation with you

The best thing about a win by the Phoenix Suns is that we are not only playing the opposing team, we are also playing the commentators and the referees. So when we win it is quite an accomplishment. You should see what the foul ratio is between ther two teams. Every time you turn on the TV you hear about how great Milwaukee is. It’s maddening. Go Suns

Mid Month Pricing Update and Forecast

Each month about this time we look back at the previous month, analyze how pricing has behaved and report on how well our forecasting techniques performed. We also give a forecast for how pricing will move over the next month.

For the monthly period ending May 15, we are currently recording a sales $/SF of $249.15 averaged for all areas and types across the ARMLS database. This is up an amazing 5.6% from the $236.04 we now measure for April 15. Actually, we should not be too amazed, because the Cromford® Market Index topped 500 in March and so we confidently predicted the sort of price rises we are now experiencing. Our forecast range mid-point was $246.35, with a 90% confidence range of $241.62 to $251.48. Prices rose even more than we predicted, $2.80 more than our mid-point to be precise. However this was still well within the high end of our 90% confidence range.

On May 15 the pending listings for all areas & types show an average list $/SF of $242.37, up only 0.2% from the reading for April 15. Among those pending listings we have 99.3% normal, 0.3% in REOs and 0.4% in short sales and pre-foreclosures. These are similar to last month and thus close to the lowest levels of distress that we have ever recorded.

Our mid-point forecast for the average monthly sales $/SF on June 15 is $249.68, which is 0.2% above the May 15 reading. We have a 90% confidence that it will fall within ± 2% of this mid point, i.e. in the range $244.69 to $254.67.

You will probably notice that we are forecasting that sales prices will rise at a far slower pace between May and June. Prices cannot rise at over 6% per month every month and the market needs to take a breath. This is most likely to happen during the hottest part of the year. This is when the luxury market tends to cool off and the investors are in their element. Many wealthy people do not like shopping for homes when the temperature is over 100 degrees, but investors need to make a living all year round. We expect the sales mix to reflect those facts between June and September. Our specific forecast for June is because there has been very little movement in the average $/SF for listings under contract over the past several weeks.

Average sales $/SF has risen over 9% in the last 2 months, equivalent to an annual appreciation rate of over 55%. We should not be surprised if the summer months are far less dramatic than the spring.

At this point I would like to remind everyone that CoreLogic predicted that home prices across the USA would FALL by 6.6% between June 2020 and June 2021. Possibly the most inaccurate forecast in their history. Personally I don't take any 12 month home price forecast any more seriously than a 12 month weather forecast. But really, that was like predicting deep snow drifts in July for Phoenix. It was never possible.

Wishing all of my friends and family a very Happy Easter.

Good morning everyone. Let’s have a great day. I am going to be be showing properties today, I want to find a house for my friend and his family today

*Does “cutting out a realtor” mean you will get a better price on a new build?

*5 reasons why you should use a realtor to purchase a new build!

Purchasing new construction is usually more complicated and intimidating than buying a resale home. It is important with a new-home purchase that a buyer hire a real estate agent to represent them in this process. You want a Realtor® representing you during negotiations for your new construction home. You might think that by “cutting out a Realtor® “that you’ll receive a better price, however builders are highly unlikely to budge on price. This is why you need an expert to work for you during negotiations. Someone who knows the ins and outs of securing you the best deal possible. You want the best deal if possible right? Everyone wants the best deal possible and sometimes that doesn’t necessarily mean a lower price. This is especially true for when you’re making an offer on new construction homes. Often times buyers, will assume the best way to negotiate with a builder is to have them drop the price. This is not always the case. The best way to negotiate with builders is upgrades! Builders are reluctant to drop their prices because they need to maintain a certain value for their neighborhood, and future buyers. This doesn’t mean they wont drop the price because they often will, it just means that you will get more from negotiating upgrades. Giving upgrades to consumers is an easy way for them to maintain the value of the neighborhood while giving the customer a deal in a fashion that won’t upset the neighbors (who probably just purchased a home). Some professionals in this department could tell you what all upgrades are worth to you. He could also show you if you were to have an independent contractor upgrade your home “after the fact” if you would be spending more money or saving more money. In some cases it seems logical that putting the upgrades in before you move in could be more convenient but NOT ALWAYS more cost effective.

New construction can be a great option for homebuyers. New construction means you get to live in a pristine, untouched home. When you’re buying new construction, you can customize finishes for a look you love. You won’t have to worry about making upgrades for years to come. You might think buying new construction is easier than working with sellers, but not so fast. There can be many roadblocks along the way. Working with a new construction Realtor can guarantee an easy transaction and give you peace of mind.
There are many reasons why you should use a Realtor for new construction. It’s always wise to have a professional on your side and a real estate agent can give you a sense of security in the transaction. These are just a few of the many benefits that come with using a new construction Realtor. Read on for 5 reasons why you should use a Realtor for new construction.
No. 1: Realtors Know the Best Time to Buy
Your Realtor has the inside scoop regardless of whether you are buying an existing home or looking at new construction homes. They know the area’s real estate market inside and out and can help you get the best deal possible.
One thing your new construction Realtor can help you determine is the best time to buy. Believe it or not, but many of the nation’s largest builders are publicly traded companies. They answer to shareholders and need to meet sales goals. This is why your Realtor might tell you that the best time to buy a new construction home is toward the end of the quarter. As the quarter comes to a close, builders might be more aggressive with sales and discounts and might be more open to negotiations in order to meet sales goals.
Additionally, your Realtor might tell you that December is a good month to buy a new construction home. Most people associate December with gift buying, not home sales. This means that builders are itching to make sales and might be willing to negotiate.
Your Realtor knows the best time to buy and can guide you through the process.
No. 2: A Realtor Can Help You Find the Best Home Builders
Your real estate agent has a wealth of experience in the local home market. They can put this knowledge to work for you in finding a builder you can trust. They know about quality of workmanship, warranties, track records for resolving issues and more.
Your new construction Realtor can give you a clear understanding of the process and what’s down the road when making a purchase.
No. 3: A Realtor Can Advocate and Stand Up for You
Some buyers believe you don’t need a Realtor when buying new construction. Their thinking is that avoiding a Realtor will save them money on the transaction. This isn’t true, as working with a new construction Realtor can actually help you save money.
When you don’t work with a Realtor, you are letting the builder’s agent represent you. The builder’s representative won’t be working in your best interest. This means you are not their top priority, as they are working for the builder. Having representation from a new construction Realtor means that an experienced professional has your back. A new construction Realtor can advocate and stand up for you throughout the entire transaction.
You need a new construction Realtor who knows how to ask the right questions. To find an experienced agent who can advocate for you, you need to ask a few questions, too. Consider asking a potential Realtor:
* What are the benefits of buying new construction over an existing home?
* Do you know of any lenders who specialize in new construction mortgages?
* What is your experience selling new construction homes?
* How familiar are you with the new construction purchase process?
No. 4: A Realtor Can Negotiate on Your Behalf
A new home can be expensive, especially if you’re opting for new construction. In many cases, builders advertise the base price of their homes. This is often for the most basic model of the home. It’s likely not the home you see when you tour the model. Models usually include many upgrades.
However, one of the benefits of buying new construction is customization. You can make a new construction home your own. One of the benefits of working with a new construction Realtor is that they can negotiate the customizations with the builder on your behalf. This can help ensure you get a fair price for your upgrades and alterations to the floor plan.
An experienced new construction Realtor can go into these negotiations prepared to get you the best price possible, saving you money in the long run.
No. 5: A Realtor Can Help with Inspections and Contract Contingencies
You know you need an inspection when you buy an existing home, but did you know an inspection is an important part of buying new construction?
An experienced new construction Realtor can recommend the right inspections for a new home. For example, if the new construction home has a septic system, it might be smart to make the purchase contract contingent on an inspection of the septic system. This might prevent plumbing issues down the road.
There are many other scenarios in which a new construction Realtor can help with the new home buying process. They know which inspections are necessary on a new construction home and can make sure all are performed before closing.
When it comes to buying new construction, there are lots of benefits that come with working with an experienced real estate agent. Don’t go at it alone. A skilled new construction Realtor is a professional working on your behalf. They can save you time, money and stress.

If you would like for me to work for you, if you want to know more, or if you just have a question, please feel free to give me a call, look me up on Facebook, or you can go to my website @ mikehodgesre.com.

I am looking forward to speaking with you...

Michael Anthony Hodges, Real Estate Agent | Realty ONE Group Phoenix Professional real estate agent Michael Anthony Hodges with Realty One Group specializes in homes for sale in Gilbert, AZ. Get free home evaluations, daily property updates, area market reports, and more.

Got full price for this house even through the virus. We had a little hiccup with the buyers financing but that was to be suspected during a pandemic. If you have any real estate needs, or if you just have some questions feel free to give me a call anytime. I am here to serve you.

Mike Hodges 602-303-6353