August 1, 2017 Terravita Market Update
The Terravita real estate market had what I would call an “average” July in terms of sales and sales prices. You will see below Terravita had 6 homes close escrow with an average price per foot of $239. That pretty well mirrors the May and June numbers and is very close to the annual average. Regarding the number homes going under contract – while the community had almost twice as many in July of 2016, the 5 we had this month is much closer to the normal number for July, anyway. So . . . with all the crazy things going on in the world right now, I look at an average month as a win!
Since there isn’t much to talk about in the market right now, and it’s too hot to go outside anyway, let’s switch to one of my favorite topics.
DEFINITIVE PROOF THAT MARKETING DOES MATTER!
Most of my readers – and all my clients – know that I am a bit obsessed with the belief that marketing really makes a difference when it comes to selling your homes. The Terravita real estate market provided us with a brilliant example of that difference last month.
To illustrate the difference marketing makes I often compare our team’s sales statistics to other agent’s sales statistics. Results like better average price per square foot and average days on market can provide compelling evidence. But I know that many people are skeptical, like I am, when I see statistics in marketing. My favorite way to provide evidence examples is in apples-to-apples comparisons where it’s clear that the difference really is the marketing. Up until now, the only way to do that is when we take over another agent’s listing. If our team relists a property formerly listed at the same price as the previous agent, what is different? The property is the same, the price is the same. . . marketing is the difference. Below are some of my favorite examples of when frustrated sellers have come to us after languishing for 9 or 10 months with another agent. We took over the listing and sold their homes in under 30 days:
A Terravita closing this month has provided us with another example we don’t often see. Some of you may remember a testimonial from Jim and Toni Trucks back in 2015 when they said:
“… Scott’s Team . . . sold our other home for more money than we expected, full price, in one day, and they did it for free because we bought one of Scott’s listings!!!” ~ Jim and Toni Trucks
Well, that same home we sold for the Trucks went back on the market with another agent about 14 months later. It just closed escrow last week, but this time it sold for $23,000 LESS than the purchase price, and it took 403 days to do it!
*Above is the Arizona Regional MLS stats showing our sale in 2015 for $700,000 and this sale last month for $676,900
What better proof is there other than the facts?
Our logo isn’t just decorative.
When we say that you’ll SELL FASTER:NET MORE, we really mean it.
We’re not another pretty face. We’re The Gaertner Group.
Thanks for being a faithful reader.
Here are the July 2017 Terravita Real Estate Market Statistics:
July 1, 2017 Terravita Market Update
Happy July! Even for those of us who spend the majority of the month in Scottsdale, July can be a great month for family and celebrations. It’s also a good month to travel and I am fortunate to find myself writing this in the cool beauty of Park City, UT. I’m helping my oldest daughter to find a place to live here, as she begins her first job after graduating from NAU last month. If you have never been to Park City, you need to! (If anyone has a 2 bedroom rental in Park City she and her roommate need to move in August or September!)
While Terravita had a particularly hot month “weather-wise” in June, “sales-wise” it was about average with just 8 homes going under contract. Foot traffic continues to be fairly steady and good so don’t be surprised if we see some decent sales numbers in July and August this year.
Arizona Central had an article this month that I thought you might find interesting as it could affect Terravita sales. The article, Empty nesters, Millennials shelling out to live in new Phoenix-area condos, from www.azcentral.com, reports that since last year, condo sales throughout the Valley have almost tripled, while prices are up 17 percent, outpacing gains for the housing market as a whole. A year ago, some housing market watchers were concerned too many new condos were going up too fast in metro Phoenix. So far, sales and prices are beating expectations. Here are some excerpts:
- More than 4,000 new condos were started or completed in the past two years.
- The median price for new condos has climbed to $384,000 from $301,000 a year ago.
- The median price for a new single-family home is approximately $302,000.
- During the first quarter of 2017, 50 new condos sold, compared to 11 during the first three months of 2016.
- The average price of a new condo is $547 per square foot.
- Luxury condo sales have quadrupled from last year.
“Condos are gaining market share in the Phoenix area, selling in larger numbers and seeing higher prices,” said real estate analyst Mike Orr with the Cromford Report. “The new attached luxury jewel-boxes (condos) are where prices are really climbing.” A shift toward denser infill housing for metro Phoenix is occurring mainly because of changing lifestyles of baby boomers and millennials, who want luxury residences with the amenities of an urban setting. Also, rising home values, in general, are helping people sell homes farther out and move closer in. “Attached projects dominate the landscape in many parts of the Valley, but the reality is that about one in five infill projects is selling really well and others are struggling,” said real estate analyst Jim Belfiore of Phoenix based Belfiore Real Estate Consulting. Here is the link to the entire article: Empty nesters, Millennials shelling out to live in new Phoenix-area condos
Have a great & safe holiday!
Here are the June 2017 Terravita Real Estate Market Statistics:
June 1, 2017 Terravita Market Update
For those of you back in the cooler climates you can rest comfortably knowing that we locals are now enjoying our normal average temperatures for this time of year. While it reminds us of what is coming in our future, it really is great now. (Particularly if you are a golfer. Less people playing, and the ball goes further!)
Speaking of averages, if you go by historical averages, Terravita had a good sales month in May with 10 homes going under contract. The reason I mention the “historical” averages though is that for the last 2 years the May sales numbers were anything but average. May sales for 2015 & 2016 were almost double the number we saw last month, and that leaves us behind in sales for the 2017 selling season.
As I mentioned last month, the new home builders are certainly a factor cutting into Terravita’s sales numbers. But there was another interesting article written that may be food for thought as well. Oddly, the article is written by a financial company based in London, England titled: Phoenix, Arizona: home sales below par in golf-course communities
Unfortunately, it is a subscription only website so I couldn’t create a link for you to read it. After speaking with a nice Financial Times employee named Ram who is based in Asia to try and obtain permission to share the piece, it didn’t work out. If you Google the headline though, you can likely find a link that works. I don’t think the article really says much of anything, but my job is to give you guys the info so that you can make your own decisions. He did give permission to post a small excerpt of the piece so here is that:
“Golf-course homes in remote locations are not selling as well as they once did,” says Orr. “Golf-course homes in the centre of the valley sell very well.” Phoenix Tastes have changed, Lieb says. Buyers want new homes with modern amenities, close to the city, not the big homes that are the staple of many of the outlying golf communities.”
Let’s hope for an exceptional June sales month and wherever you are, enjoy the summer weather.
Here are the May 2017 Terravita Real Estate Market Statistics:
May 1, 2017 Terravita Market Update
Overall the Terravita real estate market had a good month with 9 homes going under contract in April. Like last month, it was not a standout month for Terravita sales historically speaking. But in the new world of greatly increased new home builder competition, it was a good month. Looking forward, Terravita should see a large month for sales in May as it did in 2015 and 2016, but there is a caveat this year.
Most of the competing new home builders realize that this is an important month for them also. Consequently, many have large buyer incentives ending this month to convince second home buyers not to wait until the fall to buy their winter home. But this May, Terravita’s largest competitor not only has good buyer incentives, they have a strong argument that this will be the best time to buy in their community ever. We shall see how that affects Terravita sales.
Here are the April 2017 Terravita Real Estate Market Statistics:
April 1, 2017 Terravita Market Update
What a weekend for the Valley. We have great weather, the Final Four is here with all it’s affiliated concerts and events, the Coyotes are hosting the Capitals, and opening day for the Diamondbacks is Sunday. Jeesh! If you can’t have fun in this town, you’re just not trying!
Terravita had a good month with 13 homes going under contract in the month of March. Historically, that number is actually a bit low. The five year average for March is 16 homes under contract, but I think in our new normal, with lots of new home competition, 13 is a good number. That should keep Terravita on track for a year much like last year with just about one hundred sales for the year. So things are looking good locally.
Nationally, there is also much to be optimistic about. The economy looks strong as March saw consumer confidence surge to a 16+ year high, and the GDP grew over 2% in the first quarter. The housing market saw pending sales up well over last year’s numbers, and home prices jumped to their highest levels in 3 years.
When you consider all the info above, if you own real estate in Terravita, there is a lot to feel great about. Now if you can avoid any April Fool’s Jokes today . . .
By the way, for all of you pet lovers, Trulia has recently launched listings for your pets! Your pets will now have access to an online directory of “Rental Pawperties” for dog houses! Check out the full story here: Trulia Pets
Here are the March 2017 Terravita Real Estate Market Statistics:
March 1, 2017 Terravita Market Update
The Farmer’s Almanac says that “If March comes in like a lion, it will go out like a lamb.” March isn’t coming in like a lamb this year, it is more like a duck! Is anyone else sick of the rain here? I know we need the water, and I’m happy California is out of their drought, but c’mon. Enough is enough!
The weather certainly didn’t help Terravita sales in February. Seven homes under contract is lower than the historical averages for this month, and that could be due to the poor weather. It is more likely that sales are coming later into the season again this year as they did in 2016. We will keep our eye on it for you. Not to worry.
The Scott Gaertner Group is excited to announce its newest family member, and in this case it really is a family member! Scott’s oldest son, Ryan, will focus primarily as a buyer’s agent for our team. A graduate of Arizona State University, he has worked in business to business sales for the past four years and is excited to join our team.
Ryan and his wife Morgan just had their first child, Madilynn Shea Gaertner, in December. That being said, he is motivated to work harder than anyone to help you or someone you know looking to buy a home! He will be doing a lot of open houses in the upcoming months. So if you see one of our signs, pop in! He would love to meet you!
Here are the February 2017 Terravita Real Estate Market Statistics:
TERRAVITA SUPER SEASON XXIII KICK OFF!!!
Wow! What a Super Bowl. It doesn’t matter who you were pulling for, if you are a fan of football, that was a great game. It was also a great kickoff to the Terravita Super Season for 2017!
Newer readers to this blog may not realize that the end of the Super Bowl signals the beginning of what we call the “Terravita Super Season.” Historically this period, from now until the end of May, can represent up to 75% of Terravita’s sales for that year, making it the best time to sell or buy a home.
AND NOW A WORD FROM OUR SPONSOR . . .
As my readers know, I strongly believe that who you chose to represent you can dramatically effect your results and experience. If you or someone you know is considering buying or selling, I would like to humbly ask that you allow us to tell you why we could be your best choice. My oldest son, Ryan, has just joined the team and he is hungry to get started helping buyers find their new homes. Please email or give me a call at 480-634-5000!
Let’s get out there and have a great Super Season!
February 1, 2017 Terravita Market Update
Given the crazy, cold, wet weather we had in January, Terravita had a decent sales month. The 7 homes that went under contract was just about normal. And the average price per foot was above the 12 month running average, so I think we should call January a win and hope it is a trend. Speaking of trends . . .
Some of you may have already seen my Terravita Year In Review mailer, but I thought I might share a portion of that here for those who have not. It describes what might be an interesting trend in the Terravita market:
Averages can be deceiving. Our team studies much more than averages so that we can accurately counsel our clients. When you look beyond averages, you see that there are important trends which can dramatically impact both our marketing and your pricing. A good example would be the size of homes sold. When you look at the average size of Terravita homes sold in recent years, you don’t see much of a difference. But let’s take a look at what happens when you chart the median size of homes sold over the last few years:
See the trend line there? Think that might be important to know? It certainly could be. And that is just one example.
Studies show that consumers value “local knowledge” and “trust” as the two highest qualities for their real estate agent. For the past 24 years, and for over 500 home sales, I have done all I can to protect Terravita values and ensure my clients get the absolute best deal possible.
The final whistle of the Super Bowl marks the beginning of Terravita’s best selling season or what we call the “Terravita Super Season.” If you are considering selling your home this year, call me first and let me show you why I can confidently say that I will sell your home for more than it is worth, and I can do it for as little as a $990 full commission!
Here are the January 2017 Terravita Real Estate Market Statistics:
For more Terravita Market Updates, click here.