June 1, 2018 Terravita Market Update
Yikes!! Somebody turned off the faucet on Terravita Real Estate sales. We have been sailing along having a fantastic sales year and boom! Huge slowdown in May. Terravita went from double digit sales every month this year, to just 1 home under contract by the 18th of the month.
To understand just how shocking this was you have to understand that recently May has been one of the strongest sales – if not THE strongest – months of the entire year:
As you can see from the chart above sales improved later in the month, and Terravita ended May with 7 homes under contract. Historically, 7 homes under contract is about average but this year it was a bit shocking.
The questions of why sales slowed so much and is that slow down a trend, remain to be answered. For now, Terravita is still well ahead in sales for 2018 and we shall see what June brings.
Here are the May 2018 Terravita Real Estate Market Statistics:
May 1, 2018 Terravita Market Update
The Terravita real estate market continued its winning ways by having yet another good month of sales with 12 homes going under contract, and average pricing staying above the running 12 month average. Historically, May has not been a large month for Terravita sales but the last 3 years it has been really good. There is no reason to suspect this year will be any different.
Terravita’s 85266 zip code is now the 4th priciest in the Phoenix Metro area.
That factoid comes from this article Premium real estate: Metro Phoenix’s 10 priciest neighborhoods which also says that the median house price rose to $700,000 last year which was a 6.5% jump from 2016. Lastly, they point out that the median price back at the peak of the market in 2006 was $796,000. Here is what that all looks like graphically:
Here are the April 2018 Terravita Real Estate Market Statistics:
April 1, 2018 Terravita Market Update
I hope you all had a great holiday and didn’t suffer any embarrassing April Fools pranks. This year also with Easter and Passover made it an easy decision to avoid pranking you. Maybe next year . . .
The Terravita Real Estate market had another good month with 15 homes going under contract. While 15 homes under contract is a good sales month, historically speaking it is about average. Terravita sales for the calendar year are well ahead of last year and any recent averages. Inventory is down, and prices are up. Rest assured that all is well in the Terravita real estate market.
All is well in the Scottsdale Market as well. Scottsdale had two record setting sales in March. One for $17.5 million and then another for $18.8 million! Both homes were located in Silverleaf. Only one of the homes had photos to view and I thought you might enjoy seeing them ⇒ 20450 N 108th Place
We ran another survey this month where you helped us evaluate a new marketing technique and we have another winner! This month we asked if you liked a new type of Virtual Tour (Check it out here ⇒ 32980 N 70th Street) and again the response was mixed but invaluable information. This month’s winner of the $100 gift Certificate is:
Thank you all for playing and don’t forget- we are never too busy for one of your referrals!
Here are the March 2018 Terravita Real Estate Market Statistics:
March 1, 2018 Terravita Market Update
Happy March everybody! And if you a seller, it really is happy. I have been squawking about how it feels like the market is heating up for a few months now, and February was another good month in the the Terravita Real Estate Market. This time last year Terravita had 14 homes under contract for 2017. In 2018 we already have 25 and things are looking great for the rest of the season! If you are a seller this is a great time to sell.
An interesting thing to notice this month is the price per square foot spread. We have a $123 per square foot difference from the high price to the low in just this months closings! ($311- $188) That is a big spread. This is a great illustration of the folly in just using the community average price per foot to determine a value for a home. There are far too many variables to do that. Price per square foot is a convenient rule of measure, but it can be very deceiving. Properly pricing a Terravita home is more art than science. The person who sold for $188 per square foot suffered through 460 days on the market before she sold. Did she have to? I don’t think so. Given the proper counseling and marketing this could have been a much less painless process. If you have any interest in selling give us a call and let me tell you how we will get you more money – faster – and with less hassle!
DID YOU WIN!!!!???
A couple of weeks ago we ran a survey/contest to see what you guys thought of a new technology we were trying – a 3D virtual tour. (If you missed it click here: Survey) We asked you guys to give us your thoughts on this amazing way to let you do a self-guided tour of every square inch of the home from your computer. The reaction was mixed, but overall pretty good. Here is what you told us:
On a scale of 1-10:
How did you like the tour? 7.11
How easy was it to use? 6
Do you think it helps to sell the home? 6.7
Here is a synopsis of some of your comments:
What did you like about the Tour?
- Liked being inside of the home.
- liked getting a walking perspective
- All of it!
- Easy to view
- More realistic than photos
What didn’t you like about the Tour?
- Not sure everyone will be able to use.
- Time consuming, got stuck in the closet!!!
- Makes me dizzy, like motion sickness
- Wanted to be able to go outside
- Would like to be able navigate all the way to the back of a room.
It is always great to know what our readers are thinking and to say thank you we drew for 2 people to receive a $100 gift card to Liberty Station.
Drum roll please…
Everyone who participated will be getting a prize. Kate will be emailing you with that info. Thank you all for playing and please don’t forget – we are never too busy for one of your referrals!
Here are the February 2018 Terravita Real Estate Market Statistics:
February 1, 2018 Terravita Market Update
Wow! Did you see that moon event last night!? That was pretty amazing!
Almost as amazing was the exceptional month the Terravita Real Estate Market had in January. It was exceptional not only for the number of homes that went under contract at 13, but the values were up nicely as well. Even though it is a fairly small sample size with just 6 homes closing escrow, $283 is a very good average and 3 of them were over $300 per foot! This portends well for the upcoming Terravita Super Season!
Is this due to the new tax laws?
I doubt that the following is related to this recent run-up in sales and price, but while I have you, I would like to follow up on my earlier thoughts about the new income tax laws. In case you missed it, I wrote In an earlier post that I felt that the new laws restricting how much of a write off people get on property taxes may wind up helping Terravita sales. My thought being due to the changes, people in higher taxed states may want to move to areas like Terravita.
Yesterday a friend of my mine who works for one of the largest builders in the country sent me a stunning illustration of what this is like if you live in one of those higher taxed states. Somehow he remembered that I was raised in Country Club Hills Illinois which is a south suburb of Chicago, and sent me a calculation of what a person who owned a $750,000 home in CC Hills would pay in taxes (this came from an article written describing how taxes are going up another 10% in the Chicago area). Before I tell you what the taxes are, I want you to know that I did a quick survey of what the average $750,000 home in Terravita pays in property taxes and it comes out a bit below $4,000 a year. Now that you are aware, click here to see what you would pay this year for that home in CC Hills >>>> Property tax calculation
If you know someone who lives in a high tax state like California, Illinois or New Jersey forward them this email and let’s help them out of their pain!
Here are the January 2018 Terravita Real Estate Market Statistics:
The National article above came out late last week in Forbes Magazine and has good info. The industry’s most knowledgeable economist, Lawrence Yun, wrote the piece and I would guess his predictions will be right for most of the country. But I wonder if the message, and certainly the headline, could be completely the opposite reality for Arizonans.
IS IT TRUE FOR US?
One of the main points is the hindrance to home buying arising out of the new tax reforms. Yun points out that there is less incentive to be a homeowner due to reductions of both mortgage interest and property tax deductions. He said this is particularly true in high property tax states like California and New Jersey.
The Terravita demographic is one where folks have a much lower incidence of even having a mortgage and when they do it is usually small. Consequently, they are much less concerned with the mortgage interest write offs.
At the same time, the demographic is more sensitive to increases to their fixed living costs like property taxes. Suddenly not being able to deduct those taxes means a significant increase in their fixed costs. It seems to me that these tax changes could drive buyers to low tax states in general, and specifically ones with great weather like Arizona! And if you are going to leave your state, why not move to the best lifestyle community where you can easily make a ton of great new friends?! Just my thoughts… but it could happen.
For more Terravita Market Updates, click here.