Phoenix Metro monthly housing stats ending 8/14/14

Troy Reeves received the ARMLS monthly statistics for the Phoenix metro area as of August 14, 2014.  The report included commentary by Tom Ruff of The Information Market.

Please read Tom Ruff’s commentary below;

For the last year I’ve been faced with the challenge of seeking new ways to describe a real estate market that has been uninspiring but consistent. As we report data for July 2014, I’m faced with the same challenge, how to repackage boring.

There were no surprises in July with the median sales price, average sales price or total sales volume. They all came in as expected. The ARMLS Pending Price index for July 2014 projected a 1% rise in the median sales price to $197,000, an average sales price of $249,200 with a projected sales volume around 6,600. The final numbers were $197,000, $249,700 and 6,775 respectively. The reason I point out the accuracy of our projections is simply to say our market is and has been quite “dependable.”

The charts for July speak for themselves shouting more of the same with only a couple minor expectations. The most interesting change comes under the heading of new inventory. For the second consecutive month, first in June and now July, we’ve seen the lowest total of new listings for each of these months respectively in the 14 years ARMLS has been reporting this data. This possible trend, if it continues, will have significant implications moving forward. One final point to consider when viewing the numbers this month — we are now through “our season.” History tells us sales volume will decline each month through November as was the case in July. Sale volume in July was 6.2% lower than June.

Real estate is a cyclical business, and our current phase just turned one year old this past week. A cycle by its very definition is a repeated sequence of events. The characteristics of our present phase include flat prices, tepid demand, and typical supply. Sales volume figures and sales price data receive the bulk of media attention each month, while very few pundits discuss the dramatic improvement we’ve seen in the composition of our sales. There has been a measurable shift away from a market
once dominated by distressed sales and investor purchases to a much healthier more traditional market.

While I’ve struggled with new ways to describe this maturing phase where sales volume is less than desirable but where the quality of these sales is improving, our journalistic friends this month had no such problems. In July I saw several reports where the mundane numbers of the past few months were packaged into something truly astonishing.

Our current housing market is not perfect by any means, but I do believe we’re continuing faithfully down the long path of recovery, showing subtle and consistent improvement each month. We are definitely not the ugly picture the articles above paint. Time and time again in STAT we’ve described 2014 as being a transitional year, a year in which we move closer to a normal, robust and sustainable housing market. In a recent report, Doug Duncan, a senior vice-president and chief
economist at Fannie Mae stated, “We have always believed that for the housing recovery to be considered robust, we will need strong and sustained full-time job and income growth. Recent data indicating the creation of more than 200,000 jobs over each of the last six months, combined with this month’s improvement in the share of consumers reporting significantly higher household income than a year ago, does provide some reason for optimism. If these trends continue, they could lead to some upside in housing in 2015.

As mentioned earlier, the Pending Price Index (PPI) projected the median sales price in July to be $197,000, with the actual median price coming in at $197,000. Our sales volume projections also came in as expected with sales volume in July lower than in June. In August the median sales price is projected to fall to $194,900. Let’s not jump to rash conclusions if the median price falls as expected. When the median sales price rose from February through June we not only cautioned against interpreting these increases as rising home values but we also suggested the median home price would retreat later in the year, most likely in August. Home prices have been stable, remaining flat for the last 12 months. Sales volume will be lower in August than July with expected sales volume to be around 6,350.

monthly salesNew InventoryTotal InventoryActive UCBmonths supplyNew list pricesSales PriceSales Price ForecastForeclosure pendingDistressed SalesAvg Days on Market

Protecting your home from water damage

Benjamin Franklin once said, “An ounce of prevention is worth a pound of cure.” This age-old axiom is very applicable when it comes to preventing water damage within your home. Water damage can affect your home’s value, increase costs, and cause a decline in indoor air quality. There are several ways you can prevent water damage by inspecting and maintaining the systems in your home that involve water.

There are three main water-involved systems in your home – piping, washing machine hoses, and water heaters.

Piping
It is good to know what type of piping your home has. Different pipe type develop different problems and challenges as they age. At the time of your home purchase if you had a home inspection, the home inspection report will tell you what type of piping your home has. If you don’t have an inspection report, a licensed plumber can do an inspection for you
The U.S. Department of Housing and Urban Development provides the following plumbing lifespan guidelines.
Supply Pipes:
Brass – 40 to 70 years
Copper – 50+ years
Galvanized Steel – 20 to 50 years
Drain Lines:
Cast Iron – 75 to 100 years
Polyvinyl Chloride (knows as PVC): Indefinietly

Pipes can be older than the lifespans listed above, and doesn’t necessarily mean they need to be replaced. If well maintained, they may last longer. If poorly maintained, or if you have hard water, then they may fail sooner. With proper care, the majority of pipe materials will last for decades.

Pipeline mazeWashing Machine Hoses
A broken water supply hose accounts for more than half of water damage insurance claims related to washing machines. These claims can be very costly, with the average claim running more than $6,000. If unattended, a burst washing machine hose can spill hundreds of gallons of water an hour, causing a significant amount of damage in a very short amount of time.
There are various reasons washing machine hoses break, including:
Age:
Materials:
Improper Installation:

washmachine hosesWater Heaters
According to a study by the Institute for Business and Home Safety, one of the leading causes of water damage claims in residential properties is water heater malfunctions.
The study also found the following:
• 69 percent of water heater failures were due to leaking or burst tanks.
• The chance of leaking or failure rises steeply in water heaters that are more than five years old.
• Nearly 75 percent of all water heaters fail before they are 12 years old.
• Very few water heaters last longer than 10 to 12 years.

Eventually every water heater will need to be replaced due to weakness developed over time. The useful lifespan of a water heater ranges from about five to ten years, but this depends on how high the mineral content is in your water, the intensity of use, and how well you maintain the water heater. Though you may be put off by the cost of purchasing and installing a new water heater when it seems your current one is working just fine, keep in mind that waiting until after a failure has occurred may cost more as you will then have to deal with the cost of repairing water damage as well.

hot water heaterJustifying Risk of Damage to Your Home
Taking Benjamin Franklin’s advice and spending some time on prevention will save you a lot of time, money, and trouble in the long run.

It’s a good idea to know where the water shut-off valves are in your home so you can easily turn off the water source in the event of a leak or problem. It is recommended that if a problem does occur, immediately remove standing water and all moist materials. Take action to prevent further damage when possible. Acting quickly will help minimize damage which means less time and expense for repairs.

Troy Reeves and the Reeves Team try to share as much information that we come across. We want you to continue to enjoy the home you purchase through us.

Have a bucket list? Here are some things to add to it!

Gilbert is known as a big city with a small town feel.  Below a few things that you must visit while in Gilbert.

1. Gilbert Days – Everyone loves a parade but if you haven’t experienced the rest of the town’s signature Western heritage celebration, then it’s time to pony up to Gilbert Days. The November week-long celebration starts off with a Pony Express ride. The celebration barrel racing, a rodeo, a dance and a parade. Troy Reeves & The Reeves Team have sponsored the parade for many years. Click on the link above to see some of the excitement.

parade

2. Cosmo Dog Park – Cosmo Dog Park is worth visiting even if you don’t have a dog. One of the most popular parks in Gilbert, the park offer a lake for dogs to play in and several fenced areas for them to run in along with doggie drinking fountains, wash stations, an obstacle course. There are also fun items for humans a well such as walking paths, benches to enjoy the scenery and tables to enjoy lunch with your furry child.

CosmoDogPark 2

3. Big League Dreams Park – Don’t have time to visit Yankee Stadium and Wrigley Field? You can see a version of them at the Big League Dreams park. There are eight-diamond baseball stadiums featured in scaled-down renditions of both parks. The complex is home to several outdoor youth baseball and softball games. The park is open year-round and features a 20,000-square-foot indoor soccer pavilion, flag-football fields, batting cages and the Stadium Club restaurant.

field of dreams

4. Heritage District (Downtown Gilbert) – Visit Gilbert’s Heritage District where history meets entertainment and modern restaurants and breweries are all over the area. There are several new restaurants opening a few expanding. Let’s not forget the Hale Centre Theatre that puts on wonderful plays throughout the year

eating

5. Freestone Park – The city’s popular park – Freestone Park offers 65 acres with a lake, baseball fields, basketball courts, skating park, playgrounds and a miniature train. The park offers several picnic ramadas, a carousel, a mini Ferris wheel, waterless wave runners, concessions, and so many picturesque, secluded spots that it’s ideal for family photos and romantic strolls.

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These are just a few of the many destinations Gilbert has to offer for entertainment yet still gives you a small town feel.

Please contact Troy Reeves & The Reeves Team if would like some additional information on all that Gilbert has to offer.