Phoeniz RE Market is Heating Up (rent, mortgage, appliances)

[deboinair]

Originally Posted by wase4711

yep, we are actively looking in the north phoenix/peoria/anthem area and there are alot of houses in our price range out there, so its still a "buyers market" at this point, IMO..

You think? I thought there were going to be some serious deals coming from Miami. The costs aren't bad, but a lot of the North Phoenix houses wanted 200k and or more and most were built in the 80's or early 90's. I put in an offer on a house for 205k, five minutes from Paradise Valley mall. I later withdrew because I saw new complexes being built in North Phoenix near a house a I put a previous on. I'm moving next month into a brand new house for the same price of the old ones.

[MN-Born-n-Raised]

Originally Posted by Potential_Landlord

Gotta love it when anecdote = evidence. My single data point is the measure of everything.

I'm with you on this one. Everyone has their own story and therefore belief. The Hell with the statistics that clearly show that the market is much hotter than a year ago.

The builders are creating new inventory. I hope the surge hangs on so our development finally fills out. There are a lot of hammers swinging right now. The time to buy a new build was a few years back when labor, land, and material costs were lower. Also, builders profits were skinnier too. IF this trend continues builders are going to continue to have to raise prices. I've stopped by and talked with some contractors while walking the dog. They are working a lot of hours and cannot keep up. Those subs will be wooed to another builder at higher wages. So new home prices have pricing pressures.

I'm up about $175K in appreciation in 4 years. When our development builds out and we are not competing with new builds, that will push it up even farther. I didn't buy in the sweet spot (size wise). I have a 3700 sq foot home. Those guys who bought a 2000 square foot home are up $130K on a $115K investment. I wish I would of bought 3 or 4 of those.

[Wally Sconce]

Originally Posted by DetroitN8V

Why would anyone pay almost $300k for a house on the far outskirts of the valley on a tiny lot that needs to be gutted? That house is basic shelter.

Why would a 10 year old house need to be "gutted"? snobery.

Take a look at the map . 10 years ago that was the outskirts.

[MN-Born-n-Raised]

Originally Posted by Zippyman

A 2000 sq/ft house on a 4000 sq/ft lot is more of a "condo with a large patio" than a single-family home. I'd be a concerned about a bubble when those start selling with multiple offers on the day of listing. That's the kind of house you settle for, not the kind of house you dream about. Triple the lot size or lower the price into condo territory & it'll be gone in a flash. As it is, it's neither fish nor fowl and the market has spoken.

Agreed. A 4000 square foot lot for the upper $200's is a tough sell. It's only 1800 square foot and they stuffed a "pool" on the lot. As you say, the market has spoken.

What I have found is you cannot trust pictures. Sometimes houses don't sell because they are next to a dumpy house, you can hear loud traffic, the floor plan sucks, the neighborhood doesn't have a good feel, the home smells, etc, etc. I remember looking at homes on MLS and thinking WOW, what a [b]deal [/B! Later when I see it person, it made complete sense why is is still on the market.

So one data point surely doesn't make a market.

[Zippyman]

Originally Posted by Wally Sconce

Why would a 10 year old house need to be "gutted"? snobery.

Take a look at the map . 10 years ago that was the outskirts.

They're still building homes in the "inskirts" (inside the 101) for about the same money & you'ld have to work to get one of the new ones on a smaller lot. It's too expensive for nearly all first-time buyers, and the yard is too small for most move-up buyers. Your first house is the one you compromise on - you take the fixer, or the place next to a busy road & convince yourself it's better than renting. After a few years, you realize that polishing a turd doesn't work, you dump it (breaking even is a victory), and move on to a "real" house without major defects built-in (like a tiny lot, road noise, power lines overhead, or a bad floor plan).

Houses like the one you posted look awesome to buyers who've never lived in one. They meet the "specs", i.e. "correct" square footage, age, zip code, etc - but no one *really* wants to live so close together that they can hear the neighbor's toilet flush or shake hands with a neighbor from an upstairs window. Especially when you can buy an equivalent house 15 minutes closer to work for the same or less money (inside the 101). Carefree isn't a jobs center.

I don't think your example proves what you think it does - when all of the North Phoenix homes of equivalent size top $300k, then $275k for a "cozy" home that far north will be reasonable - and that might happen over the next couple years, but it isn't today. North Phoenix went from ~$70 sq/ft to a very solid ~$140 sq/ft in about 5 years, which is a pretty awesome run by anyone's standards. Lamenting the fact that it isn't $160 sq/ft (yet) doesn't mean the market is "soft".

[Wally Sconce]

Originally Posted by Zippyman

They're still building homes in the "inskirts" (inside the 101) for about the same money & you'ld have to work to get one of the new ones on a smaller lot. It's too expensive for nearly all first-time buyers, and the yard is too small for most move-up buyers. Your first house is the one you compromise on - you take the fixer, or the place next to a busy road & convince yourself it's better than renting. After a few years, you realize that polishing a turd doesn't work, you dump it (breaking even is a victory), and move on to a "real" house without major defects built-in (like a tiny lot, road noise, power lines overhead, or a bad floor plan).

Houses like the one you posted look awesome to buyers who've never lived in one. They meet the "specs", i.e. "correct" square footage, age, zip code, etc - but no one *really* wants to live so close together that they can hear the neighbor's toilet flush or shake hands with a neighbor from an upstairs window. Especially when you can buy an equivalent house 15 minutes closer to work for the same or less money (inside the 101). Carefree isn't a jobs center.

I don't think your example proves what you think it does - when all of the North Phoenix homes of equivalent size top $300k, then $275k for a "cozy" home that far north will be reasonable - and that might happen over the next couple years, but it isn't today. North Phoenix went from ~$70 sq/ft to a very solid ~$140 sq/ft in about 5 years, which is a pretty awesome run by anyone's standards. Lamenting the fact that it isn't $160 sq/ft (yet) doesn't mean the market is "soft".

Possibly, but when new homes in the area about the same sq ft are selling for much more. that price really is not out that much. lot size is one thing but an established neighborhood with amenities and schools down the street does add value. Not everyone wants to look after a half acre yard when they pay HOA fees to look after rec areas.

Fireside at Norterra - Cactus Series by Pulte Homes, Phoenix | Trulia.com

[john3232]

Originally Posted by MN-Born-n-Raised

I'm with you on this one. Everyone has their own story and therefore belief. The Hell with the statistics that clearly show that the market is much hotter than a year ago.

The builders are creating new inventory. I hope the surge hangs on so our development finally fills out. There are a lot of hammers swinging right now. The time to buy a new build was a few years back when labor, land, and material costs were lower. Also, builders profits were skinnier too. IF this trend continues builders are going to continue to have to raise prices. I've stopped by and talked with some contractors while walking the dog. They are working a lot of hours and cannot keep up. Those subs will be wooed to another builder at higher wages. So new home prices have pricing pressures.

I'm up about $175K in appreciation in 4 years. When our development builds out and we are not competing with new builds, that will push it up even farther. I didn't buy in the sweet spot (size wise). I have a 3700 sq foot home. Those guys who bought a 2000 square foot home are up $130K on a $115K investment. I wish I would of bought 3 or 4 of those.

I bought 3 homes at the right time (2011) and up just over $100,000 on each.

If course I also bought at the wrong time (2005) and am still down around $125,000 (total) on those homes.

Oh well, live and learn.

As far as the value of my homes: There hasn`t been much movement one way or the other for the past year and a half.

Rents on the other hand going up.

[MN-Born-n-Raised]

Originally Posted by john3232

I bought 3 homes at the right time (2011) and up just over $100,000 on each.

If course I also bought at the wrong time (2005) and am still down around $125,000 (total) on those homes.

Oh well, live and learn.

As far as the value of my homes: There hasn`t been much movement one way or the other for the past year and a half.

Rents on the other hand going up.

When the accelerator peddle is pushed hard, the housing market has about a one year lag time before the truth is realized in pricing. Same-same when you hit the breaks. It makes getting in and getting out of housing much easier than a fast moving assets like the stock market.

What is your zip code and price? With a click or two, the aggregate statistics can be had. I too thought my value was stuck. An agent across the street promises it is on the rise. After a few clicks on a website, I concluded he was right.

[DetroitN8V]

Originally Posted by Wally Sconce

Why would a 10 year old house need to be "gutted"? snobery.

Take a look at the map . 10 years ago that was the outskirts.

Because whoever built it 10 years ago didn't upgrade a single thing. I had college apartments with nicer finishes. That house is as basic and plain as it gets. The kitchen, baths, fixtures, appliances and flooring all have to go. Unless you're into the mediocrity look.

[Wally Sconce]

Originally Posted by DetroitN8V

Because whoever built it 10 years ago didn't upgrade a single thing. I had college apartments with nicer finishes. That house is as basic and plain as it gets.. Unless you're into the mediocrity look.

" The kitchen, baths, fixtures, appliances and flooring all have to go"

LOL give it a break.

Snobery from Snotsdale.

Some paint and some carpet is all it needs.

"built in BBQ, fire pit and enormous spool . The kitchen is with granite counter tops, raised panel maple cabinets and an island! The 3 bedrooms upstairs are huge, with the master having french doors and a patio looking south over the valley. Even the garage was babied with epoxy fl...oors and tons of cabinets. Not only has the owner seen to it that your new home is move in ready, but the sunscreens, low-e vinyl windows and 4.2 KW solar inverter will keep your pocketbook happy as well.