Here is your Phoenix metro area Real Estate Weekly Market Update! The following data was pulled from the Arizona MLS (ARMLS) on the date listed below:
Key points from this data:
- In Maricopa County the number of active listings has increased by 357 this week.
- The median list price has increased to $6k across Maricopa County, slight rise in each city.
- Average days on market remain pretty consistent.
- Number of active rentals has increased by 55 throughout Maricopa County.
- Rent pricing continues to remain stable.
BIG NEWS in Real Estate:
1. Maricopa County jumps to No. 3 for worsening home affordability, for full article click here:
ATTOM, a leading curator of real estate data nationwide for land and property data, released its first-quarter 2022 U.S. Home Affordability Report, showing that median-priced single-family homes are less affordable in the first quarter compared to historical averages in 79 percent of counties across the nation with enough data to analyze.
Among counties with a population of at least 1 million, those where the affordability indexes worsened most from the first quarter of 2021 to the first quarter of 2022 were St. Louis County, MO (index down 32 percent); Wake County (Raleigh), NC (down 26 percent); Maricopa County (Phoenix), AZ (down 25 percent); Clark County (Las Vegas), NV (down 24 percent) and Collin County (Plano), TX (down 24 percent).
- The report determined affordability for average wage earners by calculating the amount of income needed to meet major monthly home ownership expenses — including mortgage, property taxes and insurance — on a median-priced single-family home, assuming a 20 percent down payment and a 28 percent maximum “front-end” debt-to-income ratio. That required income was then compared to annualized average weekly wage data from the Bureau of Labor Statistics
- That increase continued as the median national home price spiked 16 percent, year over year, to a record high of $320,000 while average wages across the country rose just 7 percent.
- Throughout the pandemic, a glut of buyers has flooded the market, chasing an historically limited supply of homes for sale. This high demand was due in to mortgage rates hovering around 3 percent, and in part because of the flight of urban renters leaving congested virus-prone areas for the perceived safety of a house and yard and the space for growing work-at-home lifestyles. As demand has spiked, prices have jumped beyond wage increases, damaging affordability.
- Despite the continued decline in historic affordability, major home-ownership expenses on typical homes still were affordable to average local wage earners during the first quarter of 2022 in about half of the 586 counties in the report, based on the 28-percent guideline. The largest were Cook County (Chicago), IL; Harris County (Houston), TX; Dallas County, TX; Bexar County (San Antonio), TX, and Wayne County (Detroit), MI.
- The most populous of the 303 counties where major expenses on median-priced homes were unaffordable for average local workers in the first quarter of 2022 were Los Angeles County, CA; Maricopa County (Phoenix), AZ; San Diego County, CA; Orange County, CA (outside Los Angeles) and Kings County (Brooklyn), NY.
- The ‘x-factor’ is what impact 8% inflation rates will have on these households, and their ability to meet their financial obligations. Rising food and energy prices could be a hidden factor that makes affordability even more of a challenge for homebuyers and makes it more difficult to make ends meet for current homeowners.
- The top 25 highest annual wages required to afford typical homes again were all on the east or west coasts, led by New York County (Manhattan), NY ($329,747); San Mateo County (outside San Francisco), CA ($286,976); Santa Clara County (San Jose), CA ($266,934); San Francisco County, CA ($264,038) and Marin County (outside San Francisco), CA ($250,106).
- The lowest annual wages required to afford a median-priced home in the first quarter of 2022 were in Schuylkill County, PA (outside Allentown) ($12,011); Cambria County, PA (outside Pittsburgh) ($17,129); Bibb County (Macon), GA ($18,027); Fayette County, PA (south of Pittsburgh) ($18,583) and Blair County (Altoona), PA ($19,221).
- The report determined affordability for average wage earners by calculating the amount of income needed for major home ownership expenses on a median-priced home, assuming a loan of 80 percent of the purchase price and a 28 percent maximum “front-end” debt-to-income ratio. For example, the nationwide median home price of $320,000 in the first quarter of 2022 required an annual wage of $62,543, based on a $64,000 down payment, a $256,000 loan and monthly expenses not exceeding the 28 percent barrier — meaning households would not be spending more than 28 percent of their income on mortgage payments, property taxes and insurance. That required income was less than the $66,560 average wage nationwide based on the most recent average weekly wage data available from the Bureau of Labor Statistics, making a median-priced home nationwide affordable for average workers.
2.Real Estate Pulse: Things to know about short-term rental laws; for full article click here:
In Arizona, Airbnb collected and remitted more than $63 million in tourism taxes in 2021. Those eye-popping numbers show that short-term rentals are big business in Arizona, but what do do people need to know about short-term rental laws?
- “About six years ago, a state law was passed that essentially made it unlawful for a city or a town to enact a code or an ordinance prohibiting short-term rentals,” Gottlieb says. “But if you lived in an HOA, you could bypass that law. Through the covenants, conditions, and restrictions (CC&Rs), the community could band together and amend the CC&Rs and prohibit short-term rentals. So it became this big thing because if you live in an HOA, you can have a situation where there will be no short-term rentals. But if you don’t, then you have this state law that ties the hands of cities and towns.”
- “We see a lot of people who are coming in for Airbnb arbitrage or short-term rental arbitrage,” MacQueen says. “What this arbitrage concept means is let’s say I rent your house for $5,000 a month and then I’m the tenant. I go and find a bunch of short-term renters to come in and use my time that I’ve rented your home. Now, your home becomes a short-term rental. I’m paying you $5,000, but I’m bringing in $10,000 a month on a short-term rental basis. It’s the no-money-down way to be in the industry. So we’re seeing a lot of investors doing that.”
- Check out the first episode of “Real Estate Pulse with MacQueen and Gottlieb” to learn about these hot-button topics and all the things you need to know about short-term rentals and the law.
Liz & Marie are purchasing properties all across Maricopa County as well as Gila County, Navajo County and Coconino County. If you would like to sell your house fast and are looking for a more personal interaction than an iBuyer like Opendoor, check out our quick free four minute video where we show you how to save $10,000 or more when selling your property!
This week’s LOCAL NEWS
13-year-old juggles middle school along with booming business, for the article click here:
- Through the doors of Nizhoni Soaps, the store owner’s pride in her Navajo roots sprout forward at every turn. That owner, Kamia Begay Bogor, believe it or not, is only 13 years old.
- She owns not one but three locations — two in New Mexico and one in Mesa. It’s a far cry from when she first began the endeavor.
- Since she was 10 she’s been creating her unique soaps, sugar scrubs, and wax melts, infusing them with Native herbs found in the sprawling Navajo Nation or frequently used during ceremonial traditions. She took up the hobby after her father passed away suddenly in a car accident.
- “I started out with Navajo tea, then I started branching out to sweet grass, sage, cedar, blue corn pollen, and then after that I started branching out to different scents and products,” said Bogor.
- As her products grew, so did her fanfare. She’d soon have her own billboard. Her story has been featured in countless publications. But what she takes the most pride in is employing her native people working in her storefronts.
- With every decision and every product, she honors where she came from. As for where she’s going, this little girl has big dreams ahead.
- “I always say I want to be the next Bath & Body Works, but with a Native American flair to it,” said Bogor.
The top spring 2022 events and festivals not to miss in Phoenix!
For the link click here
- May 20-29 | Spring Arizona Restaurant Week
About Liz & Marie
Liz & Marie are the area’s leading real estate solutions company. We successfully work with homeowners, buyers, sellers, real estate agents, and real estate investors, buying and selling all types of residential real estate. We are confident that we can find the right property or solution for you, whether you have a house to sell, are looking to buy your next investment property, or are looking for your family’s “forever home.” We can share our knowledge so that you can make the best decisions for your situation and we are dedicated to making everyone’s experience a smooth and successful process.
Liz & Marie specialize in buying and selling your home at the price, and on the timeline, that works for all of us. Our extensive knowledge of real estate investing and a large network of real estate investors nationwide allows us to offer more buying choices and a wide variety of selling options for all types of home buyers and sellers, including financially distressed homeowners. Our mission is to work hand in hand with all parties and to handle every situation with the utmost professionalism and care.
We are thrilled to be a part of this next chapter in your life. Our commitment to excellence starts with treating you and your transaction with the utmost care and professionalism. We know that buying and selling a home is one of the biggest decisions you’ll ever make and we are humbled that so many homeowners choose us to join them on their journey. Let us lead the way and earn your business today.
We may be Crazy Liz and Wacky Marie but together we can do anything. Our combined experience in real estate has given us tons of lessons and has provided us the opportunity to help many homeowners! We are always striving to learn more and help others!
Let us know how we can help you today!