Wondering If You Can Buy Your First Chandler or East Valley Home?

3/18/2018

Wondering If You Can Buy Your First Chandler or East Valley Home?

There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family, others might think they are too young, and still, others might think their current income would never enable them to qualify for a mortgage.

We want to share what the typical first-time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first-time buyer:

Bottom Line

You may not be much different than many people who have already purchased their first homes. Meet with a local real estate professional today who can help determine if your dream home is within your grasp.

If you have any questions about the home buying process, and what it takes to purchase a home in Chandler, or the East Valley of Arizona, just call/text me at 602-295-6807 and I can help evaluate your ability to purchase your first home!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
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Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.

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80% Of Renters Believe Homeownership Is A Part Of Their American Dream

3/13/2018

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80% of Renters Believe Homeownership is a Part of Their American Dream

Homeownership is part of the American Dream | Troy Erickson Realtor

According to the latest Aspiring Home Buyers Profile by the National Association of Realtors (NAR), 82% of surveyed renters desire to own a home in the future, with 80% believing homeownership is a big part of achieving their American Dream.

The profile went on to state that 50% of millennials believe that their rent will increase, with 20% believing that an increase in rent will be the catalyst that pushes them to consider buying a home vs. renewing their lease.

So, what is holding renters back?

Renters believe they cannot afford to buy a home | Troy Erickson Realtor

What would make renters take the plunge?

Buying a home for the first time | Troy Erickson Realtor

NAR’s Chief Economist, Lawrence Yun believes that,

“Housing demand in 2018 will be fueled by more millennials finally deciding to marry
  and have kids and the expectations that solid job growth and the strengthening economy
  will push incomes higher.”

Yun goes on to warn that,

“However, with prices and mortgage rates also expected to increase, affordability pressures
  will persist. That is why it is critical for much of the country to start seeing a significant hike in
  new and existing housing supply. Otherwise, many would-be first-time buyers will be forced
  to continue renting and not reach their dream of being a homeowner.”

Bottom Line

If you are one of the many homeowners whose houses no longer fit their needs and are looking to move up to your dream home, now is a great time to list your starter home! First-time buyers are out in force looking to achieve their American Dream.

If you have any questions about the home buying process, just call/text me at 602-295-6807 and I can help evaluate your ability to purchase your dream home!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: 602-295-6807
[email protected]
Linkedin Profile
Facebook Page

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Housing Market Expected To “Spring Forward” This Year

3/11/2018

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Housing Market in Chandler Expected to "Spring Forward" This Year

Housing market in Chandler and the East Valley expected to Spring Forward | Troy Erickson Realtor

Just like our clocks this weekend in the majority of the country, but not here in Chandler, Arizona, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the real estate market right now is what is holding the market back.

Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right.

Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions, but also here in Arizona.

That hasn’t happened this year.

Demand for housing in Chandler, Arizona has remained strong as mortgage rates have remained near historic lows. Even with the recent increase in rates, buyers are still able to lock in an affordable monthly payment. Many more buyers are jumping off the fence and into the market to secure a lower rate before they increase too high.

The National Association of Realtors (NAR) recently reported that the top 10 dates sellers listed their homes in 2017 all fell in April, May, or June.

Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.

Bottom Line

If you are planning on selling your Chandler or East Valley home in 2018, meet with a local real estate professional to evaluate the opportunities in your market.

If you have any questions about what it takes to get your local Chandler or East Valley home sold quickly, and for the highest price, just give me a call/text at 602-295-6807 and I can help answer all of your questions!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
Linkedin Profile
Facebook Page

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Home Prices: The Difference 5 Years Makes

3/10/2018

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Home Prices Increasing: The Difference 5 Years Makes in Arizona and the U.S.

Home values are increasing in Chandler Arizona and the U.S. | Troy Erickson Realtor

The economists at CoreLogic recently released a special report entitled, Evaluating the Housing Market Since the Great Recession. The goal of the report was to look at economic recovery since the Great Recession of December 2007 through June 2009.

One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from December 2012 to December 2017 to show how prices over the last five years have fared.

Frank Nothaft, Chief Economist at CoreLogic, commented on the importance of breaking out the data by state,

“Homeowners in the United States experienced a run-up in prices from the early 2000s
  to 2006, and then saw the trend reverse with steady declines through 2011. After finally
  reaching bottom in 2011, home prices began a slow rise back to where we are now.

Greater demand and lower supply – as well as booming job markets – have given some
  of the hardest-hit housing markets a boost in home prices. Yet, many are still not back to
  pre-crash levels.”

The map below was created to show the 5-year appreciation from December 2012 – December 2017 by state.

Home appreciation in Arizona and the U.S. | Troy Erickson Realtor

Nationally, the cumulative appreciation over the five-year period was 37.4%, with a high of 66% in Nevada, and a modest increase of 5% in Connecticut. Arizona was just above the cumulative appreciation average, coming in at 39%.

Where were prices expected to go?

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

According to the December 2012 survey results, national homes prices were projected to increase cumulatively by 23.1% by December 2017. The bulls of the group predicted home prices to rise by 33.6%, while the more cautious bears predicted an appreciation of 11.2%.

Where are prices headed in the next 5 years?

Data from the most recent HPES shows that home prices are expected to increase by 18.2% over the next 5 years. The bulls of the group predict home prices to rise by 27.4%, while the more cautious bears predict an appreciation of 8.3%.

Bottom Line

Every day, thousands of homeowners regain positive equity in their homes. Some homeowners are now experiencing values even higher than before the Great Recession. If you’re wondering if you have enough equity to sell your house and move on to your dream home, contact a local real estate professional who can help!

If you really want to know what is going on in the local Chandler and East Valley real estate market when it comes to home prices and appreciation, just give me a call/text at 602-295-6807 and I will be more than happy to fill you in.

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
Linkedin Profile
Facebook Page

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Top 5 Reasons To Hire A Real Estate Professional In Arizona Whether You Are Buying Or Selling!

3/6/2018

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Top 5 Reasons To Hire A Real Estate Professional In Arizona Whether You Are Buying Or Selling!

Best Real Estate Agent in Chandler | Top 5 Reasons to Hire Troy Erickson Realtor

Whether you are buying or selling a home in Chandler, Arizona or throughout the East Valley, it can be quite an adventure, which is why you need an experienced real estate professional to guide you on the path to achieving your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can ‘For Sale by Owner’ or ‘FSBO’, but that can be a costly mistake.

Here are 5 reasons you NEED a real estate professional in your corner. These reasons are strengthened by the projections of higher mortgage interest rates and home prices, as the market continues to pick up steam.

1. What do you do with all this paperwork?

Arizona has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing (some have changed within the last year or two). A local real estate professional is an expert in their market, and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

There are over 180 possible steps that need to take place during every successful real estate transaction. Wouldn't you rather work with a professional who has been there before, someone who knows what these actions are, to ensure that you achieve your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyers or sellers (who want the best deals possible), to the home inspectors, and all the way to the appraisers, there are at least 11 different people you will need to negotiate with, and answer to, throughout the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start, in order to attract the right buyers and shorten the amount of time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to a study by Collateral Analytics, FSBOs achieve prices significantly lower than those from similar properties sold by real estate agents:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases
below the average differential represented by the prevailing commission rate.”

Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and on the internet about home sales, prices, and mortgage rates; and much of it is false or misleading. How do you know what’s going on specifically in your area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer?

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you
should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring a local agent who has their finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

You wouldn’t replace the engine in your car without a trusted mechanic, so why would you make one of the most important financial decisions of your life without hiring a real estate professional?

If you really want to know what is going on in the local East Valley real estate market when it comes to home prices, interest rates, and home sales, just call/text me at 602-295-6807 and will be more than happy to tell you, as well as work with you to help achieve your goal!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
Linkedin Profile
Facebook Page

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It’s Tax Season… Use Your Refund To Jump Start Your Down Payment Savings!

3/1/2018

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Use your Tax Refund to Start Your Down Payment Savings.

Down Payment Savings using your Tax Refund | Troy Erickson Realtor

According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year.

Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals. For anyone looking to buy a home in 2018, this can be a great jump start toward a down payment!

The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

Using your tax refund as a down payment on a home | Troy Erickson Realtor

Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%, with Veterans Affairs Loans allowing many veterans to purchase a home with 0% down.

If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

Your tax refund can be a great start to a down payment on a new home | Troy Erickson Realtor

The darker the blue, the closer your tax refund gets you to homeownership! For those in Phoenix Metro, Chandler, or the East Valley of Arizona looking to purchase their first home, your tax refund could potentially get you 37% closer to that dream!

Bottom Line

Saving for a down payment can seem like a daunting task, especially when just getting started. However, the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!

If you have any questions about the home buying process, or how to qualify for a home loan, just call/text me at 602-295-6807 and I can help evaluate your ability to purchase your dream home!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
Linkedin Profile
Facebook Page

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