This article first appeared in the February 2017 print edition of the South Mountain District News.

For 2016, home prices in South Phoenix and Laveen galloped ahead with double-digit increases for all three ZIP codes in South Phoenix and a 9 percent price increase for homes sold in Laveen.

Home prices in Laveen increased from a 2015 average of $198,700 per house sold to an average of $216,400 for last year. In 85040, the average 2015 price was $132,500, up 12 percent from the $116,600 in 2015. Prices increased 13.6 percent in ZIP code 85041 to $187,400 up from about $162,000 the prior year. In 85042, the average sales price was $214,000 up 13 percent compared with 2015. All data is from the Arizona Multiple Listing Service, which does not include homes sold outside the listing service.

“Overall the Laveen and South Mountain real estate markets appear to have a firm foothold and continue to move forward at a healthy pace,” said Sam Lawmaster, a Laveen Realtor with the Realty ONE Group in Goodyear. “The continuation of historically low interest rates during 2016 has kept the momentum going in real estate by allowing buyers to purchase more home, as less of their mortgage payment goes towards interest.”

Real estate experts say the 2016 increases put the local housing market back on track to where it would have been if there hadn’t been a housing bubble that burst.

“Housing prices are consistently rising,” said Koni Gould, a Laveen Realtor with United Brokerage in Chandler. “The bottom line is all the graphs show that the housing prices are right where they would have been if we hadn’t had the bubble in 2004-2006.

“With that being said, the houses that were purchased in 2004 are selling for about what people paid for them. But the homes bought in 2005 and 2006 – at the height of the bubble – still have a way to go before values will match purchase prices.”

Gould said that if the housing market stays steady, home prices average a 4 percent annual increase – so it will take another six to eight years before the folks who bought at the high end of the market high will recoup their purchase prices.

Carlie Back, owner of the Carlie Back Team and a Realtor with Keller Williams in Phoenix, said the numbers reflect a “strong and balanced housing market.”

“Last year was a very strong year,” she said. She predicts 2017 will keep the same pace.

“We have good job growth. We don’t have national disasters like other places. Our prices are affordable and interest rates are still low,” Back said.

She believes the $180,000 to $200,000 price range will remain strong, as there still are not quite enough homes to meet demand for that market – making it a strong seller’s market.

For higher-price homes, such as $400,000 and up, buyers in that price range tend to overlook South Phoenix and Laveen.

“The higher end is more of a buyer’s market. There aren’t as many buyers looking … they would be pleasantly surprised if they did and they saw what they would get for the money,” Back noted.

One factor that may slightly slow home sales in the local area is that the Pathway to Purchase program is going away. Jeffrey Hale, a Realtor at Turf Realty in Phoenix, said the program has helped a lot of first-time buyers in South Phoenix and Laveen gain financing for their first home.

“With that gone, it’s not going to be as crazy as it was,” Hale said. “We had multiple people bidding on houses in the 85339 area.”

He predicts a more normal rate of growth for 2017 as foreclosures have tapered off to a small steady number. “Housing prices going up is a good thing. The housing prices in this area were way too cheap for a long while.”

All four realtors say it is difficult to predict how politics and a new president will play into the housing market. “Politics are a huge ‘wait and see’,” Hale said.

Nationally, Phoenix is predicted to be the top housing market in terms of growth and sales price, according to Realtor.com, a web site that tracks and analyzes data nationwide.

In its annual year-end article predicting what will happen in the coming year, Realtor.com said that strong local economies and population growth will continue to fuel the hottest markets.

The Realtor.com 2017 top 10 housing markets based on price and sales gains are: 1. Phoenix-Mesa-Scottsdale, Ariz.; 2. Los Angeles-Long Beach-Anaheim, Calif.; 3. Boston-Cambridge-Newton, Mass.-N.H.; 4. Sacramento–Roseville–Arden-Arcade, Calif.; 5. Riverside-San Bernardino-Ontario, Calif.; 6. Jacksonville, Fla.; 7. Orlando-Kissimmee-Sanford, Fla.; 8. Raleigh, N.C.; 9. Tucson, Ariz.; and 10. Portland-Vancouver-Hillsboro, Ore.-Wash.

This dovetails with Gould’s local predictions, too, especially as new home construction is popping up again all around the area. “This shows that we have a strong housing economy, and that we are still on track for a very strong market in the next few years,” Gould said.

Here are some breakdowns by ZIP code:

(Laveen) 85339

The average sales price of homes sold in Laveen rose 8.9 percent over 2015, going from a 2015 average of $198,700 to $216,400 in 2016. The number of homes sold also increased by 106 completed sales. Houses priced in the $200,00 to $250,000 range saw the most sales activity during 2016, accounting for 311 of the 980 homes sold during the year.

The month of December 2016 showed a reduction of 5.4 percent in number of closed home sales but 9.5 percent growth in sales price compared with 2015. Lawmaster said this may be an indicator of sales prices beginning to flatten as supply outpaced demand year over year. For comparison, the number of homes sold in December 2015 compared to 2014 had a massive 73.6 percent increase accompanied by a 13.5 percent expansion in sales price.

Based on statistical averages and means applied to data from ARMLS, the average home sold in Laveen last year had 2,150 square feet, 3 bedrooms, 2 baths, was one story, had no pool, sat on a 9,746 square feet lot. The most active subdivision was Laveen Farms, and most homes sold had Betty Fairfax listed as the high school.

South Phoenix 85040

During 2016, the average home in 85040 sold for $132,500, up 12 percent from 2015. Sales activity also increased year over year with 354 homes sold, a 10 percent gain. It took an average of 42 days to sell a home in 85040, a decrease of 3 days from 2015, reflecting higher levels of buyer readiness to make a purchase. When comparing the month of December between 2015 and 2016, the monthly average sales price and volume were flat, with average price gaining 1.2 percent and volume of closed sales remaining the same with 26 closed sales in December of both years.

The average home in 85040 sold during 2016 was single story with 1,375 square feet, 3 bedrooms, 2 baths, no pool, and an 814 square-foot lot. The most commonly occurring subdivision was Copper Leaf. There are several condominiums in the Copper Leaf subdivision and some smaller properties in the popular Hallcraft Villas subdivision that contributed to the average home sold in this ZIP having smaller attributes.

South Phoenix 85041

This South Mountain zip code saw increases in sales and list prices during 2016, but was flat in sales and listing volumes. The average sales price in 85041 increased 13.6 percent over 2015 to $187,400, while the average list price gained 15.3 percent year over year to $211,600. The busiest price range for both sales and listings was $160,00 to $180,000 with 209 sales and 244 listings.

During December 2016, 59 homes were sold, dropping 14.5 percent from 2015 which had 69 closed sales for the same time. The average sales price for the month, however, increased year over year to $186,200, a gain of 9 percent. “Like Laveen, the decoupling of sales price and volume may indicate a flattening of sales price soon. When you compare Decembers for 2015 and 2014 in 85041, the growth of sales price and volume were in lockstep,” Lawmaster observed.

The average home in 85041 sold during 2016 was a single-story with 1,906 square feet, 3 bedrooms, 2 baths, no pool, and a 7,920 square-foot lot. The most active subdivision was Barcelona.

South Phoenix 85042

This was a strong ZIP code for sales price and volume during 2016. There were 604 homes sold with an average sales price of $214,000, seeing increases of approximately 13 percent in both sales volume and price from 2015 to 2016. It took 58 days on average to sell a home in 2016, 8 percent less time (5 days) than in 2015. The month of December saw a disconnect between sales volume and price. There was a 31 percent gain in homes sold during the month compared to 2015 (59 vs. 45), but an 8 percent decrease in sales price, dropping $18,00 on average between the two December reporting periods.

The average home sold in 85042 during 2016 was single story with 1,743 square feet, 3 bedrooms, 2 baths, no pool, and a 4,950-square foot lot. The most commonly occurring subdivision was Raven Condominiums. “The fact that Raven Condominiums was the most common subdivision may have skewed some of the average home’s attributes downward, so keep that in mind when visualizing this imaginary home built by statistics,” Lawmaster said.

The post 2016 home prices in Laveen, S. Phoenix up significantly appeared first on Laveen Business Directory.

(This article appears in the July 7, 2016 print edition of the South Mountain District News)

Listing prices for homes being sold in South Phoenix and Laveen showed increases from 10 percent up to as much as 16 percent in the 85339, 85040, 85041 and 85042 ZIP codes for the first half of 2016, gathering steam from low interest rates, sales by investors and high-quality, affordable housing in the $150,000 to $200,000 price range.

Average prices for homes sold also increased in all four areas of the Valley.

Sam Lawmaster, realtor with the Lawmaster Real Estate Team with Realty One Group, provided statistics from the four ZIP codes through the first half of the year using data from the Arizona Regional Multiple Listing Service.

In Laveen’s 85339, the average listing price for the first six months of 2016 was $234,944 compared with $213,501 during the first half of 2015. That represents a 10 percent year-over-year price increase. For the three ZIP codes in South Phoenix, the price increases from the first half of 2016 compared with 2015 were:  85040, 14.4 percent; 85041, 16 percent and in 85042, 19 percent.

Lawmaster and two other local realtors, Koni Gould and Jeffrey Hale, agree that one of the driving forces behind the price increases is the price bracket of $150,000 to $200,000. There are many homes in Laveen and South Phoenix priced in that range.

“The Laveen and South Phoenix real estate markets are very strong right now,” said Faller, a Realtor and owner of Turf Realty in Phoenix. “We are still one of the most affordable markets near the major employment centers of

the Valley. Less expensive homes can be found, but they are in communities more removed from metropolitan Phoenix like Maricopa, Casa Grande, Buckeye, and San Tan Valley.”

Also, interest rates for borrowers with excellent credit scores as low as 3.5 percent. Buying a house at that rate with 20 percent down on a 30-year-fixed mortgage would keep payments at about $900 month, much less than current rents for similar-sized homes.

“A lot of people are able to get qualified for loans in the $160,000 to $200,000 range. That makes the area more appealing to people. There are some really nice houses out here in that price range,” Lawmaster added.

Gould, with United Brokers Group, said that many investors, who have held properties for a while waiting for prices to improve, are now selling, which is adding to the upswing.

“The market is booming at the moment. If you are selling a home under $200,000, those homes are getting snapped up very quickly,” Gould said. “We are currently in a seller’s market in Laveen – especially in those price ranges.” Lawmaster said listings in that price range are selling as quickly as two days in the region.

Gould said that moderate-priced homes listed at $200,000 to $300,000 are not moving as quickly, but “it’s still a fairly healthy market. Anything above $300,000 is sitting awhile and those owners need to really to take into account what makes their home special and market it accordingly.”

For example amenities such as pools, mountain/city views, media rooms, etc., should be heavily marketed to attract appropriate buyers. “These homes need to be immaculate and upgraded in order to get top dollar,” she said. “Remember, regardless of the price range, a clean home sells.

“By fixing all of the little items, adding a fresh coat of paint, and replacing carpet, if necessary, it can make a huge difference of selling quickly or sitting on the market for long while. Plus, you get a higher return on value for a clean, well-kept home,” Gould noted.

Here is detailed breakdown of the four areas:

Laveen, 85339

Laveen showed 868 active residential listings during 2016 through June 30, an increase of 11.7 percent over the 777 homes listed for sale during the first half of 2015.The $200,000-$249,999 price bracket had one of the largest numbers of listings with 263. The year-to-date average active list price of $234,944 rose 10 percent above the average price of $213,501 from the same period last year.

Closed sales are up by 4.3 percent with 456 residential listings sold year to date compared with 437 homes sold a year ago to date. The average sales price of $209,610 showed a rise of 8.2 percent from this period one year ago. The $200,000-$249,999 price range showed one of the highest numbers of closed sales this year at 120 completed purchases.

“The Laveen market is still somewhat of a hidden gem in the valley and is often overlooked, but as construction of our new freeway begins later this year, this community will receive more exposure and could create more of a demand for housing here,” Hale said. “There are many down-payment assistance programs in the Valley, which will continue to spur demand for affordable housing, and as long as we remain an affordable location, the new freeway, and the seasonal buying trends may help our homes rise faster than some of our neighboring cities.”

Phoenix, 85040

The year-to-date average active listed price showed a gain of 12.6 percent from the same time period during 2015, rising to $132,846. Sold homes increased 15.9 percent from 164 in 2015 to 190 through June 30, 2016.

As of June 30, 2016, 85040 recorded a total of 276 (the same as last year) active for-sale homes during this year, and the $140,000-$159,999 price category showed one of the greatest numbers of houses for sale at 48 units listed.

For this area of Phoenix the average listing price was $125,612 for the first half of 2016 compared with $109,794 a year ago, a 14.4 percent gain. The average days on market were 46 days through June 30, a 6.1 percent drop compared with a year ago. Listed homes are requiring less time on market to sell this year on average.

Phoenix, 85041

This area’s average active listed price year-to-date of $212,913 was an increase of 16.2 percent over the average price of $183,311 from the same period one year ago. There were 709 actively listed homes for sale during the 6-month period, up just 1 from the 708 of a year ago. The $160,000-$179,999 price category posted one of the largest numbers of houses for sale with 157 units listed.

The average closed sales price of $182,817 was an increase of 14.7 percent from this time range last year. The total amount of sold residential listings in 85041 recorded a 2.2 percent advance compared to the same period a year ago, which posted a volume of 402 homes sold, a year-to-year advance of nine completed transactions.

Phoenix, 85042

The area’s year-to-date average active listed price posted an increase of 9.0 percent in comparison to the same period during 2015, gaining to $236,851.

This area also saw 527 active for sale homes so far in 2016 through June 30, and the $200,000-2$49,999 price category again reported one of the largest numbers of homes for sale at 106 properties.  Compared to the same reporting period in 2015, which saw 497 properties for sale, 85042 posted a 6 percent advance in the overall active listings inventory, a year-over-year net gain of 30.

Through the month of June 2016, 85042 saw a total of 305 residential home sales year-to-date and the average sales price of $215,137 posted a rise of 19.1 percent from this period one year ago. The overall number of sold residential listings in 85042 reported a 9.3 percent rise compared to the same reporting period a year ago, which saw a volume of 279 properties sold, a net gain of 26 closed transactions.  The $200,000-$249,999 price range had one of the highest numbers of closed sales this year at 70 completed purchases.

The post Listing prices for homes in South Phoenix and Laveen up for first half of 2016 appeared first on Laveen Business Directory.

(This article first appeared in the April 2016 print edition of the South Mountain District News)

The average sales price of existing homes continued to rise throughout Laveen and the South Mountain areas of Phoenix during the first quarter of 2016, which ended March 31.

Compared with the same time period in 2015, prices for existing homes sold during the first quarter were up nearly 9 percent in Laveen’s 85339 ZIP Code, while prices in 85040 were up nearly 16 percent. Home prices in 85041 were up just over 14 percent and ZIP code 85042 saw the largest increase in sales price with a 20 percent bump over 2015.

Realtor Jeffrey Hale with Turf Realty said multiple factors are influencing the local housing market.

“Laveen and South Mountain have very affordable houses.  These areas attract many first-time home buyers and with all of the down-payment assistance programs available, it becomes easy to purchase a home,” he said. “As long as these programs continue and expand, there will be more demand for the houses in our community.”

In general, the number of homes listed in each area was up over a year ago and the number of days it took to sell was down. The exceptions were in 85041, which showed a nearly 8 percent decrease in the number of active listings when compared with first-quarter 2015, and 85042, which had a nearly 9 percent reduction in listings for the time period.

The figures, compiled by Laveen Realtor Sam Lawmaster with Realty One, are based on information from the Arizona Regional Multiple Listing Service. ARMLS tracks active listings, homes sold, sales prices, length of time on market and other variables that are input by local Realtors.

“Home prices have been rising fairly consistently throughout the Valley over the past year,” Lawmaster said. “The available inventory of homes for sale is low, leading to shorter days on the market for homes that are priced well. Interest rates are still near historic lows, providing some good opportunities for buyers.”

Hale agrees that the market is in a good place for buyers, but sellers are seeing some nice increases in their home prices which might prompt them to sell and purchase a larger home.  “Many people who purchased homes within the last few years are seeing the value of their home rise quite a bit,” he said. “If the economy continues to improve, it will allow them to sell their homes and use the equity to upgrade their situation. “

Hale concludes with two other factors that are influencing the local market specifically: a high demand for rental houses and the construction of the South Mountain Freeway.

“We receive many calls a day from people asking if we have houses available for rent.  This demand has attracted some of the large investors back to the area.  They won’t be buying the more expensive houses, but they will push up the values of the homes in price ranges under $180,000 which will in turn push the entire market up,” Hale said.

With the freeway, Hale said that now people can actually see the dirt being moved, they will understand that it’s right around the corner and will want to move to an area that suddenly has quick access to all parts of the Valley.

Here is a breakout for local ZIP codes:

85339

From January 1 to March 31 of this year, 181 homes were sold in the 85339 area, a slight decrease of 3.2 percent compared with the 187 homes sold during the same three months in 2015. Homes selling for $160,000-$179,999 showed the highest number of closed purchases with 44 homes sold.

Listings for 85339 were up during the quarter this year with 500 active listings during the period compared with 469 a year ago, a 6.6 percent increase with 31 additional listings in 2016. More than 140 properties were listed at between $200,000 and $249,999, making it one of the largest price categories. Homes were on the market 25 percent fewer days in 2016, with an average listing time of 66 days.

85040

There were 80 homes sold in this ZIP code during the first quarter of 2016, up 11 percent over the 72 homes sold during the same time in 2015. The $140,000-$159,999 price range had one of the largest numbers of sales this year with 19 closed transactions in the quarter.

There were 168 actively listed homes for sale so far in 2016 compared with 154 year-to-date in 2015, a 9.1 percent increase. The $140,000-$159,999 price category had 27 listings, making it one of the largest overall listing categories. The number of days on the market dropped slightly by 1.8 percent reflecting a 54 listing time compared with 2015.

85041

The number of homes sold for first-quarter 2016 totaled 189, up .5 percent over 2015 which had 188 homes sold during the same time period. The $160,000-$179,999 price category had one of the largest numbers of homes sales this year with 46 completed transactions.

Listings were down 7.7 percent in 85041 with 417 active properties for sale in 2016 through the end of March compared with 452 properties during first-quarter 2015. With 87 homes for sale, the $160,000-$179,999 price bracket saw one of the greatest numbers of properties listed.  In comparison to this period a year ago, the number of days on the market was 70 days, down 2.8 percent.

85042

There were 138 homes sold in first-quarter 2016 compared with 119 a year ago, an increase of 16 percent over the 119 sold in first-quarter 2015. The $200,000-$249,999 price bracket reported one of the highest numbers of completed sales this year at 32 completed purchases.

Active listings dropped from 325 in the first-quarter of 2015 to 297 in the first-quarter of this year, an 8.6 percent decrease. With 65 houses for sale, the $200,000-$249,999 price category showed one of the highest numbers of properties listed. Compared to the same period last year, the cumulative days on market for active residential listings in 85042 was 66 days, a drop of 12 percent.

The post First-quarter home prices up in Laveen, South Phoenix appeared first on Laveen Business Directory.

Home Prices Rise 4% in Laveen Through the month of January 2016, Laveen AZ posted a total of 38 residential home sales year to date. The average price of $206,729 recorded a net advance of 4.0% from this time period a year ago. The total volume of sold residential listings in Laveen had a 24% decline from the same time range a year ago, which showed 50 property sales. Read more… Spotlight on Dobbins Point Neighborhood Through December 2015, the Dobbins Point neighborhood in Laveen showed a total of 29 property sales year to date, and the average closed sales price of $283,733 posted a rise of 9.9% from this time range in 2014. The overall volume of sold listings in Dobbins Point recorded a 3.6% advance when compared to this time range a year ago. Read more… Home Loan Central Credit and Qualifying Ideally first time home buyers want to have their FICO score over the 640 level so take the time necessary to satisfy any collections and remove any derogatory items from your credit report so you can get the highest score possible when purchasing a home. For more information about getting pre-approved for your next home, contact Sam Lawmaster at 602-680-8096 or TheLawmasters@gmail.com.

©2016 ViewAzHomes | Realty ONE Group | 2950 S Litchfield Road

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When the Loop 202 South Mountain Freeway project links Laveen to the rest of the Valley, local Realtors predict an uptick in Laveen home prices, which were some of the state’s most devastated after the housing market collapse in 2007.

“The 202 South Mountain Freeway will offer new growth opportunities for Laveen and the surrounding areas,” predicts Sam Lawmaster, a Laveen Realtor for ReMax. “Having access to I-10 will make Laveen more connected to the rest of the Phoenix metro area and may potentially have a positive home value impact on many of the properties around the area.”

But just how much of a boost will it be? About 10 years ago, people were trying to outbid each other to purchase Valley homes, and Laveen was one of the areas riding high on those soaring prices. When the bubble burst in 2007, local homeowners were hit hard and suffered drastic declines in home prices.

“One can never be sure how any event will affect real estate,” says Doyle Perry, owner of Black Belt Realty. “There have been way too many surprises.  But, a general rule is that more traffic and convenience means more demand for housing.”

Last year the median price for a home in Laveen was $175,000. The median is the point where half the homes sell for more and half sell for less. Compared with 10 years ago at the height of the housing market, prices are still down 29 percent when adjusted for inflation. However, prices in 2014 were up about 8 percent from the previous year, and overall prices are up about 22 percent over the past five years, even adjusted for inflation.

Jeffrey Hale, co-owner at Turf Realty, is sure the freeway will be help prices, but he cautions that there are other factors to consider, such as the national housing market and interest rates to name two.

“I am certain it won’t hurt our values, and I believe that it will help,” Hale acknowledges, “but it will be too hard to measure the exact impact it has among all of the other factors influencing value.”

For example, Hale said that if property values were to see an immediate 10 percent rise once the freeway opened in 2020, then that would be an easy correlation.

“But that won’t happen,” Hale said. “Values rose when the freeway was approved. They will rise when construction begins. They will rise as we get closer to completion and the connecting arterial roadways are completed. They will rise as the freeway opens, and they will continue to rise as commercial businesses invest along the freeway corridor.”

There are some other points, too. Perry said that because the route is in the western area of Laveen, it won’t change downtown commute patterns for residents living east of 51^st Avenue. “It won’t have the impact that it would have if it helped us get downtown,” he said, “But, it comes under the heading of every little bit helps.”

Hale added that while the roadway is being built over the next five years, there also will be an increase in the number of investors who sell their inventory and swap out renters for homeowners.

Census statistics show that about 75 percent of Laveen residents currently own their homes. Lawmaster said that neighborhoods with high percentages of owner-occupied homes tend to be more stable in value. “For owners, it means a tax deduction; it means pride of ownership. And usually homeowners want to retain the resale value of their home, so they have an incentive to keep up with maintenance and take care of their home.”

But as Hale said before, Laveen isn’t isolated from outside economic influences.

“There will be natural and historical market adjustments that influence values,” Hale said. “There will also be larger state and national economies at play, which will affect our local market.  With all of the other factors affecting home worth, it will be hard to calculate the exact impact the freeway itself has in raising our property values.”

So the consensus is that the freeway will definitely help but the significance of a longterm positive impact will be difficult to predict.

“Yes, it will increase demand for housing in Laveen,” Perry says.  “No, it will not be dramatic.  And to the disappointment of many, with a freeway interchange, Laveen is becoming less and less of a village.”

The print version of this article appears in the June edition of the South Mountain District News.

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