We have clients ask us all the time, “When is this market going to start coming down?”. As the real estate situation starts to normalize, it may feel like we are headed for a down market, given the frenzied appreciation of late 2020, which carried over into the first half of 2021. The facts, however, point toward stabilization and continued gains in value, just at a slower rate. What can we anticipate this slower appreciation to look like? In 2022, Fannie Mae expects to see a 4-8% rate of growth in home prices when comparing year-over-year.
The median new listing asking price is up 12% year-over-year and reached a record high of $361,250 for the 4-week period ending September 26th.
Asking Prices on New Listings Up 12% From 2020
4-week rolling average of median asking price of newly listed homes for sale
In Arizona, demand for houses increased by 11.4% in the period from July 20th through September 26th, and supply is up 19.6% over that same period. Both of these represent unusual activity for Arizona, as both demand and supply usually fall during the hot, late summer months and start to increase again in October as the weather starts to cool.
In Sun Lakes, the average sale price for YTD through September 30th is $402,991, up 17.9% over the same 3-quarter period in 2020, and an incredible 30.5% over the same 3-quarter period in 2019! This is an amazing rate of appreciation, and completely unsustainable over a long period of time.
Year-To-Date Sun Lakes Stats (9/30/2021)
|Average Sale Price||$402,991||$341,902||$308,806|
|Days on Market||27||55||61|
As you can see by the above chart, even though it has seemed like there is no inventory all year, we are well above the pace of sales when compared to the previous two years. Inventory is selling so fast that there is just a very low number of active (available) listings at any given time. Average days on market is less than half of what it was in the two previous years.
We are starting to see signs the market is stabilizing and leveling off a bit. Listings are not getting multiple offers in the first couple of days anymore, and we are actually starting to see price reductions again, which were rare in the first part of the year. Sun Lakes remains a very strong sellers’ market and we at The Kolb Team continue to have our fingers on the pulse of the real estate market here in the Valley.
Offer is the agreement between a buyer and a seller to purchase real estate, and is also referred to as a Purchase Contract. When you have found a home that you are interested in, it’s time to write an offer. As your buyer’s agents, we will draw up a formal contract with your offer price and necessary contingencies.
After you have made your offer, the seller is able to:
- Accept your offer
- Reject your offer
- Execute a counteroffer
Typical counteroffers include modifications to:
- Purchase price
- Closing date
When you make an offer on a home, you should be prepared for the negotiations to go back and forth before both parties agree to the terms. In certain market conditions (like the one we are in now), you may have to compete with other interested buyers. When an agreement is reached on all issues, and both parties have signed the offer, a legally binding contract is created.
For more information, just email us at email@example.com.
Searching for That Perfect Home?
When looking at pictures online, it can be tricky to figure out the layout of a home. We can help you with that! On our website, you can access the most popular floor plans in Sun Lakes, AZ. Just click the button below!
Not All Realtors® Are Created Equal!
When it comes to quality of service, The Kolb Team does more for you, because to us, you are more than a transaction.
Experience the difference!
Upcoming FREE Events:
Organizing Important Documents
Presented by Becky Kolb
Tuesday, November 9, 2021, at 10 am
Bradford Room at Oakwood Clubhouse
24218 S Oakwood Blvd, Sun Lakes, AZ 85248
Aging Made Easier: What you need to know before you need to know it!
Sat, November 13, 2021, 8:30 AM – 1:00 PM MST
Tumbleweed Recreation Center
745 East Germann Road
Chandler, AZ 85286
Identity Theft Informational
Thursday, November 18, 2021, 10 am – 12 pm
Bradford Room at Oakwood Clubhouse
24218 S Oakwood Blvd, Sun Lakes, AZ 85248
Recipe of the Month
Moroccan Beef and Barley Soup
- 2/3 cup barley
- 3 Roma tomatoes, diced
- 1/3 cup fresh cilantro, diced
- 1 cup onion, diced
- 1 cup celery, diced
- 2 fresh bay leaves
- 1 tsp salt
- 2 tsp coarse black pepper
- ½ tsp cinnamon
- 6 14oz cans of beef broth (2 cans used in pre-cooking round steak)
- 1 can of beef consommé
If you are using the round steak that you pre-cooked, remove steak from broth, place broth in refrigerator to separate grease, then remove solidified grease and add remaining broth and round steak to crockpot. If you are using prime rib, add the diced, cooked meat to crockpot. Add the rest of the ingredients to the crockpot and cook on low for 4-6 hours.
Vendor of the Month
Transform your outdated and damaged kitchen and bathroom surfaces today with Miracle Method of Chandler-Gilbert! Surface refinishing and repair provides homeowners an affordable way to beautifully update their existing countertops, tubs, showers, and tile. Call Mike Ragle at 719-351-3117 or visit their website today!
- California buyer looking for 2 or 3 bedrooms plus a den with a pool and a golf course view. 2-story home is ok. Would like 2.5-car garage.
- Buyer moving from Virginia to be near daughter. Looking for a 2 bedroom around 1800 square feet. Has pre-qual and is ready to go.
- Buyer looking for a home in Cottonwood with a lake view, close to walking path. 2 bedrooms, 2 baths, and an office space. Wants an open floor plan with vaulted ceilings, as well as a small yard.
- Buyer looking for a 3-bedroom home in Cottonwood with a private pool.
Hey…How You Doin’?
There’s no doubt about it – the better part of the past two years has been filled with anxiety, stress, uncertainty, and worry. While we are in a different and better situation now than we were last year at this time, the COVID-19 pandemic continues, and many of us are still exercising at least some of the precautions recommended to avoid contracting the virus. In fact, since doing so has been a determining factor in much of what we do, it’s no wonder that focusing on our mental health has taken a backseat. October is National Emotional Wellness Month, and we’d like to know… how you doin’? We invite you to join us in directing some energy and time back to taking care of those needs. Here are a few ideas to recharge your mind and spirit!
Especially since the early spring of 2020, we have been keeping up with news that although difficult and depressing to hear, was vital to know. Those of us on social media have seen the platforms transform from a great way to keep up with friends and family to places regularly filled with negativity, hostility, and intolerance for differing opinions. These are just two of many examples of the daily bombardment of statistics, information, alerts, breaking news, and more that our handheld devices, computers, and TVs dish out. While it’s important to keep up with what’s going on in our world, taking a break from screens can improve our mental health and emotional well-being. Even just a few hours away can be beneficial, but if you can manage a full day each week, you might see a real difference in your stress level and mood. And, if you spend that time doing self-care activities, a bit of exercise, or connecting with people offline, you’re bound to notice a positive change.
Speaking of connecting with others IRL (in real life), cultivating deeper relationships with friends and family is one of the best ways to care for our emotional health. Humans are a social species, and we are healthier and happier, as well as both more successful and spiritually fulfilled, when we are not isolated from others. Therefore, it’s no wonder that many of us were affected so markedly by COVID-related quarantines, closures, and personal measures we took to stay away from others and do our best not to get sick. If you aren’t comfortable just yet getting together with folks in person, or they are living far away, using technology (like Zoom and video calls) is a great way to reap the soul-healing benefits and support of those relationships. You may even find that a friend is in need of a listening ear, and you getting in touch provides them not only the encouragement they need, but also doubly boosts the positive value to you because you were able to help someone you care about. Studies have shown that nurturing relationships with the supportive people in our lives has a definite positive impact on our emotional and mental health.
It’s no secret that the subject of money can bring about anxiety and worry, and in a July 2021, survey commissioned by Capital One, a whopping 73% of Americans rated finances as the top stress-causing topic. If it’s been a while since the last time you took a look at your financial plan and goals, now might be a good time. Whether you find you’re on track or need to make some adjustments to savings or spending, at least you’ll know, and sometimes just having clear information and knowledge can ease concerns. On a related note, you might want to review bills for household expenses and make sure the level of your household’s service or plan is still relevant, and you could also call the companies and ask if there are any special money saving offers you would be eligible for. Are you taking advantage of reduced rates for electricity during certain hours? Could you save money and still get your favorite channels by switching from cable to a provider like YouTube TV or Roku? Do you have an unused or under-utilized subscription or membership that auto-charges your credit card every month? These are just a few questions to get you started thinking about how you may be able to reduce financial burden, and thus worry and anxiety.
Emotional and physical wellness are most certainly related, and a decrease in one can very easily cause the same in the other. If there’s an issue or symptom you’ve noticed, or it’s been more than a year since your last checkup, now is the time to make an appointment with a medical professional. Sure, you can search online for “stomach pain” or “severe headache”, but that may very well lead you down a rabbit hole more likely to bring raging anxiety than real answers. Also, incorporating self-care rituals, as well as healthier eating habits and physical activity, have been shown to improve mental and emotional health, and since there’s no time like the present, why not investigate such changes that are beneficial to both your physical and emotional health today?
Taking time to focus on resolving things that cause stress, anxiety, and worry can result in much improvement to our emotional well-being, and having this strong foundation helps make it easier to navigate through life’s highs and lows.
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Real Estate Update
Wondering about your Neighbor’s Home Sales Price? Find out here to see what sold last month. The report is broken down by HOA, address, and floor plan (if the agent listed the model in MLS).