Interest Rates, Affordability and Inventory Allow Access to Popular Madison, Kyrene and North Scottsdale School Districts
PHOENIX (June 19, 2014) Summer is a popular time to move nationally, but Phoenix temperatures traditionally keep locals from buying and selling homes in June and July. However, with low interest rates, affordable homes and plentiful inventory, Green Street Real Estate Inc. advises locals to forget the heat, follow national trends and move to desirable school districts like Madison, Tempe and North Scottsdale before the new school year.
“Phoenix homeowners and homebuyers typically retreat from the real estate process as temperatures increase, but now is actually an ideal time to buy and sell in our local market,” said Brian North, principal at Green Street Real Estate Inc. “Interest rates have been hovering around four percent for two years, affordability still exists and there is available inventory in desirable neighborhoods across the Valley.”
Since 1972 the average interest rate has been 8.2 percent. Conversely, the current 4-4.2 percent rate has remained consistent for approximately 24 months. Some economists project interest rates will rise to five percent or higher in 2015.
Neighborhood nuances exist across Metropolitan Phoenix, but Green Street Realtors have identified positive trends near three popular school districts to encourage families thinking about buying or selling, to make a move this summer.
North Scottsdale – Schools in the 85259 Zip Code
Real estate agents Deanna McCarty and Sheryl Matuszak (http://www.mmrsellsscottsdale.com) have been raising their children in north Scottsdale schools for the past decade. Having children go through elementary, middle and high school provides a broader educational insight, which they readily share with buyers and sellers interested in the North Scottsdale area and 85259 zip code.
School District: There are a number of great schools in the area including Anasazi Elementary, Mountainside Middle School and Desert Mountain High School that all scored 9.6 out of 10 on Trulia. Additionally, BASIS Charter School, Notre Dame Preparatory Academy and Scottsdale Preparatory Academy are ranked some of the highest in the state for rigorous curriculum, high test scores and high percentage of students moving onto college.
· Appreciation: Annual appreciation in North Scottsdale is up 11.02 percent (based on price-per-square-foot.)
· North Scottsdale Trends
o Increased inventory, 43 percent more homes on market from same time last year
o More seller concession because there is more competition
o Buyers looking to take advantage of McDowell Mountain Preserve’s 120 miles of multi-use trails and stunning mountain views
“North Scottsdale offers great schools and amenities for homeowners year-round,” said Deanna McCarty and Sheryl Matuszak, Green Street Real Estate, Inc. agents. “However, the best time to buy is always when things are a little slower – like the summer – because it gives the buyer more room to negotiate.”
North Central Phoenix – Madison School District
Several years ago North Central real estate agent Josh Gonzalez (http://www.northcentralhomes.com) moved to the North Central area. His children attend area schools and he understands the importance of the high quality public, religious, charter and private non-denominational schools in the area. Likewise, real estate agent Eric Hunter (http://www.hunterdurham.com) is living in the area. Both provided insight into North Central summer trends.
· School District: While the entire school district consistently receives top reviews, Madison Richard Simis Elementary School is one of the most popular, with high test scores, specialized programs for gifted students, high performing students and those with special needs, as well as a rating of 9 out of 10.
· Appreciation: North Central is made up of a variety of zip codes. One of the core North Central areas is 85020, which has seen a 25 percent increase in appreciation the past year.
· North Central Trends:
o Inventory has increased between 14 and 25 percent since the same time last year
o Attracting young families and urban hipsters interested in the burgeoning independent, community-friendly restaurant, retail and bar scene
o Number of homes sold monthly increasing since the beginning of 2014 – in spite of shortage of buyers across the market; existing buyers are preferring North Central homes above other areas
“The hottest months of the year are a great time for buyers to find a good deal because activity decreases, homes typically stay on the market longer and buyers may be able to negotiate concessions covering buyer closing costs and other fees,” explained Josh Gonzalez, Green Street Real Estate, Inc. agent. “Additionally buyers, sellers and those looking to renovate can take advantage of great discounts offered by local big-box stores and small merchants on everything from moving services, paint, tools, landscaping products, etc. and save significantly on a summer move.”
Hunter shares additional insight for North Central sellers.
“Premium North Central homes are still garnering premium prices,” said Eric Hunter, Green Street Real Estate, Inc. agent. “Even North Central sellers with homes needing TLC – that would traditionally get overlooked – are being considered by buyers. However, as the market continues to normalize, they will have much stiffer competition.”
Hunter also explained that low interest rates have allowed buyers to pay a higher price for a home, but the effects of the predicted rising interest rates can mean a $20,000 to $30,000 difference for sellers the next few months. Hunter illustrated this point:
“Most buyers are limited on their maximum payment – here is what they can pay as interest rates rise:
· 4.0% $305,000
· 4.5% $287,380
· 5.0% $271,250
That is a $33,750 difference – encouraging sellers not to wait, Hunter said.”
Tempe – Kyrene School District
Respected real estate agent Ed Durham (http://www.hunterdurham.com) specializes in Tempe neighborhoods, where his own children attend Kyrene School District schools. His insight into summer Tempe real estate opportunities includes:
· School District: A well-respected and popular East Valley school district, Kyrene is known for providing an excellent education through constant evaluation of curriculum. As one of the first in the state to implement a dual-language academy, Kyrene School District is also exploring a new personalized education structure.
· Appreciation: Appreciation in Tempe is up 5.9 percent (based on price-per-square-foot.)
· Tempe Trends:
o Inventory is up, but homes need updating
o Baby Boomers and Empty Nesters are looking to downsize
o Multiple financing products available for renovations
o Sellers starting to concede on purchase terms, so buyers can get a great deal on a home in the location they want
“There is a great deal of inventory on the market that needs a little updating, but there are several financing products available that will allow buyers to wrap renovation costs into their purchase financing,” said Ed Durham, Green Street Real Estate, Inc. agent. “If a buyer has vision and can take advantage of some of these renovation programs, they could be in their dream home before the new school year begins.”
Current homeowners should also feel assurance in a move this summer as increases in equity provide them more possibilities.
“The past year appreciation has increased five to 14 percent in major Valley markets,” explained Stephanie Gonzalez, president and partner at Green Street Real Estate, Inc. “However, in hyper-local neighborhoods some desirable and in-town communities have experienced increases between 20 and 25 percent.”
She added, “It is important to connect with a professional realtor who knows your area, and can guide you according to neighborhood nuances.”
To learn more about homes available near popular local school districts or to find an agent focused on specific neighborhoods, email info@GSREInc.com
About Green Street Realty Inc.
Green Street Real Estate Inc. is a local boutique brokerage located in the heart of the Camelback corridor. 70 full-time, professional and top producing agents have found sustainable success through specialization. The result is that GSRE agents’ sales averages are double national averages. Every agent has collectively, and carefully, crafted a culture built on five core values: specialization, innovation, integrity, collaboration and commitment. Green Street Real Estate Inc. is located at 3131 E. Camelback Ste. 410, Phoenix, AZ 85016. You may contact Stephanie directly at Stephanie Gonzalez or 602-319-5529.