What Does the Dow Drop Mean For Your Real Estate Value?

GOOD NEWS: The general consensus of industry professionals is that "People will move their money into real estate when stocks go bad."  Sellers typically like to move their money to safe, tangible assets like real estate.  In times of uncertainty and volatility, consumers are more comfortable with assets they directly own. 

With the uncertainty in the Chinese and European markets, forecasters are predicting a rise in real estate values in specific geographic areas. In the past, foreign investors have seen a safe haven for their cash in areas such as Vancouver, Palo Alto and New York. 

GOOD NEWS: The best result of the stock market slump is that  it may slow down the mortgage interest rate hikes that were predicted for the 1/2 half of 2015, which is good news for both buyers and sellers.

GRAY NEWS: However, if the people feel  this downturn will continue and our economy falls into a slump, buyers may hesitate taking on a large mortgage payment.    An economic downturn has a negative psychological effect on consumer confidence. When not confident, consumers keep their big spending to a minimum.

Questions on real estate in the Phoenix area?  Call The Drefs Team at 623-694-0354.

Exterior Color of the Week: 6 Ways With Sage Green

Home Buying Sales Slump Linked to Student Loan Debt

DS News is reporting that student loan debt is preventing potential homebuyers from buying homes in America.  Student loan debt is at $1.2 trillion and growing.  The rising cost of tuition and the increase in the number of college students is causing more debt in the U.S. and hurting the U.S. economy.  

The Consumer Financial Protection Bureau reports that 7 million Americans are in default on their student loans.  For those who default at a young age, the black mark on their credit report may prevent them from buying a home, and in some cases, can prevent one from getting a job.

The decrease in new household formation is preventing economic growth. The homeownership  rate for young people is down 15% from the peak which was prior to the financial crisis. 

To deal with this issue, some employers are creating programs to help employees pay down their student loan debt.  Congress needs to take a good look at this growing economic crisis and universities need to put more thought into their tuition structure and into helping students after graduation.

Selling a West Valley Home? First Two Weeks Tells All

Yesterday Michael Orr came out with a report stating that sales are sluggish in Maricopa County. Obviously, he is looking at the county as a whole and throwing in Maryvale homes with Paradise Valley homes, etc.
What we are seeing on the west side is a great void in the days on the market. The majority of homes here are selling in less than 30 days. When priced properly, typically homes are selling within 2 weeks. When priced improperly, the homes will sit on the market for months and months.
Our last 2 listings were priced properly and went under contract in less than 7 days. On the other end of the spectrum, we have owners that refuse to react to market data and have priced their homes too high for the market. These homes have been on the market for more than 3 months.
So, seller beware. If you want your home to sell quickly, price it right. If you have not had any showings in a week or you have having a multitude of showings and no offers, the buyers are giving you a message and they are speaking loudly. Be prepared to keep your home for many months.
The first 2 weeks on the market are critical in the west valley market. Price it right from the start. Don't "overshoot" the correct pricing in the hopes of snagging a sucker.

The World Cup and Your Home...USA! USA! USA!!

AZ Real Estate Update: USA! USA! USA!!: The World Cup in my house is bigger than the Superbowl.  It is so interesting to learn and hear of countries that I never know existed.  Isn...

USA! USA! USA!!

The World Cup in my house is bigger than the Superbowl.  It is so interesting to learn and hear of countries that I never know existed.  Isn't it crazy to think that our housing in Phoenix is better than 90% of the rest of the world? 
Here in Phoenix we think a home is old or "historic" if it was built in the 1940's or 1950's.  Heck, I have had clients tell me a home built earlier than 1990 is too old and would need too much maintenance. In Europe, many people live in homes built in the 1800's and many people in the African nations consider themselves lucky to live in what we consider huts. 
Do you think it is difficult for players who live in the homes with minimal housing to return to their homes after living in hotels in Brazil?  Or do you think they are so happy to be back in their familiar surroundings?
Homes are determined by the feelings and emotions that are felt when you walk through the door. Not by the granite vs. laminate countertops. Do you have a realtor commited to help you find your ideal home in your ideal neighborhood? 

Best Return on Investment ??? A Home Office !

Turn Your "Extra Room" Into An Office For A Good ROI

Recently, Seattlebubble.com surveyed their visitors with this question: What's the most important "extra room" to have in a house? Nearly half the respondents (48%) said an office or study would be their most important extra room.

Comfortably integrating a home office into one's dwelling can generate a good return on investment if you are using it for work or for a hobby that generates a few extra bucks.

Amy–Mae Elliott at mashable.com recently interviewed home office expert Lisa Kanarek, founder of WorkingNaked.com who said the first thing to do is decide where your home office should be.

Kanarek suggests considering obvious places like a spare bedroom or guest room, as well as more unorthodox spaces like a dining room or formal living room, if rarely or never used.

One important consideration, she says, is making sure your office has a door, ensuring you can switch off when you're not working. Some other tips include:

• Install an L–shaped arrangement for a desk to double your work surfaces.
• Add shelves above or next to your desk to gain more storage space and to reduce desktop clutter.
• Use open shelves or a hutch that sits on your desk to increase your storage space.
• Invest in some decent, surge–protected extension cords to install around the room where you need power most.
• Consider a Wi–Fi printer, which can be kept further away from the computer.
• If you work from home full–time, you're going to be spending as much time in your office as you do in the rest of the house, Kanarek says. Don't treat your working space as a second–class accommodation. Give it the importance it deserves.