by Arizona Custom Home Builder on January 24, 2012
Family Room Living At Its Best!
As Arizona custom home builders we get to build for ourselves as well as for our customers that design their own living spaces. One of the homes we’re privileged to construct is one of those homes where family room living is a top priority. This 10,000 square foot Tuscan style home in the heart of Tempe has a space for everyone in the family, a large great room with 22 foot ceilings adjoining the kitchen and dining area is perfect for large gatherings of family and friends. The second floor holds multiple entertainment areas such as a large game room, media room and upstairs mini-kitchen where the kids can have easy access to beverages, popcorn, etc. The home has six bedrooms and six bathrooms. The home has 4 car garages and an RV garage. When family members need a quiet space there is a library/den or sitting area off the master bedroom offering a more cozy reading or TV area. This home skips the formal living and dining areas and maximizes the family room living spaces where all guests warmly welcomed. The kitchen has two dishwashers, a full-size 48 inch freezer, full-size 48 inch refrigerator, a 60” commercial grade range and a walk-in pantry. Entertaining can easily move outdoors at the pool and spa area in the rear yard, or off to the side of the house where the private courtyard holds a la glorieta and a stunning desert tree and outdoor fireplace.
by Arizona Custom Home Builder on January 23, 2012
Outlined below is a summary of the Phoenix area real estate market through December 2011.
- NUMBER OF CLOSED SALES INCREASE… As inventory continues to decrease, the number of closed sales continues to grow. We continue to see multiple offers on high demand properties, and in some cases, buyers need to pay more than list price in order to be the successful bidder.
- LESS FORECLOSURE PROPERTIES HIT THE MARKET… December statistics saw bank owned/foreclosure sales DECREASE by 2.3%. This statistic means that the competition from foreclosure properties decreased while traditional sales from sellers with equity increased.
- SALE PRICES INCREASE… With the decrease in inventory, it should come as no surprise that home prices are now on the rise. December saw an increase of 1.5% in price over the prior month. The average home price increased from $165,881 to $168,365. This increase means that buyers have 1.5% less buying power than they did in the prior month. It’s possible the shrinking inventory could provide even more competition for homes on the market, which could result in even higher home prices.
- SALES PRICE TO LIST PRICE… The average price a seller receives continues to be impressive with December showing a slight decrease to at 96.15%. The higher the number, the closer the final sales price is to the listing price. With the competitive nature of the market, we would expect that this ratio would continue to be closer to 100% of the list price of a home. As this average remains close to 100%, on lower priced/highly desirable properties, buyers may still have to pay above list price. Since a home must appraise in order to obtain a loan, underwriters are still looking very closely at prices and making sure that homes are selling at or below market value. This could mean that investors have an advantage if they are willing to pay higher than the list price.
- DECREASED NUMBER OF LISTINGS… December saw a DECREASE in the number of listings over the prior month after 2 months of inventory increasing – a decrease of 19.3%! We normally see a drop in inventory in the month of December, so this is not unusual; however, it was a more dramatic decrease than in December of the prior two years. The current market means that buyers have fewer homes to consider than in prior months. The lower the number, the more likely the competitiveness for lower priced homes will remain part of the current market. As always, market activity is local.
- MONTHS OF INVENTORY… December saw a 26% DECREASE in the number of months of available inventory to only 2.62 months of available residential properties in Maricopa County. This statistic means, that on average, we continue to remain in what is called a very strong “seller’s market” that is identified when this statistic reflects less than 5 months of inventory. Buyers will want to seriously monitor this as well, as it indicates that there is still low inventory. A seller’s market traditionally gives less control to buyers and can create significant competition for the current inventory. However, the type of market will vary from price range to price range and even area to area.
Is this 2006? No, but some of this good news is very nice to hear. As we were one of the first markets hit by the souring economy and decreasing home values, maybe we will be one of the first states out of this mess. Normal home price increases range from 2.5 to 5% per year, let’s just get back to normal.
by Arizona Custom Home Builder on April 29, 2011
What to do with that lot?
There are many people in the Phoenix metro area that have purchased custom home lots with the intention of building the home of their dreams. Many of these lots were purchased during the real estate boom when buyers paid dearly. Some lot owners have since sold their properties, while others are sitting with the land unsure about what to do while watching land values drop year over year.
Vasaro half-acre custom home lot
As far as land values go, as an Arizona custom home builder, we believe the worst is over. Duh, how much worse can it get? In one custom home subdivision, Vasaro, Chandler, AZ, the devastation has passed. Based on Arizona multiple listing service data, the worst hit on land values in this subdivision occurred between 2007 and 2009, where a 70% price drop occurred over those two years alone. This is a gated custom home subdivision where average home prices were once over $1.3 million and now run about $600,000. The average square footage is around 4500 square feet with three-car side entry garages. Each home is built by a custom home builder, so no two homes look alike. In 2006, the average price for a 0.5 acre parcel was $383,500 while today’s value (based on only ONE sale in the subdivision by the end of the first quarter for 2011) is $65,000,let’s hope a few more sales occur this year and bring the average price back up to the $100,000 range where it has lingered the past two years. That’s an 84% drop from the high. Really???? How much worse can it get? Why would someone wait so long in this nightmare and dump a lot at the bottom of the market for $65,000? Could it be fear? Or it could be a terrible financial condition that made it necessary to dump it. Maybe it was an owner that was just sick of the HOA fees and the property taxes that they had to pay while owning the lot? If they were upside down on the lot, meaning they owed a bank more than it is worth at today’s prices, it may be difficult to walk away. In Arizona you will likely be held accountable to the bank if you walk away from such a property. Arizona is an anti-deficiency state for a primary residence, but clearly not where investment property is concerned.
For someone that owns a lot in this subdivision and has held onto it, this drop in value has been sickening. But now what? Hold onto it until prices come back? Try to sell it at the absolute lowest prices yet? Go ahead and build a house on it? Let’s discuss those three issues.
- Hold onto it until prices come back. In the Phoenix area, we have seen this up and down real estate cycle happen before in the 80’s during the Savings and Loan (S&L) crisis. It took years and years after the S&L crisis for property values to increase. This time around it may take 10 years or more for property values to increase, and they likely will NOT increase to the values at the height of the bubble.
- Try to sell it? If you own a vacant custom home lot and want to sell it, you are definitely stuck at today’s prices. The next question to ask is, “Is land selling well right now?” Actually, not well, unless you just give it away. It is much easier to sell a house at a reasonable price than to sell dirt right now. There are no longer investors counting on appreciation then flipping a lot to a spec builder. There are no longer speculation builders out there buying lots to build a custom home and sell it. As an Arizona custom home builder, this was never our business model. We typically build homes for a particular customer.
- Go ahead and build a house on it? If you had planned on building a custom home for yourself and your family, you might actually consider building on the lot.
- If you already own a vacant lot that you had planned on building your dream house then you don’t need to be reminded that you are paying annual property taxes on this land. If you currently own the home in which you reside you are paying property taxes on your residence as well, then it may be time to ask yourself ‘why’? Is it time to sell the lot, despite the low prices? Is it time to build a custom home and sell your existing home or rent out your existing home? One of our customers has successfully rented out their previous home. As many people have found out over the past few years, buying vacant land is a very risky and speculative investment. Unlike investment income properties where rental incomes pay the annual property taxes, raw or vacant land does not bring in any income to pay for the property taxes. With vacant land, you still pay those annual taxes.
- If you already own a vacant lot that you had planned on building your dream home then you also don’t need to be reminded that you may be paying monthly homeowner’s association dues. Perhaps you are also paying those for the home you are living in, whether you are renting or owning. These are drain on your finances.
- If you need to sell something, in this market it is easier to sell a home at a reasonable price than to sell a vacant lot. If vacant lots are selling at all, it is all about location and still selling dirt cheap, as evidenced by the ONE selling in this example subdivision.
- If you own the property outright, free and clear, what if you built a smaller house on the lot than found in the rest of the subdivision, say 4000 square feet rather than the average of 4500 square feet? What if you kept the construction costs to around $90.00 sq. ft., without skimping on style and quality, which is not impossible in this market? Construction costs have come down as well, lead times are nearly nothing as subcontractors are anxious to get on a job. Run the numbers, if the current sales price is $129 a square foot, in this subdivision, what would the value of your new house be…. over $500,000? Will it return the money lost in the lot, probably not, but what will?
In summary, there is no right or wrong answer. The solution depends upon each person that may have bought a lot for their custom home and has owned it throughout this real estate nightmare. Each solution is different based on the owner’s current situation. There are as many different viewpoints here as there are people. Some might ask, why add to the inventory of homes? Well, if inventory is an issue, lets talk about the high density builders that are still building away in the Phoenix market. What seems stupid and insane to one person, makes sense to another person, you just have to do what makes sense for you! If you want to discuss your particular situation, we believe our extensive experience as an Arizona custom home builder we can help, please contact us directly at woodridgecustom@cox.net .
by Arizona Custom Home Builder on January 27, 2010
Over-sized Showers, Protective Coating on Glass Doors, or Completely Skipping the Doors
As Arizona custom home builders of Arizona luxury homes we pay attention to detail while designing shower systems with our customers. Shower areas have grown over the years and are increasingly becoming a place in custom homes that deserve more recognition, especially the master bath. It’s out with the old and in with the new when it comes to shower systems. The small shower stall that cause you to bump your elbows against walls are definitely out as well as the fragile, obscured bypass doors.
On the other hand,
- Bigger is better with shower spaces,
- Frameless shower doors constructed with weighty glass,
- Various spray systems,
- Snail showers,
- Shower sitting areas,
- Coated glass for easy cleaning, and
- An enormous array of finishes for the fixtures.
Luxurious showers are arguably a symbol of excellence and comfort. Bigger is better indeed with showers; for instance, some are designed so that doors are deliberately left out of design. Then there are those built with a spiral-type shape, again eliminating the necessity of shower doors. Designing a shower without a shower door eliminates the dreaded cleaning associated with glass shower doors. Although many of today’s shower doors are available with a protective coating that prevent the appearance of permanent spots, soap scum and stains that accumulate over time on glass shower walls and doors.
As Arizona custom home builders, we have found that today’s shower doors are made with much heavier and thicker glass than in the past. With heavier, thicker glass, metal frame supports are eliminated. By eliminating the metal frames, one can see directly through the glass and the beauty of the tile work . These new shower doors are also capable of being opened by pushing into the shower door in, or pulling the door open, creating enormous versatility and effortlessness in use. On tub/shower combinations, also available today are French doors absent of frames, creating that WOW EFFECT, when both doors can be opened to easily climb into and out of a shower/tub combination.
Shower stalls have made a transition from simply stalls to more prominent features within the master bathroom. As mentioned, they’re much larger creating lots of room to enter and/or exit with comfort and ease. Multiple sprayers are also added. Anything from rain shower-heads fixed above to standard sprayers from the walls as well as hand-held sprayers that come equipped with wall poles or hands-free mode with multiple sprayers from various areas of the shower wall. The various styles of a custom bathroom continue offering a wide variety of features for the custom home buyer. As Arizona custom home builders we plan to stay abreast of the styles, changes and trends in custom bathrooms to offer our customers the best choices for their particular home style.
Arizona custom home builders exemplify a large walk-in master shower
by Arizona Custom Home Builder on January 26, 2010
Move Over Pedestal Sink
Tired of seeing those stale pedestal sinks found in the average powder room or custom bathroom? Have you given thought to the different assortment of sinks on the market? Some are classical pieces of furniture converted into vanities. The glass or stone bowls found on top of vanities have also gained popularity. As Arizona custom home builders, many of our custom home buyers have rummaged around antique shops searching for the best dresser to change into a vanity. With a marginal amount of ingenuity a powder room can demonstrate the personality and style of any homeowner.
Most of the newer style sinks found aren’t very expensive; however, they’re a welcoming addition to most powder rooms and custom bathroom. Some of our custom home buyers have used glass bowls found at the local big box hardware store, but when placed in a unique setting like a built-in counter top, it looks like it cost more than it actually did and reveals a truly one-of-a-kind custom look. These glass bowls are sturdy and thick and come in a variety of colors.
As Arizona custom home builders, other custom home buyers have placed stone bowls directly on top of an old piece of furniture, customizing the look to match their Tuscan home style. Converting an antique or even new piece of furniture to hold a vanity sink allows for storage underneath the sink, something amiss with the standard pedestal sink. The furniture can be modified to hold a sink that sits on top of the dresser, or a sink that can be popped into an opening cut into the dresser. There are a vast number of new styles available for either glass or stone bowls which makes creating the idea powder room.
Other stylish vanities consist of sinks situated on custom-made counter tops with fixtures mounted into the walls. Fixtures in these rooms can also be a bit more stylish than practical versions in the remainder of the home.
As Arizona custom home builders, we will assist our custom home buyers get the look and feel they desire when planning, designing and building their custom bathroom. The vanity or powder room sink selections are one small aspect of this comprehensive, and ‘dream come true’ process.
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Stone Bowl Sink and Wall Mounted Fixtures
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Elegant Vanity Area
