By Joe Szabo, Scottsdale Real Estate Team Real estate markets ebb and flow just like the seasons. The spring market starts hopping when the sun comes out, flowers bloom and winter is over. Conversely, fall signals the beginning of a slower market, which could be good for buyers. If you’re in the market for a home, here are some reasons why fall can be a great time to buy.

Leftover spring inventory may result in deals

Home sellers tend to go on the market for the first time in the spring. They often list their homes too high out of the gate, which could mean that a series of price reductions follow during the spring and the summer months. These sellers have fewer chances to capture buyers after Labor Day. By October, buyers are likely to find desperate sellers and prices that may, in fact, be below a home’s true market value.

Fewer buyers are competing

Families who want to be in a new home by the beginning of the school season are no longer shopping at this point. These families have exited the market, which means less competition. That translates into more opportunities for buyers. Taking out an entire segment of the housing market provides millennial, single, and baby boomer buyers some breathing room. You’ll likely notice fewer buyers at open houses, which could signal a great opportunity to make an offer.

Motivated sellers want to close by the end of the year

While a home is where an owner lives and makes memories, it is also an investment — and one with tax consequences. A home seller may want to take advantage of a gain or loss during this tax year. Buyers might find homeowners looking to make deals so they can close before December 31st and get that tax benefit. Ask why the seller is selling, and look for listings that offer incentives to close before the end of the year.

Homes for sale near the holidays signal a motivated seller

As the holidays approach, the last thing a homeowner wants is for their sale to be dragging on and interrupting their parties and events. If a home has not sold by November, and it’s still sitting on the market, that homeowner is likely motivated to be done with the disruptions caused by their home being listed for sale.

Many homes don’t show as well once the landscaping fades

The best time to do a property inspection is in the rain and snow, because the home will be truly exposed for buyers. The same holds true for fall, when flowers die, trees start to shed their leaves, and beautiful landscapes are no longer so lovely. Scratching the surface of the pretty spring home season and fall reveals home flaws, making it a great time to see each home’s true colors. It’s better to see the home’s flaws before making the offer, instead of being surprised months after you close. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team With no city lights for miles, The Pillars Estate stands alone in the darkest of nights. Inside, guests are greeted by dim candlelight, a windy staircase and a gentleman from Scotland. Tony McMurtrie purchased the Civil War-era estate in Albion, NY when it was ready to be torn down. Restoring it to its former glory over the past decade, he’s carefully curated every detail – from the grandfather clocks to the silver. “I don’t know where it comes from,” he explains. “I just like that time and that era.” His love of antiques and a refined way of life hasn’t gone unnoticed. Cora Goyette moved to Albion from England and bonded with McMurtrie over their shared appreciation of European culture. Today, she takes care of the 13,286-square-foot house as if it were her own, hosting tea parties and events in the grand ballroom. But unlike McMurtrie, Goyette won’t stay at The Pillars alone. In fact, most of McMurtrie’s friends refuse to spend the night. “A spirit really is within the house,” Goyette says without blinking an eye. “It’s quite serious.” Some believe he’s unlocked a haunted past, while others remain skeptical. The home at 13800 W Country House Rd is on the market, waiting for a buyer to set the record straight once and for all. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team If your home was built before 1970, you likely have one bathroom for your entire household. This probably means that everyone scrounges for counter space and fights over shower time, leaving you wishing for another bathroom. But how hard is it to add one? What kind of design do you need? Where would you even find room for it in your home? We posed all these questions and more to Lora Lindberg and Debbie Cederlind, house flipping pros and owners of Seattle-based Urban Squirrel. Here’s their expert advice on adding a bathroom to your home.

Location, location, location

According to Lindberg and Cederlind, finding a good location for your extra bathroom is half the battle — and completely depends on your home’s layout. When the designers were restoring a 1920s craftsman in Seattle, they added a powder room to the main floor to increase accessibility for guests who may not be able to use the stairs to get to the main bath. “First, we called our plumber. He had to figure out how to get water lines and waste lines [to the powder room]. We had to make sure it worked before we framed it in,” Lindberg recalls. To find a good spot in your own home, look at where the existing water and waste lines are, and make sure you have an existing wall that’s at least 2 feet by 4 feet. “The best scenario is keeping all your water in one area of the home,” advises Cederlind. “If you’re totally moving it to another side of the home, proximity to the waste lines is always important.” Another thing to keep in mind, the designers say, is that you have to run water and waste lines between floors, which can make adding a bathroom upstairs rather tricky, but not impossible. “Look at existing plumbing, then see if you can put another bathroom above or below and still tie into the existing waste lines. That’s key,” says Cederlind. Homeowners with single-story layouts will have the easiest time adding in a bathroom because they can simply run the water and waste lines through a crawl space below. But the duo says that no matter how many stories your home has, you still have to factor in an exhaust fan, which must vent to the home’s exterior, and the proper slope for the waste line, which must run downhill. Additionally, Cederlind and Lindberg always make sure they include a tub somewhere in the home, which can boost resale value. Master showers with double heads or seating are nice, but it’s important to have a tub somewhere in case you — or a future buyer — have kids.   You also need to think about what kind of natural light, if any, you can bring into the bathroom. “I’m a big fan of ventilation, like an open window,” says Cederlind. “We always try to incorporate that. Everything has to be ducted with fans now, but there’s something about cracking open a window in a bathroom. If you have an outside wall in your new bathroom space, adding a window for natural light is well worth it.”

Build to code  

Your city or state might have different building codes than what Lindberg or Cederlind adhere to in Seattle, but you should always ensure that your bathroom configuration is legal and that you have the correct amount of space around the fixtures. To really make sure your bathroom is up to code, it’s best to get a permit for the work. “Having a permit for your work usually makes buyers feel better, because they know the work was inspected. We’ve had to rip out a lot of poorly done DIY projects in the homes we remodel and start from scratch,” Cederlind says. Although getting a permit and working to code might take more time, it’s worth it in the end. Plus, it can guarantee that whoever is doing the work does it the right way. “We know our contractors, and they always do things to code, whether we get a permit or not. But if I were a homeowner hiring contractors for the first time, I’d want to know they’re being checked,” Lindberg says. Cederlind and Lindberg also advise working with licensed, bonded, and insured contractors so you’re protected in case anything goes awry.

When it comes to design, make it luxe

When Cederlind and Lindberg designed their powder room, their ultimate goal was to make it fun and luxurious. Because the space was so small, they hung a wall-mounted toilet and sink, which they rescued from the basement bathroom, and installed a pocket door to maximize space. They made the small space feel large and luxe with jewel-box paneling, a glamorous chandelier, and a bold paint color. “Designers like to go bold in powder rooms because they’re small, so it doesn’t take a lot of effort. Guests are mostly going to use it, so it’s a fun place to experiment and make them feel special,” Cederlind says.   When it comes to design, Cederlind and Lindberg suggest neutral, classic tones for tiles and fixtures, mixed with bold rugs, candles, and paint colors. But no matter how you design your extra bathroom, it’s going to add value. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team When the days get shorter and cooler, the sight of a cheery fire crackling away in a hearth instantly chases away the chill. Even a non-functional fireplace can give a room a cozy feel and create a charming focal point. If your fireplace lacks visual appeal, consider this low-cost makeover. With just a few pieces of trim and a gallon of paint, you can give your bland fireplace a dramatic cosmetic upgrade in just a weekend.

Before and after

Fireplaces like this are common in old houses. It’s painted brick and in need of an upgrade. Fireplaces should be the focal point of the room, and this one obviously wasn’t getting the job done. Here’s how it went from drab to fab.

1. Install trim

To make the fireplace instantly look grander than it is, use some basic pieces of trim to create the illusion that it extends all the way to the ceiling. Using 1″ x 4″ pieces of medium-density fiberboard (MDF), create a frame connecting the fireplace and ceiling. MDF is smoother than wood and will have a better finished look when painted. This trim is in no way weight bearing, so MDF will be plenty durable. Next, cut and install interior trim pieces within the frame. Attach trim pieces with Liquid Nails. The hold will be strong enough since, again, these pieces are not weight bearing. Plus, there won’t be any holes to patch before painting.

2. Caulk and sand

Caulk any gaps between trim pieces, and sand once dried.

3. Paint

Paint the frame and wall the color of your choice. To really make a statement, choose a color that contrasts greatly from your wall color. This glossy black stands out dramatically against the white walls, making the fireplace the focal point of the room.

4. Style your new fireplace

Once the paint dries completely, you can add accessories and decorative elements to enhance the fireplace’s visual appeal. Sconces hung in the openings between the frames, a contrasting fire screen and carefully chosen artwork finish off the fireplace. Add a comfortable chair and small end table to make the whole space come together. Now settle in and enjoy your home’s beautiful new centerpiece. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team The days are getting shorter, and the nights are getting cooler. The kids are trudging off to school again with their backpacks and light jackets, and leaves are starting to fall from the trees. Yep, it’s official: Fall is here. Now is the time to finish up any last-minute late-summer maintenance projects, and get your home and yard ready for fall. Just follow our easy checklist, and your home will soon be clean, warm, and ready for the cool days to come.

Exterior prep

• Fix cracks in concrete and asphalt. Depending on where you live, these may be the last weeks this year when it will be warm and sunny enough to repair driveway and sidewalk cracks.
• Clean out the gutters. No one loves this job, but we all need to do it annually. A few hours of work can prevent big problems later on. And while you’re up on that ladder, visually inspect your roof for damaged shingles, flashing, or vents. You can also inspect the chimney for any missing mortar, and consider tuck-pointing if needed.
• Turn off outdoor plumbing. Drain outdoor faucets and sprinkler systems, and cover them to protect them from freezing weather to come.
• Start composting. If you don’t already have compost bins, now is the time to make or get some. All those accumulated autumn leaves will bring you gardening gold next summer!
• Clean outdoor furniture and gardening tools. It may not be quite time yet to put them away, but go ahead and make sure your outdoor furniture and gardening tools are cleaned up and ready for storage over the winter.
• Plant bulbs for spring-blooming flowers. A joyous and beautiful sign of spring is when tulips and daffodils start popping up everywhere. Plant bulbs in October, as soon as the soil has cooled down, to reap big rewards next spring. If you’ve never planted bulbs before, select a spot in your yard that gets full sun during the day.

Interior prep

• Prepare your furnace for winter duty. If you didn’t already do it last spring, consider getting your furnace professionally serviced in time for the cold season. At the minimum, though, visually inspect your furnace and replace the furnace filter before turning it on for the first time.
• Clean the fireplace and chimney. Clean out the fireplace, make sure the flue is operating properly, and that doors and shields are sound. Have the chimney professionally swept if needed. Now is the time to stock up on firewood!
• Keep the warm air inside and the cold air outside. Inspect your windows and doors. Check weather stripping by opening a door, placing a piece of paper in the entryway, and closing the door. The paper should not be able to slide back and forth easily. If it does, the weather stripping isn’t doing its job. Also, now is the time to re-caulk around windows and door casings if needed.
• Light the way. Bring as much light into your home as you can for the colder, darker months. To accentuate natural light, clean your windows and blinds, especially in rooms that get a lot of sunlight. Add lighting to darker spaces easily with new lamps. And consider replacing traditional incandescent light bulbs with energy-efficient bulbs.
• Create a mudroom. Even if you don’t have a dedicated mudroom in your home, now is a good time to think about organizing and stocking an entryway that will serve as a “mudroom” area for cold and wet weather. Put down an indoor/outdoor rug to protect the floor. A fun and rewarding weekend project is to build a wooden shoe rack, coat rack, or a storage bench for your entryway.
• Home safety check. Replace the batteries in your smoke alarms and CO₂monitors. A good way to remember to do this is to always replace the batteries when you change the clock for “fall back.” Create a family fire escape plan, or review the one you already have. Put together an emergency preparedness kit so that you are ready for winter power outages.

Once you finish with your autumn home checklist, you will be ready to relax in your warm, comfortable home, and enjoy the season. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team It’s time to put down your pumpkin-scented beverage of choice, and gather some actual pumpkins. That’s how easy it can be to find fall decorations that set a festive tone for the season. Focus on adding simple decor to three key areas to make apple-pie days and chilly (or is it chili?) nights even cozier.

The dining table

Livening up your dining table with some fall flair is an obvious starting point, since you’ll likely be using it to serve a game day buffet or family feast. You don’t have to overdo it here to make a statement. A few pumpkins, candles, and flowers can make a beautiful table, and don’t require much effort.

For the flower arrangement, grab some greenery and flowers from the grocery store. Choose a vase with a narrow opening to help corral the flowers and make them easier to arrange. Put the greenery in first, then add the flowers stem by stem. For table linens and place settings, keep the colors neutral so your centerpiece can be the focus.

The living room

Many living rooms have a fireplace as the centerpiece. Dressing up your mantel for the season is the perfect way to make this gathering spot feel special. A bit of garland goes a long way on the mantle. Some fall-colored blooms, pinecones, and candles are great mantel decor. Drape some natural and seasonal garlands, like cotton branches, along the mantel to really make your space feel festive. Give the room a warm and welcoming feeling with a few cozy throws and pillows. Textures like fur and wool add a seasonally appropriate touch.

The kitchen

The kitchen is another great place to add a touch of fall. Find a few spots to place your accents, making sure they’re visible, but not in your way. Natural elements like a large pumpkin and pinecones piled in a bowl are all you need. To keep hot beverages and other libations at the ready, set up a drink station on the counter or on a bar cart. Copper mugs and vintage glassware look particularly celebratory. Focusing on a few key areas where your family and friends tend to gather will make your home feel welcoming and warm in the cooler days ahead. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team Home buyers today face tough challenges—housing prices have soared, a dollar doesn’t go as far as it once did and rent is more expensive than the past. How are people today making such a large purchase in spite of these hurdles? With more flexibility and a bit of creativity when it comes to financing, today’s buyers are finding ways to achieve homeownership. Make Enough Money With fewer resources to pull from than their older, wealthier counterparts, renters wanting to be buyers face tough financial headwinds. According to the Zillow Group Consumer Housing Trends Report 2017, renter households typically earn a median income of $37,500 annually, which is $50,000 less than the median household income netted by households who recently bought a home (of whom the median household income is $87,500 annually). While there are ways to enter into homeownership without making $87,500 in household income, it’s hard to afford to buy if you make significantly less. “If you’re making $37,500 per year, it’s probably not feasible for you to buy in almost any market,” says Zillow Chief Economist Dr. Svenja Gudell. Only 29 percent of Americans do make $87,500 or more, per U.S. Census Bureau, American Community Survey 2016 data. For perspective, only one of the top 10 most common jobs in the United States carries a salary above $37,500, meaning the jobs that the majority of Americans hold—fast food workers, cashiers, retail salespersons, customer service representatives, secretaries, housekeepers among others—bring in less money than the median renter household. While households purchasing homes are more likely to have two incomes than renter households (and thus a higher median household income combined), even two-income households struggle to afford to buy in competitive markets. Save Up Enough Cash (But Not As Much As You Think) One of the most daunting parts of homebuying? The down payment. In fact, two-thirds of renters cite saving for a down payment as the biggest hurdle to buying a home, according to the Zillow Housing Aspirations Report. Per findings from the Zillow Group Consumer Housing Trends Report 2017, almost one-third (29 percent) of buyers active in the market express difficulty saving for the down payment. For people buying the national median home valued at $201,900, with the traditional 20 percent down payment, that’s $40,380 up front—just to move in. “The down payment remains a hurdle for a lot of people,” says Gudell. “Although, they should know they don’t have to put 20 percent down.” Although putting down less than 20 percent means additional considerations, such as the cost for private mortgage insurance (PMI), some find it worth the hassle. In fact, only one-quarter of buyers (24 percent) put 20 percent down, and just over half of buyers (55 percent) put less than the traditional 20 percent down. Buyers are also getting creative about piecing together a down payment from multiple sources. According to the report findings, nearly 1 in 4 buyers (24 percent) build a down payment from two or more sources, including saving, gifts, loans, the sale of a previous home, stocks, retirement funds and other resources. Know Your Deal Breakers, But Be Flexible In order to get into a home—even if it’s not the home of their dreams—some of today’s buyers are considering homes and locations outside of their initial wish list, and are having to get increasingly flexible when it comes to neighborhood, house condition, and even type of home. Although single-family homes remain a dream for most home seekers, buyers today consider and buy condos and townhouses—in order to secure a home in their ideal location. Buyers with household incomes under $50,000 are more likely to consider homes outside of the traditional single-family residence (40 percent), compared to those with incomes of $50,000 or above (24 percent). “I do think people get discouraged when they look in their target neighborhood and they see homes around $170,000 when they’re looking for a $110,000 home,” Gudell says. Affordably-priced homes do, in fact, exist. But in popular areas, where people most often want to live, it’s going to be harder to find that cheaper home, Gudell says. “If you’re willing to take a longer commute and make a couple tradeoffs, you might be able to find a home that is further out that might be cheaper,” Gudell explains. “You have to leave the paved path before you can find cheaper choices.” Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team While homelessness may not be viewed as a looming issue on the horizon for those who are financially stable, or otherwise have secure and stable housing—it’s not as distant as some might think. With rents rising faster than wages, the burden of affording rent is looming larger and larger for many Americans, and in some cases becoming insurmountable. According to the Zillow Group Report on Consumer Housing Trends 2017, 79 percent of renters who moved in the last 12 months experienced an increase in their monthly rent before moving to a new place. And over half (57 percent) said that hike was a factor in pushing them out the door and into another rental. Only 21 percent of renter households didn’t report experiencing an increase in rent. Nearly a third (30 percent) of households nationwide, representing roughly 73 million adults, report they’re struggling or just getting by financially. And it’s no wonder; Americans spend on average a median of 29.1 percent of their income on rent, including many who spend a higher percentage but have lower incomes. Increasingly, major metro areas are becoming out of reach for those who aren’t earning more than minimum wage, and this is becoming increasingly true even in markets that have historically been more affordable. Take Houston, for instance, where the median low-income earner spends 65.1 percent of her income on the median bottom-tier rent. Then there’s notoriously expensive New York, where—along with San Francisco and Los Angeles markets—the median low-income wage will not even cover a low-end apartment. In New York alone, to afford apartments with median bottom-tier rents, renters need to shill out 111.8 percent of the median low-income wage. With such large percentages of household incomes going towards rent, saving for the future is less of a priority—and possibility. More than half (51 percent) of Americans say they don’t have enough money saved to support themselves for 3 months, according to the Federal Reserve Board’s 2016 Survey of Household Economics and Decisionmaking. Millions Struggle Just to Afford Stable Housing According to the Zillow Group Report on Consumer Housing Trends 2017, today’s median household income for renters is $37,500, which equates to about $18 per hour—or 2.5 times the federal minimum wage of $7.25. Nationwide, in 2016, 2.2 million people lived off wages at or below the federal minimum wage, according to the U.S. Bureau of Labor Statistics. When it comes to renting, there is no state where a 40-hour minimum wage is enough to afford a two-bedroom apartment, according to the National Low Income Housing Coalition. While renting is becoming increasingly more difficult, buying a home becomes a distant dream.“Honestly, if you’re making $37,500 per year and have no savings, it’s probably not feasible for you to buy in most markets,” Zillow Chief Economist Dr. Svenja Gudell says. Across all states, the median renter can expect to pay $1,430 per month on rent. It’s no wonder many Americans are struggling financially— particularly in New York, Los Angeles, Washington D.C., and Seattle, where there’s also a stronger relationship between rising rents and an increase in the homeless population. Homelessness by the Numbers Coast to coast, there are an estimated 550,000 homeless people, according to the U.S. Department of Urban and Housing Development. But Zillow Research used statistical modeling to estimate the uncounted homeless population, unsheltered homeless people often missed during the One Night Counts, to estimate the true number of homeless people, a number much higher than the official estimates. And as rents climb, the numbers will only grow, especially in large, tight metros, where the rent burden can become life-altering. Take New York City, for example. The metro has the largest population of homeless people than anywhere else in the nation. Last year, there were an estimated 76,411 people experiencing homelessness, according to Zillow’s estimates. If rents were to rise 5 percent, an additional 2,982 people would be forced to the streets. And Los Angeles doesn’t fare much better. Given the same rent hike, an additional 1,993 people would fall into homelessness. And a rent hike of 5 percent isn’t implausible, especially given that in L.A., rents rose 4.4 percent over the past year. The Geography of Social Mobility Right now, in L.A., renters dish out $2,707 per month for the median rent, which is almost twice the national median rent and amounts to nearly half of the median household income in the metro. With such a substantial chunk of money spent every month on rent, it’s no surprise the metro has an estimated 59,508 people without a home. But rents haven’t always been so unaffordable. Just 17 years ago, three of the top 20 metros were rent-burdened, meaning renters paid more than 30 percent of their income on living expenses. Today, however, the number of cities that have become unaffordable have grown exponentially. Currently, renters in 9 of the same top 20 metros can expect to spend 30 percent or more of their income on rent. The biggest share spent on rent comes from Los Angeles, where renters dish out nearly half (49 percent) of income on rent. “The places where social mobility—the ability to climb the income ladder—is the greatest are now in places that are unaffordable for most people,” said Gudell. “San Jose or the Bay Area in general, parts of Boston, for example—these places have gotten to be so expensive that a lot of people who have an income of $37,500 a year will not be able to buy a home or even afford a family-sized rental.” The Costs of Housing Instability Go Beyond Financial Unfortunately, for too many, lack of affordable housing can complicate other critical aspects of life, including health and future livelihoods. Individuals living in shelters are more than twice as likely to have a disability compared to the general population. This includes serious mental illnesses, conditions related to chronic substance abuse, diabetes, heart disease and HIV/AIDS, according to the U.S. Department of Housing and Urban Development. Gudell says people have better outcomes when they aren’t constantly moving from place to place. “It’s been shown that you have better outcomes if you live in a stable environment with less frequent moves, which is easier to attain when you own versus renting,” Gudell said. “So, if you take stable environments away from people, their outcomes will most likely be worse than they are today, and that has an impact on education, on health and on income growth in the future.” Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team Today’s housing market is fast-paced and often pricier than it’s been in decades. Both renters and buyers are facing challenges in finding a place to call home. Both sellers and homeowners also face their own set of challenges — tied to the line they walk between seeing their home as a personal extension of themselves as well as one of their biggest financial investments. The Zillow Group Report on Consumer Housing Trends 2017 is a deep dive into understanding all these challenges as well as the deep desires people have around home. Zillow surveyed over 13,000 people to determine how Americans rent, buy, sell and even think about real estate as part of the report research. Some of our discoveries could be surprising, or perhaps to today’s renters, buyers, sellers and homeowners, the findings ring very true.

Renters

More Americans are renting today than in recent decades — some by choice and some simply due market conditions. Thirty-seven percent of American households are renters — about 43.7 million homes — which is an increase of 6.9 million homes since 2005. While part of the rise in renters is due to the 8 million homes lost to foreclosure during the recession, renters today also prize the maintenance-free and flexible lifestyle renting offers.

• Renters skew younger: The typical renter has a median age of 32 years old.
• Renters represent a more diverse population. Fifty-five percent are Caucasian/white, an additional 19 percent are African-American/black. Hispanics count for 17 percent of renters, Asian/Pacific Islander renters make up 7 percent of the renter population and another 3 percent identify as another ethnicity.
• Nearly half of renters are single, including a third who have never married.
• Although the majority of renters are single, 78 percent live with others, most often this is another family member.
• The median rent across the U.S. is $1,010 with highest rents in the West and lowest rents in the Midwest.
• Renting can be expensive: 79% of renters who moved in the past year had a rent increase.
• More than half of renters (57%) had a rent increase impact their decision to move and 37% of renters who aren’t moving say it’s because they can’t afford to.

Buyers

Buying is tough in all markets. For most Americans, it’s the biggest purchase they’ll ever make as well as a significant financial investment they’ll tap into as part of retirement. In particular cities, purchasing a home has become a competitive game, complete with bidding wars and offer negotiations. It makes sense that most buyers rely on agents to help them through the process.

• Today’s buyers have a median age of 40, although the majority (71%) of first-time buyers are Millennials.
• The median household income of the typical buyer is $87,500 and most buyers are married or partnered, relying on two incomes to purchase a home.
• The typical home in the U.S. purchased has 3 bedrooms, 2 1/2 bathrooms, measures 1,800 square feet and costs $200,000.
• More than anything, buyers want their home to be in a safe neighborhood (71 percent of buyers) and in their price range (67 percent of buyers).
• Other than safety, buyers also want to stay cool. Sixty-two percent of buyers require their homes to have air conditioning.
• Buyers take an average of 4.3 months to search for their new homes — although Millennials take just under four months (3.9 months) and those in the Silent Generation who take the longest at 5.6 months.
• The suburbs rule: 49% of buyers buy there, followed by 31% of buyers buying in urban locations and just 19% of American buyers purchasing in rural regions.

Sellers

Although some hot markets have favorable conditions for sellers, selling is still rarely an easy process. Sellers have two main goals when they list their homes: one- to sell their home in their preferred time frame, and two, sell for their desired price. Balancing the two, timing and price, create a delicate dance and throw in the fact that most sellers are also buyers and searching for their new home, creates a often stressful experience.

• Sellers have a median age of 45 although Millennials make up nearly one-third of todays’ sellers.
• Sellers have a higher median income than homeowners at $87,500.
• The typical seller has lived in their home for 12 years.
• Most sellers are selling for the first time (61%) and looking to buy at the same time (71%).
• Seventy-six of sellers have to make at least one concession to sell their home — most often being a price reduction.
• One in two sellers sell their home for less than their original listing price.

Homeowners

As anyone will tell you, owning a home is a lot of work. It’s also a great investment, especially in many of today’s markets were annual appreciation rates are higher than they have been in decades. Beyond the work and the financial piece, home ownership often has an emotional component as well.

• Homeowners are the oldest, with a median age of 57 years and just 14%  are Millennials.
• Homeowners have a median household income of $62,500 and 71% live with a spouse or partner.
• Forty percent of homeowners have a pet (with dogs ranking in top at 30%).
• Almost half of homeowners (46 percent) live in the first home they purchased, although this percentage decreases with age.
• Eighty-six percent of homeowners have no plan to sell in the next three years.
• Less than a quarter of homeowners say their home is in “like-new” condition and more than 60% say their home could use a little updating.
• The top of homeowners’ to-do list for the next year include: painting the interior (25%), improving the bathroom (22 percent) and landscaping (21 percent).

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.