New Homes For Sale Scottsdale Paradise Valley Real Estate Phoenix Property Listings Maricopa County AZ Realtor Agent MLS

Eye on the Market Silverleaf Events & Activities

It’s Déjà vu All Over Again!

Donald D. Kent

President & CEO

DMB Realty Network

In my youth, living in a suburb of Los Angeles, my parents bought a homesite, hired an architect and a general contractor and built the home of their dreams. I can remember going with them in the warm summer evenings and walking through the partially built structure that was to be my room wondering where I would put my record player and radio. Now I have two teen age boys, who worry more about Wi-Fi coverage for their laptops and Xbox.

The point is, often the more things change ironically the more they return us to the past. Let’s take the dream of building your own home. One of the remarkable aspects of living in North Scottsdale is the opportunity of purchasing a homesite and building on it. In fact, up until just a few years ago, activity in this sector of residential real estate was brisk. Clearly with the rapid appreciation of property values fueled by speculation, pricing escalated to levels that put most homeowner’s dreams out of reach. One of the upsides to the current downturn in real estate is the current affordability of buying a homesite and planning a custom home. Just as countless families have done in DC Ranch and Silverleaf over the years, looking for that perfect location and imagining all of the personal touches that can be put into a custom home are still possible today.

In a survey conducted recently with several of the exceptional builders with whom DMB Realty Network has represented over the years, a custom home can easily be within reach of many homebuyers. In some instances costs have dropped by over 30%. From design review to building, this is one of the best times in the past several years to investigate building a custom home. A review of custom lot listings on MLS will reveal very attractive pricing or go to www.silverleaf.com; and view an entire list of homesites offered in Silverleaf by individual sellers as well as the developer, DMB Associates. Our staff also has an extensive list of premium builders.

Part of the allure of building a dream home is living in a community such as DC Ranch and Silverleaf. We enjoy two spectacular clubs and golf courses, Desert Camp and Homestead Community Centers, The Village Club, Copper Ridge School and the spectacular McDowell Mountain Preserve with the new Gateway Trailhead in our backyard. Market Street, Canyon Village and DC Ranch Crossing are opening their doors to new tenants, and very soon DMB Realty Network will have some exciting news about our expansion on Market Street.

Change brings with it opportunity. When it comes to building the home of your dreams it can seem like déjà vu all over again.

HOW TO DETERMINE IF YOUR HOME IS A GOOD INVESTMENT

DONALD D. KENT, PRESIDENT /CEO

DMB REALTY NETWORK

Scottsdale, Ariz. (March 11, 2010) - Earlier this year I wrote an article suggesting a recovery of both the Housing Market, and the general economy was on the horizon. A Window of Opportunity had opened, particularly for buyers of residential real estate and the article sited some notable statistics to support my position. As the first quarter of 2010 progresses this positive perspective seems to be supported by a strengthening of the U.S. Economy. There are no shortcuts in a recovery and we are still a long way from being back to normal. Still, as I pointed out in the previous article, residential real estate activity, particularly for existing homes is accelerating. So, one obvious question that comes up is, “What is a good investment?”

A QUESTION OF “VALUE”: THE HARD MATH EXPLANATION

Why is “value” in quotation marks? Because on many levels “price” and “value” are not the same thing. A definition of “value” is…”What a willing and informed buyer will pay a willing and informed seller, neither of whom is under duress”. Sounds pretty antiseptic doesn’t it? For many families the buying of a house is the single largest purchase of their lives. It demands rigorous attention to all factors influencing such an important decision. Price is certainly important but too often, particularly in recent times, the notion of “investment” or value appreciation has overwhelmed judgement.

Historically, in the Phoenix Metropolitan Area over the past decade, home values have appreciated at an annualized rate of 7.52% according to the ARMLS. If you live in Scottsdale, that same period factors out at around 11.96%. Yet in the past 12 months, in Scottsdale, homes have depreciated or lost “value” by an average of 13.38%. However ARMLS reports a loss of only 1.28% over the past quarter. Can you extrapolate these numbers to come up with a determination of a good or bad investment? Not really. During the period between 2004 and 2006 prices of residential real estate escalated at a rate not seen in decades. Demand out distanced supply. Houses were selling after only being listed in some cases for days, or even hours. Under these conditions future “value” of a house seems limitless but as we have all seen, that is also not true.

So, how do you value your home? Many agents and financial institutions will use a variety of factors, including comparable sales of houses similar to yours. This measurement will provide a yardstick for determining how to price a house and it should be considered as part of your valuation process. I’d also like to suggest an additional perspective.

HOME “VALUES”: LIFESTYLE,LOCATION AND MORE

A good number of stories are being reported as a consequence of “The Great Recession”, as our economic crisis is now labeled. Sales of consumer goods in places such as Wal-Mart, Target and other discount stores have benefited, while upper end retailers such as Neiman Marcus are being forced to reinvent themselves to fit into the new economy. Extraordinary discounts have been offered at seasonal resorts who just a few years ago would have considered such tactics to be beneath them. Everyone, regardless of social stature, is returning to more traditional means of evaluating their purchases.

The same rationale holds true for housing. Traditionally the purchase of a house has always been more about creating a “home” than speculating on price appreciation. But during the heated housing market of just a few years ago, estimates range from 30% to 50% or more of real estate purchased during that period was for investment purposes. These buyers were for the most part not sophisticated investors, but individuals looking to capitalize on what appeared to be an industry capable of defying gravity. Houses stopped being “homes” and were viewed in a similar way as stocks and commodities, to be bought and sold inside a short timeframe. For some this worked out but for most it created an economic hardship once the cycle turned down. Speculating in real estate is not about buying a “home” and for end users it is more about a community and its sense of place, than concentrating on price alone.

Today, as it has been for decades, the purchase of residential real estate is about finding the right location for your family. Buyers must consider the shopping, transportation, schools, recreation and a community’s commitment to its future. At our company we have a saying, “We Sell Lifestyle, the Real Estate Comes With It.” Statistics have shown that most homeowners will occupy their house for an average of seven years. Buying a home is not a short term decision and therefore the value and investment in the purchase must be evaluated on the same basis. Being a willing and informed buyer is still a prerequisite, but also being invested in the long term lifestyle benefits must also be high on the list.

EYE ON THE MARKET: The Window of Opportunity for 2010

Donald D. Kent, CEO/President, DMB Realty Network

Scottsdale, Ariz. (January 26, 2010) - This is the first in a series of articles intended to provide some insights, based on real data and experience, on what is happening in the affluent sector of the residential real estate market. The Media, in print, television, radio or Internet, seems to have a fixation directed toward negative news. Not that there isn’t a place for gut retching horror stories of doom, gloom and disaster, but wouldn’t it be a breath of fresh air if every now and then we got to read or hear about the upside? Well, these articles will attempt to lay a foundation for seeing the world of real estate, not through rose colored glasses, but with an eye toward the market, and the windows of opportunity that seem to be opening up.

Let’s all agree on one fundamental premise going in, and that is 2009 was a very challenging year, for just about everyone on the Planet Earth. On most topics it is difficult to get even two economists to agree, but on this they are in universal alignment. Last year heralded one of the worst economic downturns since the 1930s. I won’t engage in a debate about The Great Depression verses The Great Recession, because when you are getting beat up it doesn’t really matter how bad it was in “olden times”. Comparing one era to another can however provide some historical perspective, and we should learn from our past, and use those lessons to our benefit.

So how do the great pundits on Wall Street look at Real Estate after what many consider a Titanic like sinking of the industry sector? According to a January 4 “Investment Outlook” feature in Business Week, A Bloomberg Business Week poll found real estate had regained favor with investors, and that they were less fearful than at the height of the financial crisis. When asked the question, “If you had to choose one investment you think would be best right now, what would it be?’, “Real Estate” was the second highest ranked following “Common Stock”, and Real Estate only trailed by a few percentage points. This ranking for Real Estate in 2010 was a vast improvement in potential investment over the same period in 2009, according to the poll.

Now let’s turn our attention to some news a little closer to home. Would it surprise you to know that, according to ARMLS data, over 92,000 homes were sold in the state of Arizona in 2009? This is the highest level of annualized home sales activity since June 2006. Existing detached home sales in the Phoenix Metro Area averaged over 7,000 homes per month for 9 out of 12 months in 2009, figures not seen since the peak periods of 2004 and 2005. In Scottsdale, a market served by our company, sales of existing single family homes starting in the second half of 2009 exceeded the same periods in both 2007 and 2008.

True, most of this activity is being stimulated by severe price reductions. Prices had escalated to unreasonable levels at the peak in 2005 and 2006. Inventory of available homes outstretched demand. The result is a lowering of prices to stimulate buyer activity. These same basic tenets of economics are at work today, regardless of the seller’s motivations. And while foreclosures are a factor, when looking at DMB Realty Network’s Scottsdale and Northern Arizona sales activity in 2009, only around 15% of our total sales involved some form of bank sale or pre-foreclosure. Most of the activity is being fueled by a realization, those looking for the right place to live, at the right time; that the bottom of the market, if not already behind them, is very near at hand.

In the community of Forest Highlands located in Northern Arizona, DMB Realty Network’s on-site brokerage exceed 2008 sales by 10%, while the greater Flagstaff area experienced a decrease of over 7%. In this same time period, sales of homes over $1 million in Forest Highlands were consistent with historic levels of activity. Another reality not lost on our buyers is climate change in our Valley. There may or may not be a global warming, but our weather will exceed 100 degrees per day between the months of June and October. Buyers from the Scottsdale and Paradise Valley area understand how to value not only a home, but their lifestyle as well.

Two of our real estate sales entities, DMB Realty Network North Scottsdale, and The Silverleaf Group, achieved sales inside the two square miles of DC Ranch and Silverleaf of close to $100 million in 2009. Location will always impact a buyer’s willingness to purchase, and so will timing. These communities, built by our partners, DMB Associates, exceed any buyer’s expectations, and today, at an attractive price. Yes, these communities cater to the more affluent, and that is to my point. It is not that the wealthy weren’t impacted by The Great Recession, they were. However, since March, 2009 to the end of December 2009, the US Stock Market regained over 60% of its value. Mortgage rates are at a 35 year low, and homes frankly have become more affordable than at the peak of the market.

If you are a seller of real estate it would seem prudent to price to market and take advantage of this increased level of activity. If you are a buyer of real estate take to heart “carpe diem”, by seizing the moment, a true window of opportunity has opened.

SILVERLEAF FINDS BUYERS IN CHALLENGING MARKET

Year to Date Silverleaf Group Sales and Escrows

Excess of $78 Million

SCOTTSDALE, Ariz. (October 12, 2009)—While North Scottsdale’s golf and residential communities have not been immune to the softening real estate market, DMB Realty Network’s sales team, The Silverleaf Group, has continued to identify buyers anxious to take advantage of good opportunities. The team has successfully sold over $1 billion in Silverleaf property through 2008, and has sold or recorded in escrow, another $78 million Jan through early October of 2009. “While the economic climate has certainly shifted, Silverleaf’s quality and value have remained consistent,” said Don Kent, CEO/President of DMB Realty Network, the sales and marketing company which partnered with Silverleaf developer DMB Associates to position the community and oversee sales. “Silverleaf is unquestionably one of the finest luxury residential communities in the entire U.S. and will continue to hold its value and desirability as a result.” The key factor in Silverleaf’s sales success has been the sales team itself. DMB Realty Network’s original team has been in place for eight years, managing sales in a variety of market conditions, from the community’s launch in 2002 to today. “When it comes to understanding the Silverleaf lifestyle and its many nuances, our sales agents have been an invaluable resource,” said Kent. “They are veteran real estate agents able to utilize their strong spheres of influence to benefit high-end buyers and sellers.”

DMB Realty Network
19890 North 101st Way • Scottsdale, AZ 85255
480-502-6902 •