A Phoenix Home as an Investment?

By Buying, Mike's Articles, Phoenix Metro Real Estate News, Selling August 26, 2019
Streetview 1 – 121 W Campo Bello Dr

Growing up, I lived in two homes in a 20 year period. We were unusual, most of my friends didn’t move during that time but stayed in their home. Those who chose to stay in their home for the long haul seldom wondered what the current value of their home was.  Usually the only time my parents had any indication of neighborhood values was when the Eichorn or Richard house at the end of our block sold – which was like never.

Residential real estate appreciation happens. Like the stock market, we see values increase and we have seen values decrease. Like the stock market, a long term real estate approach to creating wealth will (historically) always reward the patient. Once we moved into that second home in 1968, that was the last home my parents would ever own till my dad was near 90; Well over 30 years. Those were the days.

Tina Tamboer of “The Cromford Report,” at a recent seminar, used an interesting graph showing a 20 year Average Price Per Square Foot (PSF) and an appreciation cone showing where values would be today if there was a 2% or 3% annual appreciation each year.

After almost 20 years, since 2000, the graph shows the meteoric rise of values that hit $190 psf in 2006-2007, and the depths it plumbed to 4 years later near ($80 psf) in 2009-2011. The summer of 2011 was our bottoming out and for the next 8 years we have been in a period of consistent annual appreciation.

Human nature tends to look at this graph with regret. Why did I or why didn’t I… _____ Fill in your own regret blank! Is there a best? I think so, but it’s not the way I’ve gone for many mostly valid reasons which time and space don’t allow…btw, you’re welcome!

Conclusion? Enjoy your home each day while you can. If you need to sell, check out the numbers, but until then, it’s HOME, don’t day trade it!

Appreciation happens. So does life.

 

About the Author
Bodeen – 1 – Mike – Square
Michael Bodeen, Associate Broker

     I was born and raised in San Rafael, California, from the mid 50’s to the early 70’s. I had super parents who worked hard to provide 5 kids with a good Catholic education – despite my best attempts to overthrow the knuckle-cracking regime of Sister Mary Anselma. My dad worked as a self-employed butcher until his retirement at 65 and enjoyed many wonderful years until mom passed away in 1992.

     Dad passed away in the fall of 2006 having lived a great and full life into his early 90’s! In California, I attended college in Chico and Sacramento as a “Sosh” major, but like many of my contemporaries, I did not have a clue what I wanted to do when I grew up. Because of my age, I missed the Vietnam War and into my early 20’s I had many typical youthful indiscretions.

     Thankfully, that was a brief period of my life, and with greater thanks, not too much damage was sustained in those early and rebellious years. And by the way, those thanks are due to the answered prayers of faithful relatives who prayed for years that a wayward Michael would turn his life over to the Lord, and in January of 1982 that’s what happened.

     I lived in Sacramento, California in the mid 70’s, and later moved to Truckee, California, which is near Lake

Tahoe and Reno, Nevada. Truckee’s often labeled the “coldest spot in the nation.” Why did I move there?

My father-in-law was a real estate broker in Donner Lake, California, and despite his cantankerous disposition, he seemed very successful in his real estate endeavors. I joined him in sales in July of 1976.

    The Truckee and Lake Tahoe area was a wonderful place to raise a family, but a difficult and cold environment to live in, but we did so for 18 years. In 1994, my wife, Karen, and I visited Scottsdale at a friend’s request, and within 8 months, our family of 5 had relocated to “the valley” – or is it a desert? Whatever it is, it’s warm. At any rate, 24 years have gone by since we made the break from the late great state of confusion, uh, California, and it’s turned out to be a great move.

     As for hobbies, I enjoy family, friends and travel. My kids Robert, Kendra, and Jonathan are now 40,

34, and 31 respectively. I recently became “gramps” for the 4th time as well. It’s a nice time of life. Karen remains as lovely on the inside and outside as the day we were married. We continue to wonderfully grow together as the years advance. As an ordained Christian Chaplain, I volunteer Preaching at Florence Prison with Along Side Ministry. The ministry helps make the formerly incarcerated able to function, even thrive, on “the outside.”

     Should you choose to have me represent you in the sale or purchase of your home, you’ll be receiving my 40+ years of real estate knowledge, counsel, and experience (including negotiation experience).

    Beyond the transaction, I’m always available to you, should you ever need my real estate advice.