Considering Growth, Real Estate and Construction

Hi, readers – welcome to another edition of At Home With Tom and Sandy. We are here to give you the inside scoop on real estate and the construction industry, what’s up, what’s down, what’s hot and what’s not. We’ll share real estate stats, home prices, building permit numbers, construction pointers and give you hints on renovations that will give you a return on your investment. We will talk about products, how to take care of your home and so much more.

As we all know, there is a lot going on in the housing and construction industry and we want to share some fantastic, cool, groovy and helpful information with you. We are going to use our insight and local expertise to help you save time and money and surmount obstacles of all kinds. So, settle in and enjoy.

Tom:  Hello Sandy, our YCCA gal! Since our radio show together earlier on KYCA this month, I have been giving the topic you chose, “Growth,” renewed thought.

Sandy:  I don’t know if that is scary or cool. It is a hot-button issue for sure. There are quite a few subdivisions out there both under construction and on the books.

Tom:  I love quoting a great American philosopher, Yogi Berra, “It’s like déjà vu all over again.” As a community, we have been through this many times in the past 40+ years that I have been around.

Sandy:  Haha, I get it. We keep going through the same sorts of struggles. I have been wondering what people think about the growth in Yavapai County and asking why they are either for or against. Answers cover the spectrum – from traffic and road capacity, open space and water resources – from some folks. Others are happy and love to see the growth and know that we need it to prosper and feel that housing is a good thing.

Tom:  This is a great place to live, work and play. Why wouldn’t folks want to move here? You are correct, though, the issues on all sides of the growth question really don’t seem to change. Some of it is perception; some of it is real concern.

Sandy:  I feel like I fall into both categories sometimes. I am concerned about road capacity, and before you jump up and down, I am very aware of the CYMPO (Central Yavapai Metropolitan Planning Organization) and the transportation plan in place through 2045 and the fantastic job that CYMPO does in representing Yavapai County. I am just commiserating with the amount of travel traffic I see on the roads. And I must say I smile when I see the construction vehicles on our highway at 6:30 a.m., transporting materials that will be the beautiful home of someone waiting.

Tom: Yes, I get it as well and it feels like a lot of road traffic. I had the opportunity to drive from downtown Prescott to the Navajo Drive area in Prescott Valley. I timed it in the early afternoon, at about 1:30 p.m. It took me almost 20 minutes. I was surprised that was all it took.

Sandy:  The CYMPO plan identified that 80% to 100% of people in the Prescott area have less than a 30-minute commute. For the PV folks who live near Glassford or Viewpoint, that number is 60% to 100%.

Tom:  I think you hit the nail on the head. Perception of what growth impacts are can really drive the conversation. There are many smart people on the local government staff, volunteers and elected officials who are spending a great deal of time trying to make sure that growth happens smartly.

Sandy: I serve on two Planning and Zoning commissions and can concur with that wholeheartedly. There are exceptions, though.

Tom:  Oh, yes! There will always be those who get into a position and let a little bit of their ability to influence go to their head. These folks tend to cause more problems than they solve. They usually don’t last long in that position though.

Sandy: I agree with that as well. But, back to growth. How do we address issues of perception? There are those of us who try to get out facts and discuss mitigation efforts, only to be dismissed out of hand.

Tom:  That’s frustrating for all involved. Some people really do the research and ask great questions. Others just want to dump their frustrations out on you.

Sandy:  Taking the time to understand the issues and what is being done about them is something I wish more folks would do. I think a recent example of what seems to be a great planning process has taken place with AED and the Save the Dells folks. Both sides have taken the time to sit down and really deliberate the issues, each compromising to arrive at a solution all could live with and a benefit that is great for our area.

Tom:  You bring up a great example of organized parties coming together. As you know, our local zoning laws regarding development all strive to have the parties involved or affected engage with each other before coming to the governmental table.

Sandy: Tom, to say 2020 was a year of surprises is an extreme understatement. What started off as a bright year for the housing market and the economy was soon derailed by a global pandemic. We are now seeing a sharp economic incline in housing with decade-plus high prices.

Tom:  From everything I have read, the economists are expecting housing’s winning streak to continue through 2021. New construction of single-family homes is expected to grow this year. The median price ($349,400) is 5.3% over the median price posted a year earlier. Even though new home prices are rising because of increases in lumber prices, the lack of existing homes for sale means new construction is the only option for some prospective homebuyers.

The housing market has seen buyers hyperactive in 2021, driving up home prices by double-digits and causing homes to sell quickly in competitive market conditions. Currently, there is an extremely tight supply of homes on the market, the lowest on record since the turn of the century. Further home price gains are expected until either supply ramps up or demand eases.

Sandy: Tom, our region is growing and there is no doubt about it – the housing market and the construction industry are two strong sectors keeping our economy going.

Thanks for stopping in to read At Home With Tom and Sandy. You’re in good company and we love sharing educational, fun and important information with you.  QCBN

By Tom Reilly and Sandy Griffis

Tom Reilly, LEED Accredited Professional, Architect, Contractor, Renovations 928-445-8506 www.renovationsaz.com

Sandy Griffis, Executive Director, Yavapai County Contractors Association.  928-778-0040

Remember to tune in to YCCA’s Hammer Time every Saturday and Sunday morning 7 a.m. on KQNA 1130 AM/99.9 FM/95.5FM or the web kqna.com. Listen to Sandy and Mike talk about the construction industry and meet your local community partners. Hammer Time is a great way to start your weekend.