So you love living in the North Valley, but want to think of the home you bought here as an investment. Just in case you have to sell, will you make money on your home? Are home prices going up? What homes are selling? And when will the new home builders, the reseller's biggest competition, be done building and get out of the way?

ImagesAZ has surveyed the real-estate professionals in the Anthem, Desert Hills, New River and Tramonto areas to come up with a comprehensive look into the home sales market in these areas. Everyone that owns a house here needs to know how their investment is doing, and real estate appraisers and realtors can provide some of that information.

The Big Boy of the North Valley: Anthem
In 2003, Del Webb sold over 750 new homes in Parkside, and over 400 new homes in Country Club. That's nothing to sneeze at, and the numbers don't include sales by other developers such as Pulte and Centex in the Anthem community. But with only about 4400 Del Webb home closings in Anthem (other builder closing numbers were not available) now and with the build-out number around 12,000 homes, the home builders are only halfway done with their total building. At the current rate of new home sales, Anthem building may continue for the next 5-6 years.

According to statistics compiled from the MLS database by Linda Rehwalt with RE/MAX Integrity Realtors, Anthem resales are starting to pick up as well. In 2002, 138 homes were sold on the resale market, with an average price of $233,111. In 2003, 312 homes were sold on the resale market with an average price of $239,325. In 2003, 41% of the homes were between $200,000 and $300,000, up from 38% in 2002. However, the number does reflect "field models," which are homes completed by the developers without a buyer. " The heaviest sales as far as units go has been below $300,000," says Rehwalt. "But that goes hand in hand with the fact that there are more houses for sale below $300,000 than in the higher price ranges." Rehwalt sees the biggest reason for owners wanting to sell their house is job relocation, as it is in most other housing markets.

The most formidable competition to sellers is the presence of new home builders in Anthem. A certain contingent of buyers really wants to buy new, but many can be persuaded to buy a resale if the price is significantly lower than a new home. Jeff Wallen, realtor and owner of Hot Realty Inc. in Anthem, says that he creates a "Builder Reproduction Cost Breakdown," which shows how much it would cost to buy the same home new from the builder and add all of the amenities. "These reports justify the costs on many of the resale homes we list in Anthem," says Wallen. Often new home buyers do not take the time to calculate how much landscaping, ceiling fans, pools and spas, and window treatments will cost. With a resale home, these costs are built into the price of the home and can be included in a mortgage.

The Anthem Country Club resales have been more difficult, according to several local realtors, mainly because the pool of buyers coming to Anthem to look at the country club lifestyle is smaller, and the home prices are somewhat higher than in Parkside. However, Del Webb will complete building in the Anthem Country Club much earlier than in Parkside, which might cause prices to increase at that point. Doreen Drew, realtor and owner of Daisy Mountain Real Estate in Anthem, thinks that the Anthem Country Club homes are a good value because of the price comparison between here and other golf course communities. "I'm very optimistic about the Anthem Country Club after the builder sells out," she says. "This is a great time to buy." She mentions that country club properties in Anthem are less now than in other valley country club properties. She also pointed out that the builder has started to increase prices in the Anthem Country Club and Parkside, which will help resale home values as well.

What sells well in Anthem this year isn't always what sells next year, but realtors are definitely seeing some features that buyers like more than ever. According to Wallen, three-car garages and bigger lots are a big draw to potential buyers. He also notes that many people are asking for swimming pools now, because they see the Anthem Recreation center becoming more crowded. Drew says that Country Club buyers are looking for amenities, like granite countertops, plantation shutters, garage cabinets and upgraded tile. She also sees interest in lots that have views.

The consensus advice of Anthem realtors is that it is important to price your home correctly, relative to Anthem new home prices. And with the resale market slower than in other parts of the valley, most home sellers will have to practice some patience.

Outside the box: Desert Hills and New River
Not everyone wants to sacrifice privacy and personal rights to have 30 kids on the street for the little darlings to play with. "Many of those moving into Desert Hills are families wanting out of the subdivision restrictions," says Ed Capps, Century 21 Metro Alliance Realtor and specialist in the Desert Hills/New River area. Another demographic he mentions that are looking for homes in the area are mid-career empty-nesters moving from the Scottsdale area that want to downsize in either price or home size. They better hurry, because Capps says that housing prices in the Desert Hills area have soared in the last year. "Houses that used to be in the 240,000 to 280,000 range a year ago are now in the 360,000-420,000 range."

The New River area is such a diverse mix of housing that it is tough to reach any kind of conclusion about general housing prices. However, Capps says that the Circle Mountain area which is about 6 miles North of Carefree Highway near 7th Street is showing large growth. New construction homes in the area are selling for $230,000 - $350,000, with some homes up to the mid $700's.

Tramonto: The Little Community that Could
Next to its neighbor Anthem, it looks small. But Tramonto is big enough to have its own shopping center and elementary school. At build-out, there will be 2,500 homes, many over the $200,000 range. There are over 1,200 homes sold in the area now, and sales continue to be brisk.

Resales are pricier than in other North Valley areas, reflecting the exclusive tone the community wants to emit. In the resale market, 2000 square foot homes are selling for the low $220s. Even though the Tramonto resales are competing with the builder, Michele Lewellen, realtor for West USA Realty and specialist in the Tramonto market says that resales are holding or increasing their value. "Most homes that have sold on the resale market are seeing a 20% or more increase from their original purchase price," she says. "That is a nice appreciation in such a short amount of time, while competing with the new builds."

Lot sales within Tramonto have been hot. In November, the developer had a pre-release sale of 50 lots, and 40 sold. In late January, there were only 4 left of the current inventory, with prices from $150,000-$170,000 for lots from .47 acres to 1.38 acres.

Real Estate in the North Valley through the Eye of an Appraiser
Sandy Struss, President/Owner for Foothills Appraisal, has appraised over 500 homes in Anthem. When determining a home's value, she checks square footage and the amenities the home has, and compares it against other houses on the market or that have sold in the last six months.

When determining how much your home is worth, Struss believes that you often have to discount the cost of the upgraded tile or the house-wide speaker system. "Depending on the upgrade, you don't always get back the money you spent dollar-for-dollar," says Struss. She particularly mentions a $40,000 pool in the back yard, which adds value to the home, but sometimes considerably less than the homeowner paid.

Though she tempers the expectation of the seller, Struss says that home values are rising in Anthem. "People that have bought in Anthem in 1999 through 2001 seem to be making money," she says, but points out that homeowners that have bought in the past 1 or 2 years need to be more patient, giving the market a chance to "catch up" with the premium added on to the value of a brand new home.

Struss said that the current average days-on-market - the number of days a house stays on the market before it is sold - is between 3-6 months for Anthem homes. She stresses timing; December and January are slower months because people are occupied with holiday festivities. Because Anthem is such a family-oriented community, many of the sales occur in the summer months when the kids are out of school.

Dress Rehearsal: what to do before the buyers visit
The way you present your property to prospective buyers can make all the difference. While you don't want to invest in expensive additions, there are some steps you can take to make your house look like the new-home model you're competing with.

Turn up the curb appeal:
Replace those dead or sickly plants, and make sure the weeds are pulled. Add some potted flowers or flowering plants.

Banish the clutter:
One of the reasons models look so great is that there is zero clutter. Consider packing some of the items you don't use and putting them neatly in the garage or (even better) in a storage facilities. Remember that buyers like to open closets, so de-clutter them also.

Call in the Professionals:
That would be the professional carpet cleaners and the professional tile and grout cleaners. If you can afford it, this is also a great time to call in a house cleaner to perform some of the bigger cleaning tasks.

Dress the Yard:
Mow the lawn, trim the shrubbery, clean the windows, and remove the pet droppings. Also, unless it is the July or August, invest in some flowers to add color to the yard.

Prepare to Paint:
A new paint job may be the best thing you can do to spruce up the look of your home. Neutral colors are usually best, but brighter colors in some rooms may be ok. That pink bedroom your daughter loves may not show well to potential buyers. Get your realtor's opinion on whether you should repaint some of those more original paint jobs.

Check out the Models to see how your home compares. Home buyers will, so you should too. Although you may not be able to afford to upgrade furniture or add expensive window treatments, a simple addition of nicely arranged towels or a beautifully potted plant in the bathroom goes a long way.