TRENDING REAL ESTATE NEWS_______________________
Ranking Arizona: Top 10 Active Adult Communities for 2024
Here are the Top 10 active adult communities in Arizona, based on public voting for the 2024 edition of Ranking Arizona, the state’s biggest and most comprehensive business opinion poll.
Ranking Arizona is based purely on opinion and ranks companies based on how voters answer this simple question: with whom would you recommend doing business?
Top 10 Active Adult Communities
1: Spendido 2: Province 3: Johnson Ranch 4: Ironwood Crossing 5: CantaMia by Taylor Morrison 6: Terravita 7: Corte Bella 8: Trilogy at Power Ranch 9: Del Webb at Dove Mountain 10: Encanterra.
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MARKET UPDATE_______________________
Why Homeownership is a Hedge Against Inflation
Sellers Compete on Condition as Builders Ramp Up New Permits
For Buyers:
Inflation is a hot topic today. Talk to any investor about hedging inflation and they may bring up strategies that include gold, commodities, rentals, or even cryptocurrency. For young adults, however, the first step towards hedging inflation is typically moving out of a rental and into homeownership. Let’s discuss why.
Consumer Price Index (CPI)
The Consumer Price Index (CPI) is arguably the most quoted inflation measure in mainstream media. Most readers assume the main driving forces of the CPI are food and energy. They make up 20% of the weight, so that’s a fair assumption. However, it’s shelter costs that are weighted the heaviest of all the categories at 36%, specifically the cost to rent. Nowhere in the CPI does the cost to purchase a home come into the equation because there is no rent to pay if it’s purchased with cash, or the cost is fixed for 30yrs if there’s a mortgage.
So while the Consumer Price Index has increased 12% since June 2022, once shelter is removed the increase is only 2.1%. One could argue that this is the 2-year inflation rate for those who own their primary residence versus rent, which accounts for roughly 64% of all households in Maricopa County.
For Sellers:
It’s the peak Spring buying season in Greater Phoenix, although it may not feel like it for some sellers. The housing market has begun to drift towards another balanced state over the past 4 weeks, which is the result of an accumulation of supply as demand remains weak. Listings under contract are only down 6% compared to last year, but active listings are up 26%. Days prior to an accepted contract would be 3 weeks at this time of year normally, but current conditions are adding an extra week for sellers.
Word on the street is resale homes needing to be remodeled or updated are sitting a bit longer as builders are ramping up permits for new homes. In fact, single family permit activity is up 125% year over year for January and February and-new home sales are up 16%, surpassing 2021 (the previous 10-year high mark). The competition isn’t just for the sub $500K market either. Luxury new home sales over $3M are up 79% so far this year and up 28% between $1M-$3M.
Resale Listings Versus Financing a Remodeling Project
The struggle for resale listings that need paint, carpet, or significant changes is that fewer traditional buyers have the capacity to finance a remodeling project with current rates, or they may not be able to visualize the space any other way, or they may think the cost and time for basic renovations is greater than it is. As far as investor purchases go, wholesale offers are due to get uglier with increased holding costs, stagnating monthly appreciation, and smaller returns. Flip sales are down 74% from 2 years ago and at a level comparable to 2015.
Whether it’s getting quotes for work, renditions to help with visualization, or advising the seller on the most important updates to make prior to listing, it’s markets like this where professional representation and feedback makes a difference for both sellers and buyers. Despite current challenges, sellers are averaging 97.8% of their last list price at close of escrow so far this month. Seller-paid closing-cost assistance is down 2% to 44% of sales, and the median sales price increased to $444,900, up 6% from last year.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2024 Cromford Associates LLC and Tamboer Consulting LLC
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FOR THE HOME_______________________
Detroit Went All In on Big, Expensive EVs Nobody Wants. Here’s What the Data Shows They’d Rather Buy
When the automotive industry started looking toward an electrified future, Detroit automakers decided to throw their hat in the ring with what they do best: pickup trucks.
The first entrants to the electric-pickup market enjoyed some early success, particularly in the Ford F-150 Lightning. But sudden changes to the electric-car-shopper demographic mean that for the second time in the past 20 years, Detroit finds itself selling big, expensive cars nobody really wants.
Behemoths like the GMC Hummer EV and Lightning feature price tags that can reach six figures. However, they aren’t resonating with EV shoppers. Their priority is value and practicality.
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Desert Modern House
Discover stunning design ideas for desert modern houses that combine the beauty of the desert landscape with modern architecture. Create your dream desert oasis with these inspiring ideas.
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LOCAL ADVENTURE_______________________
Oliver’s Modern American will open in Scottsdale this May
After months of anticipation, Clayton Companies is once again boosting South Scottsdale’s dining cred with the opening of Oliver’s Modern American. The new dinner restaurant and lounge is located at 3207 N. Hayden Road, next to sister restaurant, The Eleanor. Oliver’s will open in an iconic mid-century building that was saved, moved, and rebuilt. The grand opening is scheduled for later this spring.
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Mott 32 will be Signature Restaurant at The Ritz-Carlton Paradise Valley
Renowned for its innovative approach to traditional Chinese cuisine and exquisite dining experiences, Mott 32 Scottsdale promises to captivate diners with its rich heritage, impeccable service and unparalleled culinary excellence. Serving lunch and dinner daily, the 4,600-square-foot restaurant will include a vast 4,100-square-foot outdoor patio with stunning pool and mountain views. Guests can expect traditional Cantonese dishes with some Beijing and Szechuan influences, prepared using the latest in modern and innovative cooking techniques from around the world, including the signature 42-day apple wood roasted Peking duck expertly carved for patrons tableside, barbecue pluma Iberico pork glazed with yellow mountain honey and other delicacies. An expansive dim sum selection will feature steamed, fried and baked dumplings, including the signature soft quail egg, cleverly placed inside an Iberico pork siu mai with black truffle.
“We are excited to bring Mott 32’s unique and exquisite style to The Ritz-Carlton, Paradise Valley,” said Xuan Mu, founder of Mott 32. “This partnership is the perfect collaboration between luxury, opulence and tradition coming together to create a sense of community that Mott 32 is renowned for. We are excited to introduce our social fine-dining style to the region.”
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Scottsdale Captures Top Environmental Award for its Civic Center Renovation
Arizona Forward honored the city and the Scottsdale Civic Center with a Crescordia award in “Civic Buildings, Structures, and Landscape Design.”
The Crescordia — a Greek term meaning “growing in harmony” — is the highest honor in each category of Arizona Forward’s environmental excellence awards program, according to a press release.
“Our spectacular, reborn civic center campus debuts three outdoor stages, more than 100 new trees, and reduced turf areas. As a result this saves millions of gallons of water a year. It also features wide promenades, which link Scottsdale Stadium, Civic Center Library, City Hall, Scottsdale Center for the Arts and historic Old Town,” mayor David Ortega said in the release. “Arizona Forward and the City of Scottsdale truly are aligned in the pursuit of responsible stewardship of our natural and built environments.”
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See something that interests you in this April 2024 Newsletter? Contact me and we can check it out together! Feel free to call me directly at 480-788-5446.
