TRENDING REAL ESTATE NEWS_______________________
7 Affordable Countries Where Americans Can Easily Buy Real Estate
Many American citizens are considering a move overseas, perhaps for the first time in their lives. Housing costs remain high and a politically fraught election is coming up in November.
Inquiries about relocating abroad rose dramatically after the first debate between President Joe Biden and Republican nominee Donald Trump.
“People say they want a Plan B. They are worried about political instability,” according to immigration attorney Jean-Francois Harvey of Harvey Law Group..
Golden visas have been an easy and popular way for Americans to buy real estate abroad and gain permanent or long-term residency. However, many preferred countries (mostly in Europe) have rolled them back after local residents were being priced out of the market.
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Scottsdale is the No. 6 Most Affordable City in the U.S. for Remote Workers
August 2024 Newsletter Flash: Are you looking for an affordable city to work from home? Scottsdale is one of the most affordable cities in the country for people who work from home, according to a report from CoworkingCafe.
Scottsdale has an abundance of public coworking spaces with about 12 spaces for every 100,000 residents. Additionally, about 33% of the city’s workforce is remote, indicating a strong remote work culture. The local job market is thriving, and the city has an unemployment rate of only 2.6%.
Scottsdale is also known for its strong and consistent internet connectivity. This makes it ideal for remote workers who need to do their jobs on the go.
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MARKET UPDATE_______________________
Mortgage Rates Drop Again – Homes are 10% Off
Record Share of Sellers Paying Buyers’ Fees
For Buyers:
On August 5th, everything went on sale in the housing industry. As discussed in last month’s edition, multiple factors are pointing towards improvements in mortgage rates this year. Well, it happened faster than many were expecting at the beginning of August as average mortgage rates dropped abruptly to 6.3% before settling at 6.5%, a significant improvement from last April’s average rate of 7.5%. The net result for buyers was a 10%-11% drop in the principal and interest payments regardless of loan amount. Loans between $300K-$400K saw calculated payments drop from $200-$270 per month, while those between $450K-$550K saw drops between $300-$370 per month.
The drop spurred an immediate 16% increase in refinance applications week over week, per the Mortgage Bankers Association, as homeowners who decided to buy and “date” their 7%-8% rate over the past year started thinking about a break up. Purchase applications also increased, but by just 1%. This is not unusual because when mortgage rates make big strides down, the first response by buyers is to wait and see if they decline further. Once rates stabilize under 6.5% for a little while, more demand may materialize.
Incentives for Buyers
In the meantime, a record share of sellers are paying for their buyers’ closing fees. So far in August, 55% of sellers agreed to concessions, with half of them paying out $9,800 or more. Even as mortgage rates decline, tools such as the 2/1 buy-down are still the norm. Temporary 2/1 buy downs are contributions by the seller used to supplement 10%-20% of the buyer’s payments for 2 years. They typically cost around 2.3% of the loan amount.
On a $400,000 loan, the rate change of 7.5% to 6.5% from April to August drops the monthly principal and interest payment from $2,797 to $2,528, saving a buyer $269 per month. Combined with a 2/1 buy down courtesy of the seller, the buyer pays the equivalent of 4.5%, instead of 5.5%, for the first year, dropping the PI payment to $2,027, saving an additional $501 per month. That’s a total of $770 in monthly savings to the buyer as a result of the recent rate change this month and more than half of sales with seller-paid incentives.
For Sellers:
As mortgage rates hopefully continue to improve gradually with emerging economic data, sellers will still need to drum up all of their available patience when listing their home. Buyers don’t move nearly as fast as the stock market does when the Federal Reserve speaks or employment reports are released. While all eyeballs are on the demand line to see if it moves higher, buyers still have to fill out applications, submit paperwork, and get moving. Meanwhile, half of sellers who accepted contracts so far this month were on the market for 37 days or longer before they tasted success.
Balanced Market
The good news is that the demand index, seasonally adjusted, has stopped declining since the rate drop and there’s little movement towards a buyer’s market at this time. Greater Phoenix remains in a balanced state. The bad news is prices are stagnate, rising only 1.9% from this time last year. While it’s tempting to test and push the market to achieve the highest price possible, the consequence for that strategy could be longer time on the market and multiple price cuts, which are up 67% compared to last year.
Managing expectations is key to a positive selling experience. Balanced market conditions cannot meet the high seller expectations of a seller’s market. Listings typically require more work and a solid strategy, even if they’re in perfect condition. At a time when real estate professionals are experiencing intense scrutiny and change, this is the market where they are needed the most.
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_______________________
The 5 Best Hospitals in Arizona, According to U.S. News & World Report
U.S. News & World Report, the global authority in hospital rankings and consumer advice, today announced the 2024-2025 Best Hospitals. Best Hospitals evaluates nearly 5,000 hospitals in more than 30 medical and surgical services. It has been performing this evaluation for 35 years. U.S. News also evaluated 115 hospitals in Arizona to determine the five best hospitals in Arizona. I am glad to share this valuable information with this August 2024 Newsletter.
U.S. News evaluated 115 hospitals in Arizona. Seven meet high U.S. News standards and are ranked in the state. U.S. News also ranked hospitals in the Phoenix and Tucson metro areas. The No. 1 hospital in Arizona is Mayo Clinic-Phoenix. See also Best Children’s Hospitals in Arizona.
Photo by Pixabay
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Insects and Arizona Monsoon Season: What You Need to Know
When rains arrive here in Arizona, beetles burrow out of the soil to mate, winged ants and termites swoon and swarm in their own nuptial flights. As a result, a flurry of other critters look to feast at the party.
Some of the more common bugs such as cockroaches, mosquitos, harvester ants and scorpions may be out in bigger numbers with the increase in precipitation. With help from University of Arizona research, here are some of the more unique critters you might also see make an appearance this monsoon.
Photo by Erik Karits at Pexels
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LOCAL ADVENTURE_______________________
August 2024 Newsletter Highlight: Scottsdale Quarter Announces Redevelopment Plans
The premiere outdoor shopping destination Scottsdale Quarter has announced an expansion project that will add several popular retailers and eateries. The transformed space will see several new storefronts along North Street, The Quad, South Street, and 72nd Place.
“We are delighted to initiate this redevelopment, bringing an enhanced shopping and dining experience to Scottsdale Quarter,” General Manager Zach Buckhardt said. “Our goal is to continually evolve and offer the community the best in retail, dining and entertainment. These additions reflect our commitment to providing a dynamic and lively destination for all our visitors.”
Some of the major name brand retailers coming to Scottsdale Quarter include Williams Sonoma and Pandora.
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19 Arizona Restaurants Named in Restaurant Awards by Wine Spectator Magazine
Wine Spectator, the world’s leading authority on wine, has unveiled the winners of the 2024 Restaurant Awards, which honor the world’s best restaurants for wine. This year’s awards program recognizes 3,777 dining destinations from all 50 states in the U.S. and more than 75 countries internationally.
Arizona is home to 19 restaurants that have been honored this year, and I am glad to highlight them in this August 2024 Newsletter. Launched in 1981, the Restaurant Awards represent the world’s only program focused exclusively on restaurant wine service. They are assigned on three levels: the Award of Excellence, the Best of Award of Excellence and the Grand Award, with 2,150; 1,531; and 96 winners this year in each respective category.
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See something that interests you in this August 2024 Newsletter? Contact me and we can check it out together! Feel free to call me directly at 480-788-5446.
