TRENDING REAL ESTATE NEWS_______________________
Phoenix Identified as a Top Market for Growth in 2024
Phoenix is listed as the #2 Top Market for Growth!
The Sun Belt is poised for the strongest residential real estate growth in the United States, according to the 2024 Emerging Trends in Real Estate report, released jointly by PwC and the Urban Land Institute every year.
Based on thousands of surveys and hundreds of personal interviews, the annual report provides an in-depth real estate outlook for the U.S. and Canada. And this year, several cities stuck out as hotbeds for development.
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Here’s how Arizona Population Boom is Impacting the Economy
The population has increased by 11% over the past decade
Arizona has become a magnet for a significant migration wave, with Phoenix at the epicenter of this population boom. The population has increased by 11% over the past decade, outpacing the national growth rate, according to the U.S. Census Bureau. This influx of residents brings significant economic growth to the state of Arizona as well.
Over the past decade, employment increased by 492,645 jobs, to 3,030,216 jobs in 2020 from 2,537,571 jobs in 2010. Additionally, the median sales price for all housing types during the month of May this year was down 3.2% from a year ago at $350,390, according to the Arizona Association of Realtors.
Phoenix, as the state’s capital and largest city, has borne the brunt of this growth. The Greater Phoenix Chamber reports that the metro area’s population swelled to nearly 5 million, making it the fifth most populous city in the United States.
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MARKET UPDATE_______________________
Greater Phoenix Balanced Market May Not Last Long
These Two Factors Could Further Drop Mortgage Rates in 2024
For Buyers:
Greater Phoenix has moved out of a seller’s market and into a balanced market, but it’s unclear how long this opportunity will last for buyers. December is typically the calm before the storm each year for the housing market, and this year is no different. New listings are at their lowest this month as many sellers opt to wait until January to list their home. As a result, supply can become stale and picked over. However, the lull is a window of opportunity for negotiations as the remaining sellers want to be under contract before the wave of new listings come in the new year.
There is uncertainty mixed with hope in the market today as mortgage rates have declined from 8.0% to 7.0% since October. Every day the mortgage rate declines, more buyers are able to purchase. Last year, also from October to December, rates dropped from 7.4% to 6.1%. This was enough to pull the housing market out of a buyer’s market, into balance, and eventually a seller’s market once again by January. This put upward pressure on price until May, when rates rose once again to 7%. If rates continue their decline and drop below 6.5%, we expect to see noticeable improvements in buyer demand as we enter 2024.
This November, the Consumer Price Index inflation rate took a positive turn down and the Federal Reserve did not raise the federal funds rate, both measures were key factors in the current mortgage rate decline. This month, the inflation rate once again declined and the market expects the federal funds rate to remain unchanged, stirring emotions of hope and anticipation that rates will continue declining as mortgage applications rise.
The rapid decline of rates is preventing Greater Phoenix from dropping entirely into a buyer’s market at this stage, which is causing analysts to question how long the opportunity will last. The combination of a sustained balanced market and the weakest month of the year seasonally means that the best thing buyers can do is stay vigilant in their search for a home and take advantage of this quiet time. Once the new year begins, the market could heat up quickly.
For Sellers:
While Greater Phoenix is in a balanced market overall, it’s not evenly distributed. As of December 7th, most of the cities in Pinal County and the edges of the valley are in buyer’s markets. They include Cave Creek, Sun City, Surprise, Buckeye, Maricopa, Casa Grande, Queen Creek, and Gold Canyon. Balanced markets are Paradise Valley, Goodyear, Peoria, Sun City West, Litchfield Park, and Arizona City. All other cities are in seller’s markets, but much weaker than they were a month ago.
The top 5 seller’s markets, in order, are Tolleson, Anthem, Apache Junction, El Mirage, and Sun Lakes. Close behind are Chandler, Laveen, and Fountain Hills. While these cities lean the most towards sellers, the only cities showing significant price increases since June are Anthem, Sun Lakes, and Fountain Hills. Despite being strong seller’s markets, Laveen and Tolleson have 76% and 71% of their sales closing with significant buyer incentives at median costs of $13,500 and $10,000; much higher than the valley-wide measures of 44% and $9,626 for December.
Leading supply and demand measures indicate sales price measures should go flat over the next 3-6 months. Demand is expected to increase once the new year begins, but competing supply may offset it. Pushing the market too far on what price it’s willing to bear will most likely result in more days on market. Focusing on getting your home in the best possible condition, budgeting appropriately for buyer incentives, and managing expectations for price will get your home sold faster in this environment. These are the markets where quality marketing, exposure, and agent representation truly make a difference.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2023 Cromford Associates LLC and Tamboer Consulting LLC
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FOR THE HOME_______________________
Boosting Curb Appeal – 7 Real Stories of Property Enhancements
To provide you with the best insights on enhancing a property’s curb appeal, we’ve gathered seven unique experiences from CEOs, founders, and real estate agents. From a transformative customer pathway lighting installation to the impactful addition of power washing and outdoor furniture, these industry leaders share their most effective strategies and specific experiences that made a significant difference.
When it comes to boosting curb appeal, here are seven real stories of property enhancements:
- Custom Pathway Lighting Installation
- Front Landscaping Design and Accessories
- Colorful Aesthetic Improvements
- Bush Trimming to Better View the Home
- Landscaping Revamp and Market Impact
- Fresh Paint Coat Boosts Appeal
- Power Washing and Outdoor Furniture Addition
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30 Best New Year’s Eve Party Ideas to Ring in 2024
Find creative ways to celebrate with your friends and family!
Everyone has their favorite New Year’s traditions they look forward to each December. For some of us, that means throwing a fun New Year’s Eve party with all of our favorite people. What better way to ring in the new year than with family and friends by our side?
Whether you’re planning to countdown to 2024 with a low-key New Year’s Eve dinner, a New Year’s movie on the couch, or an over-the-top bash, these New Year’s party ideas will help you make the evening one to remember.
And if this is your first time hosting a New Year’s party, you’re in good company. Ree and Ladd Drummond had never thrown a NYE party until just a few years ago—and it was a huge success! Stick to these festive ideas, and yours will be, too!
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LOCAL ADVENTURE_______________________
Scottsdale’s Winter Top 10
Winter in Scottsdale is about as perfect as it gets. Think sunny, blue skies and daily highs hovering near 72 degrees (22C) from December though mid-February. It’s a great season for exploring Scottsdale’s Sonoran Desert, playing a round of championship golf or taking in one of our signature events. Here are 10 of our favorite ways to play in Scottsdale’s warm winter wonderland!
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Enchant Christmas
What to expect at Enchant Christmas Scottsdale
Within Enchant Christmas, a world of Christmas wonder awaits holiday revelers in the form of many festive activities, including:
- The World’s Largest Christmas Light Maze
- Christmas Village
- VIP & Private Event Experiences
- Visit with Santa and Mrs. Claus
- Seasonal Food and Beverage
- Ice-Skating Trail
- Live Entertainment
See something that interests you? Contact me and we can check it out together! Feel free to call me directly at 480-788-5446.
