TRENDING REAL ESTATE NEWS_______________________
Mayor Says $1 Billion The Parque Projects is “A Huge Win for Scottsdale”
After a lengthy review process, the Scottsdale City Council approved an ambitious $1 billion, 32-acre mixed-use development project called “The Parque” on a site that was once home to the CrackerJax amusement park on north Scottsdale Road.
Plans call for a variety of buildings that encompass a 2-acre “Central Park” green space that will be open to the community. Structures will feature a diversity of architectural styles for uses that include more than 250,000 square feet of commercial space, a hotel, and residential, with up to 1,322 residential units and hotel rooms combined.
Development plans place a strong emphasis on sustainable practices, with a special focus on conserving water, mirroring Scottsdale’s commitment to eco-friendly urban development.
Image by Roshan Bhagat from Pixabay
___________________________________________________________________________________________________________________
5 Things to Know About Arizona Water Heading Into 2024
Valley Partnership hosted development professionals to hear from state water policy leaders about the work being done to conserve the state’s water supplies and identify new sources. Here are highlights and five things to know about Arizona water heading into 2024:
“Arizona, California and Nevada were able to come together earlier [in 2023] to conserve 3 million acre-feet of Colorado River water through 2026 — that’s about 1 trillion gallons. And by the end of [2023], we are on track for more than 1 million acre-feet conserved in Lake Mead, bringing consumptive use in the lower basin states to around 5.8 million feet, the lowest level in 40 years … While these are critical and necessary steps in the short term to stabilize the system, we have to recognize that relying on drought dollars from the Inflation Reduction Act to pay users to leave water in the Colorado River is quite literally only buying time. What it doesn’t do is resolve questions over the long haul, and we can’t lose sight of that.”— U.S. Congressman Greg Stanton
Image by Angelo Giordano from Pixabay
___________________________________________________________________________________________________________________
MARKET UPDATE_______________________
It’s Back! Greater Phoenix is in a Seller’s Market Again
When the Mortgage Rate Drops 1%, the Payment Drops By….
For Buyers:
Well the balanced market didn’t last long, 7 weeks to be exact. Last month the Federal Reserve gave the housing industry a much needed gift. Not only did they not raise the Federal Funds Rate, they also announced their intention to drop it three times in 2024. Conventional mortgage rates responded by dropping from 7.1% to 6.62% within 2 days. Mortgage rates have now dropped 1.4% since they peaked at 8% in October 2023, saving a borrower nearly $380 per month on a $400,000 loan, a payment decline of 13%. For perspective, each time the rate drops by 1%, the mortgage payment can drop between 9-10% depending on where it started, in many cases saving at least $200/month*. This rate drop was enough to give December’s mortgage applications a boost, which could be a precursor to January’s accepted contract counts.
In addition to the savings from declining mortgage rates, December ended with 49% of sales involving a seller-paid concession to the buyer at close of escrow, at a median cost to the seller of $10,000. Coolidge had the highest percentage of sales with concessions at 81%, followed by Laveen at 79%. Coolidge has a median sales price of $305,000 with the majority of sales being new construction. Laveen has a median sales price of $436,000, also with a majority of new construction. You’ve probably already picked up on the trend here. Over 76% of all newly constructed home sales that closed through the Arizona Regional MLS noted some form of builder-paid concession. If they were sold for under $500,000, that percentage rises to 82%. The majority of concessions go towards further buying down the buyers’ mortgage rate, temporarily or permanently.
Greater Phoenix in 2024
So what can Greater Phoenix expect for 2024? It’s reasonable to expect some relief, not in the form of declining prices but in declining mortgage payments. Combine this with rising family incomes and we can expect affordability measures to improve along with demand. It’s not reasonable to expect another insane market with skyrocketing prices like 2020-2021, or another 12.5% drop in values like 2022. It could be quite boring in terms of price for the first quarter, but uplifting with more traditional home buyers getting back in the game. Things could get more exciting after the Federal Reserve meets again at the end of January and further reveals their plan for the Federal Funds rate in 2024. Stay tuned.
For Sellers:
While Greater Phoenix is out of a balanced market and continually improving, the seller’s market is still very weak so a combination of good condition and price remains key to facilitating an offer within a reasonable time frame, along with an open mind regarding concessions to the buyer. New listings so far in the first week of January are higher than last year, but not high, and while inventory is beginning to rise moderately it’s still 37% below normal for this time of year.
Not all cities are in a seller’s market, the distribution is as follows from strongest-to-weakest:
Seller’s Markets: Tolleson, Apache Junction, Fountain Hills, Chandler, Gilbert, Laveen, El Mirage, Anthem, Glendale, Sun Lakes, Phoenix, Scottsdale, Mesa, Avondale
Balanced Markets: Tempe, Litchfield Park, Sun City West, Peoria, Goodyear, Surprise, Paradise Valley, Arizona City
Buyer’s Markets: Cave Creek, Gold Canyon, Queen Creek, Sun City, Casa Grande, Buckeye, Maricopa
Most cities are either gradually improving or holding steady in their market measures. Sale price measures in January will reflect December negotiations, but with this turn in the market fueled by lower mortgage rates and seller concessions we can expect sales price measures to be sustained in the first quarter. The second quarter could get exciting if rates continue down.
*Talk to a qualified lender to determine your specific circumstance
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2023 Cromford Associates LLC and Tamboer Consulting LLC
___________________________________________________________________________________________________________________
FOR THE HOME_______________________
2024 Interior Design Forecast
From plunge pools to bee-friendly gardens, gas ranges to hidden kitchens, the dawn of mid-pastels to the rise and fall of greige—this year at AD PRO, we’ve tackled the topics designers are asking about in our member-exclusive trend reports. For our final dispatch of 2023, we’re going whole-home. We are bringing you the reporting and expert predictions you’ll need to stay ahead for the next lap around the sun. The insights below have been culled from AD’s comprehensive network of designers across the globe. This includes AD100 listees, AD PRO Directory members, connoisseurs in color—and even editors on our own team. We hope you’ll find their revelations as compelling as we do. —Lila Allen, senior editor, AD PRO
Image by Rudy and Peter Skitterians from Pixabay
___________________________________________________________________________________________________________________
Interior Design Trends 2024: Fresh Ways to Reinvent Your Home
It’s time to usher in the new and let go of what’s outdated! Buckle up because the new year is bursting with the thrilling future of home décor and design. So, if you’re ready to bid farewell to the ordinary and embrace the extraordinary, read on. Here are the most captivating interior design trends of 2024!
___________________________________________________________________________________________________________________
LOCAL ADVENTURE_______________________
11 Hidden Gems to Discover in Scottsdale
These signature Scottsdale experiences might be a bit off the beaten path, but they’re worth seeking out! Pick one or try them all for a memorable Scottsdale getaway.
Image by ParsonsVillas from Pixabay
___________________________________________________________________________________________________________________
Scottsdale Arts & Culture
The Scottsdale arts scene vibrates with a creative energy all its own. Experience art-driven events like the free weekly ArtWalk, Canal Convergence and Scottsdale Contemporary Month. Catch Broadway shows at our performing arts theaters. Take a walking tour of public art installations in Old Town. However you’d like to indulge your creative muse, you can do it in Scottsdale!
Image by DiannaHelm from Pixabay
See something that interests you? Contact me and we can check it out together! Feel free to call me directly at 480-788-5446.
