Cindy Schulte REALTOR®

June 2024 Newsletter

TRENDING REAL ESTATE NEWS_______________________

Phoenix Well-Positioned to Benefit From Manufacturing Boom, Report says


Phoenix Arizona June 2024 Newsletter
Photo by James Day on Unsplash

Phoenix continues to be a leader in the country for new manufacturing growth from industries including semiconductors, electric vehicles, batteries and more. A new report shows how this activity is supercharging the state’s economy.


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Scottsdale Considers Strengthening Local Laws to Address Noise, Nuisance Parties and Short-Term Rentals


Downtown Scottsdale June 2024 Newsletter
Image by ParsonsVillas from Pixabay

*Update* – The City Council adopted these ordinance changes May 6; they take effect 30 days later (June 6, 2024).


The Scottsdale City Council on May 6 will consider amending city code provisions to improve the city’s ability to hold people accountable for noisy neighborhood gatherings which often occur at short-term rental properties.


Three ordinance changes will be presented for adoption:


  • Promoters who use residential properties for nuisance parties will be defined and designated as a responsible party under city code, increasing the city’s ability to hold bad actors accountable for causing nuisance parties in neighborhoods.
  • Scottsdale police will be provided the authority to remove non-residents from a property after a nuisance party is declared, something that is not easily done under existing city code.
  • Minors will be specifically prohibited from renting a short-term rental property, allowing the city to better enforce violations when necessary.


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Mack Real Estate Group Affiliate Prevails at Auction for 2,300+ Acres at Taiwan Semiconductor Campus in Phoenix


Photo by Aleksejs Bergmanis from Pexels

An affiliate of Mack Real Estate Group (MREG), Biscuit Flats Dev LLC, has prevailed at an auction held to sell the development rights to over 2,300 acres of fully entitled land immediately adjacent to Taiwan Semiconductor Manufacturing Corporation’s (TSMC) semiconductor fabrication campus in Phoenix’s North Valley, where TSMC has committed to invest $65 billion in its rapidly growing facilities, with significant further investment anticipated. The project was awarded by the Arizona State Land Department (ASLD) to Biscuit Flats Dev LLC as winning bidder in an auction process for the right to lead what is expected to be a $7+ billion mixed-use development of more than 28 million square feet surrounding one of America’s most powerful new employment and innovation drivers, and perhaps the most indispensable company in the world, TSMC. McCourt Partners will be making a significant investment in the project in partnership with MREG.




“TSMC’s Phoenix semiconductor fabrication campus is a tremendous economic driver with local, national, and global significance,” said Richard Mack, CEO of MREG, developer of the vast mixed-use project. “TSMC is quite simply one of the most important companies in the world. TSMC produces the chips that allow for exponential innovation and for the continued development of artificial intelligence. Together with ASLD and McCourt Partners, we are privileged to help in the building of a new type of city that both supports and leverages the domestic and international digital transformation enabled by TSMC’s new semiconductor manufacturing campus. We hope that this new silicon city will serve as a model for public-private cooperation, to not only bring back high-tech manufacturing jobs to the US, but also to create the live/work environments of the future. MREG and McCourt bring extensive local knowledge, seasoned national development experience, and the benefit of federal and global relationships and we believe we are well positioned to maximize the value of this unique site.”


“A transformative project of this magnitude is an opportunity to not just contribute to, but actively drive a city’s growth,” adds Jordan Lang, President of McCourt Partners. “Our passion for building has always been with an eye to the future, and we’re excited to partner with MREG to establish essential infrastructure alongside the TSMC campus and help shape a city that fosters innovation with global impact.”


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MARKET UPDATE_______________________


June 2024 Newsletter Graphic from Cromford Report


Price Negotiations and Concessions are Hot and Heavy This June

Will Rates Decline This Summer

For Buyers:


It’s feeling a bit like the movie “Groundhog Day” in the Greater Phoenix housing market as we relive the same scenario over and over. The Federal Reserve met this month and once again opted not to reduce the Federal Funds Rate, keeping it steady now for 12 months in a row. On the same day, the Consumer Price Index was released showing the annual inflation rate declined to 3.3%. The combination resulted in conventional mortgage rates dropping from an average of 7.16% to 6.98% in one day. This was expected, however the Federal Reserve board announced they anticipate one rate cut this year, possibly in September. That could mean a mortgage rate drop in late summer, if we dare hope.


While the drop is positive for buyers, rates are still too high to expect a major boost in demand at this stage. Sluggish demand combined with supply that’s 54% higher than last year is creating an environment for buyers that hasn’t been this accommodating in 10 years. Price negotiations are ramping up, but they look different depending on the price range.




On paper, price negotiations in the mid-range between $300,000-$500,000 look similar to last year, landing around 98.7% of asking price, down from 99.0%. This equates to a closing price about $5,200 lower on a $400,000 home compared to $4,000 lower last year. What’s not reported in the media is the rising percentage and cost of seller incentives to the buyer. In this price point, the majority of buyers are sensitive to their monthly cash flow more than the final sales price. Therefore, 55% of sales are closing with seller incentives to supplement buyers’ payments temporarily, compared to 49% last June. The median incentive to the buyer is currently $9,400, up $1,200 from last year’s median of $8,200. Combined, buyers are receiving approximately $14,600 (an extra $2,400) in both price negotiations and closing cost assistance, putting the true ratio of sale price to list price at approximately 96.4% for our $400,000 sale.


Buyers over $1M are less influenced by mortgage rates and concessions and prefer to negotiate the price directly. Price negotiations so far this June are closing at 94.9% of list, down from 96.4% of list last year and 96.1% last month. On a $1M purchase, that equates to an average $51,000 negotiated price reduction, up from $36,000.


For Sellers:


While the industry hopes for lower mortgage rates in the latter half of 2024, active sellers can only address where the market stands presently, which is a challenge. Supply has been rising all year long, but has slowed its roll over the past 3 weeks. Seasonally, supply fluctuations level out in the summer before picking up again around late September and early October. The increase in competition for sellers has resulted in 12 Greater Phoenix cities in less populated outer cities sinking into a balanced or buyer’s market over the course of 2 months, while 13 out of 17 seller’s market cities in the densely populated interior weakened.


Not-so-perfect listings, those that appear to have delayed maintenance issues, need excessive repairs, or simply don’t show well, have the most trouble in these environments. With so many other homes to choose from, these homes may not even get a showing in many area cities regardless of their attractive list prices.


Even perfect listings may suffer from dashed expectations in this market. While these homes that smell like a Spring breeze, well maintained with updated finishes, will sell in any market, seller expectations for time on market and price may not be met. As the market shifts abruptly from Spring to Summer, the median marketing time prior to contract has grown from a historical standard of 3 weeks to 4 weeks and more than half of existing listings will experience at least one price reduction within that time frame. Sellers haven’t seen a supply/demand ratio like this since about 2014-2015, so managing expectations and patience will be key to navigating a successful sale.


Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2024 Cromford Associates LLC and Tamboer Consulting LLC




FOR THE HOME_______________________


The 7 Hottest Home Renovations Everyone’s Dying To Do This Summer


Summertime is the ideal season to tackle some home improvement projects, and a new study reveals what we’re itching to upgrade the most.


Home design site Houzz just released its Emerging Summer Trends report, where the pros have analyzed data on the most-searched terms for the site, measuring year-over-year growth from January-March 2024 versus January-March 2023. The results reveal that today’s homeowners are eager to carve out spaces where they can relax, read a book, and truly relish their leisure time.


If you’re looking for ideas on how to improve your own abode this summer, check out what’s trending according to the report.


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Modern decor

Photo by Max Vakhtbovycn on Pexels




What to Know About Patio Misting Systems


Looking for an affordable and efficient way to stay cool this summer? Learn how outdoor mist cooling systems can help.


With so many regions regularly experiencing record-breaking heat, more and more homeowners are looking for new and better ways to cool off. Enter outdoor mist cooling systems (a.k.a. patio misting systems), which offer an effective, energy-efficient and affordable outdoor cooling solution. That’s especially important as more people gather outdoors to limit the spread COVID-19.


Read on to learn what outdoor mist cooling systems are, how they work and what makes them so great.


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Patio June 2024 Newsletter

Photo by Pixabay on Pexels




LOCAL ADVENTURE_______________________


June Days in Old Town Scottsdale



On the list of most popular months to visit Old Town Scottsdale, June makes a compelling argument to be number one. June Days was originally started as a fun concept to kick off summer before the heat set in. However, it has become a celebration of all things that make this area so unique. Daily activities and events include wine tastings, art exhibits, crafting workshops, live performances, and family-oriented outings. As a result, June Days leaves visitors with suntans and sunshiny demeanors. They yearn to return again for more signature Old Town fun.


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Arizona desert scene

Photo by Robert Murray on Unsplash



Father’s Day Lunch at the Musical Instrument Museum


Father and daughter on Father's Day June 2024 Newsletter


Father’s Day Lunch

Special brunch menu: $48 per person

Special Father’s Day Lunch Menu

Your choice of first course:

Short rib dip
Green chile queso topped with pulled short-rib, crispy tortillas, pico de gallo

Arancini (VEG)
Spicy Calabrian chili arrabiata

Your choice of entrée:

Grilled flat iron steak salad (GF)
Buffalo mozzarella, heirloom tomatoes, basil, first pressed olive oil, balsamic reduction, roasted garlic chips

Croque monsieur
Brioche bread, béchamel, pit ham, gruyere cheese

Your choice of dessert:

IPA stout cake
Peanut butter mousse
Valrhona chocolate buttercream

Your choice of drink:

Bloody Mary

Red, white, sparkling

Choice of local microbrew



Full bar also available for purchase.
To view the complete Café Allegro menu, click here.

GF—Gluten Free
DF—Dairy Free

Menu is subject to change.


Photo by jovenilton from Pixabay


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See something that interests you in this June 2024 Newsletter? Contact me and we can check it out together! Feel free to call me directly at 480-788-5446.


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