Realty Executives Phoenix

Denise van den Bossche

Denise van den Bossche

Blog

HomeBuyer Opportunities: November 2022

(Published on - 11/3/2022 5:50:35 PM)

The 4th Quarter is historically the best time to be a buyer, and 2022 is no exception. YES, EVEN WITH THE LATEST INTEREST RATE HIKES! Date the Rate, Marry the House. Rates WILL come down. Talk to me about some of the ways you can negotiate rate buy-downs.  There is more inventory and less competition right now. And we still have a serious housing shortage here. When interest rates drop, as they must, we expect a quick bounce back into a strong Seller's Market. Check out my 2-minute November update here. Missed it? Check out  the most current market update here.

Sellers today do have a choice and those without an immediate need to sell have chosen to wait. This is reflected in some of the lowest counts of new listings coming on the market this time of year. The key words for sellers in this market are condition (buyers are demanding full updates), price, concessions (such as rate buy-downs) and patience.

Regarding the effect of interest rates on the overall market, when mortgage rates hit 7% last week, 24% of all MLS listings in the greater Phoenix area had price reductions (over 4,400 listings).  

 

Transfer of Wealth to a Younger Demographic

A new factor is coming into play, as over half of all homebuyers in 2022 were Generation X or millennials. Interestingly, a survey by Bank of America found that these young and wealthy consumers prefer assets like cryptocurrency, real estate, and private equity over investing in the stock market. "Individuals ages 21 to 42 with at least $3 million in assets have only a quarter of their portfolio in equities, compared with more than half for those who are older," according to the study. This is significant, as Baby Boomers are expected to transfer over $84 trillion of their wealth to Generation X and millennials between now and 2045, according to market research by Cerulli Associates. It is also contributing to our housing inventory shortage.

Gas Cooktops Toxicity being Replaced by Induction

As far back as 1930, the gas cooktop was glamorized to be sleek, sexy, and sophisticated. A new generation of homebuyers, focusing on more time at home raising young families are switching to induction as a healthier and safer option. Gas generates carbon monoxide, formaldehyde (a carcinogen), nitrogen dioxide (NO2, a respiratory irritant and asthmagen), and other nitrogen oxides into our homes, and our lungs. It also requires constant supervision (during which time toxins are the strongest). Induction is quicker, easier to clean, with the ability to set a precise temperature and no open flame risks for children, tenants, or the elderly. Full Article.

 

One thing remains constant and is even more true than ever: Your Home Equity is a significant asset in your portfolio and you deserve expert guidance.  Is Now a Good Time to Buy or Sell a Home? Call Denise 602-980-0737, celebrating a nearly 40 year career in Metro-Phoenix Real Estate.    

Questions? Need Advice? Complete this form for more information.

Contact Information::









 

 

 

 

 

 

 


Housing Market, Spooky or Balanced? Hot from Phoenix October 2022

(Published on - 10/5/2022 2:57:03 AM)

Spooky or Balanced? 

Check out this month's 3 minute statistical review of the market HERE

Don’t let the numbers trick you this season. Let me get you the real statistics specific to your situation. 

Now is the time to look for potential homebuyer treats. Buyers who are less affected by mortgage rates, but are looking for the best time to pounce on a home, should know that the 4th quarter of the year tends to be the best time for buyers seasonally. The boost in supply in October (historically the top month for the most added new listings to inventory here) are mostly comprised of those sellers eager to close before the end of the year. Once 2023 gets started, contract activity is expected to rise sharply from January through May. The upcoming Super Bowl, Phoenix Open and Spring Training events are expected to generate more open house traffic and exposure for active listings.

SPRING TRAINING:  2023 Expects a strong season Click here to learn more about the Cactus League and what you need to know to prepare for the March 2023 season.

Welcome to "Balanced".

Mortgage rates have declined in every recession dating back to 1973. Recessions have lasted between 6 months and 1 1/2 years. It would be shocking if we did not see mortgage rates come down.

For home sellers, we continue to have far too low of inventory for the Phoenix Valley. There are many reasons why Phoenix is somewhat isolated by the current and expected national housing market downturn. 

Arizona’s 2.5 percent flat tax will take effect in 90 days, effective January 1, 2023. The state ranks #1 in the nation for economic performance, according to the Governor’s office last week (9/29/2022).

And businesses continue to move into the Valley, attracting employees. The Greater Phoenix Economic Council (GPEC) stated in August that so far in fiscal year 2023, 61 international businesses were siting new locations in the Valley, an 85% increase from a decade ago. With employers, come jobs. And with jobs come employees and families, creating a need for housing. Even Buckeye, with the lowest current demand for housing, has recently learned of top new employers moving in. Hurricanes are rare in the Sonoran desert, as are earthquakes and other natural disasters. Sunshine 300 days provides a beautiful view, even if it is hot for 3 months. And a dry heat is so much more preferable when it is hot. These are some of the reasons people and businesses continue to move to Arizona and maintain a strong housing demand.

Luxury Home Sales

"The appetite for luxury has certainly not diminished. The affluent are still buying and selling in the upper tier but they are enjoying the opportunity of time to decide what fulfils their requirements for the long term." Based on the ptick on real estate websites and requests for virtual tours, most luxury agents agree that there are definate signs that luxury home buyers used this summer to formulate their plans. These buyers have a pent up demand having waited out the craziness we experienced just a few months ago. There is also a rise in second home ownership, as many affluent buyers are not committed to one specific location for work anymore, and are staying clear of travel chaos. And co-ownership and short term rental investments are also strong. Download the most current report National, with local reports on Scottsdale and Paradise Valley here.

One thing remains constant and is even more true than ever: Your Home Equity is a significant asset in your portfolio and you deserve expert guidance.  Is Now a Good Time to Buy or Sell a Home? Call Denise 602-980-0737, celebrating a nearly 40 year career in Metro-Phoenix Real Estate.    


New Opportunities in the Housing Market September 2022

(Published on - 9/6/2022 2:38:10 PM)

 

Watch this month's 3 minute market update with statistics and graphs  here. 

Real Estate is the best hedge against inflation, and there are still plenty of opportunities in the housing market. The Phoenix Valley of the Sun is frequently isolated from severe downturns due to a steady and consistent growth.

The metro Phoenix - Scottsdale Valley dominates Maricopa County, where 250 people every day choose to call home. Much of the growth is young adults and families, following the employers who have been selecting Phoenix for some very good reasons: over 300 days of sunshine each year with little threat of natural disasters; a large educated labor pool; low property taxes and cost of living (in comparison to any other metropolitan its size); very little traffic congestion; and a thriving arts, theatre, sports, entertainment, shopping and new restaurant concepts.

Major colleges and universities include Arizona State University, Grand Canyon University and the University of Phoenix. Plentiful access to higher education has contributed to the Valley's position as the top technology hub in the country. And employees bring families and children which supports growth. It also provides ample research resources, necessary to attract a large variety of some of the most well respected healthcare systems.The Valley is considered one of the most active populations in the country, with outdoor activities that include hiking, boating, equestrian events, golf, tennis, triathalons, and an annual Ironman. It is recognized on par with Florida for Spring Training teams and short term rentals. Televised events include collector car auctions, the PGA's Phoenix Open, the Fiesta Bowl and championship teams in literally every professional sport. In 2023, the Valley will once again host the Super Bowl. And with sunshine over 300 days each year, this is the perfect "climate" for retirees, which today can include all ages.

 

Ahwatukee.

New awareness of the Ahwatukee Foothills accessibility will increase as we enter 2023, and property values will increase as homeowners realize their good fortune. The 22-mile South Mountain Freeway expansion was the final piece of one of the most efficient freeway systems in the nation. The Loop 101 circles Metrol-Phoenix area, and the 202 connecting the foothills just south of downtown was the last and final missing link. After several years of a "listing drought" which saw very few homes coming on the market, there is still time to buy and take advantage of the appreciation. More

 

Contract Ratios downSeasonality.

For the first time in three years, the metro Phoenix market, especially the luxury home market, experienced seasonality over the summer months. Add to this the increase in interest rates, a manic stock market and additional housing inventory coming on the market, and we experienced a significant dip in Contract Ratio. This is in sharp contrast to the peak of March 2022. Much of the Valley fell from a Seller's market to a more balanced market, to the delight of buyers. With 250 people moving into Maricopa County every day and a housing shortage that is still evident, we have no expectation of price drops, although those initially priced over market will reduce to a more reasonable range. Scottsdale, Paradise Valley and other luxury pockets remain strong. Watch this month's 3 minute market update here.

 

Luxury Marketing Institute.

The luxury home market remains strong. See the digital report here, with local reports on Scottsdale and Paradise Valley.

Paradise Valley was listed as #3 for Median Sales Price (just behind Aspen and Naples) in the current report (downloadable version). Investors in PV are generating huge profits in a short time to meet the demand for "move-in-ready" homes. “Despite escalating prices, it seems that buying a fixer-upper is still not on the radar of the affluent …. they simply do not want the hassle.”  And according to the report, and what I am seeing every day here, this trend is escalating! The "flip" targets are homes priced under $5 Million which need even minor cosmetic updating. Call or text me at 602-980-0737 for ideas. Paradise Valley is an affluent suburb located in the heart of Phoenix and Scottsdale. More on Paradise Valley here.

Questions? Need Advice? Complete this form for more information.

Contact Information::









 

 

 

 


Phoenix Housing Market from "Insanity" to "Warm" August 2022

(Published on - 8/2/2022 2:00:47 PM)

The market has shifted from 'insanity,' to 'frenzy,' to 'hot,' to 'warm.' Houses not selling the first day they hit the market is no reason to panic.  

This month's 3-minute market update looks at the numbers.

In nearly every recession over the last 50 years, interest rates rose at the beginning of the recession, but in order to come out of recession, interest rates were lowered to stimulate the economy. Last week's rate hike didn't immediately affect mortgage rates, but even at today's higher rates, some Sellers are offering creative buydowns to cover the interim until rates fall, expected around the end of 2022.

 

Novice Realtors react to the market

There are more licensed Realtors then ever in history, thanks in large part to restaurants and other service-industry closures at the onset of the pandemic. According to The New York Times on March 4, "As few as 10 percent of them will last long enough to make a full-time living selling homes." 

 

CONTRACT RATIOS & OTHER DATA COMPARING FACTORS AFFECTING THE 2005-2008 HOUSING VALUES TO TODAY'S MARKET:

 

MORTGAGE AVAILABILITY INDEX

THIS MONTH'S LUXURY MARKET REPORTS:

“In short, despite increasing inventory levels and the slowing of sales transactions, experts are very clear that buyers waiting for prices to plummet to pre-COVID levels are unlikely to witness a nosedive any time soon.” Click here for link to the newest issue of the Luxury Market Report.

 

THE LOCAL MARKET AS VIEWED BY THE EXPERTS:

 A look at the Supply and Demand during 2007-2009 as compared to today is inverted. The numbers just don't support a crash. Worst case could be a 10% decline in values, much of which would include those Sellers "testing" the market with very little desire to actually sell.

One thing remains constant and is even more true than ever: Your Home Equity is a significant asset in your portfolio and you deserve expert guidance.  Don’t Discount Your Net Worth. Put Tenure in Your Transition. Is Now a Good Time to Buy or Sell a Home? Call Denise 602-980-0737, celebrating a 36 year career in Arizona Real Estate.

Questions? Need Advice? Complete this form for more information.

Contact Information::









 


Lost Canyon, Scottsdale's best kept secret

(Published on - 7/9/2022 12:47:04 AM)

 


;

Questions? Need Advice? Complete this form for more information.

Contact Information::










Copyright 2022 Realty Executives All Rights Reserved

Realtor & ExecElite Team Leader

Denise van den Bossche

Contact
Disclaimer: https://mm.issuu.com/document/vandenbossche/june_2022_lux_market_report_usa_pv_scottsdale/spreads.gif?backgroundColor=353535&spreads=1&spreads=4-5&spr
172.31.28.154