How is the Market? Fascinating!
Is now a time to make a Move? Check out this month's 3 minute video market update.
Buyers continue to be concerned with high-interest rates, keeping local buyer demand lower than normal, but still strong. Sellers have “rate lock,” the fear of trading in a low rate for a higher one if they decide to sell and buy a new home. So we continue to have an unprecedented shortage of homes for sale.
But homeowners selling now are being rewarded. Most homeowners have a great deal of equity in their home. With home demand continuing to outpace supply, much of the valley is in a strong seller’s market and significantly more robust than anybody expected. As a result, many homes are going under contract within days of listing, and with very favorable terms.
What Can We Expect the Second Half of 2023?
More of the same. Sellers reluctant to sell, buyers vying for less inventory with multiple offers, new listings going under contract, and rising prices. Overall 2023 is shaping up to be an up year on pricing with a supply-constrained market and a steady stream of buyer demand for that supply. As a result, we expect to see fewer price cuts, continued increases in list prices, and seller markets throughout the valley.
Does Arizona have the Water Supply to Support it's Growth?
Arizona has five times more water stored than it uses, with 13.2 million acre-feet of water stored in reservoirs and underground. 
Arizona has a 100-year assured water supply and rigorous conservation efforts. In fact, Arizona is currently below 1957 water usage levels due to increased conservation methods and decreased agricultural water usage. Only 36% of Arizona's water supply is from the Colorado River, much less than other states. Arizona's infrastructure allows for access to water from vast aquifers during times of drought, providing resilience to water shortages. Lastly, Arizona is a national leader in water reuse. Full Article Here.
Can Someone Sell Your Property without You Knowing About It?
Title fraud is on the rise in real estate. Maricopa County has a free Title Alert program that can help. Users who sign up for the service will receive an email notification when a document is recorded under a name they are monitoring, and they will be provided a link to review the recorded document. Use this link to sign up.
Advantages of Real Estate for Retirement Investing
- Real estate investing not only offers the potential for appreciation, regular income through rent, and the ability to multiply gains through financial leverage, but it also offers compelling tax benefits. According to Charles Renwick for Quicken May 22, 2023:
- This non-cash deduction can be used to offset cash income, effectively resulting in tax-free cash income.
- Long Term Capital Gains. As compared to 401ks and pension plans, which will one day be taxed at ordinary income tax rates, real estate has the privilege of lower taxes on gains.
- Business tax deductions. Many business expenses such as cell phones, mortgages, property taxes, are deductible as they relate to a business. This is not possible with 401k or stock market investing.
According to the article, the tax advantages of real estate investing are plentiful and can significantly enhance the profitability of your investments, helping you meet your retirement savings goal . Of course, as with all your investments, consult your financial advisor before you make any investment.
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 nearly 40 years in Metro-Phoenix Real Estate. Ranked #2 Worldwide in Solo Agent Production for 2022 at Realty Executives International, one of the oldest and largest brands in residential real estate.
