In Maricopa County (greater metro-Phoenix) today, over 7% of all the sales in the Multiple listing service are over $1,000,000. 5 years ago, it was only 2.7% of all sales. That is almost triple. We have seen a massive 54% appreciation over just the last four years and over 93% over the last 10 years, proving again that real estate is a good long term investment. This month's luxury market report (below) echos those sediments. Click on the Link for my December 3 minute market report.

Nationally, the Phoenix Valley was just predicted to be #2 in the nation for 2024 real estate by the Urban Land Institute (Link to full report).

Sales have been slow thus far this holiday season as Buyers are waiting for interest rates to come down, and Sellers are unwilling to list because they are sitting on such low interest rates.

1. Over 50% homeowners have over 50% equity in their home thanks to the appreciation we have seen in recent years.    
2. There are 3million buyers making over $150,000/year are still renting. They are waiting for rates to drop They will be buyers.
3. 90% of homeowners with a mortgage have rates below 6%. And 62% have rates below 4%. Few of these homeowners are willing to trade that in for a new home with a higher interest rate.
4. It may be a better idea to buy now, and refinance when rates come down, then to wait as prices continue to appreciate here in the Valley. 

According to the most recent Luxury Marketing Report, “the impacts of the pandemic years have forever changed the importance of owning a luxury property and it is now widely acknowledged by an ever-growing demographic of affluent buyers as an important low-risk asset that offers a long-term yield. This was proven over the last year, as between rising economic uncertainty, political unrest, stock and crypto market volatility, and to some extent climate change effects, overall, the luxury property market has continued to maintain its financial stability.”  Full digital report link here.

Scottsdale is getting ready for it's peak Event season. Equestrian shows are already in progress at WestWorld. The Cactus Corridor has evolved into the top breeding ground for championship horses. Check out my newest listing here.

^{This is Denise van den Bossche with Realty Executives, celebrating a 4-decade career in Phoenix-Scottsdale real estate}

www.Exec-Elite.com

• NAR Lawsuit
• Deed Fraud
• Mortgage Rates

 How the News Affects Your Real Estate Holdings

Click for this month's 2 1/2 minute Update

Scorching Hot Luxury Market

"Until the volume of properties available for sale increases substantially, back to traditional norms recorded pre-Covid, it is unlikely that the luxury market will transition into a true buyer’s market anytime soon." And we are definately seeing that in Metro Phoenix. Download this copy of the Luxury Housing Market Report. Or drill down to this Paradise Valley, Scottsdale and Phoenix Housing Market Report.

It's BACK: Mortgage Interest Rate Deduction

Something our children and other homebuyers over the last decade may have never considered is very applicable today: the Mortgage Interest Rate Deduction. With interest rates back to a more "normalized" rate, it can pay to itemize. Wait, What? Watch this month's housing market update  2+1/2 minute video, and always speak to your tax professional. 

MARKET CRASH IS A PHYSICAL IMPOSSIBILITY

You can't foreclose on a home with no mortgage, and with nearly 70% of homeowners having 50% to 100% equity in their homes, they are not going to foreclose. According to the Wall Street Journal, U.S. Home Equity has reached the highest level on record.

_{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 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.}

JUNE Luxury Home Marketing Institute Report

According to the June 2023 Luxury housing report that just posted, affluent buyers’ expectations have shifted, looking for a sense of purpose for their new property. As our prices remain steady, the luxury market is seeing a consistent increase in demand for luxury properties these first months of 2023, with the number of sales increasing month over month since the start of the year. North America Report Link    Paradise Valley Report Link.    Scottsdale Report Link.    Phoenix Report Link.   

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.}