(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.
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
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.