I'm sure you are getting a lot of advice from friends and family about your future home purchase. Albeit your friends and family have your best interests at heart,
they may not be fully aware of your needs and what is currently happening in the real estate market. Ask yourself the following three questions to help determine
if now is a good time for you.
1. Why am I buying a home in the first place?
This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.
Studies show that the main reasons people buy homes are: A good place to raise children and provide them with a good education. A place where you and your family feel safe. More space for you and your family. Control of that space.
2. Where are home values headed?
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in February (the latest data available) was $249,500. This is up 3.6% from last year. The increase also marks the 84th consecutive month with year-over-year gains.
CoreLogic is forecasting an increase of 4.6%. In other words, a home that costs you $250,000 today will cost you an additional $11,500 if you wait until next year to buy it.
3. Where are mortgage interest rates headed?
A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.
The federal government and all the mortgage experts have all projected that mortgage interest rates will increase over the next twelve months. If purchasing a home at $200,000 at 3.5% interest your payment will be $718 per month, but if you purchase at 4.5%, the same home will be $810 per month. 1% can make a big difference.
Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision. #mikeblackrealtor @sellingarizonanet
1. Buyer Demand Is Strong
Buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other for the same home. Might as well take advantage of the buyer activity currently in the market.
2. Less Competition
Housing inventory is still under the 6-month supply needed for a normal housing market. There are not enough homes for sale to satisfy the number of buyers.
3. The Process Will Be Quicker
Buyers are getting pre-approved more often now and know exactly what they can afford before home shopping. This makes the entire selling process much faster and simpler.
4. There Will Never Be a Better Time to Move Up
Prices are projected to appreciate by 4.6% over the next year. If you are moving to a higher-priced home, it will wind up costing you more money, both in down payment and mortgage payment if you wait.
5. It’s Time to Move on With Your Life
You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire. #mikeblackrealtor @sellingarizonanet
In determining how much house you can afford, financial advisers agree that people should spend no more than 36 percent
of their gross income. The 36% rule is the tried-and-true home mortgage affordability tip that you should take into account when establishing a baseline for what you can afford to pay every month.
Depending on where you live, your annual income could be more than enough to cover a mortgage or it could fall short. Knowing what you can afford can help you take financially sound next steps.
The last thing you want to do is jump into a 30-year home loan that’s too expensive for your budget, even if you can find a lender willing to write the mortgage.
The most basic research on homebuying will inevitably lead you to this general fact: houses are one of, if not the most, expensive purchases you’ll make in your lifetime. There aren’t many other opportunities to drop hundreds of thousands of dollars in one sitting… or over 30 years. Use this for an example, if your monthly income is $5,000 per month then your mortgage payment shouldn't exceed $1,400 per month. #mikeblackrealtor @sellingarizonanet
In today’s real estate market, with more houses coming to market every day and eager buyers searching for their dream home,
setting the right price for your house is one of the most important things you can do. According to CoreLogic’s latest Home Price Index, home values have risen at over 6% a year over the past
two years, but have started to slow to 4.4% over the last 12 months. By this time next year, CoreLogic predicts that home values will be 4.6% higher. With prices slowing from their previous
pace, homeowners must realize that pricing their homes a little OVER market value to leave room for negotiation will actually dramatically decrease the number of buyers who will see their listing!
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price their house so that demand for the home is maximized. By doing so, the seller will not be negotiating with
a buyer over the price, but will instead have multiple buyers competing with each other over the house.
The key to selling your house in 2019 is making sure your house is Priced To Sell Immediately (PTSI)! That way, your home will be seen by the most buyers and will sell at a great price before more competition comes to market! If you are debating listing your house for sale, meet with a local real estate professional, like me, who can help price your home appropriately for your area and maximize your exposure this Spring Market! #mikeblackrealtor
Now you’ve found a home that you love and have applied for a mortgage! You are undoubtedly excited about the opportunity
to decorate your new home! But before you make any big purchases, move any money around, or make any big-time life changes,
consult your loan officer. They will be able to tell you how your decision will impact your home loan.
Below is a list of 7 Things You Shouldn’t Do After Applying for a Mortgage! Some may seem obvious, but some may not!
1. Don’t change jobs or the way you are paid at your job! Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.
2. Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
3. Don’t make any large purchases like a new car or new furniture for your new home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios… higher ratios make for riskier loans… and sometimes qualified borrowers no longer qualify.
4. Don’t co-sign other loans for anyone. When you co-sign, you are obligated. As we mentioned, with that obligation comes higher ratios as well. Even if you swear you will not be the one making the payments, your lender will have to count the payment against you.
5. Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is consistency among your accounts. Before you even transfer money between accounts, talk to your loan officer.
6. Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.
7. Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more likely to be approved. Wrong. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score.
Any blip of income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. They are there to guide you through the process. #mikeblackrealtor
According to Freddie Mac’s Primary Mortgage Market
Survey, interest rates for a 30-year fixed rate mortgage are currently at their lowest for 2019. Rates like these haven’t
been seen since February 2018.
Last week’s survey results reported an interest rate of 4.35%. This is a welcome change from the near 5% rates seen in mid-November. At 4.32%, the second week of February 2018 was the last time rates were this low. “Mortgage rates fell for the third consecutive week, continuing the general downward trend that began late last year. Wages are growing on par with home prices for the first time in years, and with more inventory available, spring home sales should help the market begin to recover from the malaise of the last few months.”
If you plan on buying a home this spring, meet with a local real estate professional, like me, who can help prepare you for today’s market before rates increase. #mikeblackrealtor
Many homeowners believe that rising interest rates and home prices have scared away buyers and therefore have not
listed their houses for sale. However, the truth is that buyers who were unable to find a home last year are out in force, and there are even more coming!
Arizona’s state House members have been busy in the recent legislative session. Eight real estate-related bills from both sides of the aisle Already have crafted and introduced.
Below are summaries of each bill being proposed.
H2084: MUNICIPAL ZONING; REZONING PROTESTS Clarifies that the group of persons authorized to file a protest in writing against a municipal rezoning, which triggers a requirement for the rezoning to obtain a 3/4 vote of the municipal governing body for passage, is the owners of 20 percent or more of the property by area and number of lots, tracts and condominium units either within the area of the proposed change or the area within 150 feet of the proposed change, including all rights of way.
H2095: AGRICULTURAL PROPERTY CLASSIFICATION; WATER REDUCTION Posted On:1/15 3:16 PM For the purpose of the property tax classification as property used for agricultural purposes, property that has been in active production may be inactive or partially inactive due to a partial reduction in the available water supply or irrigation district water allotments for agriculture use in the farm unit.
H2396: WATER; WELL METERING; NONEXEMPT WELLS Posted On:1/17 2:45 PM A person who withdraws groundwater from any nonexempt well, instead of only those in active management areas, is required to use a water measuring device approved by the Department of Water Resources, unless another statutory exemption applies.
H2397: WATER ADEQUACY REQUIREMENTS; STATEWIDE APPLICABILITY Posted On:1/17 9:48 PM County boards of supervisors are required, instead of permitted, to adopt regulations requiring all subdivisions to either have a determination of an adequate water supply from the Department of Water Resources or obtain a written commitment of water service for the subdivision from a municipal or private water company designated as having an adequate water supply by the Dept.
H2434: COLORADO RIVER TRANSFER; LIMITATION Posted On:1/17 9:32 PM An irrigation and water conservation district located in a county that has formed a county water authority is prohibited from transferring fourth priority Colorado River water that is subject to the Boulder Canyon Project Act to a location outside the counties in Arizona that border the Colorado River.
H2449: ADEQUATE WATER SUPPLY; COUNTY REVIEW Posted On:1/17 9:38 PM For a county that is not in an Active Management Area, the county board of supervisors is required to review the provision for adequate water supply for a subdivision and after review may by unanimous vote at a public meeting not to readopt the provision. The review is required to occur not more than 5 years after the effective date of this legislation and every 5 to 10 years thereafter. If the board does not vote unanimously not to readopt the provision, the provision remains in effect. If the board votes unanimously not to readopt the provision, the provision has no further force if a list of specified conditions apply at the time of the vote. The board is required to give written notice of any vote not to readopt the provision to the Director of the Department of Water Resources, the Director of the Department of Environmental Quality and the State Real Estate Commissioner.
H2476: SURFACE WATER FORFEITURE; REPEAL Posted On:1/17 5:12 PM Repeals statutes governing future water rights acquired through appropriation and forfeiture or reversion of water rights due to nonuse.
There are a multitude of bikes and scooters in Downtown Scottsdale such as sharing services like Lime, Razor and Bird. These two-wheeled transit options
seem to the way for people to get around until they are done with them. Where they leave them lies the challenge. They are left in the oddest of places,
such as bikes being stacked up on grates, or left haphazardly blocking sidewalks or leaned up against sign poles. The City of Scottsdale has taken up issue with
the problem created changes to the bike and scooter ordinance that went into effect in December. While the changes should certainly assist property owners
and pedestrians with the problems of discarded bikes and the like, they will also affect individuals riding or using bicycles, electric bicycles, motorized
bicycles, motorized skateboards, motorized play vehicles, and stand-up electric mini-scooters.
These are some new rules to follow from the City:
“Keep sidewalks open for pedestrians: Do not park devices on public sidewalks in areas that obstruct the portion used primarily by pedestrians.
The owner is required to keep devices properly parked: The owner – whether an individual or a company – is responsible for making sure their devices are parked properly.
Devices should be parked in racks or designated parking areas.
Devices should be operable and used: The ordinance makes it illegal for devices to remain at the same location on public property for more than 72 consecutive hours. Improperly parked, inoperable or abandoned devices may be impounded.
Don’t park too many devices together. To reduce the amount of visual clutter, the ordinance seeks to properly space parking of devices – a maximum of 5 devices from the same owner can be parked within 200 feet of each other.
Respect private property: Devices can only be on private property with permission of the property owner (except in commercial or multi-family residential properties within common area bike racks and designated bicycle parking zones).”
The ordinance clarified rules for how and where to legally ride motorized bikes and scooters:
“All bicycles and scooters, electric or otherwise, must obey traffic laws, including always yielding to pedestrians. Scooters and bicycles can be ridden on a public sidewalk, multiuse path or roadway if it is at a safe speed to avoid colliding with people, cars and objects around them.
Motorized scooters are prohibited on streets (including bike lanes) with speed limits of 40 miles per hour or greater, and class 3 electric bicycles are prohibited on sidewalks and multi-use paths.
The revised ordinance also prohibits riding electric bikes and scooters while under the influence of alcohol or recklessly. Persons violating these new ordinance provisions are subject to arrest and possible jail time.”
If you need to report an issue such as unsafe riding in a particular area the city askes that you call the police non-emergency line at 480-312-5000.
To report improperly parked bikes and scooters go through the city’s website at Scottsdale EZ website. “Once there, type “bike” or “scooter” into the search box and follow the prompts to make a report. The application will forward your report to staff or to the private bike- and scooter-sharing companies. People can also report parking issues to 480-312-7433 (312-RIDE) 8 a.m. to 5 p.m. weekdays.” #mikeblackrealtor #sellingarizonanet
- The numbers have been released for the latest sales period and the 20 focus cities fared as follows:
New York +0.41%
Las Vegas +0.33%
Los Angeles +0.11%
San Diego -0.12%
San Francisco -0.71%
Once again Phoenix is at the top of the table having opened up a gap ahead of number 2 New York.
We see almost half of the focus cities with negative changes, but this is partly due to seasonality and the national average was +0.10%.
Phoenix was seven times the national average and is over-performing again. As a result, it even made a mention in the Case-Shiller press release.
Seattle took another large hit for a single month while San Francisco and Portland are slowing after very strong gains over the past 4 years.
For the year over year numbers we see:
Las Vegas +12.8%
San Francisco +7.9%
Los Angeles +5.5%
San Diego +3.8%
New York +3.1%
The national average was +5.5% so Phoenix was well ahead of that, and it moved up to 3rd place from 5th place last month.
None of the focus cities are showing a negative move year over year. #mikeblackrealtor #sellingarizonanet
The City of Mesa just moved forward a plan for a 20 acre,
multi-use, campus-style community at Crismon Road and Hampton Avenue. This $200 million project, called GrandeVita, will allow seniors to
“age in place” in a high tech and innovative environment. When completed, GrandeVita will create an estimated 326 jobs with an average wage
of $45.25 an hour and generate 28.6 million dollars in wages. GrandeVita’s concept and design has been developed with the intent of creating
a unique campus atmosphere with a world class resort feel. The campus is nearly 700,000 square feet of independent and assisted living, hotel rooms,
multiple dining options, medical offices, a luxury tower and luxury condos, nursing school and rehab clinic spread out over 20 acres.
This will be a high-end, assisted living community that will be unrivaled. Mesa Mayor John Giles emphasizes GrandeVita’s positive impact on the City of Mesa. “GrandeVida is an excellent addition to southeast Mesa,” Mayor John Giles said. “Their innovative approach to building a senior community with integrated healthcare, recreation and resort living will change the way we think about aging.” GrandeVita will have a high-end resort-style design complete with reflecting pools, pergolas, fountains, and green roofs which will allow its residents to age in place, in a community that feels like home. #mikeblackrealtor #sellingarizonanet
A day after the homebuyers closed on their newly renovated north Phoenix house last summer, they found water all over their kitchen floor.
A plumber scoped the sewer and told the couple it had collapsed, and the house would flood if they ran water. It was just the beginning of the problems.
The former foreclosure house that government-backed Fannie Mae had fixed up and sold to the couple also had hidden mold, asbestos and electrical problems
that cost more than $100,000 to fix. "It took five painful months of living out of storage units and spending all of our money to fix the house,"
"It's been a nightmare" for the homeowners.
A record number of Valley homes have been renovated and flipped during the past few years. But the rush to fix up bargain homes and sell them for a profit has led to big headaches and costs for some buyers. Swimming pools full of construction trash, drywall covering moldy walls, kitchen remodels with no permits, vents that aren't piped to the outside, electrical wiring not up to code and attics emptied of insulation are some of the recent problems reported with flipped Valley homes. Those examples come from inspectors, attorneys and real estate agents who see the shoddy work. "Some flippers just want to put enough lipstick on a house to sell it," said a metro Phoenix home inspector, who teaches classes to the real estate industry about disclosing home problems to buyers. "About 85 percent of my examples of bad work in homes come from flips." Many recent Valley homebuyers, signed an "AS IS" agreement to buy their home because of the competitive housing market.
One homebuyer started digging, he found the house had a pool that had been filled up with an old toilet and other stuff from the house's renovation. Demand for renovated older Valley homes helped spark the fix-and-flip frenzy. Metro Phoenix is one of the top housing markets in the U.S. for flips, with as many as 10,000 so far this year, according national real estate data firm CoreLogic. But that number likely includes some homes purchased and sold by ibuyers Opendoor and OfferPad that aren't completely renovated. There are good licensed contractors that do good flips, but for the amateurs the pressure to flip for the most profit quickly can lead to problems.
The DIY craze has led to more people trying to get into the fix and flip business, but people are taking on projects they aren't qualified to do. It can be a good thing to get into the flipping business, but if you get in trouble, do not hire Uncle Bob for a six-pack to do work, hire an expert.
If you are a homebuyer looking at homes, especially homes that have an "AS-IS" addendum, I would advise my clients to invest in a detailed inspection and then follow up on getting problems fixed. In addition to getting signed receipts from the contractors for any work done to fix problems from an inspection, too. The typical basic home inspection costs about $500 in the Valley. #mikeblackrealtor #sellingarizonanet
Wondering where all your new neighbors are coming from? There’s a good chance they’re from California. Due to atmospheric home prices and higher taxes,
many buyers in the market to buy a home in the state of California are unable to afford Real Estate. New figures from the Census Bureau show
nearly 262,000 people moved into Arizona from other states last year. And almost 60,000 of them were residents of the self-proclaimed Golden State.
But that’s only a piece of the picture about the state’s growth rate.
That same report finds that more than 45,000 people who were in Arizona in 2017 were living abroad a year earlier. The Census Bureau provides no breakdown of which countries are providing the lion’s share of new residents. But 2015 figures from the American Immigration Council shows 56 percent of immigrants came from Mexico, with 4.2 percent from Canada, 4.1 percent from India, 2.9 percent from the Philippines and 2.7 percent from Vietnam.
What might be surprising is that all that migration is not coming from people fleeing the colder northern climates. After California, Washington is the next largest contributor of new Arizonans, with more than 14,000 deciding they prefer to live here. That’s followed by Illinois where the winter weather can charitably be described as often brutal. But after that, the list of most popular places for Arizonans to be from extends to places with less hostile weather like Colorado, Texas and Oregon.
All that migration is not strictly one way. For example, the Census Bureau finds that almost 27,000 people who lived in Arizona in 2016 found their way to California in 2017. And more Arizonans decided to become residents of the Lone Star state than those who opted to move here. #mikeblackrealtor #sellingarizonanet
Many people think that highways are filled with traffic, noise pollution and
can bring property values down. Turns out, this is the old way of thinking. As population skyrockets and more people squeeze into busy cities,
traffic congestion is soon to follow. After a few days of hurrying along your daily commute and being stuck in dead-stop traffic, you begin to think
about how to improve your quality of life.
One choice would be to have a workplace within walkability to avoid traffic all together. Second choice would be to live close to some sort of public transit system. Last, and some people would say is the best choice would be to live close to a freeway system to shorten the stresses of your daily commute.
Modern transit and highways are more well thought out now. Highways now have sound-proof barrier walls to prevent traffic noise and provide easy access to the proximity of your workplace. Highways are the future to easy accessibility in highly-populated cities. Prepare to see increases in property values in areas with good accessiblity to good transit. #mikeblackrealtor #sellingarizonanet
Millennials have put off home buying longer than any generation that came before them,
but market trends show that the largest generation in history is beginning to warm to the idea of home ownership. Older millennials – people ages 27 to 36
– made up 28 percent of home buyers in the country in 2016. That ties them with Gen X'ers for the largest number of total home buyers last year, according to
the National Association of Realtors Home Buyer and Seller Generational Trends Report 2017. Add in younger millennials, which made up 6 percent of buyers,
and the demographic group as a whole represented the largest demographic of home buyers in 2016, according to the report.
Although Millenials have usually gravitated towards renting over the last 5 years, they are now interested in home buying due in large part to rising rents. They are starting to realize that they can spend less on a mortgage payment” than they currently pay for rent. Rising interest rates are also causing millenials to gain a sense of urgencey to buy homes now rather than later, when their money will not go as far. A lot of millennials are at the age for starting families and suddenly living close to nightlife is less important. Living close to work and having a safe neighborhood is becoming more important in the scheme of their priorities. #mikeblackrealtor #sellingarizonanet
Okay, so it may not be a great analogy as dipping your toes in water, but it could mean
good news. Housing may become more affordable for new home buyers or anybody eles looking to purchase a home right now. The median home price in the Phoenix area
is down about 2.8 percent from the record high in July. Metro Phoenix’s median home price is about $260,000 now, compared to a record $268,000 in June 2018.
Other parts of the U.S., including several more expensive cities, are seeing bigger dips in prices than metro Phoenix has so far. The U.S. cities with the biggest recent price declines are as follows: Denver: 3 percent; Austin: 4 percent; Chicago: 4 percent; Washington DC-area: 4 percent; Seattle: 5 percent; San Francisco: 8 percent; San Jose: 8 percent and Nashville: 9 percent.
The Phoenix housing market is going back to a more normal balance now, we don't see a big price drop in the future, but more likely prices will flatten out. #mikeblackrealtor #sellingarizonanet
What is a granny pod, exactly? A granny pod is a new alternative to a nursing
home for elderly parents. It is a small home, typically between 300 to 500 square feet. It is situated on the same home property of
whomever will be looking after the occupant. These homes have a bedroom/living room, a kitchenette, and a bathroom. Most pods are
equipped with the following: wide doorways allowing easy access for a wheelchair; even flooring, making navigation easy; and open floor
plans. Other smart features available include a system that allows the occupant to remotely or automatically control the door locks, HVAC,
lighting, and audio-visual equipment. For those needing more advanced medical care, some pods feature a virtual system that can track one's
blood pressure, glucose levels, heart rate, and blood gases, and share that information with the occupant's family and physician.
The system is also equipped to verbally remind the occupant to take their medications.
Questionable nickname aside, many see these tiny granny pods as a creative care-giving solution that has wide-reaching benefits to both elderly and younger family members. There are some women who are balancing the demands of caring for their own children while also caring for aging parents. By having grandma and grandpa move into a granny pod out back, they enjoy the benefits of independent living while still having close, likely daily, contact with their adult children and grandchildren. Children also benefit from having a grandparent nearby, as a friend, caregiver, and partner in play. While these units can be extremely expensive at first, overall they will be much more affordable than long-term nursing care at a nursing home and will provide plenty of social-emotional benefits for these adults while having the pleasure of hanging out with family.
With home prices on the rise and buyer demand still strong, some sellers may be
tempted to try and sell their homes on their own without using the services of a real estate professional.
Real estate agents are trained and experienced in negotiation and, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families.
Here is a list of some of the challenges the seller must be prepared to face with if you decide to sell it yourself:
1. The buyer who wants the best deal possible
2. The buyer’s agent who solely represents the best interests of the buyer
3. The home inspection company, which work for the buyer and will almost always find some problems with the house
4. The termite company if there are challenges
5. The buyer’s lender if the structure of the mortgage requires the sellers’ participation
6. The appraiser if there is a question of value
7. The title company if there are challenges with certificates of occupancy (CO) or other permits
- Bottom Line -
The percentage of sellers who have hired real estate agents to sell their homes has increased steadily over the last 20 years. If you want to get the most money for your house, simply call me, Michael Black.
Rising interest rates are making homes less affordable for homebuyers in the Valley of the Sun in the areas of Phoenix, Mesa and Scottsdale. Mortgage payments are 15.2% higher this year. On average, mortgage payments are up an extra $136, which would result in an extra $1,638 per year.
Housing payments rose this year for homebuyers as mortgage rate increases
and surging home prices increased the cost of homeownership. The current monthly payment on a home is $130 higher than at the beginning
of the year, driven by a interest rate increase. Fixed-rate mortgages now average about 4.5 percent, their highest level since 2011,
and this has increased the gap between the monthly mortgage payment on a median-priced home and the average monthly apartment rent to $320.
The shortage of entry-level homes for sale has been amplified by the rapid interest-rate increases. Move-up buyers have become more reluctant to sell their existing home because many homeowners locked in rates as low as 2 percent. With interest rates now as much as 250 basis points higher, purchasing power and affordability have been impacted. This is slowing activity for new home sales. Builders have been unable to construct homes at the entry-level price point because of rising construction and land costs. Home sales activity has flattened as a result.
Risk of a housing shortage could rise as residential building flattens. Multifamily developers have been setting a record pace over the past five years, but single-family home construction has remained less than half of levels prior to the Great Recession. With the strong economy and tight labor market boosting household formation, residential deliveries will likely fall short of demand.
I decided to do something a little different today. It was a little time consuming, but I thought it would be educational to know the current price per square footage and sales price figures for luxury condos that actually sold for the last 3 months, June to September 11, 2018
LendingTree, the nation’s leading online loan marketplace, today released its study on the most valuable
cities in America. LendingTree researchers analyzed the total value of residential real estate in American cities. The real estate values are from the My LendingTree property
value database, which is a collection of real estate data of more than 155 million U.S. properties. The total value of real estate in metropolitan areas in the database was
$26.2 trillion, close to the Federal Reserve’s estimate of total residential real estate value of $28.4 trillion.
The study also compared the total value to the GDP of countries around the world, pairing cities with their equivalent country GDP values. Of course, the comparison is not apples to apples: GDP represents a single year’s output, while the value of homes persists year after year (mostly upward and a few times declining).
“American households own $28.4 trillion of residential real estate, a significant part of the $100 trillion in household net worth,” said Tendayi Kapfidze, Chief Economist at LendingTree. “Financial assets add $81.7 trillion, consumer durable goods add $5.7 trillion, while debts, including mortgage, subtract $15.6 trillion. The real estate wealth is not evenly distributed across the country and is largely concentrated in metropolitan areas.” Currently, Phoenix is ranked №14, with a total value of $444 billion, making the city worth about the same as Iran.
Optima Kierland Center, the well-known high-rise luxury condominium and rental community
in Scottsdale, announced today that they have broken ground on the second phase of condominium homes for sale at the award-winning development with an expected
completion date of 2020.
Located at Scottsdale Road and Kierland Boulevard, the first condominium tower of Optima Kierland, 7120 E. Kierland, far exceeded sales expectations and is already 95 percent sold with more than 90% of the homes closed. Home prices for the first phase ranged from the $300s to more than $6.5 million.
“Optima buyers tell us that the ability to combine and customize floor plans is a huge selling point, so we have taken that to the next level in this second condominium tower,” said David Hovey Jr., president of Optima, the project architect and developer. “Customization is the primary focus – floor-to-floor, wall-to-wall – if you can dream it, we will make it happen. Living in a high-rise condominium does not limit the ability to create your custom dream home when you live at Optima Kierland Center.”
Real estate developers have recently started to put luxury brands on their buildings
in big metropolitan areas. Developers are finding out that international buyers are more likely to buy from developments that are tied to brand names that
The Association of Realtors reported that foreign nationals are increasing purchases in the United States by a greater percentage. So to sell to the large international segment of buyers for the condo market, developers are forming partnerships with luxury brands of automobiles and apparel. Branding is especially important to international buyers because they are more familiar with a condo project’s brand than its developer or its address.
The developer of a branded condominium usually pays the brand 2 to 5 percent of the proceeds when the sale of each condo unit is closed.
Porsche Design, Aston Martin, Fendi, Missoni Baia, and Armani are just some of the well-known brands being used to brand condos in the Metropolitan areas of the United States, as well as the Ritz-Carlton Residences in Paradise Valley, Arizona. The buyers that we spoke to exuded confidence, just knowing that the brand name of their choice was behind the development.”
There is a trend going on in America called the "Tiny House Movement". It has become
a social movement. People are choosing to downsize the space they live in, simplify, and live with less. People are embracing the tiny life
philosophy and the freedom that accompanies the tiny house lifestyle. The tiny house movement is about more than simply living in a small space (although, a
small house is certainly part of it).
While the typical American home is around 2,600 square feet, a tiny house is between 100 and 400 square feet. Most tiny houses are independent structures—some are parked on land with other buildings or a larger home. Other tiny houses are parked on their own lot. Some tiny houses are designed and built by the owner themselves, while others are purchased, adapted from trailers, or built from a tiny house kit. Tiny houses come in all shapes, sizes, and forms, but they all enable simpler living in a smaller, more efficient space.
Why join the Tiny House movement? 75% of Americans are living paycheck to paycheck and people are finding out that when they finally pay off their 30-year mortgage and add in interest, taxes and repairs over that time frame, they've paid approximately 3 times the actual amount of the original principle. Most Americans believe that bigger is better when it comes to houses, but a new trend has been appearing across the country. This trend towards the tiny house movement is based on people realizing they are overwhelmed by the cost of their homes. A tiny home can cost a fraction of what a new home would cost and can be paid for in a couple years. Once the house is paid for, all you need to pay for is the land where it is parked.
The tiny house movement is great for anyone who is concerned about life simplification, environmental consciousness, self-sufficiency and financial freedom. The tiny life allows for you to have more time and freedom to enjoy life adventures. The tiny life is about financial freedom and living a more engaged life with the luxury of time to do what YOU want.
Ultra-luxury concierge services target high-net-worth buyers at the Ritz-Carlton Residences Miami
Beach, where homes are priced from $2 million to $40 million. Well-heeled buyers receive one-year of complementary medical concierge services valued at $12,000 from a top
Miami medical practice. This is presented as a closing gift. We saw this as an added value that would grab the attention of even the most jaded buyers.
“There is a lot of luxury development going on in Miami. We were looking to add something unique to the high-end product we are delivering while complementing our buyer’s lifestyle. Residents (each household member) receive an annual executive physical examination, access to the practice’s physicians via cell, text, email, office, same day visits (including immunizations and checkups), house-calls, coordination and scheduling of all specialty physician appointments, diagnostic procedures, hospital services, inpatient consultation, and supervision for patients needing hospitalization.
“We are providing a total health care approach through private medicine. The personal attention we give appeals to these buyers,” explains Dr. Arthur Agatston. Agatston confides he is talking with other luxury condominium developers in Miami to add the program to their residential offerings.
This incentive appealed to Simon Mass, a Toronto real estate developer. “When we heard about this, it was a key factor in our deciding to buy there,” said Mass who purchased a 3,500-square-foot residence pre-construction. “It’s important to us as Canadian citizens to have access to the proper health care during the time we plan to spend there.”
The need to distinguish one ultra-luxury project from another is all about innovative amenities and truly personalized services. “I’m convinced the idea of the highest level of concierge service is here to stay as well as ultra-luxury amenities because there is a lot of competition in Miami’s luxury market, saving people time is exactly what appeals to these buyers.
These concierge services vary. A personal wellness assistant is offered at some locations for help on nutrition, fitness, mindfulness, sleep, and relaxation.
There’s an amenity and high-end services war in New York’s luxury market right now. Need a hair stylist who makes house calls? Consider it done. From securing great seats for a Broadway show to hard to get restaurant reservations. Look to concierge services to become more creative as competition in the luxury residential market increases.
JLB Partners has submitted a rezoning approval request to the City of Scottsdale to build a new
community that will include both residential units and office space on McDowell Road in southern Scottsdale.
The community, called “The McDowell,” will be built on the 12.3 gross acres (11.6 net acres) that are currently occupied by Chapman Scottsdale Autoplex. The dealership plans to relocate by this October. JLB Partners plan for approximately 371 residential units and 8KSF of flexible office space in the new mixed-use neighborhood, valued between $60M and $75M.
The project, which will feature two-, three- and four-story buildings, is bordered on the north by McDowell Road. Single-family residential housing runs immediately south of the property. The lot’s western boundary is the Crosscut Canal, while the eastern boundary includes Scottsdale RV.
According to the project proposal, The McDowell will help revitalize the McDowell Corridor and help fill an increasing demand for new housing in southern Scottsdale.
The current zoning of the location is Highway Commercial, consistent with the needs of Chapman Scottsdale Autoplex. JLB Partners propose that the zoning designation be changed to Planned Unit Development.
The McDowell proposal cites several reasons why the project will succeed. First, the plan boasts an attractive location. The spot is close to downtown Scottsdale, Phoenix and Tempe. The owners also suspect the residential units will benefit from the close proximity to the Crosscut Canal, Papago Park, Sky Harbor International Airport, the Phoenix Zoo and the Desert Botanical Gardens.
Not only will new residents benefit from the project, but the project will also benefit the surrounding areas. The proposal claims that “incorporating new residential units and office space is essential to the success of southern Scottsdale and the McDowell Road Regional Corridor.”
Plans for The McDowell were guided by Scottsdale’s 2001 General Plan, which includes six guiding principles designed to inform project design. The six guiding principles, which prioritize things like sustainability, lifestyle, economic vitality and preservation of open space, have been specifically incorporated into the proposal and addressed by the owner.
The proposal promises that the final product will “contribute to the live, work and play land use balance promoted by the General Plan” and the plan for southern Scottsdale.
If you’re thinking about buying a new home, a condo can be a smart choice. Often, they offer many conveniences
that you wouldn't necessarily have with a house – such as swimming pools and fitness centers, etc. Here’s a rundown on some of the top reasons to buy a condo.
Condominiums often provide access to certain amenities that wouldn’t be practical or affordable for an individual house owner. Clubhouses, golf courses, swimming pools, tennis courts, fitness facilities and even the actual location – such as restaurants, entertainment, shopping and grocery stores.
Many developments offer a strong sense of community, especially those that provide a variety of planned social events.
One of the biggest perks of owning a condo is that the individual owners are not directly responsible for maintenance on the building, common areas or grounds. For many people, this is desirable because it frees up time for other pursuits. For others, it is a well-earned break following many years of home maintenance. In general, your monthly condo fee covers all expenses related to the repair and maintenance of central services, parts of the building (aside from the individual units), grounds and community facilities.
A condo offers a great deal of flexibility – it requires less maintenance than other types of homes and it’s easier to leave vacant while you travel. Condos can also provide more flexibility in terms of finding renters while you’re away. Condos are typically much more flexible about this, which makes them attractive to snowbirds and other frequent travelers who might want to rent out their homes while they’re away. Just keep me in mind during your condo search
The city blocks between the sevens throughout downtown, midtown and uptown Phoenix are no
longer day-time communities after more than a decade of investments into the area. The region between Seventh Avenue and Seventh Street has become an urban epicenter,
attracting jobs, restaurants, venues, events and residents as developers have refurbished and built new places for folks to live, work and play.
The midtown and uptown areas have grown exponentially in the past few years from commercial development, with more projects on the horizon. But downtown Phoenix is where the success story began, and it’s set to continue as developers work to change the skyline between the sevens with high-rise developments and mixed-use projects.
“There is a real economic transformation underway throughout the region, particularly the high density of projects in the urban center of Phoenix,” says Chris Camacho, president and CEO of the Greater Phoenix Economic Council. Between 2005 and 2014, downtown Phoenix’s 1.7-square-mile redevelopment area has received $4.7 billion worth of investment, according to the City of Phoenix. Phoenix defines this redevelopment area as the city blocks between Seventh Avenue and Seventh Street and McDowell Road and Lincoln Street.
Developers are working on projects like Block 23, which will bring the first Fry’s Food Store into Phoenix’s downtown urban core. The project will also include offices and multifamily components and is located right across the street from CityScape and Talking Stick Resort Arena. “A simple glance across the skyline shows a number of construction cranes that are indicative of the maturing centerpiece to the Valley,” Camacho says. “The new development, much of which is anchored near light rail, is creating a modern sense of place in jobs, residences, art, culture and attractions for both residents and business alike.”
The longtime midtown Phoenix home of Arizona's first Mercedes dealership has sprouted new apartments. Parc Midtown, with 306 apartments, has opened to renters on the former site of the Phoenix Motor Company Mercedes Benz dealership at Third Avenue and Indian School Road. The Mercedes dealership, located on the site since 1964, moved to Scottsdale in 2016. Developer Evergreen Devco paid $8 million for the property. When businesses and residents began to move out of central Phoenix to Valley suburbs in the 1980s and 90s, the upscale car dealership remained an anchor in central Phoenix.
Move over, Florida: A Phoenix suburb was recently selected as one of the top destinations for retirees.
Tempe will be featured in the latest issue of Where To Retire, a nationwide magazine that aims to help people decide where they want to relocate after they retire.
“Retirees often look for locales that provide easy access to dining, shopping and entertainment, and downtown districts often afford these and more within a confined area,” Editor Annette Fuller said in a release. “Downtown Tempe has high-brow amenities like the Arizona Artisans Collective Grotto Gallery and the Marquee Theatre. Arizona State University enlivens the town, and Phoenix, 10 miles west, is easily accessible by light rail. One retiree told our writer, ‘We want to see the world when we walk out the door. That energy revitalizes us.’”
Tempe was one of the eight cities profiled for downtown living in the July/August 2018 issue. It is available nationwide on June 12. The other cities included Charlotte, North Carolina; El Paso, Texas; Little Rock, Arkansas; Madison, Wisconsin; Richmond, Virginia; St. Petersburg, Florida and Sarasota, Florida.
Another feature detailed in the profile for the Phoenix suburb was Mirabella at Arizona State University, an “on-site, 20-story housing facility for older adults.” Mary and David Patino, a couple from Los Gatos, California, said they chose Tempe because it offers a lot to do and allows residents to have easy access to the light rail. “Everything is all in one place. We’re on campus. We’re part of the college community,” Mary said. “That’s the exciting part of it.”
According to Where To Retire, 700,000 Americans relocate to new towns to retire each year. These moves bring “significant economic benefits” to their new states and hometowns. Two dozen states and hundreds of towns also seek to attract retirees as a source of economic development.
U.S. reports have stated that home values for the month of April are now higher than they have ever been. Check out the appreciation in Phoenix.
National median home values are rising at their fastest pace in 12 years, according to a Real Estate Market Report
Over the past year, home values across the country rose 8.7% to a median value of $215,600.
Home values have not appreciated this quickly since June 2006, right before the housing bubble bust, when they were appreciating 9% annually. U.S. home values are now higher than they have ever been, and home values in 21 of the 35 largest housing markets have surpassed peak value hit during the height of the housing boom over a decade ago.
The internet is a great tool to help homeowners to communicate the goings-on in the neighborhood.
The internet can also let homeowners learn the value of their biggest asset, their home. Zillow has become a household name in the real estate community to let consumers know what is for sale in a particular area of interest or to provide an estimate on a home value. Zillow uses algorithms to come up with their estimates which they appropriately call "Zestimates".
Zillow provides Zestimates for over 100 million homes and their algorithms are based on both public data and user-submitted data. According to Zillow, “the vast majority of Zestimates are within 10 percent of the selling price of the home.” But Zestimates are only as accurate as the data behind them, so if the number of bedrooms or bathrooms in a home, its square footage or its lot size are inaccurate on Zillow, the Zestimate will be off. Users can correct these mistakes. However, Zillow cautions that updating a property’s details won’t result in an immediate change in the home’s Zestimate, and sometimes it won’t result in any change at all.
Along with accepting user-submitted data, Zillow deals with the inaccuracy problem by reporting estimated value ranges for individual properties. The smaller the range, the more reliable the Zestimate is because it means Zillow has more data available on that property. Looking at the high and low end of the range will give you a better sense of a home’s possible worth.
Zillow factors the date and price of the last sale into its estimate, and in some areas, these data make up a big part of the figure. If this information is inaccurate, it can throw off the Zestimate. And since comparable sales also affect a home’s Zestimate, a mistake in one home’s sales price record can affect the Zestimates of other homes in the area.
There are many other factors which are not recognized by Zillow such as home improvements, extra room additions, etc., etc... All of these factors can add tremendous value which are not recognized. For example, Zillow algorithms can't see that your home was completely renovated with a newly remodeled kitchen and bathrooms and your neighbor is still using a "Brady Bunch-era" kitchen, circa 1972.
Unfortunately, Zillow has created a huge hurdle for professional real estate agents to overcome since many consumers take Zillow Zestimates as gospel. It can be quite a hassle talking clients off the ledge while explaining to clients a true calculated value of their home. This is about the time when homeowners pull their phones out and tell the agent, "Oh No! That can't be right, Zillow says it's worth this amount of money....."
Although information is power, the wrong information can be harmful. Most homeowner's are unaware that if a home is listed above it's actual true value, it could sit on the market for a long period of time, where it will eventually become stagnant. When a house becomes stagnant, it will have to have a drastic price drop to get the action it needs to sell, which is the opposite effect than what was desired by the seller.
Although Zillow has pretty good algorithms, the are too many factors which compromise the accuracy of their estimates. The only way to get a true and accurate price to sell a home is to hire a professional real estate agent or an appraiser.
It has become the place to be for luxury condos. The Ritz-Carlton, is making its entrance into Arizona’s most affluent and desirable area, the town of Paradise Valley. This long-awaited marriage will bring
together a masterfully-crafted community of luxury Residences within the gates of what will soon become the pinnacle of sophisticated, full-service resort living.
Luxury has it’s privileges. The Ritz-Carlton will provide a knowledgeable and experienced concierge team is available to assist with personal arrangements. The residences will have additional luxury amenities and services, including a separate resort style swimming pool, lobby and underground valet parking.
The Enclave at the Borgata, is a luxury condo development that is redefining luxury living. It provides walkable amenities, exceptional floor plans, lush landscaping. Unrivaled. The locals like to say, “There’s a reason why it’s called Paradise.” One of the most exclusive and affluent addresses in the nation,
The Enclave at Borgata lies adjacent to The Town of Paradise Valley. Perhaps, more important, there are few places more breathtaking than this small slice of the world, where the City of Scottsdale meets The Town of Paradise Valley.
Positioned in the heart of it all, with iconic Camelback Mountain as a neighbor, your journey begins at The Enclave at Borgata. Furthermore, The Enclave is surrounded by world-class resorts including: The Phoenician, Sanctuary, The Camelback Inn, Montelucia and Hyatt Regency at Gainey Ranch.
At Lincoln Drive and Scottsdale Road, it all comes together, offering the finest restaurants, entertainment, shopping, culture and recreation. Together, Scottsdale and Paradise Valley create an exclusive, yet comfortable neighborhood, all within walking distance.
Artesia is a gated condominium community at the Southwest corner of the McCormick Ranch area in Scottsdale. This 480-unit community built in 2008 includes many spoils, including a private resort-style pool and hot tub, 10 acre private park, and excellent location just off of Scottsdale road.
The community is not short on entertainment options, within walking distance are many fine dining options, beautiful walking trails, and the famous McCormick-Stillman Railroad Park.
There are a plethora of Scottsdale condos being developed that it’s almost impossible to list them all in this article. If you want to be part of the growing trend and want to reside in one of the most beautiful cities in the country.