Luxury Market Report North America August 2019

The U.S. housing market continues strong into the third quarter. Trends continue for luxury home buyers to seek a smaller contemporary home at a lower price. This demand has encouraged the development of state-of-the-art, amenity driven complexes and homes with smart, space-saving architecture.  The goal of today’s luxury buyer is to minimize time, have easy access to travel, and the ability to focus on favorite activities. This also lends itself to owning multiple homes in different areas of the world.

THE REPORT MIRRORS THE NATIONAL ASSOCIATION OF REALTORS INDICATING AN INCREASED DEMAND FOR HOUSING, WITH MORE INTERESTED BUYERS THAN ACTIVE SELLERS. WHILE INVENTORY MAY BE INCREASING, THERE IS STILL A SHORTAGE OF SUPPLY

HOME BUYER TRENDS:

  • Towns/Cities being revitalized with redeveloped industrial, dockyards and warehouse districts (think San Francisco)
  • Sustainability or “Green” is trendy: Buyers are paying top dollar for properties that use green building technology, carbon neutrality, natural design elements and cleaner healthier air and materials :0
  • Overall, the affluent are downsizing, forgoing materialistic goods and investing more in luxurious, comfortable, healthy homes that provide more time for life interests and priorities

FULL REPORT:

The North America Luxury Market Update is a monthly report well respected in the Residential sector. It provides an overall analysis with trends and showcases comparative data on the top-residential markets throughout Canada and the United States. Included are focus reports on Phoenix, Scottsdale and Paradise Valley. The full report can be viewed at this link: Luxury Market Report

ARIZONA SINGLE FAMILY LUXURY:

  • PHOENIX ($500,000+): Seller’s Market with a 30% Sales Ratio. 
  • SCOTTSDALE ($950,000): Buyer’s Market with a 14% Sales Ratio.
  • PARADISE VALLEY ($1,650,000): Buyer’s Market with a 9% Sales Ratio.

If you would like a print version of any of my housing market reports, or if I can help you buy or sell anywhere in North America, please let me know below, email or text!

About the Author: Denise van den Bossche has been a licensed Agent and homeowner for over 35 years in the Metro Phoenix Valley. To CONTACT Denise, please call 602.980.0737 or EMAIL:  Denise@AZMultipleListingService.com. Her husband Patrick is President of Realty Executives International, so if you need help buying or selling homes anywhere in the U.S. or Canada, please call, email or text!

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August 2019 Real Estate Market Update Phoenix Metro

Hot From Phoenix: Arizona Real Estate is on Fire! We have the LOWEST Number of New Listings Posted in at Least 18 Years, and Contracts in Escrow are Up Over 15%! Unless you are buying a home over half a million dollars in the Valley, you will need help finding inventory, since the good listings are going under contract within hours! Agents with strong connections are your best bet . . .

For Buyers:
It’s slim pickings for buyers in Greater Phoenix these days unless your budget is over $500,000.  Overall supply is 14% lower than last August while contracts in escrow are 15.5% higher!  There are a plethora of zip codes considered “frenzies”, where there are literally more properties under contract than there are active for sale; all of them with an average sale price below $400,000.  This is unusual for August, which is typically a much softer month. Buyers will have a slightly easier time in more expensive areas such as Central Phoenix, Ahwatukee, South Tempe and the Northeast Valley, but not much unless they’re willing to go further out or increase their budget.  Any projections of prices flattening out or coming down in Greater Phoenix this year have been obliterated.

For Sellers:
As supply plummets, fewer sellers are deciding to sell.  July was THE lowest month for brand new listings going all the way back to the year 2001.  That’s significant because the population today is 50% larger and the number of housing units is 63% higher than it was 18 years ago.  19% of all MLS sales and 26% of sales between $100K and $250K sold over asking price last July.  Coincidentally (or not), 32% of sales within that same price range still included some form of seller-paid closing cost assistance.  Despite the frenzy market, the annual appreciation rate for Greater Phoenix is just 6.4% and sales between $225K-$500K are clocking 3.5-4.0% on average.  This may seem surprising given the widening gap between supply and demand; but appraisers remain conservative in their valuations and with at least 80% of buyers needing a loan, they’re riding the brakes on runaway appreciation thus far.

Provided as a proud subscriber of The Cromford Report. Commentary written by Tina Tamboer, Senior Housing Analyst

If you would like a print version of any of my housing market reports, or if I can help you buy or sell anywhere in North America, please let me know below, email or text!

About the Author: Denise van den Bossche has been a licensed Agent and homeowner for over 35 years in the Metro Phoenix Valley. To CONTACT Denise, please call 602.980.0737 or EMAIL:  Denise@AZMultipleListingService.com. Her husband Patrick is President of Realty Executives International, so if you need help buying or selling homes anywhere in the U.S. or Canada, please call, email or text!

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Secret to Scoring the Best Home in the Neighborhood

Using the Agent you used selling your home in a totally different neighborhood could cost you dearly. Luxury agents know their peers and negotiate accordingly. Neighborhood specialists know the inventory, the pockets, and those homes that could be coming available soon. Tenured agents know a bad deal in their neighborhood when it goes down. This and much more . .

  1. Many homes never even get listed  Look for neighborhood longevity in an agent. Work with a tenured Realtor© who works long hours 7 days a week and has invested years in building their career in this industry. You are more likely to find the perfect home if you work with one who specializes in your favorite neighborhood, as they know the inventory, the “pockets” and those that will, or could, be coming available soon.
  2. When negotiating out-pays closing costs   An agent tenured in the neighborhood knows the other strong agents and recognize the newbies. In Maricopa County over half of licensed agents are part-timers or new to the field. Luxury agents know their peers and negotiate accordingly.
  3. Transactions frequently fall out of escrow  Many transactions fall apart, sometimes just before closing, due to number of factors. Experienced agents will have already put safeguards in place with carefully vetted inspectors, contractors and key knowledge of the neighborhood, effectively resolving problems before they escalate. But they can also spot a novice situation on a house you desire that has a high probably of failure, to your advantage.
  4. The Seller pays your buyer agent commission In Arizona the seller typically pays commissions for both sides of the transaction. Don’t be fooled into thinking you’ll get a better deal by dealing directly with the Seller side of the transaction.  A tenured Agent that has been in the business and knows the neighborhood will undoubtedly save you more money during negotiation and the inspection process, while decreasing your liability.
  5. This is a huge investment, and a huge potential liability  You use a professional to prepare your taxes, because there is a point in your net-worth which you cannot possibly follow all of the ever-evolving tax laws that affect you. Same with your medical practitioners. Specialization spread across multiple clients is a win-win for everyone. If you see a “For Sale By Owner,” take your Realtor, most will pay the commission to reduce everyone’s liability. If you stop by an Open House, let them know you have representation. There is too much at risk to NOT have a Realtor looking out for your best interests.
  6. Critical Parties working on your behalf Your tenured Realtor has long term relationships and experience with title and escrow companies, lenders, inspectors, appraisers, contractors, movers, insurance brokers, mold re-mediation, pest control, and a long list of additional resources critical to the success of a smooth transaction.
  7. New Home Subdivisions are no exception Home-builders include Buyer Agent commissions in their proforma before they even gain funding. Fact: The agent in the Model home has a fiduciary responsibility to represent the builder, and the builder alone. Buying without representation does not save you any money, the rep in the model doesn’t pocket the money, and there is no deduction for non-represented buyers.  Tenured agents have dealt with most builders in the neighborhood and know the idiosyncrasies unique to each. You need to be aware of considerations on everything from the lender, to the documentation and need for third party inspections. Take your agent with you on your first visit, or log them in on your inquiry, and contact them afterwards as soon as possible to register you as a represented buyer.

Denise van den Bossche has specialized in Paradise Valley Arizona and surrounding neighborhoods for over 30 years

About the Author: Denise van den Bossche has been a licensed Agent and homeowner for over 35 years in the Metro Phoenix Valley. To request a printed market report, home evaluation, consumer guide, or info on your specific market, contact Denise at 602.980.0737 or email  Denise@AZMultipleListingService.com.  Denise’s husband Patrick is President of Realty Executives International, so if you need help buying or selling homes anywhere in the U.S. or Canada, please call, email or text!

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July 2019 U.S. Luxury Market Update

Those who relied on predictions that 2019 would be a correction in the luxury housing market lost the bet. Check out this month’s report which tallies the stats from the first 6 months of the year to see how the trends played out.

“To date, the statistics for 2019 report – despite pessimist forecasts in the 4th quarter of 2018 – a strong consistency with no dramatic up or down swings in sales, inventory and pricing. Some markets certainly fared better than others, but in general terms, 2019’s stats show us there is no significant downturn. Although, this is not to say all things have remained equal, in fact the luxury market has seen some significant changes caused by new trends in purchasing power, preferences, and demand.”

2019 Predictions Proven Wrong. 2019 was predicted to be the year we would see a significant downturn in demand for luxury housing globally. There were also concerns that the negative impact of tax changes and government regulations, especially in Canadian and foreign markets, could cause a further downturn in the market.  It just didn’t happen. Although there is certainly global uncertainty, other lifestyle events have proven to be the real catalyst. Buyers are still moving to smaller and smarter lock-and-go housing, and they are relocating to avoid high taxes and weather. The full report can be viewed at this link: Luxury Market Report.

The Lock & Leave Shift Continues. “Luxury condominiums have proven to be one of the strongest sectors in today’s luxury market. Early predictions of a steady demand in most markets, with downtown cores showing the strongest growth, have proven to be correct. The combination of young professionals looking for live-work-play lifestyles, global entrepreneurs using wealth from their businesses, and baby boomers leveraging equity from their single-family residences to purchase luxurious full amenity condos are the main drivers in this market.”

Move-in Ready is Critical.  As we in the business full time have seen demonstrated for several years, home buyers have no desire to purchase a home requiring renovations. Today’s buyers look for turnkey, move-in ready properties with all of the amenities and none of the extra work.

Luxury Buyer Pool Continues to Grow. According to Wealth-X, the number of ultra-wealthy individuals is still increasing at a rate of 1.3 percent per year.  The luxury home market is expected to hit $920 billion by year end 2025, up from $550 billion just two years ago.  Make sure to scroll through the report for a full city by city comparison and much more.

Phoenix Luxury Home

If you would like a print version of any of my housing market reports, or if I can help you buy or sell anywhere in North America, please let me know below, email or text!

About the Author: Denise van den Bossche has been a licensed Agent and homeowner for over 35 years in the Metro Phoenix Valley. To contact Denise, please call 602.980.0737 or email:  Denise@AZMultipleListingService.com. Her husband Patrick is President of Realty Executives International, so if you need help buying or selling homes anywhere in the U.S. or Canada, please call, email or text!

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Phoenix leads Housing Appreciation & Low Cost of Living

The Valley’s housing market is still HOT according to new stats released July 16, 2019:  Buyers hoping for metro Phoenix home prices to fall this year as they are in some other U.S. cities have been disappointed. The Valley’s housing market is still hot with prices setting new records and sales soaring.              . . . . More stats HERE.    Continue reading “Phoenix leads Housing Appreciation & Low Cost of Living”

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June 2019 Real Estate Market Update Phoenix Metro

The Phoenix Metro real estate market is beating expectations!  It never fails, when someone asks what I do and learn that I have worked in Arizona Real Estate for the past 35 years, they ALWAYS ask, How’s the Market?  So, here is your monthly “How’s the market” update! Continue reading “June 2019 Real Estate Market Update Phoenix Metro”

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The truth about the dis-service of Offer Pad and others

Offer Pad and others are doing more than stealing homes!  Great article on case study of one of the new players popping up after many years of a fantastic real estate market.  These sellers experienced on average 11% lower than their home values.

“Convenience comes at a cost. A MarketWatch investigation of multiple transactions involving iBuyers shows that their offers would net their customers, on average, 11% less than owners who choose to sell their homes on the open market, when fees and other costs are considered, translating to tens of thousands of dollars lost. The findings also revealed considerably more uncertainty around the transactions — the scope of inspections, for instance — than the iBuyer model purports to offer consumers who are looking for ease.”  Full article is here 

About the Blogger: Denise van den Bossche has been a licensed Agent and homeowner for over 35 years in the Metro Phoenix Valley. To request a printed market report, home evaluation, consumer guide, or info on your specific market, contact Denise at 602.980.0737 or email  Denise@AZMultipleListingService.com.  Denise’s husband Patrick is President of Realty Executives International, so if you need help buying or selling homes anywhere in the U.S. or Canada, please call, email or text!

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June 2019 U.S. Luxury Market Update

Overall North America is in a balanced market, although Arizona continues to favor Sellers. The biggest trends demonstrated over recent months continues to be that luxury home buyers are all about the ‘Experience.’  Downsizing for Quality-over-Space continues the demand for luxury turn-key Condos. And today’s buyers have no desire to renovate. Continue reading “June 2019 U.S. Luxury Market Update”

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Mid-Month Market Commentary

June 2019 Cromford Infographic Market Update
June 2019 Cromford Infographic Market Update

Metro Phoenix June 2019 Mid Month Pricing Update and Forecast 

Real Estate Market Update mid month June 2019: Each month about this time we look back at the previous month, analyze how pricing has behaved and report on how well our forecasting techniques performed. We also give a forecast for how pricing will move over the next month.

For the monthly period ending June 15, we are currently recording a sales $/SF of $172.25 averaged for all Metro Phoenix areas and types across the ARMLS database. This is up 0.3% or 58 cents from the $171.67 we now measure for May 15. Our forecast range mid-point was $171.96, with a 90% confidence range of $168.52 to $175.40. The actual result was within 29 cents of the mid-point and just slightly stronger than forecast.

On June 15 the pending listings for all Metro Phoenix areas & types shows an average list $/SF of $174.36, up 0.1% from the reading for May 15. Among those pending listings we have 97.8% normal, 1.0% in REOs and 1.2% in short sales and pre-foreclosures. This mix is similar to last month. We remain very close to record low levels of distress.

Our mid-point forecast for the average monthly sales $/SF on June 15 is $173.61, which is 0.8% above the June 15 reading. We have a 90% confidence that it will fall within ± 2% of this mid point, i.e. in the range $170.14 to $177.08.

The average $/SF has been stronger than predicted over the last 5 months, and this has been largely due to the mix of homes that closed. High end homes were better represented than expected between January through May. The average $/SF for pending listings has risen again over the last month so we are expecting another gain in average $/SF over the next 30 days. The overall price trend continues to move higher, as is normal for the spring season, but we normally peak during the second quarter and then see some weakness for the following 3 months. There is no reason to suppose 2019 will be any different despite the current strong demand.

From the Cromford Report, Arizona’s most respected residential real estate statistics (by subscription).

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Summer Staycations Arizona 2019

ARIZONA SUMMER 2019

Valley Ho Old Town Scottsdale Staycation Specials this summer
Valley Ho Old Town Scottsdale Staycation Specials this summer

CIVANA  37220 Mule Train Road, Carefree  civanacarefree.com  NEW WELLNESS RESORT.  CIVANA recently made its debut as the first sustainable wellness resort to open in the Valley. The resort had a multi-million-dollar renovation of its public spaces, 184 rooms, dining outlets, and the addition of state-of-the-art fitness, yoga, energy, movement, and enrichment studios. At the location of the former Carefree Resort & Conference Center, if you book two nights this summer, CIVANA will throw in a third night for free.

Fairmont Scottsdale Princess 7575 E. Princess Drive, Scottsdale scottsdaleprincess.com  One of the Valley’s most popular resorts is now offering the Superhero Summer Staycation package, which starts from $189 per night. Guests who book this package will also receive a $50 daily resort credit available for use toward dining or spa, a superhero backpack with two superhero water bottles and superhero power boosts provided by Pedialyte. This package also includes a $10 donation to Cox Charities benefiting LoveUp, Boys and Girls Club, Phoenix Children’s Hospital, and more. This deal is available through September 2.

Hilton Sedona Resort 90 Ridge Trail Drive, Sedona  hiltonsedonaresort.com  Head north for a slightly cooler staycation special:  When you book the Leisure Escapes package and receive a $50 daily credit for every night of your stay. A wealth of amenities and seasonal specials are available, including happy hour specials, live music, Sunrise Yoga, wine and spirit tastings and a full calendar of fitness and wellness activities. (nice golf course too!)

The Phoenician 6000 E Camelback Rd, Scottsdale thephoenician.com/summer  This year, The Phoenician presents “Fire & Ice,” a variety of hot offers and activities to its staycation offering. These deals include special room offers, distinct menus and prices at three of the resort’s restaurants, and specials at the spa and golf course. Our favorite? Their upcoming “Fire & Ice” themed games, including poolside fire performances. There will also be unique festivities for Memorial Day, Independence Day and Labor Day weekends.

Moxy Hotel 1333 S. Rural Road, Tempe moxy-hotels.marriott.com/en/hotels/tempe  NEW 2019  Hip, chic and a place for fun. From Memorial Day to Labor Day, complete with a cabana, a bucket of beer, $50 in food credit and a late 2 p.m. checkout, all for a rate of $89.

Omni Scottsdale Resort & Spa Montelucia  4949 E. Lincoln Drive, Scottsdale OmniMontelucia.com  Staycation deals include the Fee-Free Summer Getaway where rooms start at $135 on select days with no added parking or resort fees ($61 nightly savings). There’s also Sunsational Sunday: arrive on a Sunday and receive a 10% discount for a one-night stay, 20% discount for two nights or 30% discount for three to five nights off the best flexible rate. And, if you use the Girls Getaway package, you receive 15% off all Joya Spa, dining and retail purchases plus a complimentary fitness class and welcome champagne.

Mountain Shadows 5445 E. Lincoln Drive, Paradise Valley mountainshadows.com  Fee-free stay starting at $119 nightly on select dates, with a waived resort fee and complimentary parking. Applicable to staycation dates between May 27 and September 30. GOLF on the revitalized Short Course (we played there recently and they did an AWESOME job!) with the Summer Unlimited Golf Package for $299 with a $5 charge per round after 10 a.m. on Saturday and Sunday. Afterwards, cool down by the Citizens Club Pool in a private cabana for the ultimate poolside retreat. Savor the specially curated menus of rosés from around the world, available by the glass or bottle, and imbibe colorful cocktails, frozen concoctions and light poolside fare.

Pointe Hilton Tapatio Cliffs Resort 11111 N. 7th St., Phoenix tapatiocliffshilton.com  Newly remodeled, all-suite Pointe Hilton Tapatio Cliffs Resort! Enjoy eight refreshing pools and a full calendar of events and activities including dive-in movies, Wildlife World Zoo visits, poolside games, summer dining specials and much more. In celebration of Hilton’s 100-year anniversary, Pointe Hilton Tapatio Cliffs will be offering a special staycation rate from $100 per night, per suite with booking code “OX.”

Hotel Valley Ho  6850 E. Main St., Scottsdale  IN OLD TOWN SCOTTSDALE  The iconic Hotel Valley Ho in historic Old Town Scottsdale is turning up the heat with staycation deals and plenty of cool craft cocktails. Make the most of your stay with the Stay2Play Package, including an arrival amenity, welcome drinks, complimentary parking, $20 in nightly resort credit and a complimentary room upgrade upon arrival (based on availability). Starting from $129 nightly, it is available for stays from May 27 to September 30. Keep the staycation going and take advantage of the Stay Two, Get the Third Night Free Deal.

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