WARM BUYER'S MARKET IN METRO PHOENIX

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Year 2023 Housing Market wrap up

Overall in Phoenix Metro, the average price per square foot of active listings hit a new all-time high on January 20 of $366.43. But the biggest news in 2023 housing was the luxury market, led by Paradise Valley Township, a small residential community that surrounds Camelback Mountain bordered by both Scottsdale and Phoenix.

PARADISE VALLEY ARIZONA 

• The above Chart from Cromford Report represents those parts of the Phoenix Metro Valley with a measurable supply of luxury homes. It graphs the 2 year change in the annual average price per square foot for closed listings, measured at the end of 2023. Paradise Valley leads with an increase of over 42%, followed by the next highest, Scottsdale, at 23%.
• According to Cromford, “Throughout the last year it has become more and more obvious that the top-end of the market is behaving differently from the entry-level and the mid-range.” This was echoed by the Luxury Home Marketing Institute (below).
• Locally: Homes that were priced over $2 Million saw an annual average square footage price higher than a year ago. However, homes priced under $2 Million saw a reduction in average square footage pricing.
• In another example: “Homes above $10 million have become more expensive and at the fastest rate.”

Cromford is our most respected local data on the housing market.

NATIONAL LUXURY MARKET YEAR IN REVIEW 

The North America Luxury Home Review of 2023 (Link to full report) was just posted by the Luxury Home Marketing Institute. Some of this issue’s take-aways:

“The best way to sum up the luxury real estate market during 2023 might be that it remained "unapologetically resilient", despite a slower year in the overall sales volume compared to 2022.”

Economic uncertainty, rising inflation and increasing interest rates, led to a growing seller resistance to list their property which further compounded the already low levels of inventory. This was, until the last quarter of 2023, when a shift that started at the end of the third quarter saw more listings enter the market, consequently opening the door for more sales. 2023 was a softer luxury market than 2022. Listings stayed on the market longer, prices remained high, and affluent buyers choose to wait patiently for their perfect move-in-ready dream home.

In the hyper local market reports, Scottsdale is seen as a Seller’s market December sales dominated by homes priced over $4.5 Million. (full local reports at the end of the National Report Link).

Monthly Housing Market Update

Give me a call to discuss your specific real estate needs. Denise van den Bossche, Associate Broker, Realty Executives Phoenix, Exec-Elite Team Leader 602.980.0737 DeniseVDB@Exec-Elite.com.  

Why choose to reside in the Metro Phoenix Valley of the Sun?

In today's diverse housing landscape, Maricopa County (The Phoenix-Scottsdale Valley of the Sun) stands out as a premier option. It offers a desirable lifestyle without the hefty price tag seen in similar-sized metropolitan areas, and with the added benefit of experiencing sunshine 360 days a year, minimizing weather-related disruptions.

Young & Vibrant with Skilled Work Force

Over the past four decades, the demographics and workforce dynamics have undergone significant transformations. Currently, 70% of residents fall within their most productive years, and the Valley has become a hub for skilled workers, higher wages, and increased income levels. This shift has injected a youthful vibrancy, with the Arizona Commerce Authority projecting a remarkable 20% growth in technology jobs by 2030, positioning Arizona among the nation's fastest-growing states in this sector.

In comparison to other warm-state alternatives, Arizona stands out as a youthful and dynamic choice. For instance, Florida anticipates a substantial increase in its population of residents aged 65 and older, nearly double that of Arizona by 2030.

Here is Tom's Thumb Hiking Trail near Lost Canyon and Silverleaf taken last week

Stable Weather and Infrastructure

Arizona boasts high rankings in infrastructure and low susceptibility to natural disasters, resulting in a more affordable cost of living and conducting business. The state has a minimal history of natural disasters or infrastructure failures, providing homeowners with the assurance of a stable living environment. This translates to lower insurance premiums and some of the country's lowest property taxes, enabling residents to enjoy superior homes for comparable payments.

Activities and Events

Maricopa County's allure extends beyond its exceptional weather and stunning landscapes, receiving national attention as a vibrant and diverse destination.

In the realm of sports, Arizona stands out with its professional teams and serves as a hub for major events. From Spring Training (for over 20 baseball teams) and College Championship Sports to the renowned annual Fiesta Bowl and the "PGA Phoenix People's Open," the area hosts a dynamic array of athletic spectacles. Additionally, Barrett-Jackson and other well-known Collector Car Auctions draw enthusiasts from far and wide. Arabian and other Equestrian events held here enjoy global recognition.

The cultural scene in Arizona is equally compelling. As the 5th largest metropolitan area in the country, the state regularly hosts major events, ranging from the grandeur of the Super Bowl to large conventions. Its appeal extends to entertainment, attracting worldwide performers and speakers.

Scottsdale alone boasts over 200 year-round golf courses, establishing itself as a golfer's paradise. Old Town Scottsdale has emerged as a premier destination, particularly for bachelorette parties, creating a lively and celebratory atmosphere. Nearby Tempe, housing Arizona State University, contributes to the youthful vibrancy of the region. Scottsdale further enhances its appeal with exceptional shopping venues, making it a retail haven. The culinary community views the Valley as a melting pot, providing an ideal environment for experimenting with and establishing new restaurant concepts.

Beyond sports, entertainment, and shopping, Arizona's hotel and resort industry consistently ranks among the world's best. The spa industry adds to the state's allure, making it a top destination for relaxation and rejuvenation.

In essence, Phoenix Metro offers a multifaceted experience, blending sports, entertainment, culture, and recreation. Whether you're a sports enthusiast, a partygoer, or someone seeking a culinary adventure, Arizona's diverse offerings make it a destination that truly has something for everyone.

Wellness, Outdoor Enthusiasts

In the realm of health and fitness, Arizona's commitment to well-being is evident. Scottsdale, aspiring to become a "Blue Zone," offers a plethora of outdoor activities, including hiking, biking, horse riding, boating, and even snow skiing just a few hours away.

Lower Cost of Living

When it comes to the cost of living, Arizona shines as an affordable option. With living costs approximately 17% below the national average and rental rates potentially 60% lower than comparable cities, the state provides a favorable financial environment. Lighter traffic, lower gas prices, and a business-friendly tax climate further contribute to Arizona's appeal as a destination for both residents and businesses.

Central Location

Strategically located, Arizona provides residents with the option to escape the summer heat by exploring nearby pine-covered landscapes, the serene west coast, or cooler destinations in neighboring states like Utah, Colorado, and New Mexico.

Conclusion

In conclusion, residing in the Metro Phoenix Valley of the Sun offers a blend of economic prosperity, recreational diversity, and a high quality of life. That's why I chose it 40 years ago, and why I still think it is the greatest place in the world to live. Call me, I'd love to give you a tour of our diverse Valley. Denise van den Bossche, named #1 Top Solo Production in Maricopa County for Realty Executives International 2022, and #2 Worldwide. Learn more at www.Exec-Elite.com or call 602-980-0737.

New Survey Results

A Real Estate professional was used 89% in all home sales last year;   Less than 1 % of home sellers used an online “i-Buyer”  type service; and 7% of home sales were “For-Sale-By-Owner” (FSBO), with over half of those being friends, family or acquaintances of the home seller.   

Those are some of the results of the 2023 Survey of the National Association of Realtors (NAR). The Profile of Home Buyers and Sellers report has been the leading industry source of statistics and consumer insights for over four decades.

The survey covers information on demographics, housing characteristics, and the experience of consumers in the housing market, as well as for those who are not yet able to enter the market. Data is for a 12 month period between July and June.

For Full Report and Printable PDF Click here.

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