Real Estate News - Summer 2022
... With all the news and speculation.. I thought it was important to share some quick facts.. I am hearing from some media outlets and even larger real estate brokerages of a " leveling off".. "as in" home prices settling in at current levels with minor fluctuation... and I just need to dispel that notion now... As an expert in Scottsdale and Paradise Valley Real Estate.. the facts are prices are ALREADY dropping.. sellers are slowly but most assuredly already dropping list prices and we are seeing price reductions across a broad spectrum of price ranges most notably between 500k and 2m with the over 3 million dollar home prices stable but not rising as they have the last 5 years. ... so now is NOT the time to buy unless you are comfortable knowing you will be comfortable in the home you buy until this all sorts out. So Yes.. "buy" to enhance your life... but not if your job is tenuous or you are considering moving in next 24 months. Prices are cyclical what goes down today will be up again. However for today,  The periodical Fortune made some good notes in their recent article - seen below.. and please call me DIRECTLY anytime to get the latest facts and figures.
  • Over the past year alone, home prices have gone up 4 times faster than incomes - simple economic theory, dictates that neither home prices nor incomes can outgrow the other for very long, history tells us that isn’t sustainable.
  • Over the last 6 months rates have risen from a very low 3.2 to over 6% which means home buyers are feeling the real cost of the post pandemic housing boom, which has driven home prices in Scottsdale over 50% and Paradise Valley UP OVER 59% in just two years .
  • The analysis conducted by Moodys - Analytics aimed to find out whether economic fundamentals, including local income levels, could support local home prices. On a national level, Moody’s Analytics finds U.S. home prices are "overvalued" by 24.7%. In other words, U.S. home prices are 24.7% higher than they would historically trade at given current income levels. While that doesn’t mean home prices nationally are about to fall by 24.7%, it does mean that historically speaking, home prices have moved into the upper bounds of affordability. The last time that happened? Was during the 2000s housing bubble. Moodys further found certain areas to be over valued by more than 50%.. guess who ??? All of Arizona comes in 1st; parts of Texas a close 2nd and yes.. Utah and parts of Florida.
  • Real Estate is a real profession, I tell clients and open house guest all the time, " please do not base your real estate decisions on what you think or your neighbor thinks.. yes.. I said that... because you will LOOSE money.. I know of a home seller who recently lost over $500,000 !!! because they had a different opinion than their very professional Realtor and they said "no no I think this " ... and this is common my friends. Can you believe a home buyer or seller would not take the advice of a professional with over 20 years experience ? To make a stronger example... An experienced Realtor (as opposed to one, who just got their license from an online course etc or has 10 or less years experience and sold less homes) A great, knowledgeable, talented, honest Realtor is like a Flight instructor... Take heed of their advice. Real Estate is a real profession