Scottsdale AZ Real Estate & Lifestyle

Live Better in Scottsdale - eXp Realty

Heather Tawes Nelson

Quick Video Update of the Scottsdale Real Estate Market – January 2018

By

– January 2018 Scottsdale Housing Market Video –

January 2018 – Video

Here is a one-minute video overview of the Scottsdale, Arizona real estate market for the month of January.

Scottsdale Active Listings

Here we start off with a look at the housing inventory in Scottsdale. In this first image, we are looking at a year-over-year perspective. So, the number of homes for sale in Scottsdale this January versus last January was down 13%.

 

 

 

 

This is the same information, but using a month-over-month comparison.

The number of homes on the market in January was up 4% over December 2017.

 

 

 

Median List Price for Scottsdale Homes

If you are not familiar with median list price, it simply means it is the mid-point, where half of the homes are priced higher and half of the homes are priced lower.

In January, the median list price was $925,000. This is up quite a bit from January 2017’s $849,000 median list price.

 

 

 

Days on Market

Days on Market is a quick and easy way to gauge how well a market is performing. A high Days on Market (DOM) means things are moving more slowly, whereas a low DOM indicates a hotter market.

The DOM for January 2018 was 118. This is up 11% over January 2017’s 106 days.

 

 

 

Median Sales Price for Scottsdale Homes

Now we will look at the median sales price, versus list price.

January’s median home sales price was $551,300. This is up over $50,000 when looking at January 2017’s $500,000. However, it was down slightly from December 2017’s $555,000.

 

 

Number of Homes Sold

This final section covers home sales in Scottsdale.

There was a 9% increase in home sales when comparing January 2018 to January 2017.

 

 

 

However, if you look at December 2017 compared to January 2018, sales were down 4%. This makes sense as many buyers want to close before the end of the year for tax purposes. Sales should be headed up for the next several months.

 

 

 

 

We hope that you found this video and commentary helpful as you gather more information to make smart informed real estate decisions.

For more Scottsdale real estate information or if you have any questions about the local area, feel free to contact Joyce at (480) 209-7843 or Joyce@LiveBetterinScottsdale.com.

Click to watch other videos on our Live Better in Scottsdale YouTube Channel

 

Disclaimer: Data deemed to be accurate, but is not guaranteed.

Scottsdale AZ Single Family Home Sales – January 2018

By

– January 2018 Scottsdale Homes for Sale and Home Sales –

Here is how the Scottsdale real estate market fared during the first month of 2018.

SCOTTSDALE HOME SALES ACTIVITY – JANUARY 2018

The chart below shows the past year of real estate activity in Scottsdale. For this report, we track four different items on a monthly basis:

– Single-family homes for sale – The homes for sale are seen on red line.*
– Under contract, but accepting backup offers (UCB) – UCBs are represented by the green line.*
– Pending home sales – Pending sales are represented by purple line.*
– Home Sales – Sales are represented by the blue line.

JANUARY 2018 RESULTS

  • Scottsdale Homes for Sale: After the seasonal dip at the end of the year, the number of homes for sale was back up over 2,000 by the end of January.
  • UCB (Under contract, accepting backup offers): UCB listings saw a healthy 34.2% jump to just under 300 by the end of the month.
  • Pending Homes Sales in Scottsdale: We also saw another healthy jump in pending sales as the year got off to a start.
  • Scottsdale Home Sales: Sales were down a little bit between December and January. This a seasonal dip we see as buyer activity falls over the holiday season. However, 378 sales was a solid figure for the month.

This next part covers two other things we track related to the Scottsdale housing market.

The top section is how each of the sales metrics performed in relation to the prior month. For instance, pending sales were up 24.7% at the end of January compared to the end of December.

The bottom section contains sales price to list price. This tells you what homes sold for compared to what their listed price was. In January, it was 95.8%. That means that on average homes sold for 4.2% less than their list prices.

January’s sales activity got 2018 off to a nice start. And with the uptick in pendings and UCBs, February is on track to have a solid month.

*Figures for active homes for sale, UCB sales and pending sales are based on the numbers at the end of the month.

Search Scottsdale AZ Homes for Sale

Here is a sampling of some of the homes on the market, or click the link above to see all of the homes for sale.

Disclaimer: Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 2/1/2018. Information deemed reliable, but not guaranteed. There may be new home inventory in these figures if the developer is using the MLS to market its homes. This post represents the opinion of the author. No warranties express or implied.
Copyright © 2018 Heather Tawes Nelson | Joyce Tawes

Things to Do in Scottsdale – February 2018

By

– Scottsdale Area Events February 2018 –

Bischoff's Scottsdale AZ art2018 is almost here and with it comes the kickoff to a new high season packed with exciting and high-profile events.

  • Hamilton – Now through February 25th – ASU Gammage Theater is home to Hamilton for the next few weeks. Head down and see one of the hottest shows around.
  • The Art of Ice Cream Experience – Now through March 9th – Love ice cream and all kinds of frozen treats? Make your appointment and spend an hour learning about and sampling ice creams in this interactive pop art and ice cream pop up. Selfies and photos are highly encouraged!
  • Arizona Fine Art Expo – Now through March 25th – The Fine Art Expo is an annual event that takes place in North Scottsdale on the corner of Scottsdale Road and Jomax. This year, there are 115 artists who will be creating in their studios, plus classes for folks who want to learn from professionals.
  • Celebration of Fine Art – Now through March 25th – This is the other high-profile art event in Scottsdale that takes place each year. Over 100 artists will be present over the 10 weeks to show their work as well as create new pieces.
  • Hashknife Pony Express – February 9th – The Pony Express rides again! This is the 60th annual ride where the Hashknife Pony Express rides 200 miles to deliver the mail in Downtown Scottsdale at the Museum of the West.
  • Jerry Seinfeld – February 9th – Jerry Seinfeld will take the stage at the Comerica Theater.
  • Scottsdale Waterfront Fine Art & Wine – February 9th – 11th – Head on down to the waterfront to enjoy some beautiful art and wine tastings.
  • Street Eats Food Festival – February 10th & 11th – Salt River Fields will be hosting this food truck event. Get your sample tickets and enjoy food from over 20 food trucks. There will also be live entertainment, cooking demos, food eating contests and more.
  • Free Family Day at the Phoenix Art Museum – February 10th – Between noon to 5, bring the family to the Phoenix Art Museum for free entry and family-oriented hands-on activities.
  • Scottsdale Arabian Horse Show – February 15th – 25th – The Arabian Horse show will be back at Westworld Scottsdale. Take advantage of a behind-the-scenes barn tour, head over to the Family Zone for pony rides and more. This annual event is a favorite for many.
  • Spring Training – Starts February 21st- Come see the opening game at Salt River Fields where the Diamondbacks will take on the ASU Sun Devils. The full season kicks off on the 23rd.

 

 

Disclaimer: Information deemed reliable, but not guaranteed. Dates and times subject to change.

Scottsdale AZ Luxury Home Market – December 2017

By

– Scottsdale AZ Luxury Home Market Performance for December 2017 –

Here is the final luxury home sales report for 2017. In this report, I am defining luxury homes as homes in Scottsdale with asking prices in excess of $1 million. Because the market performs differently at different price points, I have divided the sales activity into four price bands and the data goes back 12 months.

The sales activities we are tracking are:
Active – The number of homes on the market at the end of the month.
UCB (Under Contract Accepting Backup Offers) – How many homes were under contract, but still accepting backup offers at the end of the month.
Pending – How many homes were in pending status at the end of the month.
Sold – The number of home sales for that month.


– DECEMBER 2017 –

Scottsdale Homes Priced Between $1,000,000 – $1,499,999

– Active Scottsdale Homes on the Market: Inventory fell slightly at the end of the month, but it was still ahead of the 12 month average by a few homes.
– UCB Scottsdale Home Sales: UCBs came in at 29 at the end of the month. This is the third highest it has been in the past year.
– Pending Scottsdale Home Sales: Pending sales fell dramatically in December to sixteen. This is the lowest it has been this year, but we do tend to see things get quieter over the holidays.
– Scottsdale Homes Sold: Thirty homes sold in December. This was a solid showing to close out the year.
– Sales Price to Listed Price: 93.9% – On average, buyers saw a discount off of list price of 7.1%

Scottsdale Homes Priced Between $1,500,000 – $1,999,999

– Active Scottsdale Homes on the Market: Inventory was down slightly again to 204. This is just below the 12 month average.
– UCB Scottsdale Home Sales: UCB homes ended December at twelve. This is just ahead of the 12 month average of 11.
– Pending Scottsdale Home Sales: Pending sales were back down over a very strong November.
– Scottsdale Homes Sold: Seventeen homes sold in December, which is excellent. This was well ahead of the 12 month average of 13.
– Sales Price to Listed Price: 93.4% – On average, buyers saw a discount off of list price of 6.6%.

Scottsdale Homes Priced Between $2,000,000 – $2,999,999

– Active Scottsdale Homes on the Market: The number of homes for sale at this price point remained level between November and December.
– UCB Scottsdale Home Sales: UCB homes were also level between the past two months.
– Pending Scottsdale Home Sales: Pending sales saw a dip to seven. This is the second lowest we have seen this year.
– Scottsdale Homes Sold:  Ten homes sold in December. This is just ahead of the 12 month average of nine.
– Sales Price to Listed Price: 91.6% – On average, buyers saw a discount off of list price of 8.4%

Scottsdale Homes Priced $3,000,000+

– Active Scottsdale Homes on the Market: This is the only price point where inventory went up between November and December.
– UCB Scottsdale Home Sales: UCBs fell to three, which is where they came in many times in 2017.
– Pending Scottsdale Home Sales: Pending sales e four pendings were right on par with the 12 month average.
– Scottsdale Homes Sold:  There were three home sales in December. It was a large dip from an abnormally high November sales figure.
– Sales Price to Listed Price: 89.8% – On average, buyers saw a discount off of list price of 10.2%.

December was a solid month to close out 2017. There was mixed activity, but we did see some strong sales figures in the lower price points. Pendings, for the most part, were down, but that is due to seasonality. Based on this, I anticipate a slower sales month in January.

If you would like additional detail on home sales activity, please visit our Scottsdale Luxury Home Market Reports page and click on the downloadable “Scottsdale Market Trends” report.

Search Scottsdale Luxury Homes for Sale

Disclaimer: Information deemed reliable but not guaranteed. Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 1/1/2018 and can change at any time. The analysis looks at single-family luxury resale homes in Scottsdale AZ over the last 12 months. There may be new home inventory in these figures if the developer is using the MLS to market its homes. This blog represents the opinion of the author. No warranties expressed or implied.
Copyright © 2018 Heather Tawes Nelson | Joyce Tawes

 

Where to Eat in Scottsdale – Wally’s Gastropub

By

We recently had the chance to visit Wally’s Gastropub for lunch and had a wonderful lunch.

Located in Gainey Ranch, Wally’s enjoys a nice, central location. The interior features a lot of wood and holds true to the pub design. To the right was a large patio, that was enclosed for the cooler weather.

Our server could not have been nicer and walked us through the customers’ favorites on the menu. We were in the mood to try a few things, so we opted to order from the appetizer menu.

We can never resist a pretzel/cheese combination as a starter and jumped right in. Wally’s Pretzel and Asiago Fondue comes with small pretzel loafs that have been sliced and an asiago cheese dip that has tomato relish and a hint of chipotle. It was delicious and we fought over who got to finish it.

From there, we shared the Ocean Mist Artichokes. The artichokes come grilled and are served with a tasty remoulade dipping sauce. There were three large halves of artichokes, so sharing was easy.

The final thing we tried was the Peel N’ Eat Shrimp. You can order six or twelve and they come well-seasoned with Old Bay and are served with a traditional cocktail sauce as well as remoulade.

This was only a fraction of the menu. They have a large number of salads and sandwiches they offer as well as a selection of handmade pastas. They also have a section called “Dad’s Favorites” that has more traditional comfort food like meatloaf, fish and chips and rib roast. After 5PM, they add some additional entrees like salmon and prime rib.

We do want to come back and try their Happiest Hour Specials. Every day from 3PM to 6PM, they offer drink specials and great pricing on food items including the pretzels and shrimp we had, plus other offerings like sliders, a burger, grilled cheese and tomato soup and tacos.

We really enjoyed our meal at Wally’s Gastropub and look forward to visiting it many more times.

More Information: 
Wally’s Gastropub
7704 E Doubletree Ranch Rd
Scottsdale, AZ 85258
(480) 596-7978
Hours – Open daily from 11AM – 9PM

P.S. Wally’s is part of the restaurant family that includes Twisted Grove and Grassroots.

Quick Video Update of the Scottsdale Real Estate Market – December 2017

By

– December 2017 Scottsdale Housing Market Video –

December 2017 – Video

Here is a one-minute video overview of the Scottsdale, Arizona real estate market for the month of December.

Scottsdale Active Listings

This first image shows in the inventory of homes for sale in December 2016 in comparison with the same time frame in 2016.

Inventory fell by 16% between the end of 2016 and the end of 2017, finishing off the year with less than 2,000 homes for sale in Scottsdale.

 

 

 

This next image also shows the number of homes per sale, but on a month over month basis.

Inventory was down 9% between the end of November and December. This is a dip we tend to see annually as many home listings are set to expire on December 31st.

 

 

Median List Price for Scottsdale Homes

The median list price is the absolute middle of home prices in that exactly half of the homes are priced higher and half of the homes are priced lower.

The median list price of Scottsdale homes in December was $919K. This is up almost $90K over December 2016.

 

 

 

Days on Market

Days on Market is often referred to DOM. It is a quick and easy way to determine the health of a market or a segment of the market. A high DOM indicates that homes are taking longer to sell whereas a low DOM means homes are selling more quickly.

December 2017’s DOM was 94. This was down 10% from December 2016’s 104 days.

 

 

Median Sales Price for Scottsdale Homes

Just like the median list price, the median sales price represents the amount that falls into the middle of all home sales prices.

December’s median home sales price was $555K. This is up $60K over December 2016’s $495K and is up slightly over November 2017’s median sales price of $537,500.

 

 

Number of Homes Sold

These last two images show home sales activity for Scottsdale homes.

Home sales were up 5% between December 2016 and December 2017.

 

 

 

And if we look at sales activity between November and December 2017, sales were up by 1%.

 

 

 

 

We hope that you found this video and commentary helpful as you gather more information to make smart informed real estate decisions.

For more Scottsdale real estate information or if you have any questions about the local area, feel free to contact Joyce at (480) 209-7843 or Joyce@LiveBetterinScottsdale.com.

Click to watch other videos on our Live Better in Scottsdale YouTube Channel

 

Disclaimer: Data deemed to be accurate, but is not guaranteed.

Phoenix and Scottsdale AZ Luxury Condo Sales – December 2017

By

– Luxury Condo Sales in Scottsdale and Phoenix – December 2017 –

Here is the final report of the year for the Scottsdale and Phoenix luxury condo markets. In this report, we look at the sales activity  For the purposes of this report, we are looking at sales activity of condos priced at and over $1 million.

ACTIVE LISTINGS AT THE END OF DECEMBER

Inventory jumped by seven as of January 1st. Thirty-seven of the units were located in Scottsdale and the remaining twenty-three were in Phoenix.

The most expensive unit for sale was listed for $2,750,000. This home is located in the revamped Landmark community in the Kierland area. It had three bedrooms, three and one-half bathrooms and 4,471 square feet.

The least expensive unit for sale was listed for $1 million. It was located in Phoenix in the Regency House Condos and had three bedrooms, two bathrooms and 2,650 square feet.

UCB* LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

December closed out with two UCB condos and both were located in Scottsdale.

  • Main Street Place is currently under development, so this has carried over for many months now. Listed for $1,975,000, this condo had 3,563 square feet, three bedrooms and three and one-half bathrooms.
  • Optima Camelview had the other UCB. This unit had three bedrooms, three and one-half bathrooms and $2,299 square feet. It had been on the market for $1,549,000.

*UCB status means a condo has an accepted contract, but that the seller has requested that they accept backup offers. Most times you will see this status when the contract is in the inspection/due diligence period.

PENDING LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

December ended with nine pending sales of luxury condos. Eight of them were located in Scottsdale and many of them are in communities still under development.

Pending Condos in Scottsdale

  • What had been the most expensive listing for many months went pending in December. It was a Scottsdale Waterfront Residences penthouse with three bedrooms and three and one-half bathrooms. It had been on the market for $3,595,000.
  • Scottsdale Waterfront Residences had another pending sale. It was a three bedroom, three and one-half bathroom unit with 2,503 square feet. It was on the market for $1,499,000.
  • Three of the eight pending sales were in Main Street Place and have been in this status for many months. Square footage for these units came in between 2,345 and 2,520. Prices ranged from $1,165,000 (3rd floor), to $1,300,000 (2nd floor) and to $1,975,000 (4th floor).
  • Optima Kierland, a new luxury development, also had two carryover pendings. The first unit had two bedrooms, two and one-half bathrooms and 2,283 square feet. It was listed for $1,653,000. The second unit was a three bedroom, three bathroom, 1,706 square foot home. It was on the market for $1,075,000.
  • The final pending sale was in Optima Camelview. This unit had three bedrooms, two bathrooms and 2,258 square feet. It had been listed for $1,290,000

Pending Condo in Phoenix

  • The sole pending sale in Phoenix was found in Portland on the Park. This rollover from previous months had three bedroom, three bathrooms and 1,904 square feet. It was listed for $1,109,500.

LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

December ended the year with a very solid sales count of six.

Scottsdale Luxury Condo Sales

  • The Enclave at Borgata had a single sale. This unit had three bedrooms, three and one-half bathrooms and 2,765 square feet. It was on the market for $1,820,572 and sold for list price
  • Optima Camelview was home to another sale. It was a three bedroom, two and one-half bathroom unit with 3,354 square feet. It was listed for $1,799,000 and sold for $1,700,000.
  • The final two sales were in Scottsdale Waterfront Residences. Both were two bedroom, two and one-half bathroom units. The 1,659 square foot unit had been listed for $1,199,000 and sold for $1,190,000. The 2,041 square foot unit had been listed for $1,299,000 and sold for $1,200,000.

Phoenix Luxury Condo Sales

  • Two Biltmore Estates had a sale. This three bedroom, three and one-half bathroom, 3,950 square foot unit had been listed for $2,638,000 and sold for $2,508,000.
  • 8 Biltmore/Fairway Lodge was the other sale in Phoenix. It was a three bedroom, two and one-half bathroom, 2,400 square foot unit. It had been on the market for $1,049,000 and sold for $1,017,500.

 

Learn More About Phoenix and Scottsdale Luxury Condos

Search Phoenix and Scottsdale Luxury Condos for Sale

Disclaimer:  Days on market figures are cumulative days on market. Information herein deemed reliable but not guaranteed. Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 1/1/2018 and can change at any time. The analysis looks at resale luxury condos in Scottsdale and Phoenix over the past 12 months. Information deemed reliable, but not guaranteed.  There may be new condo inventory in these figures if the developer is using the MLS to market its homes. This post represents the opinion of the author. No warranties express or implied.
Copyright © 2018 Heather Tawes Nelson | Joyce Tawes

Real Estate 2018: What to Expect

By

Scottsdale Real Estate 2018: What to Expect

Scottsdale 2018 real estate marketAs we head into a new year, the most common question we receive is, “What’s the outlook for real estate in 2018?”

It’s not just potential buyers and sellers who are curious; homeowners also want reassurance their home’s value is going up. The good news is that a strong U.S. economy, coupled with low unemployment rates, is expected to drive continued real estate growth in 2018. However, changes on the horizon could significantly impact you if you plan to buy, sell or refinance this year.

HOME VALUES WILL CONTINUE TO RISE

Get ready for another strong year! U.S. home values and sales volume will continue to rise in 2018.

Experts agree that home prices will increase in 2018, but predict a slower rate of appreciation than 2017, which clocked in at nearly 7 percent nationwide. National Association of Realtors (NAR) Chief Economist Lawrence Yun predicts a growth rate this year of 5.5 percent,1 while Freddie Mac’s September Outlook Report forecasts a rate of 4.9 percent. Either way, all indicators point towards continued growth in 2018.2

Scottsdale saw home values increase over the course of 2017. It is predicted that prices will continue to rise locally, but at a measured pace.

What does it mean for you? If you’re a current homeowner, congratulations! Real estate proves once again to be a solid investment over the long term. And if you’re considering selling this year, there’s never been a better time. Contact us to request a free Comparative Market Analysis to find out how much you can expect your home to sell for under current market conditions.

If you’re in the market to buy this year, there’s good news for you, too. Although prices continue to rise, the rate of appreciation has slowed. Still, you might now want to wait any longer. Prices will continue to go up, so you’ll pay more six months from now than you would today. Call us to set up a free, no-obligation property search and get notified about listings that meet your criteria as soon as (or before) they hit the market.

NEW CONSTRUCTION WILL MAKE REAL ESTATE MORE ACCESSIBLE

The lack of inventory in the housing market has been a primary impediment to homeownership for many Americans. “Ten years ago, the problem in the housing market was lack of buyers,” says Yun. “Today, the problem is lack of sellers. Inventory levels are near historic lows.”3

Yun also notes, “The lack of inventory has pushed up home prices by 48 percent from the low point in 2011, while wage growth over the same period has been only 15 percent. Despite improving confidence from renters that now is a good time to buy a home, the inability for them to do so is causing them to miss out on the significant wealth gains that homeowners have benefitted from through rising home values.”1

The good news? Yun expects a 9.4 percentage point increase in single-family new home construction starts.4

Economists at Freddie Mac make a similar prediction. “Existing home sales are unlikely to increase much going forward. Limited inventory will remain a consistent problem … Growth in home sales will be primarily driven by new home sales, which should continue to grind higher with single-family construction.”2

Robert Dietz, chief economist at the National Association of Home Builders, agrees. “The markets that are going to grow are ones where builders can add that entry level product.”5

In Scottsdale, we are fortunate that we have decent inventory. While homes in the lower price ranges are harder to come by, there are ample homes for buyers in higher price points. In December, Scottsdale’s Months Supply of Inventory came in at 5.4. Typically, in a balanced market, this figure would be in the 3-4 month range. So, right now the market seems to be favoring buyers slightly. However, this varies quite a bit when you look at different price ranges. Lower priced homes in Scottsdale tend to sell more quickly.

What does it mean for you? If you’ve been frustrated by lack of inventory in the past, 2018 may bring new opportunities for you to find a budget-friendly home that suits your needs. Give us a call to discuss options for new construction in our area.

MILLENNIALS WILL MOVE TO THE SUBURBS

The new entry-level construction will come with a catch though … it will be located in the suburbs, where the availability of land and fewer zoning requirements make it more cost-effective to build. Economists predict that’s where millennials and first-time buyers will flock for the greater variety of homes at affordable prices.6

Rising home prices, a sluggish job market, and an increase in student loan debt made homeownership largely unattainable for many millennials in past years. However, there’s significant evidence that this trend is turning around. For the fourth year a row, the National Association of Realtors’ 2017 Home Buyer and Seller Generational Trends survey found that millennials were the largest group of homebuyers.7

As millennials age, they are settling down and having families, which has prompted an increasing demand for larger but affordable homes. Thus, many are flocking to the suburbs, with 57 percent of millennial buyers opting for a suburban location.

What does it mean for you? If you’re a millennial who has been priced out of urban living, or is looking for more space for your growing family, a number of suburbs in our area have a lot to offer. We can point you towards the communities that will best meet your needs.

And if you’re a suburban homeowner with plans to sell, give us a call. We know how to market your home to millennials … and can help you sell quickly for top dollar by appealing to this growing market segment!

BOOMERANG BUYERS WILL RETURN TO THE MARKET

“Boomerang buyers” comprise the nearly 10 million Americans who lost their homes to foreclosure or short sales during the housing recession of 2006 to 2014.

According to MyFico.com, a foreclosure remains on a credit report for seven years. It takes many boomerang buyers at least that long to raise their credit score and save up enough cash to qualify for a new mortgage.8

With this “seven-year window” in mind, RealtyTrac predicts that the largest wave of boomerang buyers – more than 1.3 million – will be eligible to re-enter the housing market in 2018.9

Markets likely to see the highest influx of boomerang buyers are those that had a high percentage of foreclosures AND have remained affordable. The majority of boomerang buyers are middle-class Gen Xers or Baby Boomers. Expect to see even more competition for entry-level homes in those markets.

Since Arizona’s housing market was one of the first to fall during the recession, we have already seen some of these “boomerang buyers” come back into the market, which is great news. Looking forward to 2018, we should still see some activity for this segment.

What does it mean for you? If you’re a boomerang buyer, we understand your unique circumstances. We can help you navigate the real estate process and write competitive offers that will play to your strengths. Contact us to discuss your options.

NEW TAX LEGISLATION WILL IMPACT HOMEOWNER DEDUCTIONS

The “Tax Cuts and Jobs Act” passed at the end of 2017 nearly doubles the standard deduction, so far fewer Americans are expected to itemize this year. For those who do, however, it could mean fewer homeowner deductions are available than in the past.

Previously, homeowners could deduct interest paid on the first $1 million of mortgage debt, but that threshold has been lowered to $750,000 for new mortgages. (Existing mortgages will not be impacted.)

Additionally, taxpayers will no longer be able to fully deduct state and local property taxes plus income or sales taxes. The new legislation restricts this deduction to $10,000. It also eliminates the deduction for moving expenses (except for members of the Armed Forces) and interest on home equity loans unless the proceeds are used to substantially improve the residence.10

It’s yet to be seen how the tax bill will impact the real estate market overall. While some economists predict a price reduction in certain markets, Republican lawmakers project the bill will increase take-home pay and stimulate the economy overall. According to Realtor.com Senior Economist Joseph Kirchner, “Some house hunters—particularly wealthy buyers—will see an increase in after-tax income, making an already tough housing market even more competitive. This increased demand could drive prices up even higher than they are already.”11

What does it mean for you? If you’re an existing homeowner, be sure to consult a tax professional if you’re concerned about the impact the new tax bill could have on you.

And if you’re planning to buy or sell this year, we can help you determine how the tax bill could affect demand in your current or target neighborhood and price range. 

INTEREST RATES WILL RISE

No one knows exactly what will happen with mortgage rates this year, but the Mortgage Bankers Association anticipates the Federal Reserve will raise rates three times in 2018, with Freddie Mac’s 30-year fixed rate mortgage reaching 4.8 percent by the end of Q4, up from around 4 percent at the end of 2017.12

Kiplinger.com Economist David Payne also predicts interests rates will rise this year, with short-term rates outpacing long-term rates as the Fed aims to curb inflation in a tightening job market. He predicts the bank prime rate that home equity loans are based on will increase from 4.25 percent to 5 percent by the end of 2018. 13

What does it mean for you? If you’re in the market to buy, act now. Rising interest rates will decrease your purchasing power, so act quickly before interest rates go up. Give us a call today to get your home search started.

And if you’re a current homeowner who is considering refinancing or a home equity loan, don’t wait. We can help you estimate your property’s fair market value so you’ll be prepared before contacting a lender.

WE’RE HERE TO HELP

While national real estate numbers and predictions can provide a “big-picture” outlook for the year, real estate is local. And as local market experts in Scottsdale and the surrounding areas, we can guide you through the ins and outs of our market, including the issues that are likely to drive home values in your particular neighborhood. If you have specific questions, or would like more information about where we see real estate headed in our area, please give us a call! We’d love to discuss how issues here at home are likely to impact your desire to buy or a sell a home this year.

 

Sources:

  1. Inman News –
    https://www.inman.com/2017/11/03/what-to-expect-from-the-2018-housing-market/
  2. Freddie Mac September Outlook Report –
    https://www.freddiemac.com/research/outlook/20170921_looking_ahead_to_2018.html
  3. org –
    https://www.marketplace.org/2017/07/05/economy/tight-inventory-slows-housing-market-down-0
  4. National Association of Realtors Press Release –
    https://www.prnewswire.com/news-releases/existing-home-sales-to-grow-37-percent-in-2018-but-inventory-shortages-and-tax-reform-effects-loom-300549447.html
  5. Fox Business News –
    https://www.foxbusiness.com/features/2017/11/27/entry-level-buyers-drive-solid-new-home-sales.html
  6. Zillow Research –
    https://www.zillow.com/research/2018-predictions-17217/
  7. National Association of Realtors’ Home Buyer and Seller Generational Trends Report –
    https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends
  8. com –
    https://www.myfico.com/crediteducation/questions/foreclosure-fico-score-affect.aspx
  9. RealtyTrac –
    https://www.realtytrac.com/news/foreclosure-trends/boomerang-buyers/
  10. National Association of Realtors –
    https://www.nar.realtor/taxes/tax-reform/the-tax-cuts-and-jobs-act-what-it-means-for-homeowners-and-real-estate-professionals
  11. com –
    https://www.realtor.com/news/real-estate-news/tax-cuts-survey/
  12. Mortgage Bankers Association Economic Forecast –
    https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary
  13. Kiplinger Economic Forecast –
    https://www.kiplinger.com/article/business/T019-C000-S010-interest-rate-forecast.html#iOf4mkSFvvTmi2wr.99
Malcare WordPress Security