By Joe Szabo, Scottsdale Real Estate Team
Central and downtown Scottsdale are near three beautiful golf courses that are the favorites of both tourists and locals alike. They are affordable, challenging and have great views of the McDowell Mountains to the north and Camelback Mountain to the east.
30-Year Fixed Mortgage Rate Drops to 4.09 Percent — Lowest Rate in 10 Weeks By Joe Szabo, Scottsdale Real Estate Team
By Joe Szabo, Scottsdale Real Estate Team
Mortgage rates for a 30-year fixed mortgage fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.09 percent, down from 4.18 percent at this same time last week.
The 30-year fixed mortgage rate steadily declined last week, dropping to as low as 4.07 percent on Monday before rising to the current rate this morning.
“Recent weakness in emerging markets helped push rates down last week to 10-week lows as investors turned toward more reliable assets like mortgage-backed securities,” said Erin Lantz, director of mortgages at Zillow. “If Friday’s jobs report is strong enough, it has the potential to pause a downward slide in rates and offset emerging market concerns.”
Additionally, the 15-year fixed mortgage rate this morning was 3.10 percent and for 5/1 ARMs, the rate was 2.72 percent.
What are the interest rates right now? Check Zillow Mortgage Marketplace for mortgage rate trends and up-to-the-minute mortgage rates for your state.
*The weekly mortgage rate chart illustrates the average 30-year fixed interest in six-hour intervals.
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.
*The weekly mortgage rate chart illustrates the average 30-year fixed interest in six-hour intervals.
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.
Scottsdale, Paradise Valley popular spots for celebrities By Joe Szabo, Scottsdale Real Estate Team
By Joe Szabo, Scottsdale Real Estate Team
From Bing Crosby to Beyoncé, Scottsdale and Paradise Valley have been popular stomping grounds for Hollywood headliners since the 1940s.
Its proximity to Los Angeles – and reputation as a desert South Beach – have drawn hundreds of stars through the years to hideaways such as Hotel Valley Ho, Fairmont Scottsdale Princess, Sanctuary on Camelback Mountain and the Hermosa Inn.
According to the Scottsdale Convention and Visitor’s Bureau, stars are attracted to Scottsdale “for rest and relaxation, far from the prying lenses of the paparazzi and congested streets of Los Angeles and New York City.”
See who lives where here
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.Combined Value of US Homes to Top $25 Trillion in 2013 By Joe Szabo, Scottsdale Real Estate Team
By Joe Szabo, Scottsdale Real Estate Team
If you wanted to buy every single home in the country, all at once, you’d need to be prepared to spend more than $25 trillion, according to Zillow.
The overall cumulative value of all homes in the U.S. at the end of 2013 is expected to be approximately $25.7 trillion, up almost $1.9 trillion, or 7.9 percent, from the end of 2012. Gains were calculated by measuring the difference between cumulative home values as of the end of 2012 and anticipated cumulative home values at the end of 2013.
The gain in cumulative home values is the second annual gain in a row, after home values fell every year from 2007 through 2011. Between 2007 and 2011, the total value of the U.S. housing stock fell by $6.3 trillion. Over the past two years, U.S. homes have gained back $2.8 trillion, or about 44 percent of the total value lost during the recession.
“In 2013, the housing market continued to build on the positive momentum that began in 2012, after the housing market bottomed. Low mortgage rates and an improving economy helped bring buyers into the market, boosting demand and driving prices up,” said Zillow Chief Economist Stan Humphries. “We expect these gains to continue into next year, though at a slower pace. The housing market is transitioning away from the robust bounce off the bottom we’ve been seeing, toward a more sustainable, healthier market. This will result in annual appreciation closer to historic norms of between 3 percent and 5 percent.”
Real estate in the United States is hugely valuable. The $25.7 trillion total value of the country’s entire housing stock is more than the combined gross domestic products (GDP) of China and the U.S. in 2012. Homes in the New York and Los Angeles markets alone account for more than $4 trillion in combined value.
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.Home Design Resolutions for 2014 By Joe Szabo, Scottsdale Real Estate Team
By Joe Szabo, Scottsdale Real Estate Team
Resolution No. 1: Plan it out
No matter which design project you want to tackle, designers say having a plan is the key for success. “Start with a wishlist of projects to complete over the year,” suggested designer Alissa Pulcrano of bright design lab in Portland, OR. “Plan, plan, plan first! Then take your concepts to your favorite designer (or two if you don’t have one yet) and ask them to give you a proposal for your wishlist. Take the time to plan it right.” Designer Melissa Klebanoff, principal of Melissa Klebanoff Interior Design in Seattle, offer similar advice to clients tackling design projects. “Assign the following steps a timeframe to keep you on track, and before you begin, determine if the project requires a designer,” she said. “Write down everything you want to accomplish with your project, define it, gather photos and do a space plan if needed.”Resolution No. 2: Find your style and get inspired
Sometimes the most overwhelming part of a project can be determining which direction to go in. Which color? What about textiles and finishes? The goal here is to not necessarily find the most trendy design but the look that will work for you and your household over time. Before you begin gathering inspiration, determine the purpose of the room. Does it need to be highly functional and kid-friendly? Or is it a stylish retreat? Once you have narrowed your purpose, gather photos and spend time visiting websites and saving images. Zillow Digs is one such place to collect inspiring designs all in one space. It also helps to see materials in person, advises Klebanoff. “Go to home improvement stores and design centers. Collect the finishes you’ll need and love — like carpet samples, stone samples, fabrics, furniture cuts, lighting ideas, appliance specs, paint colors and so on,” she said. Resolution No. 3: Focus on one room at a time Whether you’ve been meaning to clean out and organize the clutter accumulating in the hall closet or finally frame family photos for the living room, it’s best to tackle one space at a time. “If you have a weekend, develop a plan and focus on one room: paint the living room, and buy a few key pieces, knowing that you can add to it over the year,” Pulcrano said. “Start with an overall design and then ‘chip away.’” Resolution No. 4: Give the kitchen a refreshKitchens have become the center of many American homes — the place that sees the most foot traffic and activity. According to the latest Zillow Digs designer survey, kitchens top the list for planned 2014 renovations.
Kitchens in 2014 are trending toward open, “homey” spaces, says designer Vanessa DeLeon. “More and more people are wanting an ‘open concept’ space and the feeling of comfort,” she explained. “They want to be able to eat, entertain, relax and enjoy the space with the rest of the house.” Considering a kitchen remodel? Start researching contractors or designers. “Ask people you trust for referrals for general contractors they’ve successfully worked with,” Klebanoff said. “Set up interviews with them and present your now very clearly defined project to them for bids. Check their references!” Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.Mortgage Rates Steady Near 3-Month Highs By Joe Szabo, Scottsdale Real Estate Team
By Joe Szabo, Scottsdale Real Estate Team
Mortgage rates were unchanged to just slightly higher to begin the holiday-shortened week. With the exception of last Thursday, rates are the highest they’ve been in more than three months. The most prevalently quoted rate for ideal, conforming 30yr Fixed loans remains 4.625% (best-execution).
Market conditions were exceptionally calm today, and there’s a good chance that will continue as the holidays keep market participants away. Most lenders will release rate sheets as normal tomorrow, but bond markets, including the secondary mortgage market, will close 3 hours earlier than normal and remain closed all day Wednesday. In general, lenders tend to be more conservative with rates during this time of year.
“Conservative” in this case, means “less likely to change rate sheets in the middle of the day” and “wanting to see more market improvement than normal before offering lower rates.” The current scenario is compounded by uncertainty over the latest round of fee increases for Fannie/Freddie loans.
The fee increases pertain to the Guarantee Fees (or “G-fees”) charged by Fannie and Freddie in order to guarantee the repayment of mortgages. G-fees are a regular feature in Fannie/Freddie loans and they’ve been steadily rising since 2010. The announcement of an increase of 0.10% on December 9th was no surprise.
But there are two components to G-fees–the permanent (or “ongoing”) 0.10% mentioned above which affects all similar loans equally, and the upfront G-fees which depend on credit quality (also known as Loan Level Price Adjustments or LLPA’s). The same announcement that raised the ongoing G-fee by 0.10% also served as notification that Fannie and Freddie would soon release updated LLPA’s. They did this last week and the implication was fairly alarming for rates in the first quarter of 2014.
Late Friday, incoming FHFA Director (that’s who oversees Fannie/Freddie) Mel Watt said in an email that he would freeze the fee hikes until he had an opportunity to review the rationale for the decision and the impact on the housing market. This would be on January 6th, but some lenders have already begun pricing in the effects from the fee hikes for certain loans. It’s as yet unclear if borrowers who lock now based on the higher fees would receive the more favorable terms if the fee hike is indeed frozen. When in doubt, be sure to ask your lender if you’re locking a loan between now and then.
Loan Originator Perspectives
“Slow day in MBS Land as expected this Christmas week. Some minimal losses from Friday’s close impacted pricing, but only slightly. Biggest and best present for all involved in housing industry is Mel Watt’s announcement late Friday that he intends to delay or revise increased agency fees that were slated to raise rates/costs for all borrowers as early as January. We’ll keep our eyes open for updates on this critical issue. In the meantime, hope all have a blessed holiday!” -Ted Rood, Senior Originator, Wintrust Mortgage
“Slow week so not much to focus on. Another early Christmas present from incoming FHFA chief, Mel Watt in the form of delayed LLPAs. Fees that were to kick in almost immediately are now delayed pending his review of the rationale. If he’s rational then they will be tabled forever. I think we have a good chance this will be the end result considering he made this decision before he was even sworn in. Thanks Mel on behalf of mortgage originators and future and current homeowners everywhere.” -Mike Owens, VP of Mortgage Lending Guaranteed Rate, Inc.
Today’s Best-Execution Rates
- 30YR FIXED – 4.625%
- FHA/VA – 4.25%
- 15 YEAR FIXED – 3.5%
- 5 YEAR ARMS – 3.0-3.50% depending on the lender
- The prospect of the Fed reducing its asset purchases weighed heavy on interest rates for the 2nd half of 2013, causing volatility and generally pervasive upward movement.
- Tapering ultimately happened on December 18th, 2013. Markets had done so much to come to terms with it ahead of time that it essentially just confirmed the the 6 month move higher in rates, but didn’t make for another immediate spike higher.
- That said, we should assume that we’re still in a rising rate environment on average.
- NOTE: Lenders will be adjust rate sheets at various times in December and January to account for the most recent hike in Guarantee Fees. This will unequivocally raise rates by at least an eighth of a percent for almost every borrower, and in most cases .25-.375%. Depending on the lender, those changes will take place overnight and have already begun.
- (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario. There are many reasons a quoted rate may differ from our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).
Create an outdoor dining space to add value to your home By Joe Szabo, Scottsdale Real Estate Team
By Joe Szabo, Scottsdale Real Estate Team
When you buy a Scottsdale home, it is your space to live in and enjoy and you can renovate and redecorate in order to improve your surroundings in any way that you choose. One of the ways that you can enhance your enjoyment of the property as well as add to the value of the home is to create an outdoor dining space. On a beautiful summer day, what could be nicer than having a place where friends and family can gather and enjoy a few drinks, barbecue up some tasty food and breathe the fresh air?
Here are some tips to keep in mind when you are adding an outdoor dining space to your home:
- ·Choose the right location. You want your backyard dining area to be peaceful, quiet and private, so find the best spot on your yard that will be screened from view and sheltered from street noise.
- ·Clear a space. Choose an open area where you can place the outdoor dining table. If you put it underneath a tree, you run the risk of having leaves, sap, or insects drop into your food!
- ·Lay the groundwork. Create a patio surface with stones or tiles first, which will give you a stable and flat place to put your table, chairs and barbecue.
- ·Invest in sturdy furniture. Outdoor tables and chairs take a lot more wear from rain, sun, and the elements than their indoor cousins. Make sure you buy solid items that will last you many years.
- ·Create some shade. If you want to enjoy yourself even in the direct heat of the afternoon, add a sun umbrella to your table. There are many different styles, and many can be adjusted and tilted to provide shade as the sun moves through the sky.
- ·Make sure your barbque or cooking area is in a safe spot. Check that it is nowhere near anything flammable, or that it is not too close to trees or the side of the house.
- ·Decorate and set the scene. Improve the surroundings of your backyard dining room with some beautiful flowers, a fountain or a tranquil rock garden.
Rising demand for new construction presents opportunities for real estate agents By Joe Szabo, Scottsdale Real Estate Team
By Joe Szabo, Scottsdale Real Estate Team
Do you know what niche has a demand so large that it could someday account for up to 35 percent of all sales? You may be surprised to learn that niche is new construction.
Laurence Yun, chief economist for the National Association of Realtors, predicts that in 2014 there will be approximately 5.1 million home sales. This is about the same pace as 2013. While new-home sales had a 25 percent increase from 2012 (from 400,000 to 500,000), they still accounted for less than 10 percent of the total sales in 2013.
Demand is outpacing new-home construction
Yun predicted that while housing starts will increase by 25 percent to about 625,000 in 2014, to keep pace with the demand, new-home starts would have to increase by another 50-60 percent. A Harvard study estimates the shortfall to be approximately 1.8 million new homes per year.
Majority of buyers would consider buying new construction
A builder consortium that included 32 builders across 25 markets found that 54 percent of the buyers surveyed said they would consider purchasing new construction. A sales pace of 5.1 million units translates into 2.75 million home purchasers who would like to consider new construction as part of their home search. Given that there will be only 625,000 actual new units built, the potential shortfall could be more than 2 million new homes. What can you do to capitalize on this opportunity?
1. New-home sales drive resales
The National Association of Home Builders reports that 70 percent of their buyers have an existing home to sell. The agents who represent builders seldom take outside listings. This means that if you represent new-home purchasers, you have a very high probability of listing their home as well.
A second opportunity occurs when the builder has sold out most of its inventory. In many cases, the builders close down their sales office and then list the final one or two properties with an outside agent. If you have been actively showing and selling that builder’s product, there’s a good chance you may obtain that listing as well.
2. Infill: the real opportunity
While many agents would like to represent the big builders, most fail to realize that the greatest opportunity may be with small builders. While it takes special training to represent a large builder, which often includes being able to lay out changes to blueprints, the real opportunity for most agents is with “infill.”
The term “infill” refers to creating new construction in areas that are already built out. This opportunity is greatest in major metropolitan areas. In fact, the prediction from NAR’s new-home panel was that by the end of 2014, 30 percent of all new construction would be due to “infill” properties. These smaller projects are usually of no interest to big-name builders and also fly under the radar of most real estate agents.
One of my former real estate partners in Los Angeles capitalized on this approach by working with several different condominium developers. Sometimes the builder found the property, or my partner located it. Prime targets for acquisition might be three houses on adjoining lots with zoning that would allow for six to 12 units on the property. Other times, the opportunity might be with two adjoining fourplexes where the property could be zoned for 20-24 condos.
This agent not only sold the units, she also obtained listings on what the buyers had to sell. Even after the project was sold out, she continued to be the listing agent of choice for her past buyers when they decided to move.
You can take advantage of this opportunity by becoming an active member in your area’s local builders association. Familiarize yourself with the zoning laws, environmental requirements, absorption rates, and the spread between the property’s current value vs. what it could bring once it’s replaced with new construction.
Your goal is to make yourself the indispensable expert. Help the builders you meet keep abreast of what is occurring in the market, where it is trending, as well as how quickly their project may sell once they complete construction nine to 24 months from now.
3. Single-family opportunities
An entirely different option is to locate foreclosures or dilapidated properties that can be acquired for lot value, torn down, and then replaced with new construction. This is an especially good option in many luxury markets, since most of these areas are already built out.
The beauty of working with a smaller builder is that you obtain a commission on the land sale and on the listing side once the property is built out, as well as possibly selling it to a buyer who has another property to sell. That’s a total of four commissions!
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.Reasons why that extra bedroom might be worth it by Joe Szabo, Scottsdale Real Estate Team
By Joe Szabo, Scottsdale Real Estate Team
You are looking at buying a Scottsdale home, but you are wondering whether or not it is worth it to pay a little extra for a home with one more bedroom. It’s a tough decision to make, especially when balancing other factors such as location, price and the other features of the home. However, having one more bedroom than you think you need could end up being a good thing for a number of reasons.
Expanding Family
Perhaps you only planned on having two children, but a third one might come along as an unplanned surprise… will you have enough room for everyone? One of your children’s friends might have a bad home situation and need a place to crash for a while. One of your elderly parents might need to live with you for a while. There are many situations when the family living under your roof might expand, (even if it’s just having guests over the weekend or holidays) so make sure that you have the space to accommodate. I posted an earlier blog on buying a home for guests that might be of interest. Search www.arizonasrealty.com for my other blogs.
A Home Office
If you are working from home or have your own business, a private space in the home to work can be worth its weight in gold. It’s really difficult to be productive when you are trying to work at the kitchen table with the rest of the family buzzing around you, so turn your extra bedroom into a home office.
Resale Value
Buying a slightly larger house with one more bedroom means that the home will be easier to sell in the future. This is especially true if all of the other homes in the area have similar amounts of bedrooms. Buyers these days want more rooms and an added bedroom gives them options that could be the deciding factor between yours and the home down the street.
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.
Resale Value
Buying a slightly larger house with one more bedroom means that the home will be easier to sell in the future. This is especially true if all of the other homes in the area have similar amounts of bedrooms. Buyers these days want more rooms and an added bedroom gives them options that could be the deciding factor between yours and the home down the street.
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.Low-End Home Prices More Useful in Predicting Big-Picture by Joe Szabo, Scottsdale Real Estate Team
By Joe Szabo, Scottsdale Real Estate Team
In the most recent issue of CoreLogic’s MarketPulse on-line magazine Sam Khater suggests that low-end home prices can be useful in predicting the future direction of all home prices. Analysts, he says, frequently base their forecasts on aggregate national price trends or on geography. The former can sometimes mask large changes in different price segments that could provide useful information.
Khater uses the example of low-end prices hitting bottom in March 2011, nearly a full year earlier than the trough for high-end properties and for prices overall. “Not only can turning points be different,” he says, “so can the momentum in low-end versus high-end price changes.”
Pre-crisis year-over-year house price increases peaked at 19.3 percent for low-cost houses in March 2005 then decelerated to 9.3 percent 12 months later. On the high-end of the price range however, prices in March 2005 were up 15.2 percent from the previous year and 12 months later the annual increase was still 10.8 percent.
Khater says that looking at high versus low-end price trends reveals that low-end changes and levels lead high-end counterparts by six months to a year and that prices at the low-end are much more volatile than those at the high end. The latter occurs because there are three major buyers at that price level; first-time buyers, lower income repeat buyers, and investors. Although there are different reasons, each segment is more sensitive to economic trends than high-end buyers.
The high-end/low-end variances are more marked still when viewed on the metropolitan statistical area level. The author looked at prices in 21 geographically diverse markets and found that over the last six months low end price growth decelerated in six while high-end slowed in four. But while that is not a significant number, the intensity at the low end was very large compared to the high end. In Boston for example the annual price increase in March 2013 was 17.0 percent, in September it had dropped to 4.2 percent. High-end prices in contrast have risen in recent months.
Likewise in Las Vegas the price grow on the low end has decelerated from 34.1 percent in March to 25.9 percent in September and in Phoenix from 23.3 percent to 15.5 percent. Among the 21 markets studied for high-end patterns the largest decrease was in Phoenix, a decline in growth from 16.2 percent to 14.6 percent.
There are some markets where low-end price increases have picked up over the referenced six month period. Khater singles out Chicago where prices went from flat to a 9.8 percent annual increase by September. Chicago has also shown the most rapid growth in owner-occupied home purchases over the last two years of any market in the country. Raleigh, North Carolina has gone from a 1.4 percent annual loss in March to a 9.1 percent gain in low end prices. On the high-end the strongest acceleration has been in California, particularly San Diego and Riverside.
Khater says that while there are caveats, lower end home prices are clearly decelerating, especially in the Southwest and that “the magnitude of the declines presages lower growth for prices overall.” When prices bottomed out in early 2012 prices on the low end were still 14 percentage points (growth rate) above those on the high end; currently the difference is 22 percentage points, the biggest gap in two decades. “This indicates that the low-end price correction is over and overall price growth will be markedly slower heading into 2014.”
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.
There are some markets where low-end price increases have picked up over the referenced six month period. Khater singles out Chicago where prices went from flat to a 9.8 percent annual increase by September. Chicago has also shown the most rapid growth in owner-occupied home purchases over the last two years of any market in the country. Raleigh, North Carolina has gone from a 1.4 percent annual loss in March to a 9.1 percent gain in low end prices. On the high-end the strongest acceleration has been in California, particularly San Diego and Riverside.
Khater says that while there are caveats, lower end home prices are clearly decelerating, especially in the Southwest and that “the magnitude of the declines presages lower growth for prices overall.” When prices bottomed out in early 2012 prices on the low end were still 14 percentage points (growth rate) above those on the high end; currently the difference is 22 percentage points, the biggest gap in two decades. “This indicates that the low-end price correction is over and overall price growth will be markedly slower heading into 2014.”
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.
