Housing markets across the nation are seeing record levels of demand, pricing appreciation, and low inventory and the Luxury real estate market here is Arizona is no exception. Since the beginning of the COVID-19 epidemic, the federal government has spent (printed) more than $6 trillion into a $25 trillion economy which has many now talking about the growing fears of inflation. It is also little wonder than that two of the most popular hedges against inflation, equities and housing, are at all-time highs heading into 2021. So, what does this mean for the luxury real estate market in Arizona?
The Arizona luxury market is currently going through a VERY strong SELLER’S market. Seller’s markets are when demand exceeds supply and are commonly measured in local inventory available for sale. In a “balanced housing market,” housing supply would fall between the 5-7 month range. As of the writing of this article, total supply of luxury properties in Paradise Valley alone are at only 1.6 months. Yes, that wasn’t a typo…1.6 months!
We are also witnessing a strong demand for new or newer luxury properties that are in “move-in-ready” condition…of which there are very few currently on the market and when they do come on, they tend to sell very quickly and at top dollar. Alternatives can include building a new home which can take up to a year-and-a-half to compete and with the current shortage of good labor and record building materials costs such as lumber and other supplies (hello inflation), this too is becoming a challenge for new home buyers.
Seller’s markets typically mean that homes price higher, sell quicker, can result in bidding wars, and fewer homes are for sale. In short, seller’s have the advantage over buyers which is exactly what we are seeing today in Arizona. So, if you are considering selling your home in 2021, this is a great market to potentially sell quickly and at top dollar and if you need a current home valuation and a competitive market analysis for your home, I will be happy to help provide one to you for free – just let me know. We are also heading into an extended (May 17) tax season so if you hold your property in a trust and need an updated fair market value for your property, let me know as well.
As you can see from the market report for Paradise Valley above, price per square foot for sold homes has reached similar levels last seen in 2007. So, what does this mean for the market looking forward? Well, if you have lived in Arizona long enough you know what real estate cycles are nothing new here. But the causes of each cycle are what is different and with the historic levels of cash being pumped into the economy along with an expected COVID economic recovery and the continued record levels of migration of new people into the Valley of the sun, it is hard to tell for certain when all of these demand factors could subside. Moreover, due to the latency in home building activity, it is hard to see supply finally catching up with demand anytime soon in 2021 as well. Nobody has a crystal ball so time will tell. In the meantime, if you are a homeowner in the valley, your balance sheet is likely shaping up very nicely right now.
STK STEAKHOUSE PROVIDES A NICE CONTRASTS TO THE AREA’S DINING OPTIONS
If you have been down to Old Town’s Southbridge Waterfront area recently, you might have noticed that a new restaurant, STK Steakhouse, has finally opened. We decided to venture in to check it out since we frequent the STK located in the Cosmopolitan hotel in Las Vegas during out trips there. The good news is if you like the “vibe” at the STK in Las Vegas, you are in for a similar experience at the Scottsdale location as well.
We ventured in on a Friday night and were welcomed with a purple lit restaurant with a DJ playing music for the guests that reminded us a lot of STK Vegas. Unlike other high-end steakhouses in the Scottsdale area, STK provides a nice contrast with higher levels of energy, music and interactions with other guests – some of whom we knew right away. Service was excellent and the food was very good as well. All of this comes at a cost though so don’t be surprised if dinner and drinks for two run you $300 or more at STK. I am not sure the food is better than Steak 44 and the like but what you are really paying for is the overall atmosphere and experience which provides far more than just food.
If you haven’t yet been there, add STK Scottsdale to your list of restaurants to try out this year but don’t expect a “quiet” and “low-key” dinner while there. In fact, don’t been surprised if you see bachelorette parties and other groups of friends living it up near you – this is a great place to bring friends and guests who are looking for a great dinner in a fun and lively “party type” atmosphere.
PROUD TO BE RECENTLY NAMED BY PHOENIX MAGAZINE AS ONE OF ARIZONA’S TOP AGENTS!
It was an honor to be recently named as one of Arizona’s Top Real Agents by Phoenix Magazine. Below is a copy of the article they produced about my work and thank you to my clients and friends Gary & Leslie Fox for letting me take pictures for the magazine in your beautiful home! You can download a copy of the article by clicking here…
