July 1, 2017 Terravita Market Update
Happy July! Even for those of us who spend the majority of the month in Scottsdale, July can be a great month for family and celebrations. It’s also a good month to travel and I am fortunate to find myself writing this in the cool beauty of Park City, UT. I’m helping my oldest daughter to find a place to live here, as she begins her first job after graduating from NAU last month. If you have never been to Park City, you need to! (If anyone has a 2 bedroom rental in Park City she and her roommate need to move in August or September!)
While Terravita had a particularly hot month “weather-wise” in June, “sales-wise” it was about average with just 8 homes going under contract. Foot traffic continues to be fairly steady and good so don’t be surprised if we see some decent sales numbers in July and August this year.
Arizona Central had an article this month that I thought you might find interesting as it could affect Terravita sales. The article, Empty nesters, Millennials shelling out to live in new Phoenix-area condos, from www.azcentral.com, reports that since last year, condo sales throughout the Valley have almost tripled, while prices are up 17 percent, outpacing gains for the housing market as a whole. A year ago, some housing market watchers were concerned too many new condos were going up too fast in metro Phoenix. So far, sales and prices are beating expectations. Here are some excerpts:
- More than 4,000 new condos were started or completed in the past two years.
- The median price for new condos has climbed to $384,000 from $301,000 a year ago.
- The median price for a new single-family home is approximately $302,000.
- During the first quarter of 2017, 50 new condos sold, compared to 11 during the first three months of 2016.
- The average price of a new condo is $547 per square foot.
- Luxury condo sales have quadrupled from last year.
“Condos are gaining market share in the Phoenix area, selling in larger numbers and seeing higher prices,” said real estate analyst Mike Orr with the Cromford Report. “The new attached luxury jewel-boxes (condos) are where prices are really climbing.” A shift toward denser infill housing for metro Phoenix is occurring mainly because of changing lifestyles of baby boomers and millennials, who want luxury residences with the amenities of an urban setting. Also, rising home values, in general, are helping people sell homes farther out and move closer in. “Attached projects dominate the landscape in many parts of the Valley, but the reality is that about one in five infill projects is selling really well and others are struggling,” said real estate analyst Jim Belfiore of Phoenix based Belfiore Real Estate Consulting. Here is the link to the entire article: Empty nesters, Millennials shelling out to live in new Phoenix-area condos
Have a great & safe holiday!