The housing market is ever-changing, and one of the key factors people are considering is home prices.

Although they have come down since their peak in June of last year, many are still waiting for a significant price drop before buying. However, holding off for such a drop may not be the best strategy, despite rumors of a price crash on the horizon.

A recent survey from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, reports:

“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”

And the latest data from Black Knight shows the same shift.

The graph below compares home price trends in November to those in February:

Those are national charts, but below is the average sales price per foot just here in the Valley:

The above chart above is a graphical representation of why since last fall we encouraged sellers to wait and buyers to buy. From November through January, it was looking bleak, and buyers were excited. Since then, the panic had receded.

Getting Stronger Still
Despite the chaos of the past year, the real estate market remains resilient and strong, with a balance between supply and demand that continues to favor sellers. This rebound from the correction of the second half of last year is especially evident in Scottsdale North. As competition between buyers increases, concerns about potential weaknesses in demand are offset by the greater challenge of dwindling supply. Thus, it is crucial to remember that supply is as critical as demand in shaping the real estate landscape. Below is the Scottsdale North Supply chart:

As you can see, supply is trending down back to where we were before this market correction. At the same time, demand is picking up.

Demand has been climbing slowly higher since January. As I write this on April 19, we have had an almost unheard-of percentage increase in listings under contract since last month. This evidence of increased demand is a strong signal for the market ahead.

Advice For Buyers
Buyers must adjust their thinking and anticipate rising competition as they chase a diminishing number of homes for sale. Many Scottsdale North buyers have been waiting for the perfect home or a steal in pricing, while second home buyers often wait until the last minute before buying. The mindset is often, “Let’s see what else comes up.” However, if you fall into this category, it may be time to reconsider and act now. Waiting to find a home that “checks all the boxes” could be an expensive undertaking.

Advice For Sellers
If you are not on the market and are not in a hurry to sell, wait. If you are on the market, think twice about lowering your price. We have been telling our sellers since last fall that if they weren’t in a hurry, it would be best to wait for the spring selling season. We told them that it will likely be a late selling year. We are just now to that point in the season, and that is precisely what we are seeing.

In conclusion, the housing market is showing signs of recovery, and home prices are on the rise again. Buyers who are waiting for prices to fall may be badly disappointed, as it is not clear when or if prices will fall again. Sellers, on the other hand, are in a very good position. If we can help you figure out your next move, please let us know.

Artificial Intelligence, or AI, is a popular subject that many people are talking about. It’s a way for computers to do things that usually need human brains, like solving problems, learning, and understanding how people talk. We are always searching for the newest technologies. I thought you might enjoy hearing about one example of how we are using AI to make the home selling experience better.

One cool example of AI is called ChatGPT. It’s a special computer program that can create text that sounds like it was written by a person. It learns how to do this by studying a huge amount of text from different places, which helps it give good answers to the questions people ask.

To put this intelligence to the test, I fed it one of our ongoing real estate problems. Helping others to understand some of the ways selling lifestyle properties in Scottsdale North differs from “normal” real estate. This context is very important as I train new team members and new vendors to better understand what the home-selling experience is like for many of our Scottsdale North clients. It also can help our sellers to see that they are not alone in their struggles. Most importantly, it helps buyers and buyers’ agents unfamiliar with our market understand how these different transactions can be from others. Seasonality, emotional attachment, accessibility, and mobility concerns, and even logistics can all differ significantly from a typical sale.

For this example, here is the prompt I put into the AI program:
“Write a first-person account of an 80-year-old person that knows they need more help than what is available to them in their single-family home, but they are afraid to leave the home that they have loved for many years with so many memories to go to a new place that will also represent a loss of independence. This person’s current home is located in a lifestyle community that has been a blessing with lots of friends and activities, which makes it even harder to leave.”

Here is what the program came up with:
It feels like only yesterday when I moved into this incredible lifestyle community. For years, it has been the perfect place to enjoy my golden years, surrounded by friends, activities, and a wealth of amenities. Now, at 80 years old, I find myself facing an unexpected challenge – needing more help than this wonderful community can provide.

My children and dear friends have voiced their concerns and suggested that it might be time for me to consider moving to a place that can offer the support and care I need. The idea of leaving this home, with its abundance of memories and the lifestyle community that has meant so much to me, is a heart-wrenching prospect. I’ve grown so attached to this place and the life I’ve built here that I cannot imagine living anywhere else.

Despite my fears, I understand that my needs have changed, and it’s time to acknowledge the reality of my situation. It’s not just about leaving my beloved home and the community that has nurtured my spirit; it’s also about facing the loss of independence and the admission that I can no longer manage on my own.

As I come to terms with these feelings and begin the search for a new place to call home, I know it won’t be an easy transition. My hope is to find somewhere that offers the care I require, while still allowing me to maintain some level of independence and dignity. I know I must be open to change and adapt to my new circumstances.
It’s hard to let go of the life I’ve created in this lifestyle community, but I’m learning to accept that this next phase is a necessary part of my journey. The memories I’ve made here will always be a part of me, and I’ll carry them in my heart as I forge ahead into this new chapter of my life. Although it won’t be the same, perhaps, with time and a positive outlook, I’ll find a renewed sense of purpose and belonging in my new home.

Isn’t that incredible? The program seems to have a completely empathic understanding of the person and situation I described. While not perfect, AI-generated content like this serves as an excellent example of how AI can help people better understand and empathize with the experiences of others, even in areas as specific as real estate. Just one more arrow in our quiver to ensure we are doing all we can to make your experience better when you sell your home!

After all, according to statistics, for every $100 spent at a locally owned business, $43 stays in the local economy. While you are here in your second hometown, there are many reasons to keep your business in the local community.

10 Reasons to Buy Local in Scottsdale North
Information provided by Local First Arizona

There are many reasons to spend your money with Arizona’s local businesses. These are the top reasons why it matters to buy local for products, services, shopping, dining, and more.

1. Keep money in the local economy
Studies have shown that up to four times more money stays in the local economy when those dollars are spent with local businesses than with national chains.

2. Keep money in your wallet
There is a myth out there that local businesses are more expensive than national chains and online mega retailers. This simply isn’t true, as products and services from local businesses are oftentimes less expensive than the alternative.

3. Foster Community Pride in a Unique Sense of Place
Local businesses contribute to a unique sense of place that fosters community pride, and when people are proud of their hometown, they tend to care more, to volunteer more, to vote more, and give more.

4. Support the Community Through Local Businesses
The Institute for Local Self-Reliance has found that local businesses tend to give back to their community more through charitable giving than national chain stores. Local businesses regularly give a higher percentage of their revenue back to the community than big box stores. So, when you buy local, you’re helping local businesses to have more resources to give back to your community.

5. Create Jobs in Your Community
When you support local businesses, you’re creating demand for high quality and diverse jobs across the state. Local businesses in turn hire fellow local businesses in the community for products and services that they need to fulfill your orders and contracts. This “multiplier effect” creates and supports jobs throughout the state.

6. Advance Environmental Sustainability
Local businesses are rooted in the communities they serve, so they tend to be more conscious about their own impacts on the environment much like the local economy. Additionally, shopping with local businesses that source their products locally can lead to a smaller footprint on the environment.

7. Diversify the Economy
Communities with a large amount of diverse local businesses will offer more competition than communities with only a few large national chains. This kind of competition will keep prices low and force businesses to think in the best interest of consumers.
8. Support Healthy Communities
A study published in the Cambridge Journal of Regions, Economy and Society found that people who live in communities where small, locally owned businesses are the norm are healthier than those who live in places where large corporations predominate.

9. Enjoy Premier Customer Service
When you shop with local businesses, you’re dealing with experienced staff and salespeople who are experts in their field who will help you find the right product or service that you need. Local businesses depend on customer loyalty and will do all that they can to retain you as a customer who will continue to frequent their business.

10. Create Prosperity for All
When local businesses are thriving, everyone wins. The economy is more diversified to prevent against economic downturns, there are more jobs to employ individuals across the state, and there is more opportunity for economic growth.
Scottsdale North Gift Cards
If you’re looking for an easy way to do some good or want to know how you can help the community you love, send a Connecting Scottsdale North Gift Card.

To purchase a Connecting Scottsdale North Gift Card, visit connectingscottsdalenorth.com and click on “Buy a Gift Card.”