Terravita Market Update
July 2nd, 2024
AND
Yesterday
1. Terravita Market Update
Hey everyone!
We hope you’re keeping cool! Scott here with your latest real estate market update. Let’s dive into the numbers and see what’s been happening in our local market.
Terravita Update
Terravita had a solid month in June with seven contracts accepted, and the overall average price per square foot stayed above the annual average trendline (see Terravita Monthly & Annual Price per Sq. Ft. chart below). One of the highlights? We had another closing well over $600 per square foot! Amazing!
That’s a good June for us. As we head into the summer, it’s normal to see those numbers dip below the trendline, and that is what we will see. Historically, summer is much slower, and with the crazy market, this year is certainly no exception. Our recent Seller appointments confirm how strongly I feel about this. Unless you’re highly motivated to sell, now is not the best time to put your home on the MLS. Sure, you might sell now, but did you get the price you deserve? We’ve been advising sellers to wait for the better days of fall and spring and hopefully lower interest rates. But remember, those better days aren’t guaranteed…
Scott Disclaimer: In the long run, I’m confident home values will rise significantly. However, I can’t predict short-term movements. I have a deep understanding of home marketing and our local market’s historical trends, but I can’t foresee interest rates, economic shifts, or election outcomes!
Warning Signs in the Market
Like I said before, I believe we’re still undersupplied with homes, which means higher prices in the long run. But there are some trends we need to keep an eye on that could affect our market in the short term. Here are a few key issues I am watching:
1. Pandemic Market Reversals
Markets that benefited from the pandemic are seeing significant reversals. Inventory is rising rapidly in these areas. While our market also benefited, I dont believe it wasn’t as dramatic as places like Florida and Texas, where inventory spikes are much more pronounced. Here are some recent articles on the subject:
2. Lowest Supply of Listings Under Contract
Currently, we have the lowest supply of listings under contract since the post-crash period of 2007 (see Listings Under Contract chart below). This is significant because 2007 was the lowest ever recorded, and suggests a very tight market.
3. Scottsdale North Slowdown
Scottsdale North’s summer slowdown trend is much less pronounced in the rest of the valley due to the typical school migration. The Cromford Market Index chart below shows many red circles, signaling a shift towards a buyer’s market in many areas. That is significant.
What Does This Mean For You?
That really depends:
- If you need to sell quickly: Find the best local agent and follow their advice to the letter. This is not a market for the meek. This summer is unlike what we’ve seen in quite some time. Be aggressive or risk stigmatizing your home in the better days.
- If you don’t really need to sell: I suggest waiting for a better market. Our local economy is booming, and we do have a shortage of homes. Better days are ahead.
- If you’re buying: This is a fantastic opportunity to buy before the next surge. If you can’t find something you like in the MLS, give us a call. We have a lot of inventory on the sidelines, waiting to enter the market.
If all that seems a little depressing, it really shouldn’t. Things are just a bit different than we have gotten used to, and my Scottsdale North Newspaper article below might give a better perspective on the market.
As always, if you have any questions or need personalized advice, don’t hesitate to reach out. Whether you’re buying or selling, contact us today to take the first step toward achieving your real estate goals.
Have a great holiday celebrating our Independence, and let’s make the most of this market together!
2. Scott’s Scottsdale North Newspaper Article
Scottsdale North Home Prices Aren’t Declining, but Headlines Might Make You Think They Are
This month’s newspaper has some good information, including an update on taxes and the park. Below is the entire newspaper 👇
3. Market Alert
Important Notice for Terravita Homeowners
We’re encountering some significant issues with one of Terravita’s “home flipper” buyers. If you’re thinking about selling to an investor, please give me a call first. It could save you a lot of trouble
4. Real Estate Review
The market is unsettled, so I have been reading a lot! It may be too much but I thought I would let you decide.
Why AZ is leading the U.S. for home insurance increases
Valley home prices continue to rise due to supply shortage, economist says
Homebuilder warns real estate market is becoming victim to its ‘No. 1 killer’
Real estate expert defines housing market doomsday: Something we ‘haven’t seen in our lifetime’
Home Buyer Index measures the market
First phase of Paradise Valley Mall redevelopment slated to open in October
A key housing metric just fell to its lowest point ever
Country club dues are skyrocketing. Here’s what’s driving the trend and the outlook ahead.
Country club revenue surged during the pandemic. Pitfalls lie ahead.
Here are the top 10 cities that people are moving out of – and the top 10 they are moving to
Cities with the fastest-growing home prices in the Phoenix metro area
First phase of Paradise Valley Mall redevelopment slated to open in October
Arizona drought status shows huge difference from this time last year
One-time housing hot spots now seeing price cuts
Home prices are skyrocketing. These are the cheapest places in Arizona to buy a home.
5. Just For Fun
Is Google listening? Check your account history now
Jumping the security line: What to know about programs like TSA PreCheck and Clear
Grandmother Who Reversed Aging Shares Her Longevity Diet and Supplements
Thought For The Day
“One of life’s counterintuitive lessons is that you will often gain energy by spending a little bit of energy.
When you feel lethargic and like you want to lay around all day, it is usually the case that getting up and moving will make you feel better than simply sitting around. Getting outside for 10 minutes or doing the first set of a workout or simply stretching on the floor for a moment — anything to get your body moving — will often leave you feeling more energized.
If you want to get your day going, then get your body going. It’s harder for the mind to be sluggish when the body is moving.”
– James Clear
