Luxury Homes Weekly 353rd Edition - April 1, 2017 |
| It's April in Arizona, and that means it's Deal Season for real estate.
Our seasonal residents typically leave by the end of May, and they want to have closed on their purchase before leaving. The looking phase has transitioned to the negotiating phase for many of them, and will continue through April in earnest.
Then, following up on their heels, are families with kids. Their goal is typically to have the family settled in a new home before the next school year starts in August. This means moving in no later than July, which means looking for a home over the next 90 days.
Furthermore, in addition to this seasonal cycle, we have the specter of rising interest rates. Many buyers want to lock in rates before they go even higher, and people who might have otherwise delayed their purchase until next year are taking action now.
The latest statistics reflect this heightened activity -- high quality properties, priced to sell, are being snapped up very quickly. If you see something of interest, please do not delay. Text or call me at (480) 442-7325, and I will do everything possible to get you into homes of interest promptly.
Remember that bank foreclosure I told you to jump on last week, and said it would go fast? It did. You'll also note that several other new listings this past week were under contract in a matter of days, and they were traditional sales (i.e. not distressed).
Bottom line is quality homes that are well priced should be getting lots of showings. The higher the quality and the more accurate the pricing, the faster they'll move -- the serious buyers are out in force.
If you've been trying to sell a home and you're not getting any traction, it's time to rethink your strategy. Before you know it August will be here, and historically that means fewer buyers and fewer sales for several months. |
| | A quick roundup of noteworthy real estate news:Outside of real estate, here's something astonishing: Domino's stock has blown out Apple and Google in recent years. It's not even close! It's a good reminder that the "sexy" industries don't necessarily deliver the best returns to investors.
Boring is beautiful... I've been beating the drum of affordable housing in this newsletter for 3 years. Affordable housing may not make for interesting cocktail chatter, but those who are investing in it will be amply rewarded for many years to come.
With the US stock market at a valuation level only reached in a few ominous times in the past, and this forgotten debt coming home to roost, be very cautious indeed with your stock portfolio. |
| | Best Homes on Market
The best of the best in their respective categories, selected for quality and/or value.
Paradise Valley Dramatic views of Camelback Mountain from this 6,792 square foot home built in 2006. Priced at just $294 per square foot, there's considerable value here.
Arcadia/Biltmore Classic Arcadia ranch in a superb location, easy walking distance to the amenities of Old Town Scottsdale. At the asking price just over $1.1 million this is one of the best Arcadia homes at this price level.
Scottsdale Live near DC Ranch for less in Los Gatos. This 4400 square foot home with guest house on acre+ lot is just $1.1 million. High ceilings and very livable floorplan.
Deal of the Week Probate sale of a home in Desert Mountain, 3 bedrooms perfect for seasonal residents. Offered at $267 per square foot, or just under $1.1 million.
COMING SOON Spectacular 7 bedroom home (configured as 5 bedrooms plus office and gym) with tasteful contemporary finishes.
Dream kitchen, wine cellar, high ceilings, and more closet space than you've ever seen (even the guest bedrooms).
Massive open spaces for indoor and outdoor entertaining, deep covered patios, theater grade surround sound, and mature, lush landscaping.
All for under $2.4 million!
Not on MLS, available exclusively here. This is so new we don't even have pictures. If you're interested, please reply for photos and details as they become available. |
| | Active Buyer Needs
Perhaps you've been thinking of selling your home, or know someone who is?
Here's what some of my clients are looking for right now: - Massive Estate Property in Paradise Valley 15,000+ square feet with highest level finishes, and well-suited for entertaining.
- Formal Mediterranean Custom Home in Paradise Valley, approximately 7-8,000 square feet with views, up to $5 million. New construction strongly preferred.
- Hillside Contemporary Home with guest quarters in Paradise Valley or Biltmore. City views, high level of finish, and preferably in gated community or privately gated property - up to $4 million.
If you know of anything, please reply to this email or call my direct line at (480) 442-7325.
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| | Commercial & Investment Properties
Had an amusing conversation regarding those who relentlessly recommend CVS and Walgreens real estate. They say "these companies will pay the lease even if they close the store, so there's no risk."
Actually, there is SUBSTANTIAL RISK in owning these properties.
First of all, when CVS and Walgreens are reducing their footprint, say because Amazon is taking away business, who will replace them? Where will the demand for these properties come from? And is there any possibility the next tenant will be as stable?
So, even if the leases are honored, that does NOT protect the value of the property. At the nosebleed levels these properties have been changing hands, it could be a bumpy ride down.
In other words, landlords may get their cash flows, but the value of their asset may drop as much, or more, than the income.
Furthermore, if the investment is more about the stable cash flows of the companies than the real estate, then why not buy the bonds instead of buildings? Commercial real estate brokers don't get paid on bonds, so they conveniently fail to mention this option.
My advice: avoid real estate dependent upon industries that are in danger of displacement from ecommerce. And that is a lot of industries indeed.
The good news is people will still need a place to live, health care, and they'll still go to restaurants -- regardless of whatever technology brings in the future. |
| | Home Inventory
Across the board: sales increasing, new listings decreasing, and higher average sales prices.
Paradise Valley
71 New Listings
34 Homes Sold
Average Sale: $1.7 million - $360 per square foot - 169 days on market
Arcadia/Biltmore
48 New Listings
14 Homes Sold
Average Sale: $1.5 million - $361 per square foot - 93 days on market
Scottsdale
168 New Listings
70 Homes Sold
Average Sale: $1.6 million - $333 per square foot - 207 days on market
Please note the data above covers the past 30 days of luxury homes, defined as follows: any single-family home in Paradise Valley, and all residences in Scottsdale, Arcadia, and Biltmore listed over $950k.
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There are many thousands of listings on LuxeAZ.com. To help you find what you're looking for quickly: Please note that listings are sorted from newest to oldest. So you may bookmark these pages and return at any time to see the very latest listings. |
| | Thank you for reading this newsletter. Your comments and suggestions are always appreciated, and will be used to improve future editions.
I'll be back in next week with all the latest news and analysis.
Sincerely,
Alex
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| | | The bestselling book about real estate that's gotten rave reviews from readers all across the country. Topics include:- Selling your home for top dollar
- Demystifying housing statistics
- Critical elements of successful negotiating
- Closing and escrow explained in Plain English
- Financing, with or without a bank
Would you like a paperback copy with my compliments? Just reply to this email with your address and phone number. If you prefer Kindle, you may download from Amazon here. |
| | | A frank examination of real estate and business by Alex Goldstein and Brian Tracy.
Negotiating in good and bad markets, insider secrets from the real estate industry, and much more.
Would you like a paperback copy with my compliments?
Just reply to this email with your address and phone number.
If you prefer Kindle, you may download from Amazon here.
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Disclaimer: All information is believed to be accurate, but should be verified by the reader and is provided without warranty. Please consult appropriate financial, tax, legal, and real estate advisors before making decisions. This email is not intended to solicit people who are represented by another agent.
(c) 2017 Alex Goldstein PLLC
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