Luxury Homes Weekly 338th Edition - Dec 17, 2016 |
| The elephant in the room is the Federal Reserve. The "will they, won't they" buzz on interest rates has been exasperating.
Now, it's official: rates are up, and they are going higher.
Ultimately, this is a good thing. After all, rates are only going up because of the strength in the US economy.
However, the downside is that housing will cost more for all buyers using loans -- which is, of course, the vast majority of buyers.
Furthermore, there's a "herd" effect of this increase in rates. Everyone wants to secure their home before rates go even higher. For many folks it's a "now or never" moment if their budget was stretched.
In the past, shifts in interest rate expectations led to a buyer's panic. There's no reason to expect this time will be different.
Consequently, expect more competition from buyers starting in January. With the ticking clock of rates hanging over prospective buyers, there will be added urgency to get things done.
Here's a 6 month chart of 30 year mortgage rates: |
| | The move that has already happened (86 basis points) is an increase of 26% in interest costs for homebuyers -- and that's just the last 90 days.
If the Fed makes good on its announcement for further increases, expect to see mortgage rates go to 5 - 5.5% within a year.
While 5.5% isn't a huge number in a long term context, it means that buyers will be paying almost double the interest they would have paid in September of this year!
Simply put, if I was "thinking about buying" and I was going to use a loan, I'd be putting my home search as a much higher priority -- right away.
I've been beating this drum for months, and the data continues to support this thesis.
The price of procrastination is going up.
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Lucid Motors is packed with ex Tesla employees, and they just announced their first car -- which has far better range than the Tesla with the same amazing acceleration.
Best of all, it will be built in Arizona. Here's the full coverage in TechCrunch. |
| | Best Homes on Market
The best of the best in their respective categories, selected for quality and/or value.
These homes are the most likely they to sell quickly, so if there's one of interest please don't wait to contact me.
Paradise Valley Frank Lloyd Wright inspired architecture on 3+ acres. This is a true estate property, with total privacy and lush grounds, at $4.5 million.
Arcadia/Biltmore
Scottsdale
Deal of the Week Rat Pack era Palm Springs mid-century modern in guard-gated community -- for under $1.2 million! Restore this home to its glory and you've got a home worthy of Architectural Digest at a price that can't be beat.
--> Click Here for Pictures or to Schedule a Showing |
| | 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: - Horse property with 2 acres under $1 million. An older home of block construction is ideal. Flexible on location: central Scottsdale, Biltmore, or near north Phoenix - just no locations too far north or east from PV
- Quality 4+ bedroom home in Paradise Valley priced to sell. Light remodeling is ok but nothing in need of a huge remodel. Flexible on style, just something cozy with a good layout under $1.5 million.
- Authentic Spanish/Moroccan custom build in Paradise Valley 5+ bedrooms under $2.5 million. Quality interior finishes are critical, nothing that looks remotely "spec grade."
If you know of anything, please reply to this email or call my direct line at (480) 442-7325.
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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 return to these pages at any time to see the very latest listings. |
| | Thanks 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 Goldstein
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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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| | Not "just" a top agent, Alex has also acted as principal in over $50 million of real estate transactions - office buildings, custom homes, and hundreds of acres of land. He has also passed the Series 7 securities and life insurance exams, offering his clients a unique perspective to put real estate in a broader context.
Alex is an honors graduate of Northwestern University, and was also a visiting scholar at Oxford University. Food and wine are his life-long passions, serving on the boards of the International Wine & Food Society and La Confrérie des Chevaliers du Tastevin. Alex resides in Scottsdale with his fiance Tess and their dog Cohiba.
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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) 2016 Alex Goldstein PLLC
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