Paradise Valley Weekly 316th Edition - June 11, 2016 |
| Are you looking for a deal in Paradise Valley?
I've got the inside track on a house that fell out of escrow at a SPECTACULAR price.
To be certain, I reviewed every sale in PV on the MLS for the past year -- and this was cheaper than all of them.
If you're interested, please call me at (480) 442-7325, or reply back with the best number to reach you today.
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Let's talk about the elephant in the room: interest rates. The "will she or won't she" talk about Janet Yellen of the Federal Reserve has reached fever pitch. And for good reason, this may be the most important decision in all of the global economy.
I've written numerous times in this newsletter about how real estate has benefitted from being the "least among evils" compared to bonds, stocks, and commodities.
However, I've never seen a better graphic representation of just how severe the situation is, than the simple chart below. It's from the Wall Street Journal and it shows how a 2% increase in rates will affect holders of government bonds.
Folks holding 10 year government bonds "for safety" will be smarting from a 17% loss. To put that in perspective, the current yield is 1.64% -- so that means a 2% increase in rates more than wipes out all 10 years of expected income.
If they hold to maturity of course they can avoid the pain of loss. However, the #1 reason people and institutions invest in Treasury bonds is for liquidity. The price of that liquidity will be painful losses.
There are people that are adding more risk to this massive interest rate risk by taking on credit risk, e.g. corporate bonds and municipal bonds. If losses in government bonds will be as bad as the chart below, one can only imagine the consequences in inherently riskier bonds.
My crystal ball is better than nobody else's, and low interest rates could continue longer than anyone expects.
But... when the tables turn, it will only take a small move to create gigantic losses. So the next time someone tries to sell you bonds because they are "safe" run from them.
The Wall Street Journal aptly put it in their headline: The World’s Safest Bonds Are Actually Wild Risks. |
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Long time readers will have heard me write numerous times about the perils of overpricing homes.
I was an investor, developer, and homeowner long before I became an agent. I wasn't getting what I wanted, so I decided to take on the job myself. It frustrated me to no end to hear "yes men" (and women) tell me what they thought I wanted to hear, and then deliver no results.
When I take a listing, I invest in that listing. My time and my money go into getting that house sold. If it's overpriced, I'm throwing my time and money away. In sum, I have skin in the game, and I think all agents should take this approach.
Do you want to know what your home would actually sell for? Just reply with the property address, there's no cost or obligation.
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Have you hiked Camelback Mountain lately?
As temperatures creep up and more people want to hike early, it's getting really challenging.
Check out the awesome drone video that shows just how easy it is. It's like your own private Echo Canyon trail. |
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Closings Sales of single-family homes in Paradise Valley more than doubled from the prior week with $18.9 million in volume.
Strong across the board, with an average sale price of $2.1 million and $375 per square foot, and an average age of 25 years old. Listings
This week brings 8 new listings, from $638k to $3.9 million, with one already under contract.
Happily, the drought of recommendation worthy listings has ended. Here are the standouts:
Modest Size, High Quality One of the most difficult assignments I get from clients is to find a high quality home that's not too big. Generally, when people invest in high quality finishes, it's on a large and expensive home. In this case, we have a great option for people who would appreciate a 3,300 square foot home, and want it move-in ready.
Good Value on 6 Bedroom Home This 6,792 square foot home was built in 2006 and is offered at $331 per square foot, which represents solid value for money. George Christianson design, dramatic views, guest house, and more.
For access to the latest unlisted "private sale" properties not on the MLS, please click here.
To see everything on the MLS in Paradise Valley please click here.
That's all for this week, I'll be back next week with all the latest in Paradise Valley real estate.
Sincerely,
Alex Goldstein (480) 442-7325
p.s. Are your savings earning tiny returns? Get cash flowing real estate here.
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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