Did you know that Arizona is in the top 4 states for international real estate buyers? This surprises many people, and it's important to recognize that our market is more diverse than many people realize. I certainly can vouch for the veracity of this fact, as readers of this newsletter routinely contact me from around the world. I'm honored to have readers in Europe, Asia, the Middle East, Australia, and points beyond. If you're a local buyer, you should recognize that your international competition may a different sense of value than you, as prices in their home country make Arizona look like a bargain. As a seller, you should make sure that you are tapping the international buyer pool.
The big news in national real estate this week is that 2.5 million US homeowners are no longer "underwater" as of this most recent quarter -- i.e. their home values are no longer less than their mortgage balances. However, Arizona remains one of the highest concentrations of underwater homes despite recent price increases, along with Nevada, Florida, and Michigan. For more detail from CNN please click here.
I see a lot of underwater homes in the super luxury segment, and frankly many of those folks will never get the money out that they put in. Just think about the differences in technology of homes that were built before the last down cycle -- the iPad didn't even exist 4 years ago, and today every system incorporates it. So, a home automation system installed just 5 years ago is antiquated. Similarly, in just a few years kitchen style has moved from dark cabinets and chunky style to light colors and understated surfaces. High ceilings were all the rage not too long ago, and now people scratch their heads when they walk through a master bedroom as big as a cathedral.
Thus, when thinking about selling a home in the $3+ million range, and especially $5+ million, remember that tastes and technology change quickly, and so a rising market may not save you. The "perfect" home built 5 years ago may be perceived as a remodel job by today's buyer. As a result, it can be smarter to "take the money and run" than to wait for your ship to come in.
Finally, just a reminder: to receive the first chapter of my upcoming book with Brian Tracy -- before the book is released -- please click here.
Closings
Another solid week with $9.4 million in closings and an average price of $1.6 million. The average price per square foot dipped down to $300, lower than we've seen in recent weeks, largely due to an older mix of homes -- the weighted average age of construction was 1983.
New Listings
There are only 7 new listings this week, and one was snatched up the day it hit the market. There is only one property this week that I can recommend as one to highlight:
Traditional Style and Modern Construction This Spanish style estate was built in 2010 and is quite ample at over 10,000 square feet. It's in a gated community, on over one acre, and has high ceilings with large, open areas for entertaining. Extensive wood flooring throughout, large kitchen, 4 car garage, media room, play room, and more. This is a solid value at the asking price of $3.1 million.
To see all of this week's listings in PV, 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.Regards,
Alex
SearchParadiseValleyProperties.com
(480) 442-7325
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