There were almost $21 million in closings this past week, a large number of homes going under contract, and only 2 homes listed.

In sum, the prediction/concern I've been repeating for the past few months appears to have come to pass -- the January rush has come early, and there is massive competition for quality homes in Paradise Valley. If you intend to buy a home in Paradise Valley, it behooves you to put something under contract sooner than later. This town will be flooded with buyers as we go into the first quarter.

Furthermore, the banks are taking unprecedented low spreads on jumbo loans, as reported here several times over the past several months. Unprecedented in the literal sense, with mortgage bankers saying they've never seen spreads like this on jumbo loans. This affects you even if you are a cash buyer, because you have competition that you wouldn't otherwise have if the banks weren't chasing after this business.

In sum, the best thing one can do if one wishes to buy a home in Paradise Valley is to invest the time to tour homes presently. Get out there, see what's available, and start negotiating. The longer you wait, the more confident sellers shall be, and the more buyers will be coming along to compete with you. 

Despite this competition, it is still possible to get good value for money, it just means more work. We'll have to work harder in negotiations, and multiple rounds of back-and-forth may be common. Also, you may wish to make some compromises on your purchase, and address them later with renovations or additions. The greatest demand remains for "turn key" homes that require no work whatsoever -- if you're willing to invest in remodeling, you can still create equity.

With all of this activity, I'm not leaving town for the holidays, and except for Christmas and New Year's I will be working. So, please don't hesitate to contact me to arrange a tour. You may either call me at (480) 442-7325 or click here to arrange a tour.