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In recent months, this newsletter has highlighted the growing housing crisis in the United States. Simply put, there isn't enough housing to support the growing population -- and we're going to get farther behind in the years to come.
The Big Picture by Barry Ritholtz has done a marvelous job summing up the situation in just 3 charts:
1. There are more 26 year olds than any other age in the US. 2. Homeownership is the lowest it has been in over 50 years. 3. More 18-34 year old are living with their parents than ever.
Put these three things together, and you have a recipe for continuing increases in demand.
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Closings An interesting spike in closings last week: volume went up to $11.4 million, and the price per square foot dropped to just $281. The average selling price dropped down to just over $1 million.
These numbers might look ominous, however there's a simple explanation: the average age of homes sold was 43 years.
Buyers continue to take on remodels and teardowns to maximize their budget. Indeed, the highest sale price last week was under $1.4 million -- that's less than the average sale usually is in Paradise Valley.
To some extent, this move toward lower priced fixer-uppers may be driven by the lack of fresh inventory. A lot of listings have been on market a long time, or are "recycled" listings that couldn't sell the first (or second or third) time around. In Q1, expect to see an increase in listings, including homes that haven't been on market recently.
One more important factor: many people are delaying big purchases until after the election. It's just too much uncertainty to commit to a multi-million dollar decision. Consequently, there will be a lot of pent-up demand by the time the new year arrives.
Smart buyers should use this slow period to their advantage. If you're out buying now, you have a lot more leverage in negotiations than you will have in January.
*** Listings 9 new listings this week, with one standout:
Authentic Adobe on Almost 2 Acres This marvelous territorial home was originally built in 1951, and has been extensively remodeled for modern convenience. With 7 bedrooms including a guest house, this home has plenty of room for large families and visiting guests. A charming and unique home offered at under $2.6 million.
To see: - This week's new MLS listings please click here.
- Everything on the MLS in Paradise Valley please click here.
- Unlisted "private sale" properties not on the MLS, please click here.
That's all for this week, I'll be back in next week with all the latest in Paradise Valley real estate.
Sincerely,
Alex Goldstein (480) 442-7325
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