Hello Friends,
April is one of those unique months in Arizona where the weather is still good, with warm temperatures but usually not yet in the triple digits. We are into the last stretch of school, right after the spring break, going towards the summer. let’s see how the real estate performed in the valley over the spring.
We know the economy is doing well. With nearly 2.3 million jobs added in the past year, 300,000 of them in the past month, and the unemployment rate holding at 4.1%, a low not seen since 2000, jobs are plentiful. The Fed raised the federal funds rate from 1.5% to 1.75%, the highest level since 2008. Forecasts showed that the Fed generally expects notably stronger economic growth in 2018 and 2019, and better than normal growth over the next three years. This expectation is coupled with a lower projection for the unemployment rate, which is anticipated to run almost a percentage point lower than the long-run normal in 2019 and 2020.
Also, seeing recent trends in new builts for patio homes and townhomes, for lower maintenance. It’s interesting to see that mille
ials of ages 21 to 34 looked at real estate websites and apps according to a recent report. As it’s more expensive to rent then buy, mille
ials are being smarter and investing in real estate as monthly payments are more affordable then leasing. According to Zillow’s research, renters can expect to spend 30 percent of their income on rent, while buyers can expect to spend 15 percent on a monthly mortgage payment. These numbers change slightly for Phoenix, with 28 percent of income spent for renters and 17 percent for buyers.
Now let’s take a look at the February sales of Residential Properties in Maricopa County-
â— Total Sales for Single Family, Town-home, Condos for February are 6,107 whereas, January were 5,386 and December was 6,239
â— The Active listings for Single Family, Town-home, Condos for February are 17,455 whereas, January were 17,340 and December was 15,890
â— Pending sales for Single Family, Town-home, Condos for February are 6,994 whereas, January were 5,598 and December was 3,914
The total home sales by financing were-
Cash Sales – 1,667
Conventional – 3,232
FHA – 757
VA- 403
Cash sales are on a rise mostly from out of state buyers in this competitive market. Also,VA loan for Veterans is on an increase in the valley. The median sales price for February was $252,500. Sales volume for the first two months of 2018 was 4.58% higher than 2017, with 12,933 sales in 2018 compared to 12,367 in 2017.
FHA loans are decreasing day by day, for high UPMIP, that is upfront mortgage premium, the downpayment can be as low as 3% to 3.5% though upmip is about 1.75% so technically you are paying about total 5% or more. FHA loans are designed for low to moderate income borrowers who are unable to make a large down payment. But, its as equivalent to you conventional down payment of 5%, the advantage is there is no upfront MIP and MI is lower on conventional.
Let’s take a look at the February sales of Residential Properties in Pinal County-
â— Total Sales for Single Family, Town-home, Condos for February are 614 whereas, January were 513 and December was 632
â— The Active listings for Single Family, Town-homes, Condos for February are 1,911 whereas, January were 1,912 and December was 1,732
â— Pending sales for Single Family, Town-homes, Condos for February are 809 whereas, January were 595 and December was 412
Now let’s take a peek in commercial side-
Pride Group a non profit organization will set up shop within the Stellar Airpark in Chandler after the organization reached a deal to acquire the Turbo Resources building. It totals 55,090 square foot, two story industrial building, and expects to begin moving in the next 30 days once Turbo Resources vacates the property.
Oakland Raiders signal caller Derek Carr, purchased a Building in Chandler. It was Built in 2007 and measures 20,994 square feet and is located in the South Tempe/Ahwatukee office market.
An Los Angeles based firm purchased a 290 unit luxury apartment complex in Tempe. The Vela at Town Lake apartment comprises studio, one and two bedroom units ranging from 543 to 2,114 square feet.
Arch Street Capital Advisors purchased El Dorado Tech Center in Gilbert. It’s a single tenant, 180,480 square foot office building.The two story office building at is fully occupied. El Dorado Tech Center is located about 20 miles south from the company’s headquarters in Scottsdale and five miles west from its global technology center in Tempe.
San Diego based investor purchased the 148 unit Arcadia Walk apartment complex in Phoenix. The Class B multifamily complex comprises of studio, one and two bedroom units ranging from 448 to 818 square feet in nine, two story buildings, totals 94,704 square feet.
Hope this article gives you a peek in what’s happening in our valley. As always, I love your questions, comments & feedback. Please keep them coming at arti@artiiyer.com or call me at 480-242-8573.
Disclaimer: This article makes no representation or warranties of any kind as to the accuracy of the data. The source of data has been taken from several sources such as Armls, cromford report, Better Homes and Garden, Costar, Globest, BizJou
al, Newsgeni, Realty times, azcentral, wall street jou
al.
