Hi Friends!
This is your Hard Money Lender in Tucson and the Southern Arizona area, Billy A with some important information from my friend Beth Jo Zeitzer at ROI Properties.
Zeitzer advises, “That the residential real estate supply-demand index continues to hit new highs each month, with a trajectory and appreciation rate comparable to the 2003 market. Given the increasing advantage towards sellers, it is reasonable to expect positive appreciation overall for the Phoenix metropolitan area over the next 3 to 6 months.”You can read all the details in the attached ROI August 2016 Newsletter, with additional statistics, market trends and information. Below is a quick view of the highlights:
- Week 34, 2016 vs. 2015: In general, sales volume, new listings, and appreciation are up in most segments. Sales under $300K have eased up just a bit, although the still have been 72.5% of all MLS sales so far this year. Over $300K saw the year-to-date gap in sales volume improve over last year, with the exception of the $800K-$1M range.
- Impact of Brexit: The most obvious effects of Great Britain’s decision to depart the European Union have been on the stock market, which has the biggest influence on the luxury market, since buyers are less dependent on secure employment and affordability. The impact of Brexit on the rest of the residential real estate market and Phoenix in particular–if any–remains to be seen.
- Looking at luxury: The market over $1 million has more dramatic seasonal shifts than the rest of the market. What are we currently seeing? Listings under contract over $1 million are down 32% since their peak in May, while up 16% compared to the same week in 2015. Supply over $1 million has declined 31% since its peak in March and is up nearly 14% over this week last year. While most of the market over $1 million is flat in appreciation, the $2 million to $3 million market’s oversupply has resulted in a depreciating trend.
- New construction snapshot: At 1,946 single family permits requested, June was the highest month in nearly nine years. New home development adds supply in the market to meet the demands of housing, typically stabilizing appreciation rates by giving buyers more choice and sellers more competition.
If you are interested in getting more information on commercial real estate, you can send Beth Jo an email to subscribe to her “Real State – Commercial” newsletter
Well, that’s it for this time! Make it another great day!
Blessings,
Billy A
P.S. If you or someone you know is struggling to obtain financing or just wants to “Brainstorm” and receive “Great Information Without Obligation” on any aspect of real-estate, including leverage – Please don’t keep me a secret!
Give me a call at 520-299-4878. As a Creative Lender, my team and I have been providing Meaningful Alternatives to traditional lending for over 30 years!