🐾 Pets Over People? Why Today’s Renters are Prioritizing Fido 🐶 Over Baby Olivia and Liam

View this email in your browser Welcome to our October newsletter! As we dive into this month's market trends, we also want to acknowledge October as Breast Cancer 🎗️ Awareness Month. This is a meaningful time to honor survivors, support ongoing research, and raise awareness in our communities. Whether it's by sharing information, donating, or simply checking in on loved ones, every effort counts. In market news, despite last month's 50-basis-point Fed rate cut, mortgage rates have actually climbed, reaching 7% as of this week. The housing market remains largely in a freeze: refinance and loan applications are down, sellers are pulling homes from the market, and sales activity is low—typical for this time of year. The reports below cover September data (always running about a month behind). This season can still be a prime opportunity for buyers: new home builders are dropping prices, offering lower rates, and adding incentives. Builders are even boosting Realtor® commissions to attract buyers. While the market remains challenging, with yearly sales projections tracking below 4 million, buyers may find new opportunities in this "frozen" market. Thanks for joining us as we navigate this unique landscape—and let's remember to show support for Breast Cancer Awareness this month. Market Snapshot🎯September August vs. September Market Update Inventory: 13,657 → 14,715 (+1,058) Homes Sold: 4,359 → 4,123 (-236) Median $/SF: $266.12 → $266.45 (+$0.33) Months of Supply: 3.13 → 3.57 (+0.44) Median Days on Market: 50 → 49 (-1) September saw higher inventory and months of supply, fewer sales, and a slight increase in price per square foot. 🐾 Pets Over People? Why Today's Renters are Prioritizing Fido Over Baby Olivia and Liam 👶 The rental market is getting wild—literally! A Point2 survey reveals renters are more worried about where their dog will poop than setting up a nursery. Renters are reshaping the market with wagging tails, not baby strollers. 1. Pets Are The New Babies Forget planning for kids—69% of renters have pets, and "big backyard for Fido" is the top priority. 🐶 2. Skip the Renovations Renters don't care about remodeling. Just give them space to decorate and they're happy. 🖼️ 3. Essentials Are Non-Negotiable No laundry, no deal! 68% of renters won't compromise on basic features like heating and appliances. 🔧 4. Gen Z Is Changing the Game Gen Z is bypassing starter apartments and renting homes with space for pets and home gyms. 🏡💪 5. What's Next? Landlords: Privacy, pet-friendly policies, and essentials are key to staying competitive in today's market. For more insights, check out the Point2 study here! Arizona's Most Expensive Zip Code Soars 222% Since Pre-COVID In 2024, the luxury market showed signs of cautious recovery, with 67% of the nation's top zip codes experiencing price increases. Arizona's most expensive zip code, 85253 in Paradise Valley, saw a 16% rise in median sale prices, reaching $3.25M. This marks a 222% increase since pre-COVID and its highest ranking yet at #27 among the country's priciest zip codes. Key highlights: 85253 in Paradise Valley is now 222% pricier than its 2019 debut. Other record-breaking states include Arizona, Florida, and New Jersey. Read the full report here: Full Breakdown. Arizona's Housing Market Returns to Pre-Pandemic Inventory Levels: What's Next? Arizona's real estate market has reached a key milestone—inventory levels have bounced back to pre-pandemic numbers. According to ResiClub's September analysis, the state is one of seven that has achieved this, marking a new phase for both buyers and sellers. With more homes available and properties taking longer to sell, Arizona's housing market is stabilizing. Inventory and Pricing: A New BalanceIn hotspots like Phoenix, Scottsdale, and Tucson, the rapid price growth driven by the Pandemic Housing Boom has softened. While increased inventory signals a cooling market, it also presents opportunities for buyers as competition decreases and negotiation power improves. Meanwhile, home sellers need to focus on competitive pricing as homes are staying on the market longer. How the Numbers Stack Up Here's a snapshot of Arizona's year-over-year inventory levels: September 2017: 26,464 📉 September 2018: 24,289 📉 September 2019: 21,632 📉 September 2020: 11,582 📉 (Pandemic Housing Boom) September 2021: 10,349 📉 September 2022: 23,726 📈 (mortgage rate shock) September 2023: 15,383 📉 September 2024: 22,362 📈 This rebound in 2024 reflects a significant return to pre-pandemic inventory levels, suggesting a more balanced market for buyers and sellers. What's Next? Looking ahead, Arizona could continue to see rising inventory and potential price adjustments. With mortgage rates fluctuating around 6.26%, buyers have a favorable window to enter the market. For sellers, working with an experienced real estate agent to navigate these shifts is crucial. Breaking Down September 2024 Commercial Real Estate Insights from NAR: National Trends and Phoenix's Numbers. The National Association of Realtors' Commercial Real Estate Market Insights for September 2024 reveals key national trends, but how does Phoenix stack up? Here's a snapshot of both. National Market Trends Office: Record-high vacancy rates persist, despite improved demand in major markets. Multifamily: Strong demand, but vacancies remain near 8% due to new supply. Retail: Limited space and construction are driving up prices. Industrial: Vacancy rates rise to 6.6%, with slowed rent growth. Hotel: Occupancy is still below pre-pandemic levels, but revenues have surpassed them. How Phoenix Compares Multifamily: Phoenix absorbed 18,319 units in Q3 2024—double from last year, driven by rising rental demand as home affordability tightens. Industrial: Phoenix absorbed 13.79 million sq. ft. of industrial space, reflecting a slowdown from last year. However, interest rate cuts could reignite demand. What's Changed Since Last Month? Multifamily continues its upward surge, while industrial faces cooling demand. Office space remains a challenge, but some national markets are showing leasing activity upticks—possibly a sign of future stabilization for Phoenix. For those willing to take risks, Phoenix's office sector holds opportunity, while success in the industrial market requires a selective approach. Multifamily remains strong, with property condition being a key factor in investment decisions. Tempe Named One of Fortune's Best Places to Retire Affordably! Great news! Fortune has ranked Tempe, Arizona, #20 on its list of the best affordable places to retire. Here's why Tempe is an excellent choice for your golden years: Rich Cultural Scene: With Arizona State University nearby, enjoy year-round cultural events, lectures, and performances, plus exciting college sports. Active Outdoor Lifestyle: Tempe offers parks, lakes, hiking trails, and nearly 300 sunny days a year. Explore Tempe Town Lake, hike "A" Mountain, or enjoy the city's bike paths and golf courses. Convenient Location: Close to Phoenix and Sky Harbor Airport, with excellent healthcare facilities like Banner Desert Medical Center and Tempe St. Luke's Hospital. Retirement-Friendly Taxes: Arizona has a flat income tax rate of 2.5% and doesn't tax Social Security income. Low property taxes and no estate tax add to the appeal. Real Estate Options: From low-maintenance condos near ASU to spacious single-family homes and 55+ communities, there's something for everyone. Market Snapshot: Inventory: 4.92 months 12-Month Change: +135.41% Median Days on Market: 53 days List to Sold Price: 97.6% Median Sold Price: $473,000 Condo Market Update: Tempe, Phoenix, and Scottsdale (September 2024) Brought to you by PhxCondosForSale.com Tempe Condo Market: Months Supply of Inventory: 5.06 (Aug: 3.94) 12-Month Change in Inventory: +159.49% (Aug: +173.61%) Median Days on Market: 47 days (Aug: 40) List to Sold Price Percentage: 98.4% (Aug: 98.3%) Median Sold Price: $353,363 (Aug: $327,500) Phoenix Condo Market: Months Supply of Inventory: 6.68 (Aug: 6.07) 12-Month Change in Inventory: +190.43% (Aug: +212.89%) Median Days on Market: 51 days (Aug: 54) List to Sold Price Percentage: 97.5% (Aug: 97.8%) Median Sold Price: $316,000 (Aug: $314,950) Scottsdale Condo Market: Months Supply of Inventory: 6.67 (Aug: 5.62) 12-Month Change in Inventory: +131.6% (Aug: +123.02%) Median Days on Market: 67 days (Aug: 65) List to Sold Price Percentage: 97.3% (Aug: 97.5%) Median Sold Price: $442,500 (Aug: $475,000) As inventory rises across all cities, buyers gain more choices and negotiating power, while sellers should focus on competitive pricing. Phoenix Office Market Update – Q3 2024 Key highlights from the JLL Phoenix Office Market Dynamics report: Vacancy rate decreased slightly to 25.1%, the first decline since Q4 2019. Office inventory reduced due to property conversions and lower construction. Sublease vacancy rates improved, dropping to 5.0%. Direct asking rents increased 3.1% year-to-date, driven by demand for amenity-rich spaces. Federal Reserve rate cuts expected to further ease market stress and support stabilization. Source: JLL Phoenix Office Market Dynamics, Q3 2024 IN OTHER NEWS Disney launches first-ever luxe residential community near Palm Springs This is the magic rate number for home sales to grow! Why mortgage rates are back up to nearly 7% Buying a foreclosed home: how a foreclosure sale works Both Amazon and Walmart sell tiny homes now Copyright © 2024 Juan Pesqueira @ Attorneys Realty All rights reserved. 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