Here we are with Jeff, “The Star”.
More importantly, I’m here with “The Wiz”, Scottsdale real estate wiz Sharon Wisniewski of the Sibbach Team to talk about the market.
And so we want to know, asking the expert, what Jeff is the market doing today?
Well, what we’re seeing is three major trends. The first major trend that we’re seeing is baby boomers, or what we call now empty nesters. So they’re downsizing. So not only are they wanting to get rid of their larger, often two story or bigger home and wanting to buy a smaller home, but they’re also now when they’re downsizing, their reducing the fiscal part of it, they’re reducing the amount of money they’re spending on home. Therefore, affecting the market.
Frozen means that the house isn’t worth what it was five years ago, what it was six years ago. You want it to be worth that, and even though you might have no debt on the house or you have a small mortgage of a 100,000 or 200,000, so you’re not motivated to sell. But the reality is, do you want to own it for five years if it’s worth the same price?
Under 500,000 the market is on fire. Even in the West Valley or the East Valley and Scottsdale under 500,000 where 92% of the market activities is going on we’re seeing prices rise pretty quickly. But over 500,000, even in Glendale or the East Valley and most importantly if you’re in North Scottsdale, you’re seeing an abundance of supply because the baby boomers represent a larger pool of the luxury homes, than the people upsizing. So therefore, it’s leading to an abundance of supply. So how long do you want to stay in your huge house? So you are going to have to price it right.
That’s the report for the second half of the year!