Welcome to the August 2024 edition of Arizona Ascent! This month, we dive into timely and crucial topics reshaping the Grand Canyon State to keep you informed and inspired.
Maricopa County is experiencing rapid economic growth and has been named the top county for economic expansion in the U.S. by Site Selection Magazine. The county is seeing unprecedented development in the healthcare, IT, and manufacturing sectors. Significant projects like Taiwan Semiconductor’s $65 billion campus and initiatives to address housing demands amid rapid population growth are driving the country’s transformation into a hub of opportunity and prosperity in the Southwest.
The upcoming National Association of REALTORS® (NAR) settlement, set to take effect on August 17, 2024, is poised to disrupt the home buying and selling landscape in Arizona. With changes looming on the horizon, homebuyers and agents are full of questions. Here at Arizona Ascent Magazine, we’re diving deep to provide you answers.
As we journey through the stories that shape Arizona’s narrative, we invite you to actively participate. Share your thoughts, ask questions, or suggest topics for future editions. Your contribution is not just valuable; it’s crucial in shaping the content of Arizona Ascent. Let’s co-create this community together.
Onward and upward,
Jaki Underwood Editor-in-Chief
Phoenix Real Estate: Balancing Act in a Data-Driven Market
As the mercury rises in the Valley of the Sun this summer, our real estate market is experiencing its own kind of heat— albeit a more nuanced one. Let’s dive into the numbers and trends shaping Phoenix’s housing landscape in 2024.
Phoenix Real Estate Market Update
Inventory is up - way up. Active listings have surged 57% compared to July 2023, with 18,121 homes on the market (excluding those under contract with contingencies). This gives buyers more choices than in years, but we still need to catch up to historical norms, especially in prime central locations.
Despite this inventory boost, buyer enthusiasm is cooling off. Pending listings are down 12% year-over-year, sitting at 4,407. Closed sales tell a similar story, with 6,318 transactions in the past month - a 15% drop from last year. The Cromford® Market Index, a key metric for market health, stands
at 102.5, just above the balanced mark of 100, but has been slowly declining.
Pricing trends offer an exciting perspective. The median sales price has increased 1.69% to $450,000, while the average price per square foot rose 2.7% to $295.39. However, we’re seeing downward pressure on asking prices, which have fallen 5.6% in just two months - from $376.65 to $355.68 per square foot. This suggests sellers are becoming more realistic in their expectations.
Location is playing a crucial role. Central
Phoenix remains undersupplied relative to demand, while outlying areas see an oversupply. This disparity creates micro-markets within our metro area, each with its dynamics.
There’s potential for increased gross margins for investors, particularly those in the fix-and-flip market. However, be prepared for a longer selling process - the days of homes flying off the market in hours are behind us.
Experts anticipate low sales volumes to continue through July,
with a potential uptick expected in October. This aligns with our typical seasonal patterns but is amplified by current market conditions.
It’s worth noting that, unlike the lead-up to the 2007 crash, we’re not seeing red flags in lending practices. The average credit rating of mortgage borrowers is at historic highs, indicating a stable lending environment.
So, what’s the takeaway? We’re in a transitional marketnot booming, but certainly not busting. It’s about finding
“We’re in a transitional marketnot booming, but certainly not busting. It’s about finding equilibrium. For buyers, there are more options but less urgency.
“equilibrium. For buyers, there are more options but less urgency. For sellers, realistic pricing and patience are key. Opportunities exist for investors, but careful analysis is more critical than ever.
Remember, adaptability is crucial in Phoenix real estate, as in our desert climate. Right now, we’re watching a market adjust and settle, creating a landscape full of potential for those who know how to navigate it.
Real Estate Briefs
Harvard Investments
Closes $15.4M in San Tan Valley Land Deals
Harvard Investments has wrapped up $15.4 million in land sales in San Tan Valley, Arizona, selling to homebuilder KB Home and developer NexMetro Communities. KB Home purchased 133 lots on 35.3 acres for $7.1 million, planning to build homes with great amenities like a park and playground in the Bella Camino development. NexMetro bought a 21.8-acre parcel for $8.3 million, where they’ll develop 284 build-to-rent units with high-end finishes and private yards in the
Avila Bella Camino project. These sales complete Harvard’s Bella Camino community, adding much-needed housing to the rapidly growing San Tan Valley. Nate Nathan and Courtney Buck from Nathan & Associates Inc. facilitated the deals.
Meritage Unveils 622 New Homes at Silva Farms in Goodyear
Meritage Homes, the fifth-largest public homebuilder in the U.S., has opened Silva Farms, a gated community in Goodyear featuring 622 new homes, 13 floorplans, a clubhouse, a pool, a
basketball court, and walking trails. Silva Farms is the largest of Meritage’s three new communities in the Greater Phoenix area for 2024. Conveniently located near major highways and The Market at Estrella Falls, the community offers energy-efficient homes with luxury designs and affordable prices. All homes are move-in ready with included appliances and window coverings.
NAI Horizon Brokers
$4.58M Sale of Iconic Serrano’s in Chandler
NAI Horizon facilitated the $4.58 million sale of Serrano’s Mexican Restaurant at 141 S. Arizona Ave. in Downtown Chandler, Arizona. The 13,250 square-foot restaurant, sold at $346 per square foot, has been a family-operated flagship location since 1979. Represented by Lane Neville, Cole Neville, Matt Westra, Whitney Heritage, and Brandon Hall, the seller Serrano Family Limited
Partnership utilized a competitive bid process to achieve the best price. The buyer, JAM Management LLC, was represented by Peter Sciacca. While the Chandler location has closed, the Serrano family continues to operate three other restaurants in Mesa and Queen Creek and a Pronto location in Tempe.
Pinal County Booms with New Aviation Developments and Job Growth
Pinal County is experiencing a surge in aviation-related development, driven by Arizona’s favorable climate and businessfriendly environment. Companies like Win Aviation and Ascent Aviation Services are expanding their
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These projects will create over 300 jobs and enhance the region’s aerospace capabilities.
operations, with Win Aviation building a 36,000-square-foot hangar at Coolidge Municipal Airport for aircraft maintenance and Ascent Aviation Services investing $55 million to expand their hangar capacity at Pinal Airpark by 180,000 square feet. These projects will create over 300 jobs and enhance the region’s aerospace capabilities. Arizona’s low humidity, tax incentives, and robust supply chain make it an attractive location for aviation companies. through floor-to-ceiling
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Maricopa County: How Economic Growth Shapes Housing
By Jaki Underwood, Editor-in-Chief
Site Selection has named Maricopa County #1 county in the U.S. for economic growth. This isn’t just a title—it reflects big job gains and major business investments from January 2023 to March 2024. Let’s dive into how all this growth is transforming the housing market in Maricopa County.
What’s Behind the Economic Boom?
Maricopa County’s rise to the top is fueled by significant investments and workforce training across critical sectors like healthcare, construction, manufacturing, logistics, IT, and finance. Some standout projects include:
• Taiwan Semiconductor’s at $65 billion campus
• LG Energy Solution’s $5.5 billion battery complex
• Amkor’s $2 billion semiconductor facility
• Intel’s expansion in Chandler, backed by federal funding
Why Businesses Love
Maricopa County and the State of Arizona
Arizona has made it a haven for businesses with smart planning and policies, such as:
• Decades of water planning
• Tax cuts
• Proposition 479, a sales tax extension for transportation These efforts make Maricopa County an attractive business hub, ensuring sustained growth and stability.
Population Growth Fuels Housing Demand
Maricopa County welcomes about 200 new residents every day! It’s also the fastest growing, adding over 56,000 residents between July 2021 and July 2022. This influx is driving up the demand for housing. Here are the latest stats for Maricopa County Residential Real Estate Market from Arizona Ascent Real-Time Market Profile Report from July 1, 2024:
• Active Listings: 18,121 (up 57% from last year)
• Pending Listings: 4,407 (down 12% from last year)
• Monthly Sales: 6,318 (down 15% from last year)
• Average Price per Sq. Ft.: $295.39 (up 2.7% from last year)
• Median Sales Price: $450,000 (up 1.69% from last year)
Diverse Housing Needs
With a diverse workforce moving in, there’s a growing demand for all housing types—from luxury apartments to affordable family homes. The market is bustling with new developments catering to various segments. Investments in infrastructure, including improved roads, schools, healthcare facilities, and recreational areas, enhance the county’s appeal, and push up property values.
Despite the increase in available homes, the market remains balanced.
The Cromford® Market Index, which measures market health, sits comfortably at 102.5. This equilibrium ensures fair deals for both buyers and sellers and avoids abrupt price fluctuations.
Maricopa County is not just growing—it’s growing responsibly, and here’s how:
• Lower Property Taxes: The county has slashed property taxes for four consecutive years, making homeownership more affordable.
• Budget Efficiency: Despite economic expansion, the county has reduced its
overall budget by 11%, demonstrating effective financial management.
• Key Infrastructure Projects: Significant investments are earmarked for critical projects, like a new downtown facility, ensuring continued growth.
• Public Safety Commitment: Nearly half of the county’s budget is dedicated to public safety, supporting law enforcement and judicial services.
Maricopa County is the fourth-largest county in the U.S., with a population of 4.5 million. Spanning 9,224 square miles and encompassing
24 cities and towns, the county’s expansive infrastructure and vibrant community make it an ideal destination for businesses and residents.
Maricopa County’s remarkable economic growth is boosting job opportunities and reshaping the housing market. With ongoing investments and a balanced real estate landscape, the county offers promising prospects for homebuyers and investors. Whether you’re looking to settle down or capitalize on the thriving market, Maricopa County is a beacon of growth and prosperity in the United States.
Mesa, AZ: A Hotspot for Economic Growth and Real Estate Opportunities
By Jennifer Conrad, Managing Editor
Mesa is not just making headlines; it’s rewriting them. Coworking Cafe just released its annual study and named the City of Mesa the #1 city among large cities in the United States for economic growth. These rankings highlight impressive performance in the job market, investing in its infrastructure, entrepreneurship, and community development.
Why Mesa is Leading the Way
Mesa leads the list of large cities in the United States. Driven by impressive gross domestic product (GDP) growth of 38%, 2% employment growth, and
an uptick in infrastructure of 34% between 2018 and 2022. Mesa’s focus on its economy has attracted numerous technology and manufacturing companies, bolstered the city’s GDP, and created high-quality jobs. The city’s investment in infrastructure, including transportation, has made it a more attractive place for businesses and residents. More than half a million people call Mesa home, making it the 36th largest city in the U.S., more significant than Miami, Minneapolis, and Atlanta, the second-largest city in the Phoenix-Mesa metro area and the third largest in Arizona. Within a 30-minute drive, a workforce population of
This commitment underscores their intention to make Mesa their permanent base, promising a siginificant boost to our local economy and job market.
1.3 million fuels this economic powerhouse, showcasing the city’s potential and strength.
Impact on the Real Estate Market
Mesa’s economic success and growing job markets signal a positive outlook, which means that more people are looking to relocate to the city, driving up demand for housing. The expansion of the tech sector is particularly notable, bringing in a wave of professionals seeking quality living spaces. Ongoing city development projects create new real estate opportunities, making it an exciting time for professionals to explore Mesa’s market.
Mesa’s success is mirrored in the broader Metro Phoenix area, which has seen a 34.26% increase in infrastructure and 37.82% GDP growth. This makes it a prime location for residential and commercial real
estate investments. As more people and businesses move to the area, the demand for quality housing and commercial spaces rises.
Virgin Galactic’s New Facility: A Game Changer for Mesa
Virgin Galactic’s new spaceship manufacturing facility adds to Mesa’s explosive growth. The facility in Mesa will be the site for the final assembly of its nextgeneration Delta spaceships, scheduled to start early in 2025. An initial team of technical operations and manufacturing personnel has already
begun preparing the facility to receive and install tooling, which is expected to arrive at the end of 2024. Next year, the facility will receive significant subassemblies, including the wing, the fuselage, and the feathering system, as the team scales to build the first two ships of the Delta fleet. The multi-use facility includes two hangars equipped with multiple bays, designed for maximum flexibility in building and testing space vehicles.
Mesa’s Real Estate Market Snapshot, July 2024
As of July 2024, the real estate market in Mesa
shows promising trends. The median list price for single-family homes is $550,000, with new listings averaging $492,000. Homes spend an average of 56 days on the market, and inventory has increased to 794 listings. The price per
square foot stands at $280, indicating a solid market with significant buyer interest.
Supply and Demand
The increase in inventory to 794 listings shows a healthy supply of homes, which meets the growing demand driven by Mesa’s economic growth. This balanced inventory level indicates that while plenty of homes are available for buyers, the market is balanced, providing a stable environment for buyers and sellers to make confident decisions.
Price Trends
The median list price of $550,000 and the median new listing price of $492,000 suggest that while home prices rise,
they are still accessible to new buyers. This price trend reflects the city’s economic health and the increasing desirability of Mesa as a residential location. Buyers can expect a good return on their investment as property values continue to appreciate.
Market Stability
The average of 56 days on the market indicates a balanced pace, with homes selling neither too quickly nor languishing unsold for extended periods. This stability benefits buyers and sellers by providing a reasonable completion timeframe without undue pressure.
Economic Growth
The 38% GDP growth and 2% employment
increase are the primary drivers of housing demand. As more businesses establish themselves in Mesa and more jobs are created, the influx of residents seeking housing continues to rise.
Infrastructure Improvements
Improved roads, public transit options, and community facilities make Mesa an appealing living place, contributing to increased property values. These improvements support the city’s long-term growth and sustainability, making it a prime location for real estate investments.
Tech Sector Expansion
The influx of tech companies into Mesa creates a market for quality housing. As the tech sector grows, the demand for modern, well-equipped homes rises, driving further development in the housing market. It provides a steady stream of high -income residents who fuel the demand for upscale housing, making Mesa a secure investment destination.
Virgin Galactic’s Facility
The new spaceship manufacturing facility is expected to bring more jobs and economic activity, boosting demand for residential properties. The presence of a high-profile company like Virgin Galactic adds to Mesa’s attractiveness as a destination for skilled professionals. This facility enhances the city’s economic prospects and provides new real estate development and investment opportunities.
Mesa’s economic environment and strategic initiatives make it a hotspot for real estate opportunities. Combining economic growth, job creation, infrastructure enhancements, and developments like Virgin Galactic’s facility underscores Mesa’s potential as a prime location for real estate investments.
Gilbert, Arizona: Real Estate Boom in a Thriving Community
By Jennifer Conrad, Managing Editor
Gilbert, Arizona, has rapidly evolved from a tranquil town into one of the most vibrant mid-sized cities in the United States. With an astounding GDP growth of 38%, Gilbert is leading the pack among mid-sized cities, creating a sense of urgency for potential investors and homebuyers to seize the opportunities in this rapidly growing city.
Why Gilbert is on the Rise
Gilbert’s appeal is clear. The city’s impressive economic performance, scoring 67
points in growth metrics, is nearly 10 points ahead of runner-up Jersey City. This isn’t just about numbers, though. It’s about a thriving community thanks to strategic initiatives and robust infrastructure projects. Families and businesses are flocking to Gilbert, with the population increasing by 10% from 2018 to 2022. And why wouldn’t they? Gilbert offers excellent schools, beautiful parks, and a welcoming community vibe.
Significant Changes on the Horizon
One of the most significant factors behind Gilbert’s rise is its commitment to building a better future. The Ocotillo Bridge and Road Extension project is a prime example. This project, which began on July 16, 2024, is set to transform connectivity and safety in the area. Mayor Brigette Peterson summed it up perfectly:
”This bridge is all about connections. We’re making them in so many different ways. This bridge will connect our residents to Gilbert Regional Park. They will come into this park, and we’ll see it grow and flourish for many years.”
When completed, the Ocotillo Bridge will drastically reduce emergency response times in South Gilbert, enhancing the effectiveness of Gilbert Fire & Rescue services. This means faster help
in emergencies and a safer community. The bridge, chosen by community vote, will cater to vehicles, pedestrians, and bicyclists, making Gilbert more connected and accessible.
Real Estate on the Move
All these developments are significantly impacting Gilbert’s real estate market. As of July 2024, the median list price for single-family homes is $699,900, with new listings averaging $579,950. Homes are selling quickly, averaging just 35 days on the market. Plus, the inventory has increased by 503 homes, showing
a market ready to meet growing demand.
Community Involvement and
a
Bright Future
Gilbert’s strong sense of community sets it apart.
The Ocotillo Bridge project is a great example. Back in 2022, residents got to vote on the bridge’s design, showing a true sense of ownership and engagement. This active involvement of the community in Gilbert’s development makes every resident feel included and part of the city’s growth. Funded through a transportation bond approved by voters in November 2021, the project is expected to
be completed by Summer 2026.
As Gilbert continues to grow, its blend of economic strength, new infrastructure, and community spirit make it a standout mid-sized city. The impact on the real estate market is clear: rising home values and increasing demand reflect Gilbert’s growing appeal.
For homebuyers and investors, Gilbert is not just a place to live—it’s a vibrant community with a promising future, instilling a sense of optimism and hope about their investment in Gilbert.
Home Buying Revolution: Your Questions
Answered on the NAR Settlement
By Jaki Underwood, Editor-in-Chief
The National Association of REALTORS® (NAR) settlement, which will take effect on August 17, 2024, will disrupt how we buy and sell homes in Arizona. With changes taking effect in August, homebuyers and agents are full of questions. Here at Arizona Ascent Magazine, we’re diving deep to provide your answers.
The settlement primarily affects the Multiple Listing Service (MLS) system and buyer’s agent compensation. Fundamental changes include listing brokers no longer being required to offer compensation to buyer brokers via MLS; the MLS removing all broker compensation information; prohibition of alternative compensation offer systems outside MLS; brokers being unable to filter listings based on compensation or brokerage name; mandatory compensation disclosures to all parties;
and written agreements required between buyer’s agents and clients before property tours.
For homebuyers, these changes bring both new responsibilities and exciting potential benefits. You’ll experience more transparency in how your agent is compensated and must sign an agreement with your agent before touring homes. While MLS won’t offer compensation, you can still negotiate your agent’s fees. Using a buyer’s agent remains your choice, and new compensation models might emerge, potentially reducing your costs and offering you more control over the process.
Buyer agents will need to adapt in several ways. They’ll need to articulate their value to clients clearly, have upfront compensation discussions, and secure written agreements before showing properties. Compensation remains
negotiable between agents and clients, and the core ethical standards of honesty and client advocacy remain unchanged.
NAR maintains that the settlement still allows for consumer choice in compensation, potentially increasing fair housing opportunities and accessibility to professional representation. This addresses some concerns about the impact on fair housing that has been raised.
As a homebuyer, you can prepare by discussing compensation with potential agents early on, being ready to sign agreements before viewing homes, considering negotiating agent fees and staying informed about new compensation models that may emerge. The court granted preliminary approval on April 23, 2024, with
changes set to take effect on August 17, 2024.
While it’s too early to say definitively if this will make buying a home cheaper, the increased transparency and potential for new compensation models could lead to more competitive pricing in real estate services. It’s important to note that buyers can still use an agent if they choose, and many find great value in buyer agents’ services. This continuity in service should provide a sense of security and confidence during this transition.
Increased agent competition may impact the real estate market, potentially leading to more innovative services and pricing models.
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As a homebuyer, you can prepare by discussing compensation with potential agents early on, being ready to sign agreements before viewing homes, considering negotiating agent fees, and staying informed about new compensation models that may emerge.
This emphasis on transparency and consumer choice could result in a more informed and empowered consumer base, inspiring both buyers and agents to adapt and thrive in this new landscape.
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Moving forward, buyers should stay informed about these changes, start conversations with potential agents about their services and compensation, be prepared for more upfront paperwork before viewing homes, and consider how they value various agent services when negotiating fees.
Founded by longtime friends Brian Yancey and Justin Slater, Cre8ive T3ch LLC is a leading force of innovation and excellence in Arizona’s thriving construction sector. This architectural project management firm is redefining industry standards.
A Journey of Resilience and Vision
Brian and Justin’s 20 years of friendship began at a residential construction site over two decades ago. When the economic downturn hit in 2008, it forced them to pivot. Justin pursued higher education, earning computer drafting, design, and project management degrees. Meanwhile, Brian expanded his expertise across various construction trades, eventually becoming a general contractor.
Their journey hasn’t been without challenges. Brian openly shared his experience with legal issues resulting from bad choices during tough times. However, his setback sparked a transformation, strengthening his dedication to personal development.
Justin’s career progression in the corporate world of architecture and engineering firms provided the foundation for their future ventures. His experience managing high-profile projects like M&M World Stores in Disney Springs, the Mall of America, and Times Square gave him invaluable insights into large-scale project management.
The duo reunited professionally when Justin helped Brian transition into architectural drafting, setting the stage for their eventual partnership. In February 2021, Cre8ive T3ch, LLC was born, and their longtime colleague Daniel joined as the first employee.
Innovative Approaches to Project Management
Cre8ive T3ch, LLC sets itself apart with its comprehensive, client-focused approach to architectural project management. It offers a full range of services, from initial concept development to construction administration and project closeout. One of their key innovations is their approach to as-built surveys. Using technology and photography, they have reduced survey times by half compared to traditional methods without compromising accuracy. This increased efficiency results in cost savings and shorter project timelines for their clients.
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We want to always prioritize the people, with a people-first approach, technical expertise, and forward-thinking vision.
The company’s dedication to quality control is evident from its outstanding track record with local jurisdictions and cities. For their recent projects in Tempe, Gilbert, and Chandler, they received very few comments on their permit submissions. This is rare in the industry and demonstrates their comprehensive understanding of local codes and regulations.
A certified Project Management Professional (PMP), Justin applies a structured approach to all projects. The company follows all five phases of project management (initiation, planning, executing, monitoring and controlling, and closing), focusing on quality control and assurance.
Showcasing Arizona’s Growth Through Diverse Projects
Cre8ive T3ch’s portfolio reflects the dynamic growth of Arizona’s business landscape. Recent projects include:
1. The Buzzed Goat Coffee Company (Tempe): This project transformed a long-standing dry cleaner into a modern drive-thru coffee shop. The team navigated complex zoning issues and site updates, working closely with the city council to secure the necessary permits.
2. Moku Hawaiian Grill (Gilbert): This project represented Moku’s first ground-up build in the innovative Cannon Beach development. Creative Tech guided the client through the unique challenges of first -generation shell construction, aligning the Hawaiian poke bowl concept with the surf-themed surroundings.
3. Edo Japanese Grill (Chandler): As the first U.S. location for this Canadian quick -serve chain, this project showcases Creative Tech’s ability to work with international clients. The firm offered a full range of services, from general contractor bidding to construction oversight, showcasing their complete project management expertise.
These projects highlight Cre8ive T3ch’s technical expertise and role in creating local economic growth and bringing diverse dining experiences to Arizona communities.
A Commitment to Industry Advancement
Their vision for the architecture industry’s future truly sets them apart. Brian and Justin are passionate about nurturing the next generation of architectural professionals. They plan to develop vocational programs or internships to bridge the gap between academic learning and real-world application.
“Nothing prepared me for what I’ve been through in my own experiences,” Justin
reflects. “If we can share that in an approachable manner, with the physical application of field training and study, that’s just golden information for anybody.”
The commitment to education continues in their current team. They have helped employees transition from service industry jobs to professional architecture and project management careers by providing ongoing training and growth opportunities. Another area where the firm excels is in its risk management and problem-solving approach. By conducting thorough due diligence and risk analysis at the outset of each project, the firm anticipates
and mitigates potential issues before they arise.
Looking Ahead: Shaping Arizona’s Future
As Arizona continues its rapid growth, Cre8ive T3ch positions itself as a key player in shaping its architectural future. The company’s ability to adapt to industry changes and its commitment to quality and innovation make it well-suited to tackle the challenges of Arizona’s changing urban environment.
“We want to always prioritize the people, with a people-first approach, technical expertise, and forward-thinking vision,” Brian emphasizes. From revitalizing existing spaces to bringing international brands to the local
market, Cre8ive T3ch is not just building structures; they’re building communities, fostering economic growth, and paving the way for Arizona’s next generation of architectural professionals.
As they continue to grow and make their mark on the architecture industry, Cre8ive T3ch is a testament to the power of resilience, innovation, and an unwavering commitment to quality. They are a company to keep an eye on in the rapidly evolving world of architecture and construction, committed to shaping Arizona’s future one project at a time.
