Jon Mirmelli | March 2022 | Digital Newsletter

JON MIRMELLI REAL ESTATE GROUP

MARKET UPDATE

March 2022

COMING

SOON

FOR SALE

Paradise Valley

3690 E CAMINO SIN NOMBRE | Paradise Valley, AZ 85253 $3,490,000 - See back page for details.

E GROU AT

Jon Mirmelli 602.300.1900

JM

AL ES T RE

PRESENTED BY

JON M MELLI IR

P

2022

continues to show tight supply as we look forward to March 2022. As I write this (2/18), there are only 3,600+ homes listed as available and 625+ “coming soon” listings in our MLS system within all of Maricopa county – almost identical numbers to last month. However, in the past 30 days we have 9,500 homes under contract that have not yet closed and 6,400 closed sales over the past 30 days, an increase of 9%+ and 7% respectively from the prior month. Signs of a continued acceleration for a seller’s market with multiple offers on homes, over asking contracts and more favorable seller terms (buying as-is, waiving appraisal contingencies, more post-possession agreements offered to sellers, etc.).

For buyers not wanting to compete in this market it doesn’t look like the market conditions will be moving to buyers benefit anytime soon.

To help illustrate how strained supply impacts valuations, let’s take a look at two of our Valley’s most luxurious zip codes Paradise Valley (85253) and North Scottsdale (85255) where inventory is substantially underserved and valuations are rising. The numbers below are averages as of February 2022 with data provided by The Cromford Report:

Paradise Valley (85253)

North Scottsdale (85255)

2019

2020

2021

2022

2019

2020

2021

2022

Active listings:

352

277

138

83

460

325

217

64

Days supply:

316

228

101

52

146

114

33

18

Avg $ Per Sq.Ft.

$439

$438

$583

$768

$295

$316

$364

$459

—

—

33%

31%

—

7%

15%

26%

% Increase:

Arizona Water Supply

Speaking of supply, what about Arizona’s water position? Here’s the good news – AZ has been preparing for growth for many decades. Here are some facts put together by Greater Phoenix Economic Council (GPEC): • Arizona is currently below 1957 water usage levels due to increased conservation methods and the decrease in water used for agriculture.

• Arizona has five times (5x) more water stored than we use and has never mandated municipal or residential restrictions on uses throughout our state’s history.

• On Monday, Aug. 16, 2021, U.S. officials declared the first-ever water shortage from the Colorado River that will cause Arizona to take an 18% cut starting in 2022. This will not impact municipal or residential uses. o Arizona has the junior water position along the Colorado River and that’s been the case since 1968 when the Central Arizona Project was authorized. Because of our long-standing position, we have been prepared for decades and implemented long-term planning and solutions.

• Only 36% of Arizona’s water supply is provided by the Colorado River; Nevada is 100% reliant, its California’s predominant water supply at 60% and makes up 30-40% of Colorado’s.

• Arizona has 13.2 million acre-feet of water stored in reservoirs as well as underground, with 7.1 million acrefeet of that total stored in Greater Phoenix. Because of the infrastructure in place, we can pull and replace water as needed, making our water supply more resilient during times of drought.

• It’s our cornerstone and what separates us from other Mountain West states.

• California has limited groundwater management infrastructure in place compared to Arizona.

• 93% of the water that enters the Greater Phoenix waste stream can be reclaimed and treated for potable use and this is a huge differentiator for us. o Arizona is a national leader when it comes to the reuse of water. California sends more water back to the Pacific Ocean each year than the City of Phoenix uses in total.

Looking to the Future:

The demand side is not insurmountable, but ongoing investment in infrastructure to ensure the availability of natural resources including water is paramount in relation to Greater Phoenix’s ability to attract continued investment from semiconductor and advanced manufacturing firms.

• SRP is working with the Department of Reclamation to modify Bartlett Dam to increase storage capacity to 100,000 acre-feet for utilization, which will service nearly 100,000 people.

• Currently, Roosevelt Dam can capture 3.4 million acre-feet of water, but not all of it is available for use. SRP is working with partners to be able to produce 300,000 acre-feet of water for utilization.

12/10/21 – 1/17/22

VS. FEB. 2022 1/17/22 – 2/17/22

CAVE CREEK/CAREFREE` 85331

59

SCOTTSDALE 85266

HOMES RECENTLY SOLD

JAN. 2022

# OF CLOSED LISTINGS

85262

38

84

68 28

53

85255 85254 85260 85259 85258 85250 85251 85257

144 96 99 59 91 63 130 76

101 89 68 44 64 48 102 68

85268

90

73

85253

70

50

47

40

72

63

FOUNTAIN HILLS PARADISE VALLEY

Jon Mirmelli Real Estate Group

AVERAGE SOLD PRICE $858,394

$947,587

$1,565,158

85016 85018

82

61

$1,220,924

$2,066,522

$1,373,114

$666,656

$ 767,729

AVERAGE SALE/ LIST PRICE

AVERAGE $/SQFT

101%

$350.25

100%

100%

$1,398,650 $ 1,548,186 $845,429 $ 934,874 $848,905 $ 1,076,335 $1,011,685 $ 1,313,009 $831,262 $ 921,848 $689,391 $ 646,491 $756,302 $ 683,703 $533,656 $ 565,925

$671,947

101%

100%

$443.59

$495.13

$352.06

34

31

$402.83

42

36

$406.65

82

95

102% 102% 102% 102% 101% 102% 101% 101%

$433.47 $410.80 $361.60 $360.99 $380.83 $358.07 $439.60 $337.16

$452.23 $421.32 $411.32 $403.04 $420.24 $383.52 $409.68 $346.73

46 34 35 33 33 34 47 32

35 25 34 41 28 31 38 43

101%

101%

$307.24

$331.87

38

39

98%

98%

$606.06

$663.96

73

98

99%

101%

$344.62

36

99%

100%

$471.08

38

$ 725,649

$680,951

102%

AVERAGE DOM

101% 100% 100% 99% 99% 100% 100% 103%

$3,066,353 $ 3,623,075

PHOENIX/ARCADIA/BILTMORE 85028

JM

PRESENTED BY

AL ES T RE

ZIP

CLOSED

E GROU AT

MARKET WATCH

JON M MELLI IR

P

$ 718,160

99%

$1,240,970 $ 1,210,836

99%

$314.99

$345.99

$464.54

$354.79

38

58

53

44

ZIP CODE MAP

68

SCOTTSDALE

53

28

homes closed

homes closed

homes closed

101

homes closed

89

homes closed

68

homes closed

44

homes closed

64

40

homes closed

homes closed

50

homes closed

61

homes closed

73

homes closed

48

homes closed

63

homes closed

102

homes closed

68

homes closed

The properties on this list have been listed/sold by various members of the MLS. If your home is currently listed, this is not a solicitation for that listing.

Data reported is based upon sales information provided by the MLS as of Feb. 17, 2022. Data deemed to be reliable but not guaranteed. Each office is independently owned and operated.

LISTED

MARKET

WATCH

PRESENTED BY

Jon Mirmelli Real Estate Group

Jon Mirmelli Real Estate Group - Featured Listing

Need help selling your existing home or looking to buy? Please call Jon today! Referrals always appreciated.

ACTIVE

Paradise Valley

3690 E Camino Sin Nombre | Paradise Valley, AZ 85253

4 Beds | 3.5 Baths | 4,615 SQFT | $3,490,000

Spectacular private Paradise Valley home walking distance to Phoenix Country Day School, The Hermosa Inn and minutes from top retail/restaurants, and HWY 51. Spacious 4bd/3.5ba home with split master wing and basement bonus room with 3 car garage. 1.31+ acre lot with North / South exposure with fabulous views of Piestewa Peak and Camelback Mountain. Oversized lot with endless options for outdoor living space, guest house addition, etc. Home is tenant occupied - please contact listing agent to arrange for showings.

If your home is currently listed, this is not a solicitation for that listing.

E GROU AT

JON M

JM

AL ES T RE

Rebecca Ponte | 602.390.7096

P

MELLI IR

Jon Mirmelli Real Estate Group

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