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CATHERINE REAGOR REAL ESTATE
The bank of mom and dad
Climbing rent spurs buyers More Millennials and boomerang buyers bouncing back after foreclosure are purchasing metro Phoenix homes than ever. But it’s not just because they want a place of their own. Rents for homes, condominiums and apartments climbed sharply in many Valley neighborhoods during the past few years and are still on the rise. Billy Day and Jessica Simms bought their first home earlier this year after their rent jumped in central Scottsdale. The couple were able to find a renovated home in their price range in the popular area so they could stay close to their jobs, favorite restaurants and places to hang out. “Our lease was coming to an end and upon evaluating the cost of rent, it was a better financial decision to purchase,” Simms told me. For homes and condos, the average monthly lease rate in metro Phoenix rose 10 percent during the past year to $1,454, according to the Arizona Regional Multiple Listing Service’s April report. Apartment rents in the Phoenix area jumped 8 percent during the past year, according to the most recent Yardi Matrix report. The Valley ranks No. 7 for the biggest rent increase among major U.S. metro areas. The average apartment renter in metro Phoenix is paying almost $1,000 a month. Rents are rising faster in some neighborhoods than others, particularly in central parts of Phoenix, Scottsdale and Tempe. Those areas, closer to restaurants, shopping, jobs and light rail are also seeing some of the biggest increases in home prices. The Midtown Phoenix neighborhood Cheery Lynn/The Yard in ZIP code 85014 saw home prices jump 50 percent during the past year, according to Street Scout Home Values, an annual analysis of metro Phoenix’s housing market done with The Information Market. That was the biggest jump for any Valley neighborhood. It’s tough to find an affordable home in many central Valley neighborhoods now. The many investors who purchased Valley foreclosure homes on the cheap during the crash and
How your parents affect your chances of buying a home EMILY BADGER THE WASHINGTON POST
or many would-be home buyers, the biggest obstacle isn’t the income to cover the mortgage or the credit score to qualify for one. It’s the huge pile of cash you have to hand over on closing day. A first home - especially in a high-cost city - demands not just that you make enough to cover the payments, but also that you have a lot to start with. And that’s where it comes in really handy to have parents with money. Adult children who get financial help from their parents - whether that money is intended for housing or not - are significantly more likely to become homeowners. This finding, from a new working paper by Dowell Myers, Gary Painter and Julie Zissimopoulos at the University of Southern California, illustrates how housing itself functions as a tool of wealth transfer. At least for those who can tap into what Myers calls “the Bank of Mom and Dad.”
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PHOTO ILLUSTRATION BY ALIYA MOOD/THE REPUBLIC AND THINKSTOCK
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FIND A NEW MONTHLY SECTION IN TODAY'S ARIZONA REPUBLIC! Find the hottest properties, latest trends and best values the second Sunday each month. PARADISE VALLEY | 7224 North Lakeside Lane | Open Today 1–4PM
FREE PIE FOR STOPPING BY this magnificent Clearwater Hills MLS# estate today 1 to 4. Prominently located behind estate gates, this Bedrooms Paradise Valley icon is set on nearly an ACRE lot with breathtaking Bath Camelback Mountain views. A large picturesque window wrapped Pool rotunda foyer welcomes you. Breathtaking ceilings, impressive stone fireplace, bleached Oak floors and more. Five star island Sq. Ft. kitchen with expensive Sub-Zero and Dacor appliances. The king Parking sized master incorporates a gym, stunning fireplace, sitting room, Lot Size deep walk-in closet and luxurious bath. The outdoor paradise ZIP Code includes a lush garden, new lap pool, cook center, observation deck and fireplace. A truly remarkable estate! – Joseph Callaway Online Pics Price
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- 5380362 -4 -4 - Yes - 5,764 - 3-Car Garage - NEARLY AN ACRE - 85253 - ThoseCallaways.com - $1,699,000
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MESA | 8930 East Omega Street | Open Today 1–5PM
VIEW-RICH NEVER-OCCUPIED EAST MESA ESTATE. MLS# Flattered by a panorama of dramatic mountain and city lights Bedrooms views, this never-occupied home is surrounded by stunning Bath Sonoran desert-scape from its secluded perch in gated Tierra Pool Rica in the hills of East Mesa. Light-filled living room opens to alfresco dining patio for easy-breezy indoor-outdoor living and Sq. Ft. entertaining. Stunning state-of-the-art kitchen. View-rich master ZIP Code retreat. Impressive upper-level living spaces: large family room, game room, three bedrooms, two baths, two super-spacious view- Online Pics Price decks. Big backyard with plethora of patios, sun-lounge decks, shimmering waterfall pool. Oversized garage. Great access to Loop 202! Visit tourfactory.com/1563920. Inside: details, directions.
Brought to you by Sandra Baldwin, Launch Real Estate
- 5438690 -5 -4 - Yes - 4,255 - 85207 - BaldwinTeam.com - $824,000
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