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CATHERINE REAGOR REAL ESTATE
Brexit could be boon for Arizona homeowners
suburbia Downtown areas beginning to attract residents once again EMILY BADGER | THE WASHINGTON POST
America’s urban downtowns were neglected for decades, abandoned for newer malls in the suburbs and bigger homes on the edge of town. The construction of new highways helped speed their decline. And rising crime nearly killed them. That’s the story of much of the second half of the 20th century in cities such as Washington, D.C., New York and Chicago. But newly unveiled housing data dating back to 1990 show that these long-shunned city centers have been attracting Americans again. According to detailed data from the Federal Housing Finance Agency, home prices over the past 25 years have appreciated more in the heart of big cities than just about anywhere else. “After decades of hollowing out,” write FHFA economists Alexander Bogin, William Larson and William Doerner, “center-cities are becoming increasingly popular.” See URBAN, Page 3R
THINKSTOCK AND ALEX GREGORY/GANNETT
Britain’s vote to exit from the European Union has hurt U.S. stock markets, but it could help homebuyers. Both stock prices and U.S. interest rates started falling June 24, the day after Brexit The average rate for a 30-year-fixed mortgage is now about 3.45 percent, the lowest it’s been since 2012. “The uncertainty created with Brexit should keep U.S. rates down longer,” Arizona economist Elliott Pollack told me from Austria, where he is vacationing and getting a closer view of fallout from Brexit. “That’s good for housing.” A little explainer: When stock markets stumble, more investors opt to buy U.S. Treasury bonds. An increase in buyers pushes up bond prices but drives down their yields or interest rates. And the yield on 10year Treasury bonds correlates the closest with mortgage rates. “You get bad news and interest rates fall,” David Newcombe, a co-founder of Scottsdale-based Launch Real Estate, told me. He lived in London until moving to Phoenix in 2003. He said it’s still unclear how Brexit will shake out, so there’s a good chance interest rates will stay low for a while. Current lower interest rates mean homebuyers can afford a house that costs 8 percent more than they could at the beginning of the year, according to Realtor.com economist Jonathan Smoke. Homebuyers aren’t the only ones who benefit. If you are a homeowner, it’s a good time to think about refinancing. The monthly payment on a $250,000 mortgage with a 3.5 percent rate is about $220 cheaper than a loan with a 5 percent interest rate. Stock market declines do often have a negative impact on housing. Last August, when stocks dove over concerns about an economic slowdown in China, luxury-home markets in the U.S. slowed. Metro Phoenix’s luxury market definitely did. Of course, that’s because many million-dollar homebuyers have bigger stakes in stocks than typical buyers. “The sudden drop in the stock market will be negative for the luxury market,” Arizona housing analyst and British citizen Mike Orr told me. But he doesn’t expect the impact will last long. Orr does think the drop could be a longer-term trend. U.S. stock markets started to rally on Wednesday and Thursday. Maybe a $200 or more drop in a monthly mortgage payment can help ease the pain of a drop in our 401(K) accounts this month.
Take a real look at Arizona’s real estate market. Unique insights and must-have info from insiders at The Arizona Republic and azcentral.com. Only at StreetScout.com
PARADISE VALLEY | 5020 East Cannon Drive | Open Today 1–4PM
SHEA CORRIDOR LUXURY. Exquisitely finished with beautiful MLS# - 5461959 view windows, high ceilings, tremendous Travertine, thick Bedrooms - 5 granites, plantation shutters and rich Alder woods. Worthy of a Bathrooms - 7 cooking show episode, the double island kitchen has a premier Pool - Yes appliance package including a built-in Alder-front refrigerator. Fireplace in the family room. Enormous master retreat with sitting Sq. Ft. - 4,674 area, double walk-in closets and two-way fireplace to the spaParking - 3-Car Garage worthy bath with jetted tub and impressive multi-head walk-in Lot Size - 29,454 shower. En-suite supporting bedrooms. The fifth bedroom is set ZIP Code - 85253 up as an office. Wonderful pool bath. Large .68 ACRE lot. Mature foliage shades the yard. Fenced pool with rock waterfall and grass Online Pics - ThoseCallaways.com lawn. – Joseph Callaway Price - $1,199,900
Brought to you by Those Callaways, Luxury Circle International (480) 596-5751
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PARADISE VALLEY | 3422 East Palo Verde Drive | OPEN BY APPOINTMENT
VERY PRIVATE ESTATE ON 1.6 ACRES. Designed for MLS# - 5401105 the utmost in sophisticated living, this gorgeous estate boasts Bedrooms - 6 an elegant main house, a 950-square-foot guest home and a Bathrooms - 7.5 450-square-foot casita. Gated entry, water features, lush lawns, Pool - Yes expansive patios, soaring archways. Grand entry hall w/European flair. Table-for-ten dining room for high-end entertaining. Living Sq. Ft. - 9,083 room w/opulent domed ceiling, French exits to fresh-air terraces. ZIP Code - 85253 Posh master w/private patio. Kitchen w/ebony-hued granite, chefsize serving/prep island. Beautiful family room, morning room, Online Pics - BaldwinTeam.com Price - $3,650,000 sunlit sitting room. Executive office, wine room, plush theater. Villa-like patios, pool, elevated spa deck, dining ramada. Visit tourfactory.com/484989. Inside: details, directions.
Brought to you by Sandra Baldwin and Megan Shapiro, Launch Real Estate
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