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Hot Homes
HOMES
Trendsetters are moving to Desert Ridge
By Sherri Plotke Broker at Arizona Golf & Sun Properties
Real estate was the hot dinner party topic in 2021, as the Valley led the country in population growth and annual appreciation increases.
Desert Ridge soon became Arizona’s largest master-planned lifestyle community. is multifaceted community includes single-family homes, luxury multifamily communities, residential golf estates, schools, high-end restaurants and luxury shopping, and Reach 11 sports park. ese communities off er an “out-of-city” living experience while being close to freeways that allow city access.
Consequently, these homes are selling thousands over list price, providing the perfect home for buyers and getting the best prices possible for sellers. e area’s maturation and growth will continue, as it’s one of the few desirable areas with land available for development.
Let’s look at the stats that set the trend and moved the hottest neighborhoods to the top of this real estate market.
Golf course homes
Realtor Sherri Plotke was born in Calgary and has been a Desert Ridge resident since
2007. (Photo by Lucero Rivero with Lu Photography)
ensuring an excellent return on investment for homeowners. • A 37% increase in home value and 19 closed homes in 2021. e average home price: $1,015,579. • Highest sale: $1,751,100, selling for $251,000 over list price in fi ve days to a cash buyer. • Average days on market: 14 days. • Average price over list price by 2.8%. • Single family homes in Desert Ridge, east of Tatum, showed an impressive 30% on average annual increase. • Average home prices were of $747,539, and only 17 days on market.
Since the COVID-19 pandemic started, golf estate living is fueled by a much younger demographic and is bringing a whole new generation of golfers to the Valley.
Sky Crossing
e newest subdivision in Desert Ridge, Sky Crossing off ers a fantastic community lifestyle atmosphere and resort pool amenities, among other indulgences.
It off ers a residential lifestyle where children have the freedom to be independent in a safe environment.
Other notable lifestyle communities, like Aviano, Fireside and Sanctuary, also had extreme inventory shortages with buyers lining up at open houses and bidding up prices.
is is expected to continue — and even increase — as the Taiwan Semiconductor Company wraps up construction in 2024. • 34% average increase in home sales price year over year. • Average days on market: 26 days. • Most homes sold over list price. • Highest sale: $2.3 million. • Average home price: $921,000.
Neighborhoods like Aviano have extremely low inventory, so buyers are lining up at open houses and bidding up prices.
(Photo by Logix Photography)
2022 projections
Although many predicted the inventory would improve at the beginning of 2022, new listings are still comparatively low. is translates to higher prices, especially in trendy areas. is momentum will continue throughout the year, providing excellent opportunities for buyers, sellers and investors. ose searching for homes should get into this hot market early.
As a Desert Ridge resident since 2007 and specializing in its real estate and luxury golf communities, I work to educate my clients on the market.
Sherri Plotke, Realtor sherriplotke.com
Trevor Halpern, J.D., is founder of Halpern Residential at North&Co in Phoenix.
(Submitted photo)
Realtor sees North Valley’s housing inventory improving
By Christina Fuoco-Karasinski
In 2022, North Valley buyers and sellers can expect to see more of what resulted from the pandemic-fueled housing market — skyrocketing home prices, increased competition between buyers, the speed of action necessary to snatch a property off the market, and the reasons people are moving to new cities and buying homes.
Demand was high and supply was low, resulting in a hyper-competitive market where more than 54% of homes sold above listing price in 2021.
“We expected to see more inventory on the market at the fi rst of the year and, quite frankly, the Phoenix area needs it,” says Trevor Halpern, J.D., founder of Halpern Residential at North&Co in Phoenix.
“Unfortunately, even though housing inventory is slowly improving, new home development isn’t coming online fast enough thanks in part to lingering supply chain issues and skilled labor shortages. So, low inventory is a major reason North Valley home prices will continue to climb.”
Suburban migration to the Valley isn’t slowing down. A realtor.com study showed approximately 62% of recent homebuyers prefer to work remotely after the pandemic. at means new homeowners will scan homes on the market for space, size and functionality to ensure they’re suitable for work-life balance.
“ is new shift in mindset means city dwellers who are struggling to live in places like New York City, San Francisco, Seattle and Washington, D.C., are moving to more aff ordable areas, and Maricopa County is on that list,” Halpern adds.
“North Valley is an extremely desirable location because the houses are large, outdoor space is often abundant, and offi ce space is almost guaranteed to be included in the home’s fl oor plan.”
Halpern says trends point toward an increased desire for rental properties such as AirBNBs or VRBOs. For those considering investing in a rental property, the time is now, he says.
According to recent data from the Cromford Report, which provides detailed information to track the history and current status of the greater Phoenix residential resale market, rental rates rose 6% across the country in the fourth quarter of 2021. However, Phoenix showed the highest rental rate increase at 14% year over year.
“Cromford analysts say there are more people wanting to rent than there are units available, leading to increased investor demand and competition for properties,”
Halpern says.
“ is competition is only going to grow as more out-of-state investors continue to purchase local properties specifi cally for income-producing reasons.”
Next, mortgage rates have continued to remain low, but they’re already starting to increase. In fact, in 2021, mortgage rates had been at a historic low, motivating a fl urry of homeowners to refi nance their homes, which is now slowing down as rates begin to rise. e 30-year fi xed-rate mortgage, which is the popular choice for most homeowners, is at its highest level since June 2020, teetering around 3.45%.
“ e Mortgage Bankers Association is forecasting that the average 30-year fi xed mortgage rate will hit 3.7% by the third quarter of 2022 and 4% by the end of 2022,” Halpern says.
“While those numbers are still historically low, they represent a roughly 30% increase compared to what we saw last year, so I’d suggest purchasing sooner rather than later if buying a new home has been on your radar.”
Luxury housing will also continue to be in demand in areas such as Silverleaf, Cave Creek, Troon North, DC Ranch, Grayhawk and Pinnacle Peak. Large lots, luxury golf courses and boutique shops are just a few of the contributing factors that make these areas so desirable to the winter visitors who routinely fl ock to the area and now stay longer. e luxurious suburbs that surround Phoenix can expect to see top dollar for their properties.
“On the fl ipside, as remote work continues to become the norm, some people are going to the offi ce two days a week, while others aren’t going back at all,” Halpern says.
“As the commute time factor becomes less impactful to daily lives, people don’t have to worry about where they live as much anymore, which means they can now consider places, like Cave Creek, that once seemed too far to commute.”
A real estate trend that might come as a surprise is millennial buyers will continue to be very active, Halpern says. is age group is the driving force of the U.S. housing market, because millennials are aging up. In 2021, millennials applied for more mortgages than any other generation, and more than half of home purchase mortgage applications (51%) were submitted by those between the ages of 26 and 41.
“ is shouldn’t be too surprising, as millennials have proven to be savvy investors who have or who are hitting their professional and fi nancial strides,” Halpern says. “ ey’re also starting or thinking of starting families, which creates a need as opposed to a want for a more suitable home.”
It’s clear that the market will continue to move on a similar track throughout 2022 that was seen in 2021, with many of the issues and consumer needs carrying over from year to year, he says.
Buyers and sellers need to take into consideration the pandemic-induced socioeconomic and environmental factors that are shaking up the market, he adds.
“ e real estate market is as dynamic as I have seen in my career, which means working with a trusted real estate adviser is as important as it has ever been,” Halpern says.
“Full-time, well-seasoned agents are up to speed with what the market is doing today, not yesterday or last month, and those should be the folks you call fi rst to help you navigate this market when considering a purchase or sale.”
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