As most of you have probably heard, the real estate market nationwide is finally slowing down. Housing prices in the Phoenix market were up 26.7% in 2021, and are up 21% YTD in 2022. Most of that 2022 appreciation was in the first 4 months, and things have slowed dramatically in the past 6 weeks or so. Does that mean prices will start coming down? Not likely according to most experts.
We are starting to approach a more normal market after 2½ years of a very abnormal market, and that shift has the media in a frenzy. It is also disconcerting to homeowners and buyers, but it shouldn’t be, because normal is good. Historically, real estate prices in the Phoenix market have risen on average 4.5% per year. That is healthy, and in no way scary!
It is all about supply and demand. The Phoenix area population has grown by around 150,000 each year since the 2020 census was taken - That is like adding an entire new small city to the Grand Canyon State every year! Simply put, there have not been enough homes built in the last 15 years to support the kind of growth we have seen in this recent market. Even if builders were building at full capacity - which they cautiously are not - it would take years for supply to catch up with demand.
Every area has its growth factors. For the west valley (Glendale, Goodyear, Buckeye), it is the massive warehouse distribution facilities. For Chandler (and the East Valley), high tech industries and companies are driving development. Let’s look at what is going on just in Chandler as an example of the valley-wide growth.
Here are some graphics from the Chandler Mayor’s office illustrating the growth in Chandler:
As you can see, the city has experienced amazing population growth in the past 30 years! Also, note that 47% of the population is 25-54 years old, a range which also happens to include the prime home buying ages.
This next slide shows why Chandler has been a magnet for high tech jobs. Education of a bachelor’s degree or higher at more than the national average and much greater household income levels mean that even though housing prices are going up, the Chandler market can afford them. The city heartily believes in innovation (which is evident in the businesses that call it home) and this outlook helps to safeguard fiscal security.
These last two slides are an interesting accounting of the largest Chandler employers and where in the city they are concentrated. It should be noted that the growth of these companies is fueling employment and investment in Chandler. For example, Intel is in the midst of a $20 billion expansion that will increase its number of employees to well over 15,000! In addition to Intel, many giants in their industries have operations in this east valley city – which has been dubbed Silicon Desert, due to its success in attracting high tech – including Stryker, CVS Health, Insight, Northrup Grumman, Waymo, NXP Semiconductors, Microchip Technology, PayPal, and numerous others.
Maricopa County remains the fastest growing county in the country, and we can see why. There are no indicators suggesting that this is going to change anytime soon, so the housing supply is going to have a hard time meeting demand, which means housing prices will likely keep going up (even if it is at a slower rate than the recent historic climb).
The Kolb Team
A violation of any legal obligation is considered a breach.
According to real estate contract laws, a breach of a real estate contract occurs when a party to the contract, whether oral or written, fails to perform any of the contract terms.
Pet of the Month
Congratulations to this hungry fur babe! Tell your mom to watch for your Chewy gift card in her email!
If you would like your pet to be considered for Pet of the Month and be eligible to win a Chewy gift card, just email a picture of your pet to firstname.lastname@example.org. We look forward to seeing all your awesome pet photos!
Recipe of the Month
Watermelon Chiffon Pie
- 1 graham cracker crust pie shell (store-bought or homemade)
For the Filling:
- 6 cups watermelon (seeds are ok)
- 1⁄3 cup granulated sugar
- 2 Tbsp unflavored gelatin (two envelopes)
- 1 Tbsp fresh lime juice or 1 Tbsp lemon juice
- 2 large egg whites, at room temperature
- 1 cup cold heavy cream or 1 cup whipping cream
- 1 cup confectioners' sugar, sifted
- Place a medium size bowl and a set of beaters in the refrigerator to chill.
- Bake pie crust according to directions and let cool. Refrigerate until ready to use.
- Combine the watermelon and granulated sugar in a very large bowl. Using a potato masher, mash until the mixture is quite liquid. Set aside for 15 minutes.
- After 15 minutes, drain the mixture through a strainer. Reserve almost 2¾ cups of the watermelon juice. Discard pulp and seeds.
- Put ¼ cup of the watermelon juice in a medium size bowl and sprinkle the gelatin over it. Set aside for 3-4 minutes to dissolve.
- Heat ½ cup of the watermelon juice in a small saucepan over medium heat (or in the microwave) to a near boil, then whisk it into the dissolved gelatin.
Celebrate International Day of Friendship
July 30th is a day specifically designated to friends and relationships, and after COVID-19 isolation, we could all use a little socialization and nurturing of those connections. The stress and concern we have all experienced (and continue to, for various reasons) have taken a toll on our mental health, but experts agree that forging friendships and associating with others are good ways to improve our mood, outlook, and overall emotional and psychological well-being.
Recognition of Friendship Day began as a greeting card marketing device in 1919, but in 1940, it had fallen out of favor. In 1997, the United Nations began a campaign to launch International Friendship Day, and it was officially declared “a day to inspire peace efforts and build bridges between peoples, countries, and cultures”.
While fostering relationships with friends you may have not been in touch with lately is part of celebrating the day, getting to know folks from different backgrounds is too. Think of all the interesting information you can learn, and even teach others!
Greek philosopher Aristotle labeled friendships we develop into 3 categories:
Utility: Mutual objective(s) between the parties, such as a co-worker or business partner
Pleasure: Common hobbies, appreciation of wittiness and a positive outlook in the other person
Good Friend: Respect for each other, though some divergences in opinions are probably present
Do you have all 3 kinds of friends? Remember, International Day of Friendship is a time to expand your horizons, so keep an open mind, and value and welcome different points of view and cultures into your life.
You can mark the day in several ways! Here are just a few suggestions:
- If you haven’t yet met some of your neighbors, pop over to say “Hello!” and introduce yourself
- Make it a point to exchange pleasantries with anyone you come across
- Email, text, call (video or voice), or write a note to a friend whom you’ve not heard from lately
- Invite a friend to go shopping, have a meal or coffee, see a movie, or engage in a common hobby
- Host a luncheon or dinner party with a group of friends and incorporate their cultures into the event
We hope you’ll take the opportunity to nurture both old and new friendships – not only on July 30th, but all throughout the year. You’ll see benefits in your own life and home, but also in the community!
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- Buyers looking for a view property in any of the Sun Lakes communities. Green belt ok.
- Buyers looking in Cottonwood for 3-bedroom 2-bath home with open concept living. Pool is ok.
- Buyer looking for 2-bedroom 2-bath in one of the gated communities.1500 square feet.
- Buyer looking for home with a lake view, walking path access, 2-bedroom 2-bath with an office space. Would like eating area off the kitchen and open floor plan with vaulted ceilings.
Recent Real Estate Sales in Sun Lakes
Wondering about your Neighbor’s Home Sales Price? Find out here to see what sold last month. The report is broken down by HOA, address, and floor plan (if the agent listed the model in MLS).
Vendor of the Month
Arizona Fog Wizards
Award-winning fog and misting effects for pools, spas, waterfalls, gazebos, ramadas, fountains, patios, & more! Have a look at their website, where you can learn more about what makes them different and why you should contact Arizona Fog Wizards when considering an outdoor cooling system.