Queen Creek Real Estate Market Update + 55+ Affordable Housing Debate in Chandler

Do you have an opinion about 55+ Affordable Housing in Chandler?

If so, reply and tell me if you think it is a good idea, bad idea, or want more details to decide.

(Yes, this topic is familiar if you heard about the infamous Chandler City Council meeting months ago.)

AND there is a surprise at the very end, so keep reading.

Yes, I created some amazing, and even haunting, memories of the 1980s, though the 1990s were really my jam.

Like, I'm from the Valley, and like, life was totally RAD! (Yes, many of us really did talk that way for a minute.

Interest rates being, like totally, irritating brought on the sweet smell of nostalgia for me. Ah, the good ole days of Aqua net hairspray, "Love is a Battlefield," and women being referred to as "et al" when buying a home with a husband because we were still a form of property. Hmmm. Grrrrrr.

Speaking about being older, let's talk about Queen Creek from https://investtheqc.com/demographics/

• QC has the youngest median age in the East Valley, 33.3 years old. Ahhhh little babies!!!

• Residents are well educated, 77% of persons over the age of 25 have some college or a college degree.

• They have one of the highest median incomes in Maricopa County at $96,802*. (* This number is based on wonky data from the government, so take all "median income" estimates you hear with a grain of salt.)

• Like all young people, QC is growing up. The current population is 68,500. They are expecting a 43% population growth within 5 years and a final town size of 175k when all is said and done.

• San Tan Valley is "big" enough for a new zip code, 85144 for Pinal County folks. Maricopa County residents in STV will remain with 85142. (Yes, the town has sprawled over 2 counties.)

More details on mortgage rates,and a surprise, below so keep reading!

Queen Creek's average sales price is going down a bit at the moment, though also considered flat since November 2022.

• We have a market which is seeing very low demand and even lower supply,again. Freaking AGAIN!

• With the 30-year fixed interest rate stuck around 7%, most homeowners do not want to sell and buyers are struggling to qualify and afford a home.

• Buyers are unimpressed with the low inventory of resale homes and are increasingly turning to new built homes. Developers are enjoying strong orders, firmer prices and healthy margins, but have relatively low inventory of homes for sale and a weak pipeline of new permits to build.

• The strongest sector in the housing market is single-family new construction.During times of economic insecurity, folks tend to move back into whatever their version of "the city" happens to be.

• That is very much the case with Queen Creek.A Cromford Market Index (CMI) of 117 is just barely into a Seller's market by the skin of their teeth.

• For a little comparison,Chandler is at 323. (That is FRENZY territory with bidding wars expected.)

• Even very expensiveScottsdale is at 180, a solid Seller's Market.

• Also means that Queen Creek is a great city to consider if your intention is to buy and hold for 10+ years. That area is getting more businesses, so more jobs and, therefore, population growth are reasonable expectations

• As always, when the CMI is at 100 then there are the same number of buyers and sellers.

• Keep reading.....don't quit now.

If you would like to chat about anything real estate, simply reply to this email or call/text me at 602-730-2143 for more details.

Queen Creek's Monthly Average Sales Price by Square Foot is going up.

• For homeowners, rising prices are reassuring, but for agents, the low volume is a huge problem. (Really, really, really!!!!)

• There are remarkably few new listings and closings, which are continuing to decline as we enter the summer doldrums. While interest rates remain at 6.75% or higher, we appear unlikely to see much improvement during the heat of summer.

• In fact, rising prices will make it even harder for buyers to close on a home. However if interest rates were to fall to 6% or below, we could see a sharp increase in demand and an improvement in supply, too. (Please keep your fingers crossed this happens flipping soon!)

• We will shortly see the average $/SF for closings overtake the peak from a year ago. At the moment the gap is 4.2%, but last year's prices were falling fast, and this year we are seeing a rise of almost 3% in just 2 months.

• The third quarter is notorious for weakness in average pricing, but even if closed prices stay flat for the next 3 months, annual appreciation will have turned positive by the end of the quarter.

• As you can see in the graph above, Queen Creek price by sf is going up. Once you've finished reading here, look at the below graph.

• For a chance to win a prize, email me back with what your predictions are for where we will be by 10/1/23. Keep reading for more details.

If you are considering buying a new build, or a resale home, call/text me at 602-730-2143. I would love to be "Your Dedicated Home Advocate."

Yeah, that little round emoji with green hair is me! And I'm running towards Disneyland. I would rather pay money for a roller coaster at the "Happiest Place on Earth" than to have one continuing this long in real estate.

• Come to think of it, all these really fast ups and downs are making me nauseous. Forget Disneyland, after all!

• Comparisons with this time last year are getting easier, as a year ago the market was deteriorating as demand from institutional investors and iBuyers collapsed. A steep rise in interest rates had spooked the market and ordinary buyers were holding their breath, too.

• Some people drastically overstate the importance of interest rates in determining home prices.Interest rates are important but when they move higher they lower supply as well as demand. It is the balance between supply and demand that determines how prices move.At the moment supply is much weaker than demand so prices are increasing, as they have since January.

• If you are still reading this, let's talk about the difference between price per square foot (sf) and average monthly sales price.

• Average, by definition of that word, will always be higher than median.After all, there are 300,000 numbers in a $300k home, versus 600,000 numbers counting in a $600k home.

• Price per square foot is 1980's hair style-level funky. A 1100 sf home will have a very different price per sf of a 3100 sf one. Unless there are a ton of upgrades or special amenities, smaller homes cost more per sf than larger ones. That is due to various factors such as lot size, cost of construction (building up is much cheaper than out), and it doesn't take into account how many stories it has. A 3-story home will have a much smaller lot size and will attract very different buyers than a single-story 2500 sf home.

• Just a little bit more.....

If you would like to chat about down payment assistance, credit, home warranty options or if now is a good time to buy for your situation, please either reply to this email or call/text me at 602-730-2143.

You've made it!! Now for the surprise......

A past client and good friend of mine, Rita, will do a fascial to the folks, or friends of folks, who respond to this question....

What are your predictions for where the real estate market will be by 10/1/23?

Reply to this email with a thumb gesture or paragraph to win.

After all, what is more fun than a FREE facial in a private setting. I got you covered!

Follow me on Tiktok, Instagram, and Facebook at "Nancy Realtor" for all sorts of real estate content and some weird randomness thrown in for fun.

In fact, I've started doing different series specifically tailored to for Buyers, Sellers, and Renters, We'll cover topics such as negotiation techniques, home improvement, credit scores, escrow hurdles, market updates, recent news articles, and so much more.