The ‘REAL’ News about Housing Affordability

The 'REAL' News about Housing Affordability | Simplifying The Market

Some industry experts are claiming that the housing market may be headed for a slowdown as we proceed through 2017, based on rising home prices and a potential jump in mortgage interest rates. One of the data points they use is the Housing Affordability Index, as reported by the National Association of Realtors (NAR).

Here is how NAR defines the index:

“The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data.”

Basically, a value of 100 means a family earning the median income earns enough to qualify for a mortgage on a median-priced home, based on the price and mortgage interest rates at the time. Anything above 100 means the family has more than enough to qualify.

The higher the index, the easier it is to afford a home.

Why the concern?

The index has been declining over the last several years as home values increased. Some are concerned that too many buyers could be priced out of the market.

But, wait a minute…

Though the index skyrocketed from 2009 through 2013, we must realize that during that time, the housing crisis left the market with an overabundance of distressed properties (foreclosures and short sales). All prices dropped dramatically and distressed properties sold at major discounts. Then, mortgage rates fell like a rock.

The market is recovering, and values are coming back nicely. That has caused the index to fall.

However, let’s remove the crisis years (shaded in gray) and look at the current index as compared to the index from 1990 – 2008:

The 'REAL' News about Housing Affordability | Simplifying The Market

Though prices and rates appear to be increasing, we must realize that affordability is composed of three ingredients: home prices, interest rates, and income. And, incomes are finally rising.

ATTOM Data Solutions recently released their Q1 2017 U.S. Home Affordability Index. The report explained:

“Stronger wage growth is the silver lining in this report, outpacing home price growth in more than half of the markets for the first time since Q1 2012, when median home prices were still falling nationwide. If that pattern continues, it will help turn the tide in the eroding home affordability trend.”

Bottom Line

Compared to historic norms, it is still a great time to buy from an affordability standpoint.  Give me a call for more information – J.P. Cook – 602-320-4253.

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33120 N 67th Street Cave Creek, AZ 85331

$1,250,000
4 Beds
3 Baths
2,501 SqFt
Status Active Under Contract
MLS # 6785150
Property Type Single Family Residence
Price Type --
Welcome to your dream home, a true sanctuary on a premium corner cul-de-sac lot. Privately enclosed by stucco wall and automatic gates, this expansive 1+ acre lot is professionally landscaped with hundreds of custom pavers, custom stucco planters, and offers plenty of room for casita, tennis court or additional garage. Designed with high-quality craftsmanship, this home blends luxury and practicality at every turn. Inside, you'll find a spacious split and open floor plan featuring Hickory cabinets, a SubZero refrigerator, Bosch appliances (2021), and a reverse osmosis system in the gourmet kitchen. Elegant touches like tumbled travertine flooring, Versai chiseled granite countertops, Italian fixtures, and plantation shutters elevate the interior. Step outside to a park-like retreat with a negative edge chlorine pool (10' deep), surrounded by Hawaiian-imported exterior rocks. The expansive 3800 sq ft covered patio and 5300 sq ft of pavers provide endless possibilities for outdoor living and entertaining. The backyard offers space for a casita or pickle ball court, with a wash specifically designed for rainfall, ensuring functionality. Practical features include an extended-height garage door, storage under the island cabinets, and a freshly painted exterior (2022). Enhanced with a Ring Camera system for added security, this home offers a perfect blend of elegance, privacy, and comfort. Don't miss this exceptional property!

2975 E Campbell Road Gilbert, AZ 85234

$1,250,000 - 5Br/3Ba -  for Sale in Suburban Ranchettes, Gilbert
New
$1,250,000
5 Beds
3 Baths
2,560 SqFt
Status Active
MLS # 6787183
Property Type Single Family Residence
Price Type --
Coming Soon! Completely remodeled, over an acre, horse property, in the heart of Gilbert!

5428 E Yolantha Street Cave Creek, AZ 85331

$1,250,000 - 3Br/3Ba -  for Sale in E 157f Of Sw4 Of Nw4 Of Se4 Of Ne4 Ex S 25f, Cave Creek
New
$1,250,000
3 Beds
3 Baths
2,046 SqFt
Status Active
MLS # 6789281
Property Type Single Family Residence
Price Type --
Prepare to be amazed! Check out this wonderful 3 bed, 3 bath NO STAIRS residence now on the market! Nestled on an oversized 1 acre lot w/a massive front yard & featuring 2 car garage w/built-in cabinets as well as a welcoming front porch. Inside you will find a welcoming foyer w/Saltillo tile flooring & beamed ceilings, which flows seamlessly into a spacious great room w/elegant wood-look flooring, a wet bar, neutral palette throughout, and a warm fireplace. Prepare delicious meals in this gorgeous new kitchen, equipped w/ 48' Wolf range with griddle, two-tone shaker cabinetry, a pantry, stunning quartz counters, tile backsplash, and a large island complete with breakfast bar. Double doors open up to the grand primary suite, showcasing direct outdoor access, a walk-in closet, and a lavish ensuite w/dual sink. Also including an expansive backyard w/a covered patio, extended seating area w/a lovely stone fountain, an outdoor fireplace, and a sparkling blue pool! What are you waiting for? Park all your toys on this property, add on to the house, build an RV garage or even a quest house don't pass up viewing this beautiful remodel on this amazing lot. Act now before it's gone!

15921 E Primrose Drive Fountain Hills, AZ 85268

$1,250,000
5 Beds
3.5 Baths
3,200 SqFt
Status Active
MLS # 6775263
Property Type Single Family Residence
Price Type --
Imagine waking up to the soft glow of dawn as the sun rises over Four Peaks while you cozy up with a cup of coffee. That is just a glimpse of what awaits you in this designer-inspired semi-custom 2022 built contemporary Fountain Hills home. Experience the rich blend of casual elegance & eclectic comfort accentuated with soaring 20' vaulted ceilings and views that stretch for miles. The striking open concept great room, dining room and kitchen flow effortlessly and are ideal for family gatherings or entertaining with direct patio access to experience Arizona's coveted indoor/outdoor lifestyle. Natural light abounds through 8'x8' windows and sliders throughout, complemented by wood-look tile floors. The great room's contemporary linear LED fireplace is framed by art niche shelving and accent lighting. The dining room offers a 10' dry bar with generous cabinetry, floating shelves and wine and beverage refrigeration. Here, the kitchen truly is the heart of the home with a 12 foot waterfall edge island with seating for six. The culinary enthusiast will appreciate the attention to detail with quartz counters, soft-close white shaker cabinets, a Samsung appliance package with multiple ovens and a pot filler for those family spaghetti dinners. It is from the sanctuary of your primary retreat where you'll watch the sunrise over the city and mountains beyond or step onto the secluded backyard patio. The split floor plan provides four additional bedrooms. The first guest room offers an ensuite, two more bedrooms share a jack-and-jill bathroom. The fifth bedroom is utilized as a light and bright office with perhaps the best views of all. Movie nights can be enjoyed in the media room. The laundry and powder rooms complete your single story living. The three car air-conditioned garage and storage room are on the lower level. The owners have ensured the paver driveway is ideal for easy garage access with thoughtful expansion. Your tiered backyard is private and offers a heated spa and resort feel, plus your four-legged friends have their own fenced space. The front patio is expansive and your guests will arrive as they ascend paver steps with a sleek iron rail. This is your exclusive opportunity to experience the Arizona lifestyle and all that Fountain Hills has to offer, with its world famous fountain, world-class golf, hiking, biking, arts and culture all out your door.

7635 E Camino Vivaz -- Scottsdale, AZ 85255

$1,250,000 - 3Br/3Ba -  for Sale in Paseo At Pinnacle Peak, Scottsdale
New
$1,250,000
3 Beds
3 Baths
2,220 SqFt
Status Active
MLS # 6788784
Property Type Single Family Residence
Price Type --
This gorgeous, single story 3 bed, 3 bath home is located in the boutique, gated community of Paseo at Pinnacle Peak. Newly built in 2022 and upgraded to the fullest extent, at home you'll enjoy 12' ceilings, a chef's kitchen with custom cabinetry, GE Monogram appliances and waterfall counter tops, and upgraded bedrooms and bathrooms throughout. Featuring sweeping mountain views to the East, the yard was designed to be comfortable and low maintenance with an automatic drip system in the front and turf in the back. Numerous restaurants, retail shops, golf courses walking paths and hiking trails are all within 5 minutes!

657 Linger Lane Williams, AZ 86046

$1,250,000
8 Beds
4 Baths
3,444 SqFt
Status Active
MLS # 6641232
Property Type Single Family Residence
Price Type --
Discover a unique investment opportunity with this Grand Canyon Getaway featuring dual houses. Nestled right off Highway 180, this former general store has been meticulously remodeled to offer two distinct houses, each accommodating various guest preferences, whether it's a family retreat, couples escape, or a group adventure. The property seamlessly blends historic charm with modern comfort, providing a delightful stay for your guests. Its prime location ensures high demand from Grand Canyon explorers year-round, and with an 8% cap rate, this investment opportunity guarantees consistent income, thanks to its unique appeal and sought-after location. Experience the perfect fusion of history and comfort as the property's past as a general store adds a touch of nostalgia to the guest experience, complemented by modern amenities and tasteful decor. Don't miss this exceptional investment opportunity to capitalize on the allure of the Grand Canyon.

9649 E Solina Avenue Mesa, AZ 85212

$1,250,000
4 Beds
3 Baths
3,308 SqFt
Status Active
MLS # 6731586
Property Type Single Family Residence
Price Type --
Your fully furnished dream home is here! This exquisite former model home has a 3-car garage, a paver driveway, and a meticulously maintained yard with artificial turf. Discover an inviting designer rooms with high ceilings, a soothing palette, recessed lighting, attractive wood-look flooring, and sliding doors to the backyard for indoor-outdoor living. The delightful kitchen is equipped with quartz counters, Thermador appliances with a wine fridge, abundant white cabinetry, chic pendant light fixtures, a stylish tile backsplash, a large walk-through pantry with cabinets, island with a breakfast bar for casual dining. You'll also find a den, ideal for an office. Primary bedroom retreat, offering a lavish ensuite with dual sinks, a soaking tub, a raindrop shower, and a walk-in closet. The enchanting backyard is a true oasis, featuring a covered patio, a built-in BBQ for weekend gatherings, and a cozy firepit. This gem will sell fast!

10611 E Tumbleweed Avenue Mesa, AZ 85212

$1,250,000
5 Beds
4.5 Baths
3,996 SqFt
Status Active
MLS # 6739419
Property Type Single Family Residence
Price Type --
Through the gates past the spacious manicured grounds your almost new home awaits. Bright and open with lots of natural light. Entertain friends and family around the large kitchen (double ovens) island while others enjoy the large patio through 8'' open double sliders with remote shades. Others can congregate around the outside kitchen, relax in the spa or sit in the additional sitting area and enjoy the sound of the fountain. Enjoy the finest of finishings from one upgraded flooring throughout to a library ladder in pantry. Bedroom wing has its own sitting room, a craft room and an en-suite. Owned solar! Extra storage room in garage. Your lifestyle will include the fitness center (so get rid of the gym membership), the huge pool you don't maintain,the parks and many more amenities.

3080 W Blazingstar Road Show Low, AZ 85901

$1,250,000
4 Beds
3 Baths
2,315 SqFt
Status Active
MLS # 6749349
Property Type Single Family Residence
Price Type --
Nestled on over an acre, this gorgeous home sits on a premium gently sloping lot on the 3rd fairway of the Torreon Tower Golf Course. This single story home has an open plan with soaring ceilings and plenty of indoor and outdoor space for entertaining and relaxing alike. The chef's kitchen features Frigidaire Professional stainless steel appliances including a 5 burner gas range & built-in microwave. There is ample seating along the Quartzite center island which opens to the great room with its stylish stacked stone fireplace, vaulted tongue & groove ceilings, & large windows offering tranquil views of the majestic pines. The spacious outdoor deck has a comfortable seating area and dining area so that you can enjoy the beautiful weather and pines from the comfort of your own backyard. This home is centrally located less than half-a-mile from the Torreon family center, which has pickleball courts, basketball courts, a playground, & a catch-and-release pond, etc. The Torreon Clubhouse has a restaurant, fitness center, heated swimming pool, spa, ballroom and more. There is something fun for everyone to enjoy in Torreon.

4880 E Beehive Road San Tan Valley, AZ 85140

$1,250,000
5 Beds
3.5 Baths
3,420 SqFt
Status Active
MLS # 6753373
Property Type Single Family Residence
Price Type --
Stunning Custom home nestled on a 1.25-acre irrigated lot. **NO HOA** This Barndominium style home offers 5-bedrooms, 3.5-baths + 1200 Sq. Ft. air-conditioned detached shop with extended 2 car garage, 2 additional rooms, a bathroom which is perfect for a guest quarters or home business. This home offers a spacious open concept, new interior paint, gourmet kitchen with Knotty Alder cabinets complimented by a HUGE island, granite countertops, stainless steel appliances, propane stove, dual ovens, copper farm sink, coffee bar and walk-in pantry. The WOW factor of the stone and metal fireplace is such a focal point to the home. First level primary suite provides backyard access, dual closets with stackable washer & dryer, spacious walk-in rain shower and separate vanities. Stunning barn doors at the primary bedroom and dining areas. Mudroom doubles as an office just off the garage. The garage is oversized with additional storage allowing for ample parking of larger vehicles. Travel up the custom metal staircase and enjoy the open loft with 3 additional bedrooms, 2 bathrooms, 2nd laundry room and additional storage area. North/South orientation adds to the enjoyment of the extended wrap around porch which is perfect for large gatherings and views of this great property. Fully fenced pasture with 40 ft. round pen, 60x20 covered shed-row barn w/4-stalls and 18x10 hay storage area. The shop is equipped with foam insulating, A/C, electrical and 30-Amp plug. Plenty of room for all your toys and animals. Don't miss out on this wonderful home!

14142 E Peak View Road Scottsdale, AZ 85262

$1,250,000
3 Beds
2 Baths
2,541 SqFt
Status Active
MLS # 6756449
Property Type Single Family Residence
Price Type --
Welcome to The Ranch, y'all! This RENOVATED dream property is being sold FULLY FURNISHED, so all you need to do is bring your horses, cowboy boots/hats and your suitcases! Priced BELOW recent appraisal! You'll access the property by all paved roads, except for about 150 yards of dirt plus your long driveway. You'll feel like you're pulling up to a Wild West movie set when you drive up to the ranch and see such unique architecture, the metal roof, the wraparound porch, the horse barn/facilities and more, ALL on sprawling 3.26 acres with breathtaking, 360-degree mountain views, including views of Four Peaks, Weavers Needle, Tom's Thumb and many more. Water is GOLD in Arizona, and you'll feel like you struck gold with the high-producing water well that is kicking out 7 gallons... ... per minute of beautiful, clean, high-pressure water. This 3 bed, 2 bathroom home was renovated with an elevated and refined balance of rustic and modern: Check out the new showstopper Quartz countertops throughout (kitchen, bathrooms and laundry). The kitchen has been reconfigured to offer a more luxurious cooking experience with a new 48-inch dual fuel double oven range (electric ovens and gas burners), in addition to a black Quartz Elkay sink with a matte black faucet and a matching black disposal air switch button. Enjoy the new refrigerator with a built-in beverage center, a new Dacor dishwasher and a brand new, sleek black washer and dryer with copper accent colors. The cabinets throughout the home are a custom, rustic alder from SOLLID Cabinetry. The living room and dining room have The WOW Factor, with gigantic round chandeliers that light up the entire space. The ceilings soar to 16 feet, with a massive 10 x 10 x 32 foot rustic beam running down the middle of the vault. The wall of windows and sliding doors reveal absolutely breathtaking mountain views and wide open space, that will soon be your backyard! The river rock stone fireplace and custom rustic mantel will surely be a cozy setting and a conversation starter for your next gathering. Both bathrooms have been completely remodeled and enhanced, featuring new floor-to-ceiling tiled showers with wall-mounted waterfall heads and hand-held wands, striking LED front-lit and backlit mirrors with color temperature customization, anti-fog and dimming. Both bathrooms also have new toilets, sinks, faucets, towel bars/hooks, vanity lights and more. The primary shower offers DOUBLE wall-mounted waterfall heads and wands, so two can shower at the same time! A new LED bluetooth exhaust fan was added, so you can listen to music while you shower. It also has night lights with two color options. Custom shower glass was installed in both bathrooms, with floor-to-ceiling glass panels in the primary. This home has a lot of storage. There are two pantries, a bonus storage room, and the primary bedroom and guest bedroom have enormous walk-in closets. The flooring has been updated throughout the entire home with a wood-based plank flooring that is warm and inviting, along with all new crisp and clean 6-inch baseboards. The primary bedroom and one of the guest bedrooms now feature newly constructed bump-out electric fireplaces with customizable flame colors, heat, wood-crackling sound effects and custom wood mantels. The third bedroom showcases newly constructed dual closets, a custom live edge wood floating desk, with a black floating shelf and a Limousine Leather black slat accent wall. The views from every single window are stunning, especially from the bedrooms. Your guests will be fighting over who has the best view! The ranch features all new LED lighting, ceiling fans, light fixtures, black hinges and handles on the doors and many more intricate details. Custom carpentry is evident throughout the home, with so many eye-catching wood accents. The home comes equipped with a brand new electric water heater and whole-home water filtration system featuring burnt coconut shells and a new water softener that will leave your skin and hair feeling silky smooth. The MASSIVELY oversized 3-car garage was just painted. Seriously, it feels much bigger than a 3-car garage. While you're in the garage, don't miss the pull down ladder to go up into the attic. It offers a ton of storage and is the size of a huge bedroom/playroom. The home is insulated with spray foam, so it's super sealed, quiet, and energy efficient. Outside, the land feels never ending as you walk the property, with room to add onto the main home or build anything your heart desires! You name it, you can build it with all the extra land/space you will have. Take in all the magical views as you sit in the rocking chairs on your wraparound porch. And just WAIT until you hear the incredible sound of rain hitting the metal roof. Talk about a good night's sleep! Kick back under the stars, build a fire in the distant fire pit, and fully embrace living on the ranch. The barn and horse stables are such a bonus, creating so many opportunities (horse boarding and more). The barn has water, electricity and a 30AMP RV hookup along with a 50AMP RV hookup. If you are looking for peace and quiet, with views for miles, you have found it! Make this property yours, so you can tell your friends and family, Welcome to The Ranch!

8905 E Mountain Spring Road Scottsdale, AZ 85255

$1,250,000
2 Beds
2.5 Baths
2,431 SqFt
Status Active
MLS # 6764265
Property Type Townhouse
Price Type --
Spectacular Market Street Villa at DC Ranch. This lovely Camelot built Villa offers, ungraded wood flooring, stainless steel appliances, slab granite countertops, and ungraded cabinets. 12' ceilings, a bank of french doors leading to one of two spacious patios. The back patio features flagstone decking, a private pebble-tec spa with water feature. Enjoy your private tropical oasis.This is an end unit and sides to common area. The 3rd bedroom is used as den/office can be converted to a bedroom. New Epoxy garage floor. This is the Scottsdale lifestyle you want. DC Ranch has an extraordinary clubhouse with work out room, lap pool and kids play area. Close to great eating and the 101. Memberships are available to the country club

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