The ‘REAL’ News about Housing Affordability

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:

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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4901 E Tomahawk Trail Paradise Valley, AZ 85253

$5,790,000

6 Beds

8 Baths

8,463 SqFt

Status Active

MLS # 6752947

Property Type Single Family Residence

Price Type --

This home has a beautiful presentation! It is an absolutely gorgeous walled gated estate. Enter thru a dramatic stone archway into an elegant courtyard with a large circular paver drive to the main residence which is not visible from the street. The 6 bedrm estate includes a full guest house w/ kitchen, bedrm + bathrm. The main home has beautiful architectural detail and hickory wood floors, as well as a master with separate sitting rm and expensive mahogany + glass woman's closet, a paneled library, theater + walk in wine rm. The extraordinary backyard has extensive lawns + features an award winning swimming pool with 4 firepits, spillways + waterfalls cascading from real boulders.The gourmet kitchen with 2 pantries opens to the inviting family room which opens to the large theatre.

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6601 N Mountain View Drive Paradise Valley, AZ 85253

$5,785,000

6 Beds

6.5 Baths

6,809 SqFt

Status Active Under Contract

MLS # 6748190

Property Type Single Family Residence

Price Type --

This exquisite custom estate is loaded with impeccable quality and unique design elements, and the soft contemporary vibe beautifully combines elegance and comfort. The island kitchen is absolutely gorgeous with every imaginable amenity, the great room is stunning with fully retractable walls of glass that open to the impressive backyard, and the dining room is another alluring space with a temperature-controlled wine room that holds more than 320bottles and french doors that open to a lovely outdoor patio. The magnificent primary suite has a fireplace, morning bar and spa like bath creating an ultra-serene environment, and the additional bedrooms are all ensuite. There's a newly built guest wing that includes another ensuite bedroom, bonus room, large family room and full bath and close

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10612 E Winter Sun Drive Scottsdale, AZ 85262

$5,750,000

5 Beds

9 Baths

9,471 SqFt

Status Active

MLS # 6784147

Property Type Single Family Residence

Price Type --

FULL GOLF MEMBERSHIP IS AVAILABLE subject to the club bylaws and membership approval. This gated mediterranean style masterpiece has multiple high-end finishes, including numerous architectural details, recessed lighting, & brick details. Great entertaining home w/ large walk-behind full bar area & temperature-controlled wine room strategically placed between the kitchen, great room, and dining areas. The home has 5 bedrooms, 6 full baths, & 3 half baths. Included in that count is a detached 2-room casita w/ kitchenette and stacked W/D. The 2 oversized 2-car garages make this home perfect for the car enthusiasts. Other features include an elevator, home theater, office, & game room w/ an additional wet bar. The luxurious primary suite bath has plenty of storage & a steam shower. The outdoor living space includes 2 covered BBQ areas and room for both dining & lounging areas. Furniture is available under separate Bill of Sale.

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4021 E Claremont Avenue Paradise Valley, AZ 85253

$5,750,000

4 Beds

4.5 Baths

6,155 SqFt

Status Active

MLS # 6775893

Property Type Single Family Residence

Price Type --

One of the most unique homes in Paradise Valley. You pause as the private gate opens revealing the stunning entrance framed by two custom fountains. As you open the incredible hand crafted front door you are overwhelmed by the view from the large. Courtyard. This meticulously well maintained home with lush landscaping offers alfresco dining alongside the sparkling 20' lap pool and spa. focusing directly on Camelback Mountain. Fourteen foot ceilings reign over the large sliding glass windows which disappear into the walls with the push of a button. This house was created for indoor outdoor entertaining. The kitchen, a chef's dream features Gaggenau appliances, a 6x11 soapstone island with Paul Henningsen's Artichoke Lighting above also includes a well appointed butlers pantry. The open kitchen concept embraces a spacious family room and inviting breakfast nook with corner fireplace. Massive exotic Tiger Wood barn doors are featured in the two en-suite guest bedrooms. Virtually every room captures our magical Arizona lighting and views from nearly every room of the three iconic mountains, The Preserve, Mummy and Camelback. Two separate offices, one with distinctive large fireplace allow more than one person to work while home. At the end of the courtyard visit the entertainment room or stay in shape with the private gym adjacent to the large self contained Casita. The air conditioned 3 car garage has additional storage for bikes and holiday decorations. Privately positioned with easy access to AJ's, Global Ambassador, Steak 44, Paradise Valley Country Club and PCDS. Minutes to Phoenix Airport, HWY 51 & 101.

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36070 N Prickley Pear Road Unit 89 Cave Creek, AZ 85331

New

$5,750,000

5 Beds

5.5 Baths

5,828 SqFt

Status Active

MLS # 6788814

Property Type Single Family Residence

Price Type --

Steve Jensen Homes unveils a masterpiece of luxury in Canyon Ridge Estates, Cave Creek. This remarkable home offers 3 spacious bedrooms and 6 elegantly designed bathrooms in the main residence, blending sophistication with comfort. Thoughtful amenities include a game room, private office, an expansive man cave complete with a media area, built-in bar, and a striking glass overhead door leading to the garage. The separate casita adds versatility, featuring 2 additional bedrooms and a bathroom, ideal for hosting guests. The heart of this home is the state-of-the-art kitchen, equipped with premium appliances and a dedicated prep kitchen, perfect for effortless entertaining. Walls of glass create a seamless transition between indoor and outdoor living spaces, inviting you to enjoy the serene Arizona landscape in unparalleled style. The luxurious primary suite is a private retreat, complete with a warm fireplace and a spa-inspired bath designed for ultimate relaxation. Step outside to an outdoor oasis, where a cozy fireplace, fully equipped outdoor kitchen, firepit, sparkling pool, and soothing spa create the perfect space for entertaining or unwinding. For car enthusiasts, the property boasts a 4-car garage and a separate RV garage, offering generous storage for all your vehicles. Discover the perfect balance of luxury, functionality, and timeless sophistication in Canyon Ridge Estates.

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35801 N Meander Way Carefree, AZ 85377

$5,750,000

3 Beds

5 Baths

6,501 SqFt

Status Active

MLS # 6749384

Property Type Single Family Residence

Price Type --

Chic single level contemporary new build completed in 2023 in Carefree on Black Mountain! Nestled on a sprawling mountainside estate spanning 1.6 acres, offering breathtaking vistas of Black Mountain, Boulders Resorts golf courses, and beyond. This architectural gem is a testament to modern luxury living, meticulously crafted with unparalleled attention to detail. Upon entry, you are met with great room, featuring soaring 16-foot ceilings, expansive 30-foot wide glass pocket doors, and a sleek modern fireplace adorned with porcelain slabs. Floor-to-ceiling 10-foot glass walls frame the awe-inspiring views, seamlessly blending the indoors with the natural splendor outside. The European-inspired kitchen is a culinary enthusiast's dream, showcasing a over 15-foot long island finished with luxurious Taj Mahal quartzite, Miele appliances, and a spacious breakfast nook enveloped by sliding glass doors. For added convenience, a full prep/catering kitchen awaits. Step outside to the sprawling 14-foot high ceiling covered patio, featuring limestone floors and a misting system, creating an outdoor oasis to unwind, entertain, and revel in the panoramic views of the valley and city lights. The focal point of the backyard is the exquisite custom negative edge pool and spa, perfect for relaxation and rejuvenation. Retreat to the sumptuous primary suite, complete with dual custom closets and a spa-like bathroom featuring dual water closets, freestanding tub, marble floor and wall surrounds, and a steam shower. Additional rooms include an expansive office with custom bookshelves and a private patio, along with a versatile flex space ideal for a gym, game room, or additional bedroom, offer flexibility to suit your lifestyle. Two spacious ensuite guest rooms complete the guest wing! Designed for modern living, this home boasts a Creston smart home system, allowing for effortless control of lighting, music, HVAC, pool, shades, and security with a simple touch. A 4-car garage with oversized doors, a spacious laundry room with double washer and dryer, and lush turf grass area add to the convenience and allure of this remarkable property. Welcome home!

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8843 N 63rd Place Paradise Valley, AZ 85253

$5,750,000

5 Beds

5.5 Baths

5,930 SqFt

Status Active

MLS # 6684784

Property Type Single Family Residence

Price Type --

Modern Traditional~The warmth of a Santa Barbara with modern updates . Welcome to a front patio with fireplace and comfy seating that opens to the dining room with custom wine wall . Chefs kitchen with island and seating is a part of the family room featuring sit down bar , humador, wine fridge and ice maker. Split primary suite has lounge area and private patio plus killer closets and bathroom . Attached casita/ gameroom / or bedroom 5? Bedroom 4 can be an office with builtins and full bath . Two additional bedrooms have private ensuite and walk in closets. Resort vibes in back include a huge bbq ramada, tv/bar ramada , kids play area, pool and spa and putting green. This is the season for the PARTY BACKYARD .Also a Lift in the garage ! Well maintained and upgraded tastefully

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10184 E Peak Circle Scottsdale, AZ 85262

$5,700,000

4 Beds

4.5 Baths

4,519 SqFt

Status Active

MLS # 6754344

Property Type Single Family Residence

Price Type --

Estancia Golf Membership available * Completely remodeled in 2023 * Elegant residence in the guard-gated community of Estancia with timeless architectural details * The exterior details include an organic composition of dry-stacked stone, stucco and glass with a new concrete tile roof * Sited on an elevated lot with panoramic views of Pinnacle Peak * Split floor plan with a living room, family room that connects to an open kitchen, two guest suites and a dedicated office with full bath providing the flexibility for a fourth bedroom * Interior details include wood plank flooring, granite and quartz countertops, custom-crafted cabinetry, all new custom lighting and dry-stacked stone fireplace surrounds * The resort-style outdoor living space offers a large covered patio, heated pool and spa built-in BBQ station and a gas fireplace *

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24863 N 103rd Way Scottsdale, AZ 85255

$5,695,000

4 Beds

4.5 Baths

5,932 SqFt

Status Active

MLS # 6723326

Property Type Single Family Residence

Price Type --

Amazing opportunity for brand new build contemporary styled construction in North Scottsdale! Camelot Homes award winning Cavallo floor plan offers all Single level and the best indoor/outdoor living. Price includes all structural components, wine wall, highly upgraded contemporary cabinets , oversized tile flooring, countertops and tile, electrical and low voltage upgrades as well as 3 en suite bedrooms, casita, office and bonus room along with standard 4 car garage. Amazing views from courtyard and rear yard. Price also includes upgraded pool and landscaping. Pool/landscaping currently being installed. Estimated closing End of the year 2024. Video is from our Bronco model and not representative of home for sale.

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3866 S Clubhouse Circle Unit 259 Flagstaff, AZ 86005

$5,695,000

5 Beds

4.5 Baths

6,522 SqFt

Status Active

MLS # 6691628

Property Type Single Family Residence

Price Type --

Situated on one of Pine Canyon's best fairway lots this stunning mountain lodge has dramatic views of the 17th green and the San Fransisco Peaks. The grand ledge stone and wood exterior design continues inside as textured stone columns frame the great room and a stunning floor-to-ceiling ledge stone fireplace takes center stage along with expansive windows and glass double doors to frame the outdoor views. The Great room towers to over 25 feet with a beamed ceiling and partially surrounded by the wood and metal railings of the upper loft area. This very special home features two primary suites, each with its own fireplace and luxurious bath. The Great room floor plan blends the the living, dining and kitchen areas altogether. Between the the Great room and dining area is a ... wet bar with wine and beverage coolers as well as a sumptuous powder room. The dining area has room for family and guests. The country kitchen is a chefs delight with a large butcher board and granite center island, Viking appliances and a walk-in pantry. You enter the outdoor patio deck from either the Great room or kitchen. Its a great place to enjoy the fabulous views, relax in the hot tub, or to enjoy a barbecue. The main level laundry/craft room is the access into the large 3 car garage. The lower walk-out level includes a large media/game room with a large sitting area with fireplace and a separate area for the pool table. This all opens to two covered patios with similar golf course and mountain views as the main deck above. The lower level also includes 2 bedrooms, a large bunk room, 2 baths and two large mechanical closets with an abundance of storage. The loft includes a comfy office, a large seating area and half bath (This seating area can easily be converted to a spacious guest en-suite by adding a shower to the half bath). High end finishes abound in including ledge stone and steal fireplace surrounds, hardwood flooring, floating vanities, custom wood and metal railings and beamed and tongue & groove ceiling treatments. This is Pine Canyon living at its best.

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12913 N 119th Street Scottsdale, AZ 85259

$5,600,000

7 Beds

11 Baths

11,548 SqFt

Status Active

MLS # 6743300

Property Type Single Family Residence

Price Type --

BREATHTAKING VIEWS, ULTIMATE PRIVACY AND ENTERTAINER'S DREAM in this guard gated golf club community. Perched on a hill in the back of the neighborhood, this home gives you the feeling of being on top of the world as you step out onto one of the many balconies where you can enjoy unobstructed views of Camelback Mountain and the shimmering city lights below. Imagine hosting ultimate gatherings in a home that's designed for entertaining! This paradise offers your very own movie theater, billiard room with bar, fitness center with sauna, wine cellar, sprawling open-concept living and kitchen area that flows effortlessly into a fully equipped bar and outdoor patio. A spa and 2 beautiful pools with waterfalls share a private courtyard space. Main house includes a separate guest quarters -- along with an additional detached guest house adjacent to the courtyard pool. Even a 7 CAR GARAGE including space for an RV or boat! This home is more than just a place to live - it's a venue for experiences....a perfect escape from the hustle and bustle of everyday life while still being close to all amenities and events Scottsdale has to offer!

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10701 E Jomax Road Unit 1 Scottsdale, AZ 85255

$5,575,000

5 Beds

5 Baths

5,000 SqFt

Status Active

MLS # 6707666

Property Type Single Family Residence

Price Type --

A striking 'Moditerranean' from Temac Development and Candelaria Design Associates - Situated on 2.5 Acres, this classic estate boasts some of the best views in the area with privacy and seclusion. Unobstructed views of Pinnacle Peak, Troon Mountain, and Troon Country Club, all with the freedom of no HOA. Nearby world-class Four Seasons Resort Scottsdale. Your inquiry to this iconic estate is welcomed.

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