Dangers of Speculation Fall on the Scottsdale Housing Buyers

Market watchers have learned a lot from this last Scottsdale housing boom. Their primary discovery is that "the dangers of speculation" have shifted away from the Scottsdale housing developers to the buyers.

In past Scottsdale housing booms, builders flooded the market with homes, and "the result was an oversupply that worsened a downturn, triggered bankruptcies, and caused layoffs among construction workers." But the Scottsdale housing industry has learned from its past mistakes.

Now, most units aren't even built until a down payment has been made, keeping the Scottsdale housing supply in check. However, this also means that the buyers, not the construction companies, "will bear the pain if price gains or demand don't meet expectations."

Making a Tech Savvy Scottsdale Real Estate Agent the Top Priority

It has long been known that the Scottsdale real estate market is going high-tech. The number of Scottsdale real estate consumers that use the internet at some point in the home buying process is continuously increasing. At a minimum, clients expect their Scottsdale real estate agents to have a website and email.

The problem is that many Scottsdale realtors may not be listening to the clamour of their cutting-edge clients. "Remember this is a profession still largely populated by the generation that came of age before personal computers."

Recent homebuyers have been shocked by how low-tech many Scottsdale real estate agents have remained. Homebuyer Dan Furman claims that he was "stunned" that his first two agents could not answer emails on a timely basis and didn't know how to send a link or attachment. Needless to say, he finally settled on an agent that was more tech-savvy.

Low Scottsdale Real Estate Demand Crimps Consumer Spending

The slowdown in Scottsdale real estate demand is already crimping consumer spending. There is now less cash floating around thanks to an increase in mortgage rates and a decrease in Scottsdale real estate refinancing. The situation is only expected to worsen as Scottsdale real estate construction and mortgage lending continue to soften and jobs in both industries begin to disappear.

As the Scottsdale real estate market turns sluggish, foreign investors will also begin to lose interest in the area. "Since 2000 foreign investors have poured $400 billion into mortgage-backed securities, which seemed safe and attractive." However, with increasing mortgage rates, fewer people will purchase Scottsdale housing, and foreign investors will invest elsewhere.

Scottdale Housing No Longer Affords Easy Access to Cash

Cheap mortgage rates and frenzied demand have fueled the huge hike in Scottsdale housing prices that occurred over the past couple of years. These price jumps not only benefited sellers, but also homeowners with no intention of selling, as 10 percent gains in Scottsdale housing values allowed them to use "refinancings or home-equity loans to convert some of the windfall into cash."

Unfortunately, many homeowners have become accustomed to a fleeting situation. Scottsdale housing values cannot continue appreciating unchecked, and now, thanks to a strengthening economy and tight monetary policy, mortgage rates are on the rise, and "consumers who made a habit of tapping into their home equity will find that their home is no longer a personal ATM."

Many locals have factored Scottsdale housing appreciation into financial preparations for retirement and payment of their children´s education, a move they will find was a mistake when bills come due. Families with adjustable rate mortgages will find themselves doubly squeezed with much higher mortgage payments as interest rates increase.

Creative Ideas Fuel the Affordable Scottsdale Housing Movement

Rising Scottsdale housing values can be very positive, as they can reduce the cost of borrowing money and bring additional revenue to the community, but once prices get too high, the consequences can be very negative. Important community workers, such as teachers, firefighters and police officers, priced out of Scottsdale housing will be forced to leave the community they work in and worsen already unmanageable regional traffic.

For these reasons, community volunteer groups, such as All Citizens Together Serving (ACTS), are working with City Council members to find solutions to keeping Scottsdale housing affordable.

The City Council is decidedly anti subsidies and artificially depressing Scottsdale housing prices, so community groups have been developing more creative solutions. ACTS is devoting its efforts "to rehabilitating older homes in south Scottsdale," and its parent group, Community Services of Arizona, has purchased 80 Scottsdale units and is "renting them at below-market prices."

Many groups encourage the conversion of old apartment complexes to affordable condos, while others believe builders should be given "incentives to include cheaper units in their developments, such as waiving impact fees or expediting the permit process."

Former state director of housing Steve Capobres is even joining the affordable Scottsdale housing movement. He claims that the key to creating more affordable homes is "building smaller units closer together."

Consolidate Debt and Save Money By Switching to Fixed-Rate Scottsdale Mortgages

Now that the Federal Reserve is starting to get serious about increasing short term interest rates, homeowners with adjustable rate Scottsdale mortgages are starting to worry. It is quickly becoming obvious that short term interest rates will soon surpass those of 15 and 30-year fixed-rate Scottsdale mortgages.

As every Scottsdale homeowner´s situation is different, it is important that they get advice about how to handle these interest increases from an expert familiar with each particular homeowner´s financial situation and goals. However, the general advice is that holders of adjustable rate Scottsdale mortgages should refinance to a fixed-rate program as soon as possible.

Locking into fixed-rate Scottsdale mortgages´equity to consolidate debt.

Revitalization Causes South Scottsdale Homes to Grow Increasingly Unaffordable

It seems like every day new information is reported confirming the growing popularity of South Scottsdale. And why shouldn´t there be? Its central location keeps residents close to arts and cultural events scattered around the surrounding community, plus the area is undergoing major revitalization. However, with all this popularity, what was once one of the most affordable sections of the city is now growing quite unaffordable.

It has become nearly impossible to find South Scottsdale homes for under $200,000. Just this year, the median price of South Scottsdale homes shot up to $291,500, and condos "that are less than 1,000 square feet are routinely selling for $400,000."

These exorbitant prices for South Scottsdale homes are shutting out a lot of first time buyers and young families. "Community leaders have begun worrying about the long-term impact of shutting the less affluent out of houses," and are pressuring city officials, who are delighted with the increasing values of Scottsdale homes, into "discussing how they might create more housing that is within the grasp of less affluent residents." And with the expected influx of new workers brought by the planned ASU Scottsdale Center for New Technology and Innovation, affordable Scottsdale homes will become an even more important subject for the local government.