Best of Living in Scottsdale & Phoenix Arizona Newsletter
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🥊 Mesa's Auto Boom, Exclusive Scottsdale Homes, & Luxury RE Data

🥊 Mesa's Auto Boom, Exclusive Scottsdale Homes, & Luxury RE Data

Check out what's shaping Phoenix and Scottsdale's economy right now.

Josh Zuniga
August 15, 2024

Happy Thursday!

It’s no surprise that great things are happening in the Phoenix area economy this week.

Mesa is experiencing an automotive boom and luxury homes are on the rise in Scottsdale and across the region.

Enjoy!

— Josh

🚙 Magna Drives Mesa’s Automotive Boom with New Facility

Driving the news: Magna International, one of the world's largest automotive suppliers, has announced a significant expansion in Mesa, Arizona. The company is setting up a 230,000-square-foot facility at Power Industrial Park, with the promise of creating hundreds of new jobs in the area.

Details:

Location: The new facility is situated at Mesa's Power Industrial Park, a prime industrial hub that spans nearly 586,000 square feet.
Investment: This multimillion-dollar project is part of Magna’s broader strategy to expand its presence in the U.S. automotive market.
Job creation: The facility is expected to generate numerous employment opportunities, with 16 full-time positions already listed on the company's website.

Why it matters: Magna's expansion is a significant boost for the East Valley's economy, particularly in the automotive sector. By choosing Mesa, Magna not only strengthens the local job market but also solidifies the region's growing reputation as a hub for automotive innovation, complementing the presence of companies like Lucid and Nikola.

The big picture: The move aligns with the broader trend of automotive companies investing in the Valley to tap into its emerging clean technology ecosystem.

Magna’s arrival is expected to enhance regional capabilities in automotive manufacturing, contributing to both local and national advancements in the industry.

The bottom line: As Magna completes its build-out and begins operations, Mesa is poised to see increased economic activity and further growth in its automotive sector, making it a key player in the future of American auto manufacturing.

🎥 Inside $600k Homes in Aster at Union Park: Phoenix Community Tour

In today's video, I'll take you through a tour of Aster at Union Park, inside 3 plans, each more wonderful than the next! Starting at $580,000, every plan has its unique features! Follow me in this video to find out which plans fit you best.

💎 Camelot Homes Lists Exclusive $6.5M North Scottsdale Model

Driving the news: Camelot Homes, a luxury home builder based in Scottsdale, has listed its model home in the Shadow Ridge community for $6.5 million.

Since sales began in March, the company has already sold more than half of the 31 available home sites.

Details: These homes will incorporate natural rock outcroppings and offer unique features not previously seen in their developments.

The model home, named Cheval, spans 5,476 square feet and features a detached casita, automated glass wall panels, and a pool.
Located near Pima and Happy Valley roads, the home is near the Superstition Mountains and Tom's Thumb trailhead.
Camelot Homes plans to lease the model back from the buyer until the community sells out.
Furniture is not included but can be added to the purchase price.

Why it matters: This model home is part of Camelot Homes' exclusive White Horse product line, and with limited land available in north Scottsdale, it's one of the last opportunities to purchase this particular design in the area.

Camelot Homes has been unable to secure additional land for future projects, underscoring the scarcity and desirability of these homes.

The big picture: Camelot Homes is diversifying its portfolio through various divisions, including entry-level luxury homes and built-to-rent communities.

The company's ongoing expansion includes plans for The Edge at Joy Ranch, a new community set to begin sales in September, featuring 52 luxury homes with innovative designs starting at $2 million.

What’s next: As Camelot Homes near the sell-out of Shadow Ridge, their focus shifts to launching The Edge at Joy Ranch, where they will introduce a Palm Springs postmodern architectural design.

🎥 Tour North Phoenix $295K AMAZING Condo Unit (PRIME Location)

Welcome to this 2 bed, 2 bath apartment-style property in Phoenix!

Featuring a 1 car garage, dining, and living area with vaulted ceilings and a fireplace, a cozy balcony, and neutral paint throughout, you simply have to come to see it for yourself!

The elegant kitchen is equipped with ample cabinet and counter space, stainless steel appliances, and a charming breakfast bar. Inside the beautiful master bedroom, you will find a private bath with his and hers sinks, as well as a spacious walk-in closet.

Located in a fantastic community with a refreshing pool, this home has everything you could ask for!

🏠 Luxury Homes Lead the Market as Prices Skyrocket to All-Time Highs

Driving the news: Luxury home prices are soaring to unprecedented levels, according to recent reports from Redfin and Zillow.

The typical luxury home sale price surged by 9% year over year to reach $1,180,000 in Q2 2024, marking the largest annual increase in over two years.

In comparison, non-luxury homes saw a modest 3.8% rise in their median sale price, which now stands at $342,500.

Details:

Redfin highlights a sharp contrast in price growth, with luxury homes outpacing non-luxury homes by more than double.
Zillow’s data shows a 3.9% annual increase in luxury home values in June 2024, compared to 3.2% for typical homes.
The luxury market's resilience is largely attributed to a significant portion of all-cash buyers, allowing it to weather high mortgage rates.

By the numbers:

43.7% of luxury homes sold in Q2 2024 were purchased with all cash, up from 43.2% in 2023.
Luxury home inventory rose by 9.7% year over year, while non-luxury inventory increased by 3.9%.
In June 2024, 15.7% of luxury homes listed saw price cuts, slightly up from 2023.

Why it matters: The spike in luxury home prices underscores a widening gap between the high-end and more affordable housing markets. For local economies, this trend could mean increased property tax revenue and continued demand for high-end goods and services.

However, it also raises concerns about housing affordability and accessibility for average buyers.

The big picture: The luxury housing market continues to thrive despite broader market challenges, such as rising interest rates and limited housing supply.

Luxury homes have not only retained their value but are now appreciating at a faster pace than mid-tier properties—a reversal from previous years when they lagged behind.

Between the lines: The luxury market's stability contrasts with the decline in non-luxury home sales, which dropped by 3.4%, reaching the lowest Q2 level in a decade.

This divergence highlights the distinct economic factors driving the luxury segment, such as cash-rich buyers and strong equity positions, compared to the broader housing market.

What’s next: With the supply of luxury homes gradually increasing, experts suggest that price growth may begin to slow.

However, the demand for luxury properties remains robust, particularly in areas where economic conditions support high-end living.

The bottom line: Luxury home prices are at an all-time high, driven by cash buyers and increasing demand.

This trend has significant implications for both the real estate market and local economies, emphasizing the growing divide between luxury and non-luxury housing segments.

📊Market Insights

The housing market in Phoenix is HOT!

If you are looking to buy a home in this market, new construction is a great option that I highly recommend if you want to avoid competing with other offers.

You’ll want to have a good search and offer strategy when looking for existing homes and be patient because it could take a while to find the right one at your desired price point.