Best of Living in Scottsdale & Phoenix Arizona Newsletter
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👀 Scottsdale's "Parque", Phoenix new healthcare tech hub & 8% rate impact on housing

👀 Scottsdale's "Parque", Phoenix new healthcare tech hub & 8% rate impact on housing

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

Josh Zuniga
November 09, 2023

Happy Wednesday!

The Scottsdale and Phoenix area has a lot going on as we head into November.

Scottsdale is working to approve a new multi-use hub for retail, residential, and office space while Phoenix is working to become a healthcare tech hub.

I’m also diving into what you can expect from the real estate market now that interest rates have soared to 8%.

— Josh

🌳 The Next Big Development in North Scottsdale: The Parque

Driving the news: Scottsdale might be getting a new billion-dollar mixed-use development called The Parque.

It would be located at the previous CrackerJax amusement park site in north Scottsdale.

Details:

The Scottsdale Planning Commission recommended The Parque's rezoning in a unanimous 6-0 vote in late September.
The proposal for this project includes over 1,200 residential units, a Class A office building, multiple retail spaces, a luxury hotel, and a significant flexible space area.
The tallest building in the development, a hotel-branded condominium, is expected to rise to 119 feet.
A central 2-acre open space dubbed "Central Park" is also a part of the plans, described as The Parque's focal point.

The proposed site plan for The Parque.

Why it matters: With its vast variety of amenities and its prime location, The Parque stands to redefine north Scottsdale's urban landscape.

The big picture: The land, bought for $55.5 million by billionaire George Kurtz in 2022, aims to become a hub for innovators, tech entrepreneurs, and venture capitalists, further driving Scottsdale's expanding tech scene.

Between the lines: The Parque is not the first attempt to redevelop the CrackerJax property. Previous plans by JDM Partners in 2017, including a 2 million-square-foot mixed-use space, failed to move forward.

What’s next: The Parque's rezoning proposal is expected to go before the Scottsdale City Council this month.

The development team anticipates the public review process to continue through the end of the year.

The bottom line: The Parque, if approved and built, would join a lineup of billion-dollar projects transforming north Scottsdale, signaling the area's continued appeal and growth potential in the Valley.

🎥 Tour Scottsdale's Largest Masterplanned Walkable Community

If you're thinking of moving to Phoenix Arizona or looking for a walkable master-planned community in Scottsdale then you need to check out McCormick Ranch neighborhood!

💉 Federal funding could make Phoenix a healthcare tech hub

Driving the news: The Phoenix region is set to become a designated technology hub focused on healthcare innovation. This is thanks to a federal grant awarded to a consortium led by the Greater Phoenix Economic Council.

Details: The grant awarded to the Phoenix consortium is worth approximately $430,000. The funding will help the consortium develop a tech hub strategy to advance economic growth in the medical device manufacturing ecosystem in Phoenix.

This growth is driven by technologies such as artificial intelligence and machine learning.

Why it matters: Getting a tech hub designation would be a major win for the Phoenix region.

It could help to attract further private investment and expand the region's infrastructure and capabilities in the medical device manufacturing industry.

The big picture: The bioscience and healthcare industries have made big plans for Phoenix, with major projects like Mayo Clinic's Discovery Oasis biotech corridor and ASU's new medical school in the works.

What's next: The Phoenix consortium will now begin developing its tech hub strategy. Once it is finalized, the consortium will submit it to the EDA for approval.

The bottom line: The Phoenix region is well-positioned to become a leader in healthcare innovation. The federal grant awarded to the GPEC-led consortium is a big step forward in making that a reality.

🏠 What 8% interest rates mean for the housing market

Driving the news: Average mortgage rates have soared to 8%, a pinnacle we haven't seen since 2000.

This unprecedented rise is shaping the housing market, and it's important to understand what this means for potential homeowners.

Details:

30-year fixed-rate mortgages: The rate stands at an average of 8.00%
15-year fixed-rate mortgages: These have reached an average of 7.15%

Why it matters: With rates at a two-decade high, the affordability of homes is plunging. Mortgage applications are now at their lowest in years because interest rates have made monthly payments on loans too high for people to move to new homes or purchase their first one.

The big picture: Mortgage rates have been increased 11 times since March of 2022 by the Federal Reserve in an effort to slow inflation.

While not directly controlled by the central bank, mortgage rates are closely influenced by these decisions.

Between the lines: Despite the present challenges, experts hint that there’s a possibility for mortgage rates to experience a minor dip before year-end, provided inflation shows a consistent decline.

What’s next: The direction of the housing and mortgage markets will greatly depend on the Federal Reserve's decisions in the upcoming months. Fannie Mae's forecast suggests that by year-end, the 30-year fixed mortgage rate could settle at around 7.3%.

Advice for buyers: Many people are only moving if they have to in this market. If you're one of these people, you should shop around to find personalized mortgage rates.

Your specific rate will depend on your credit score, your down payment amount, debt-to-income ratio, and loan-to-value ratio.

You can also work on improving your credit score and saving more for your down payment to help with these factors.

Looking at the total cost of your potential loan from several lenders will help you compare the best options for your specific situation.

The bottom line: The housing market is in a state of flux, with mortgage rates taking center stage.

For potential homebuyers, it's crucial to evaluate personal financial positions and stay updated with the market's changing dynamics.

📊 Market Insights

The housing market in Phoenix is somewhat competitive due to inventory being so low. Here’s what the data is telling us this month:

In September, data shows that home prices were up 2.3% compared to last year.
The median sales price for Phoenix homes is $440K.
The median price per square foot is $285.
Homes in our area are averaging 3 offers and spending ~35 days on the market.

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.