Why This Time of Year is Perfect for 1031 Exchanges in Real Estate If you’re thinking about making some moves in real estate, now might be the perfect time to consider a 1031 exchange. This time of year is especially popular for 1031 exchanges, which are a way to swap one property for another without paying taxes on the profit right away. It’s like trading in your old car for a new one, but with real estate! Let’s break it down in a simple way. What is a 1031 Exchange? A 1031 exchange is a special rule that lets you sell one property and buy another without paying taxes on the money you make from the sale. Normally, when you sell a property and make a profit, you’d have to pay taxes on that money. But with a 1031 exchange, you can use that money to buy a new property and put off the taxes. This rule helps investors grow their real estate portfolio without paying taxes each time they make a profit. It’s like having a tool to help you build more wealth! Why is This Time of Year Popular for 1031 Exchanges? The end of the year is often a busy time for real estate deals. People want to close transactions before the year ends for tax reasons, and investors might be looking to do a 1031 exchange to take advantage of the benefits before the year wraps up. It's a great time to make sure everything is in order and to find that perfect property to exchange into. Plus, real estate markets can slow down during the holidays, meaning you might have more time to make decisions and find a great deal. How Our Team Can Help You with 1031 Exchanges At Christians Team Real Estate, we know how important it is to find the right properties for a 1031 exchange. But here’s something special about our team: we have pocket listings. These are properties that we have for sale, but they aren’t listed on the regular public market. They’re like hidden gems that only a select group of people know about. What Are Pocket Listings? Pocket listings are properties that are available but not advertised to the general public. They can be a great option for investors because sometimes these homes or commercial properties can be less competitive and more affordable. Because they’re not on the open market, you might find something that suits your needs and budget better than other properties that are listed online. Why Work with Us? When you work with Christians Team Real Estate, you get access to these pocket listings and the insider knowledge of our agents. We know the best deals in town, and we can help you find properties that are perfect for your 1031 exchange. Our team works closely with you to make sure you’re getting the most out of your investment. We’ll help you identify properties that match your goals, and we’ll make sure you know about opportunities that others might miss. Ready to Start Your 1031 Exchange? If you’re thinking about doing a 1031 exchange or just want to learn more about how it works, give us a call! We’re here to help you find the right properties, including those hidden gems, and guide you through the process. Whether you’re looking for your next real estate investment or want to explore off-market properties, our team has the tools and knowledge to help you succeed. Let’s work together to find the perfect property for your 1031 exchange today!

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How Low Mortgage Rates Are Shaping Supply and Demand in the Phoenix, Scottsdale, and Mesa Real Estate Market The Phoenix Valley real estate market, encompassing Scottsdale, Phoenix, and Mesa, is heavily influenced by supply and demand dynamics, with mortgage rates playing a pivotal role. The historically low mortgage rates during the COVID-19 pandemic created unique conditions that still impact today’s market. As we continue to see these trends unfold, buyers and sellers in the Valley face their own set of challenges and opportunities. The “Lock-In Effect” and Its Impact on Supply During 2020 and 2021, mortgage rates dropped to unprecedented lows of 2% to 3%, sparking a buying frenzy. As of late 2024, over 21% of outstanding mortgages still have rates below 3%, and 83% are below 6%, according to Realtor.com. Homeowners who locked in these low rates are now hesitant to sell, which has created a “lock-in effect” and is limiting the supply of homes on the market. In a highly competitive market like the Phoenix Valley, where demand is typically strong, this phenomenon is exacerbating the already tight inventory. Homeowners who locked in these historically low rates are reluctant to trade for the current higher rates, which are near 7%, leaving fewer homes available for prospective buyers. Learn more about the “Lock-In Effect” on Realtor.com here. How Demand Is Affected Even with higher mortgage rates, demand in Phoenix, Scottsdale, and Mesa remains robust. These cities attract buyers for their vibrant urban lifestyle, access to top-tier amenities, and sunny weather. However, the affordability gap is becoming an increasing concern. With mortgage rates higher than the lows of 2021, monthly payments on homes have significantly increased. For example, a buyer looking at a $800,000 home in Scottsdale today would see a much higher monthly mortgage payment compared to what they would have paid just a few years ago. A recent Realtor.com survey indicated that 40% of potential buyers would consider entering the market if rates dropped below 6%, and 32% would make a move if rates fell below 5%. You can read more about how mortgage rates are affecting buyer behavior here. Phoenix Valley Market Outlook As homeowners continue to hold onto their low-rate mortgages, the supply of homes in Scottsdale, Phoenix, and Mesa remains constrained, which could lead to elevated home prices despite fewer transactions. For buyers, this means increased competition for available properties in desirable areas. For sellers, this market presents an opportunity to command premium prices, especially if their homes are located in sought-after neighborhoods or offer unique features. However, sellers must weigh the trade-off of losing their low-rate mortgage when considering a move. Looking ahead, there is hope that easing inflation and falling mortgage rates could ease some of the market pressures. If mortgage rates dip below 6%, it could unlock more inventory and lead to an increase in seller activity, which would help balance the market. A Strategic Approach to Buying or Selling in the Phoenix Valley Navigating today’s real estate market in Phoenix, Scottsdale, and Mesa requires a strategic approach. Whether you’re looking to buy or sell, working with an experienced real estate team is essential to make informed decisions. At Christians Team Real Estate, we offer tailored guidance and expert insights to help you successfully navigate the current market conditions. For more detailed insights into mortgage trends and their effects across the country, read the full report on Realtor.com here. Are you ready to explore opportunities in the Phoenix Valley? Contact us today for personalized advice and the latest market updates.

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For the first time since 2020, housing affordability improved year over year. This is largely due to a drop in mortgage rates, which have dipped from 7.07% to 6.09% over the past year. While this is undoubtedly great news for home buyers, affordability remains a challenge for many.  According to recent data, U.S. buyers now need to earn around $115,000 annually to afford the typical home, down 1.4% from last year. Yet, the average U.S. household earns only about $84,000 annually—27% less than what's needed to buy a median-priced home.  Because of this, many buyers are finding themselves in positions where compromise is a necessity. But that doesn’t mean homeownership is off the table. Navigating these compromises smartly can help ensure you still get a home you love without overspending or sacrificing too much on your wish list. Let’s dive into the most common compromises homebuyers are making in 2024, and how you can make decisions that work best for you. The Top Compromises Buyers Are Making Homes.com and Apartment Therapy recently conducted a survey on “The State of Home Buying,” asking 676 recent and prospective buyers, along with real estate professionals, about the home buying experience. According to the survey, here are the top compromises being made during the home search today: Condos and Townhomes are Growing in Popularity With single-family homes becoming less attainable for many, a significant percentage of buyers are shifting their focus to other property types. For those with a budget of less than $500,000, about 17% are now looking at condos and apartments, while 15% are exploring townhomes as an alternative. These property types often provide more affordable options for buyers in desirable locations or those seeking to stay within budget. While a condo may not offer the spacious yard or privacy of a single-family home, it can provide a low-maintenance lifestyle with access to shared amenities like gyms and pools. Of course, when looking at a condo or townhome, you’ll need to factor in any HOA fees to your monthly payment. Location, Location…Compromise? It’s no surprise that location is a top priority for homebuyers. But as prices rise in sought-after neighborhoods, many are adjusting their searches. Recent buyers report that they were willing to widen their search area to find homes that fit their budget. In fact, 21% of buyers purchased outside their ideal neighborhood, and a third of current buyers are considering doing the same. Being open to different areas can make all the difference in a competitive market. Expanding your search radius just a few miles can open up more affordable options that still meet your needs. How to Make Smart Compromises Without Regret Knowing where to compromise — and where to stand firm — is key to navigating today’s housing market. Here are some tips to help you make informed decisions: 1. Prioritize What You Can’t Change While it may be tempting to focus on cosmetic features like flooring or paint color, those are often the easiest and most affordable changes you can make after purchasing a home. Instead, focus on the non-negotiables that are difficult to alter, such as the home’s layout, structural integrity, and location. 2. Keep Your Future Needs in Mind As you search for a home, think about your current lifestyle and your future needs. Will this property suit your needs for the next five to ten years? Buying a condo now may seem like a great way to stay within budget, but if you’re planning to expand your family or want more space in the near future, it could lead to another home search sooner than anticipated. 3. Stick to Your Budget While it may be tempting to stretch your budget to get a home you love, overextending yourself financially could lead to significant stress down the road.  Determine your monthly housing budget—and when looking at properties, be sure to factor in everything from your mortgage interest and principal, property taxes, homeowners insurance and HOA fees. Sticking to your budget ensures that you’re prepared not only for these payments but also for unexpected expenses that may arise after you move in. Compromise Doesn’t Have to Mean Settling By focusing on what truly matters — like location, structural integrity, and your long-term goals — and remaining flexible on other aspects, you’ll be well-positioned to make a smart purchase. And remember, working with an experienced real estate agent can provide valuable insights and guidance throughout the process, helping you make decisions with confidence. In the end, buying a home is about finding the right balance between compromise and fulfillment — and with careful planning, your next home could be just that.

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