👀A Quick Look

Here’s a quick rundown of what’s happening across the Valley:

• New Developments: From industrial expansions in Mesa to high-profile headquarters debates in Scottsdale, the Valley continues to be a hub for growth and transformation.

• Things to Do: Arizona Car Week and exciting events like Justin Timberlake live in Phoenix and the Chandler Multicultural Festival are just a few highlights of what’s happening around town.

• Market Trends: Local real estate pricing remains stable, with moderate growth in price per square foot and steady median home prices. Mortgage rates are fluctuating, presenting challenges for buyers but also opportunities for sellers to negotiate.

• Real Estate Insights: Elevated mortgage rates and growing inventory are reshaping buyer behavior, with more options but continued affordability concerns.

🚧Newest Developments

NexMetro Communities Secures $300 Million Recapitalization

NexMetro Communities has successfully recapitalized a four-property build-to-rent portfolio valued at approximately $300 million. The financing includes $160 million in insurance capital managed by Blackstone and a preferred equity investment from Artemis Real Estate Partners. The portfolio comprises 849 single-family rental units across Phoenix, Arizona, and Denver, Colorado, featuring detached, single-story homes with private backyards and high-end amenities._JLL

Axon Enterprise Halts Scottsdale Headquarters Plans

Axon Enterprise Inc., known for its Taser products, has canceled the groundbreaking of its new headquarters in Scottsdale, Arizona, and is considering relocating out of the state. This decision follows local political opposition and a ballot referendum effort that created uncertainty about the project's future. The planned headquarters was designed to support up to 5,500 high-wage jobs and contribute significantly to Arizona's economy._Axon

Goodyear Expands Water Reclamation Facility

The city of Goodyear has commenced an expansion project for the Rainbow Valley Water Reclamation Facility, aiming to double its daily water treatment capacity to two million gallons. This initiative supports the city's rapid growth, with the population nearing 117,000 residents. The expanded facility is expected to be operational by December 2026. _KTAR.com

Loop 202 Santan Freeway Ramp Closures in Gilbert

The Arizona Department of Transportation has announced a series of 60-day ramp closures on Loop 202 (Santan Freeway) in Gilbert as part of a widening project. The eastbound off-ramp at Gilbert Road will close on January 21, followed by the westbound on-ramp at Gilbert Road on February 9, the westbound off-ramp at Cooper Road on February 26, and the westbound on-ramp at Val Vista Drive on March 13. Drivers are advised to use alternative routes during these periods._{Arizona Department of Transportation}

SRP's South Mountain Transmission Project Approved

The Arizona Corporation Commission has approved the Salt River Project's (SRP) South Mountain Transmission Project, granting a Certificate of Environmental Compatibility. This project aims to support anticipated growth and development along Loop 202 in the Laveen area and strengthen SRP's overall transmission system reliability._{SRP Media}

🤔What to Do This Week!

Imaginarium: Winter Wonderland at Mesa

• Dates: Ongoing

• Location: Mesa Convention Center
  Explore a magical winter-themed wonderland featuring immersive light displays, interactive exhibits, and fun activities for the whole family. Perfect for children and adults alike.
  Learn more here

Arizona Car Week 2025

• Dates: January 17–26, 2025

• Locations: Various venues across the Valley
  Gear up for Arizona Car Week, showcasing the world's finest collector cars. Highlights include Barrett-Jackson’s Rock the Block, Muscle Cars in Mesa (Jan. 18), and the prestigious RM Sotheby’s Auction (Jan. 23–24).
  Explore the full lineup here

Justin Timberlake Live in Phoenix

• Date: January 22, 2025

• Location: Footprint Center, Phoenix
  Get ready to experience Justin Timberlake as he brings his electrifying energy to the stage during his Phoenix stop on the 2025 tour. Don’t miss this unforgettable night of music and entertainment.
  Get tickets here

Katt Williams Comedy Show

• Date: January 24, 2025

• Location: Footprint Center, Phoenix
  Prepare for a night of laughs as Katt Williams delivers his signature comedy in Phoenix. Secure your spot for a hilarious evening with one of the comedy greats.
  More details and tickets

🏡 Real Estate Trends

Valley Real Estate

• Price Stability with Moderate Growth: As of January 15, the average sales price per square foot in the ARMLS database rose to $304.67, a modest 1.1% increase from December's $301.41. Median sales prices, however, have remained flat at $450,000 since mid-October, reflecting stability in the broader market.

• Forecast: Prices per square foot are projected to grow by 1.2% by mid-February, with a range of $302.19 to $314.53. Median prices are expected to stay relatively stable as supply grows and demand remains moderate.

• Foreclosure Activity: While still minimal by historical standards, foreclosure rates have ticked up slightly, accounting for 1.1% of pending listings.

Mortgage Trends

• Elevated Rates: Mortgage rates remain high, despite a softer Consumer Price Index (CPI) report indicating easing inflation pressures. Rates spiked after a strong January 10 jobs report but slightly dipped following CPI data.

• Buyer Behavior: High rates continue to strain affordability, prompting sellers to offer price reductions and concessions to attract buyers. Affordability challenges may push some potential homebuyers to extend their rental periods.

National Market Overview

• Economic Influences: Nationally, mortgage rates are fluctuating due to robust labor market data and evolving Federal Reserve policies. Daily rates remain at elevated levels, challenging homebuyer affordability.

• Inventory Growth: Inventory increases are giving buyers more choices and negotiation power, but affordability concerns persist. This trend mirrors local markets, where rising supply is not yet translating into significant price jumps.

• What’s Next: The housing market remains in a holding pattern as we approach the peak home-shopping season. Buyers and sellers alike are navigating a landscape influenced by economic data, policy shifts, and mortgage rate volatility.

Takeaway

While the local market is showing moderate growth and stability in prices, the elevated mortgage rates are creating a challenging environment for buyers. National trends align closely, with increasing inventory offering opportunities but affordability remaining the primary hurdle. Buyers are encouraged to prepare financially and act quickly if favorable conditions arise.

🌵See You Next Week in the Desert

Thank you for joining us this week on The Desert Real! We’re thrilled to have you as part of our growing community!

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-Brad