Phoenix No. 2 among hottest housing markets of 2021 (Scottsdale: for sale, house)

[grmi66]

Purely anecdotal on my part, used to be the Arizona sales rep for a company and my region was based out of Dallas. So flew to sales meeting with my counterparts from Texas a few times a year. The Texas reps always seemed a lot more driven than the Arizona and California reps. They'd chat about all the hours they work and the deals they put together, the reps in the southwest were chatting about knocking off early from work a few times a week to go to the gym or get in some time at the driving range. The few times I've worked at various national companies and interacted with fellow employees in other states, we definitely have a unique approach to a work/lifestyle balance not found elsewhere. Not saying it's good or bad, but different.

[CAHLUV]

Originally Posted by grmi66

Purely anecdotal on my part, used to be the Arizona sales rep for a company and my region was based out of Dallas. So flew to sales meeting with my counterparts from Texas a few times a year. The Texas reps always seemed a lot more driven than the Arizona and California reps. They'd chat about all the hours they work and the deals they put together, the reps in the southwest were chatting about knocking off early from work a few times a week to go to the gym or get in some time at the driving range. The few times I've worked at various national companies and interacted with fellow employees in other states, we definitely have a unique approach to a work/lifestyle balance not found elsewhere. Not saying it's good or bad, but different.

Spot on! When working for a government company in San Diego once leaving the military it was night and day of how our work/lifestyle was compared to those I knew in D.C. Granted those in the same position got paid about the same with a little +/- but we had way more off time.

[FirebirdCamaro1220]

Originally Posted by Valley Native

I thought the same thing. Interest rates were slashed nearly a year ago as a way to stimulate the economy during the COVID scare. This allows easier borrowing for big ticket items such as real estate. As a homeowner, it's great to see the appreciation. Values in my neighborhood alone have been on the noticeable upswing for the last 7 years or so. The question is: how long will it last?

The problem with the Phoenix economy is it's not diversified enough for a metro area this size. It's better in this regard than 15 years ago, but we still rely too heavily on volatile sectors like home construction & seasonal tourism. Because of this, once there's an economic downturn in the national economy, it tends to hit the Phoenix market heavier than in other cities.



You don't understand why Texas has grown enormously? Obviously, people move there for things like better job opportunities and lower cost of living. The large Texas cities are constantly among the nation's highest ranked for job growth. Both Houston and Dallas are home to more than 20 Fortune 500 firms (compared to 5 in Phoenix). Unfortunately, Texas does have high property taxes, but they also have low corporate taxes & no state income tax. Sure, their weather sucks and the scenery is bland, but intelligent people with goals don't move somewhere mainly for those things. Anybody who moves to Phoenix just because of the weather, the mountain views, or the fact that we're a few hours from the Pacific Ocean needs to have their heads examined in my opinion. There are many other (more important) reasons to move here.

Key words "in your opinion". Not everyone only cares about money money money. Hell, it's 16°F with a 4°F wind chill and snowing in Dallas as we speak. I wouldn't live in that if you paid me a billion dollars!

[MN-Born-n-Raised]

Originally Posted by FirebirdCamaro1220

Key words "in your opinion". Not everyone only cares about money money money. Hell, it's 16°F with a 4°F wind chill and snowing in Dallas as we speak. I wouldn't live in that if you paid me a billion dollars!

I bet you would move to Dallas for a million dollars (i.e. a beautiful new home for free and a 2021 Vette, plus a couple hundred Grand more in the bank to boot). Let alone a billion dollars.

That all said, a lot of people can do what they do for a living anywhere in the world. Working remotely (as I do) frees the shackles! It makes weather and natural beauty rise up the ranks of importance. For me, it is extremely important! In other words, people are FLOCKING to the warmer states to get the Hell out of the cold. Those who are chained to their desk may make other compromises.

[MN-Born-n-Raised]

While it should come as no surprise, read: https://www.google.com/amp/s/www.cnb...kets-2021.html
“ Now that some people can work from anywhere, they can also live anywhere, and they are moving to different markets for all kinds of reasons, from affordability to climate to ease of everyday life.”

Because of the warmer weather, Austin, Tampa, and PHX round out the top three hottest RE markets. I am not surprised. There is a paradigm shift going on all around us. Move over.. Because more people are coming to PHX. Because now they can.

The more spendy RE prices are going to (pseudo) gentrify the area. Meaning, bigger dollar folks are coming to town. I can see it transforming slowly as we speak.

[timothyaw]

Originally Posted by AndroidAZ

...
Property taxes are sky high...

Keep in mind they don't have state income taxes like AZ does.

[JGMotorsport64]

Originally Posted by timothyaw

Keep in mind they don't have state income taxes like AZ does.

I got family in Texas and I’d happily pay our small income tax to avoid toll roads and ridiculous property taxes

[MN-Born-n-Raised]

Originally Posted by JGMotorsport64

I got family in Texas and I’d happily pay our small income tax to avoid toll roads and ridiculous property taxes

I'll quantify this one... Let's say you want a 1200 square footer, nothing-fancy home in Austin. Cost: around $450K or $346 a square foot. Property taxes: about $10,000 (count the zeros)! Here is an example https://www.zillow.com/homedetails/2...29395448_zpid/ Click on "tax history".

The bottom line is if you want a bigger home, you will pay a lot more: through the nose for the house and up your rear in taxes. :hand: There are many $15K plus property tax bills in Austin. For the average income homeowner, you will be paying much higher overall taxes. For a 2nd home owner, that is often a show-stopper.

[marinezac]

Originally Posted by MN-Born-n-Raised

I'll quantify this one... Let's say you want a 1200 square footer, nothing-fancy home in Austin. Cost: around $450K or $346 a square foot. Property taxes: about $10,000 (count the zeros)! Here is an example https://www.zillow.com/homedetails/2...29395448_zpid/ Click on "tax history".

The bottom line is if you want a bigger home, you will pay a lot more: through the nose for the house and up your rear in taxes. :hand: There are many $15K plus property tax bills in Austin. For the average income homeowner, you will be paying much higher overall taxes. For a 2nd home owner, that is often a show-stopper.

That is a big tax bill for a 450k house, that would be like what around $2,000 in Maricopa County?

[theTelecommuter]

I just posted this in another thread under the General forums ....

Housing may be getting expensive, but if you’re making a good salary, the tax benefits make sense compared to other states.

Let’s say you make about 125k per year and are looking to purchase a home for around 500k.

In CA:
State income tax will be about $9,200 based on that income.
Property taxes will be around $5,000 per year.

In TX:
No state income tax
Property taxes alone will be around $9650 (Dallas) per year.

In AZ:
State income tax will about $3,400 based on that income.
Property taxes will be around $3,000 per year.

Aprox Tax burden in CA: $14,200
Aprox Tax burden in TX: $9,650
Aprox Tax burden in AZ: $6,400

Tax savings per year by living in AZ over CA = $7,800
Tax savings per year by living in AZ over TX = $3,250

California has other high cost of living factors to consider as well (gas prices are ridiculous).

If you make more than that and/or buy a more expensive house than my example, the savings differences increase.

Now, I understand that’s not everyone’s situation, but I’ll take that savings and suffer through those 4 months of hot weather in AZ in my lovely air conditioned home (maybe even a pool in the backyard). Maybe Air BnB to a cooler place for a couple of months in the summer (telecommuter) and I'd still be ahead.

I get why the Phoenix area is the number one inbound metro:
https://www.redfin.com/news/homebuye...shortage-2020/