Paradise Valley Weekly 312th Edition - May 14, 2016    On the heels of last week's coverage about the under-building of US housing, this week's big story is the cost of regulation. Builders are paying a whopping 30% more in regulatory fees in just the last 5 years. To put that in perspective... are you sitting down? Over $84k in regulatory fees, on average, for every new single-family home completed in March. The average home sold for about $350k during that period -- regulation is almost 25% of the cost! So if anyone is wondering whether the supply problems in US housing are here to stay, there's your answer. Just the cost of land and regulation can eat up 50% of the revenue. That's before one even gets to cost of construction. No wonder there isn't more home building to meet the unsatisfied demand. Admittedly, this doesn't have a direct impact on luxury real estate. Paradise Valley's market is totally different than "Mom and Pop" real estate at the median price level. However, many of my clients are wondering where they should be investing their money. Bank accounts are yielding zilch, and the stock market induces heartburn. A fair number of people have gone with commercial real estate, but there are numerous warning signs suggesting now is the time to sell. The supply of homes isn't going to catch up with demand anytime soon. We under-built in the wake of the '08 crisis, and we can't even get to equilibrium, let alone ahead of the growing population. With the economics of building new single family homes unfavorable for builders, the existing stock of homes will become more valuable. In today's topsy turvy world, even just holding value and generating cash flow would be a smart investment. As billionaire Sam Zell recently said of the commercial real estate market, "We are in the 9th inning." Plain vanilla residential property priced for the average person is a sensible alternative. I've been beating this drum for years, and those who took the plunge have done very well. It's still not too late to get in, given the forces constraining supply. If you'd like to acquire some "Mom and Pop" homes for investment, please click here. It's worth noting that you can use retirement funds to acquire real estate, you're not limited just to Wall Street. So, if you've got an IRA or 401(k) that's been going sideways, it's worth investigating your options in real estate. I can introduce you to experts who will setup your accounts to be in full compliance with the IRS. *** Mortgage rates dipped to a 3 year low this week, falling to an average of just 3.57%. If you have bought a home in the past couple of years, you may want to investigate re-financing. If you're considering the purchase of a home, now would be an opportune time to secure your loan. Also, as we head into the slow season of summer, buyers have more leverage at the negotiating table. If you would like some lending options, I'd be happy to make introductions. I receive no compensation for referrals, I recommend lenders only based on recent, positive experience. Too many lenders promise the world and don't deliver, so I do my best to direct clients to the ones who get the job done. *** The stunning kitchen below was designed by Iron Chef winner Mark Tarbell. Beautiful as the finishes are, they are trumped by Mother Nature -- the house looks out over all of Paradise Valley, it's like a private Sanctuary Resort. Click here for details. *** Closings Solid week with $17.6 million in single family home sales in Paradise Valley.  The low was $875k and the highest sale was $3.9 million. Average was just under $2 million, and $349 per square foot. Homes sold were, on average 16 years old. Listings This week brings 13 new listings, from $825k to $8 million. Just one standout worth seeing sooner than later: Bargain 5 Bedroom Home These days, $1.5 million doesn't buy much in Paradise Valley. This 5 bedroom home built in 1996 is very well priced at $294 per square foot. It sits on a lot just under 1/2 acre, ideal for someone who doesn't want a lot of maintenance.  --> Click here for Pictures or to Schedule Tour  This Week's UNLISTED Properties In just the past 7 days been contacted about properties from 185k to 9 million - none are on the MLS. To learn more about these homes, please click here. To see all of this week's new MLS listings please click here. To see everything on the MLS in Paradise Valley please click here. That's all for this week, I'll be back next week with all the latest in Paradise Valley real estate. Thank you, Alex Goldstein iParadiseValley.com (480) 442-7325 Disclaimer: All information is believed to be accurate, but should be verified by the reader and is provided without warranty. Please consult appropriate financial, tax, legal, and real estate advisors before making decisions. This email is not intended to solicit people who are represented by another agent.   (c) 2016 Alex Goldstein PLLC

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