Featuring the perspectives of local executives in new construction:

Liz Brooks
Executive Vice President of Sales and Marketing, Belgravia Group

Zander Diamont
Co-Founder, Minimal Living Concepts

Paul Engler
Chief Financial Officer, Camelot Homes

Will you add inventory in 2024? Can you tell us about your plans?

Zander Diamont: We plan to continue growing, acquiring and building. Our vision is based on 10 to 20 years, so we try not to hyper-focus on the macro environment and instead focus on the micro markets we plan to attack.

Liz Brooks: Construction continues at the award-winning Portico, our collection of 112 condominium residences being built as a part of One Scottsdale, the 120-acre mixed-use development that will bring 2.86 million square feet of residential, hospitality, retail and office space to the Scottsdale Road and Loop 101 corridor. Already over 75% sold only six months after breaking ground, Portico has been a great example of the right amenities, location, price point, high quality design and smart floor plans — it’s the perfect package. Featuring two-, three- and four-bedroom homes starting in the mid-$900,000 range, the success of Portico speaks volumes to the high level of demand for luxury condominiums in this market.

Heading into the new year, the Scottsdale Road and Loop 101 corridor will continue to emerge as one of the Phoenix area’s most vibrant luxury corridors. From its location along the stunning McDowell Mountains to the growing number of high-end restaurants, retail and entertainment venues in the area, Scottsdale Road/Loop 101 has broad appeal, especially to those looking for an active lifestyle in warmer weather.

Our buyers at Portico include homeowners downsizing from larger homes, renters who want to put down roots in the area, people relocating for jobs and buyers moving from less hospitable climates, both snowbirds and full-time residents. They are drawn to the outdoor activities, shopping, dining and entertainment, including proximity to some of The Valley’s elite golf courses, such as TPC Scottsdale, Grayhawk Country Club and Silverleaf Country Club.

As the area maintains its desirability and strong employment, we have a positive outlook for what 2024 will bring to the Scottsdale market.

Do you think any segments of the residential market will see growth in 2024? (new construction, rural, luxury, etc.)

Engler: New construction, at all price points, will see growth in 2024 if interest rates come down. People like new things, and it’s exciting to move into a brand-new home. However, high interest rates have prevented many people from buying new homes in 2023, and that pent-up demand will be released with the arrival of lower rates. Rental rates will likely soften a bit as new supply continues to come online — especially if interest rates come down. The resale market will continue to be hampered by all the existing mortgages with rates around 3% to 4%, so people will be reluctant to trade out of those low rates for the current higher rates.

Will agents be more important to your plans in 2024? If so, how?

Brooks: Belgravia is delighted to partner with Keith Mishkin and his team at Cambridge Properties to introduce Portico to the local brokerage community, and we are thrilled with the reception we are receiving. We are impressed with the professionalism and expertise of the agents we’ve had the pleasure of meeting. As we deliver our first homes in 2024, we are confident agents and their clients will be delighted with the quality and service they receive from Belgravia.

Diamont: Agents are the communicative membrane that makes the real estate market move. Great agents will continue to be crucial in 2024, while agents that have been leaning on the bull market of the last five years to keep their business afloat will fall by the wayside. This is a great opportunity for agents who are serious about their craft and service their clients at a high level.

What do you think needs to happen for the market to improve?

Engler: Interest rates need to come down and availability of trade labor needs to improve. Trade contractors are being impacted by lack of labor supply, which has driven up the cost of labor that is available. Therefore, we are seeing both the cost of building a home and the price to finance the acquisition of that home increase. This continues to be a huge challenge for anyone who wants to buy a house. The demographics are favorable for an increase in homebuyers and income levels remain strong, so demand is not a problem. It’s the supply side that has challenges and keeps the growth in the housing market to a minimum.

Which type of new-construction housing (condo, town home, single-family) do you expect to be most in demand in 2024?

Diamont: We believe the $1.5 million-plus market will continue to move. Specifically, quality, design-focused products. The days of cheap flips are over in this high-interest-rate environment. Buyers who are willing to absorb high-interest rates are going to expect a certain level of quality and lifestyle to justify their home purchase. We are also confident that more people will look to ADUs and remodels as they will be unwilling to give up their current rate.

Brooks: In a market like Scottsdale, we anticipate buyers will continue to favor the maintenance-free lifestyle that condominium living offers, especially residences that live like single-family homes, which Belgravia Group is known for building. Our homes at Portio, like our other award-winning developments, feature design elements that bring a single-family-home feel to the floor plans, such as a balance between open spaces for entertaining and gathering with private bedroom suites and dens; defined foyers and entryways; thoughtful storage; and ample outdoor space. Beyond their individual homes, residents at Portico will have access to curated amenities, including a fitness center, clubhouse and resort-style outdoor pool and deck that serve as an extension of their home and a source of community. This creates a “best-of-both-worlds” scenario for residents, which appeals to a broad range of buyers, from empty-nesters leaving larger family homes to those looking for a place to put down roots.