At various tour meetings, Realtors report that more and more Californians are buying luxury real estate in the Valley of the Sun. Evidently, the combination of high state taxes, excessive regulation, hostile business environment and absurdly high housing costs have sent many Californians packing for other states. Arizona will get its fair share advertising itself as the “Silicon Desert” and its close proximity to West Coast beaches. We expect this trend to continue into the fall and 2019. Consequently, despite rising interest rates, the real estate market should remain positive.