Here’s an interesting update on the Phoenix Metro (including Scottsdale) real estate market. In Foreclosure Discounts Vanishing, Stan Humphries, Zillow’s chief economist, is quoted:
“The smallest foreclosure discount is found in places where competition for homes is so high, people there are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability”
The smallest foreclosure discounts can be found in:
- Las Vegas (0%)
- Phoenix (0%)
Phoenix and Las Vegas were the only two cities on the list with zero percent discounts.
Since my focus is Scottsdale, I took a look at the details to see if this non-discounting phenomenon held true in this city.
From the chart above, you will see that:
- 83% of homes for sale in Scottsdale are now “normal”
- 14% are short sales
- 3 of the total listings are foreclosures.
From the active listing perspective, there is still a huge gap between average $ per square foot between normal sales and distress sales. Almost a 50% difference.
Looking that the sales in the last 30 days:
- 73% were normal sales
- 21% were short sales
- 6% were foreclosures.
The big difference here is that the price per square foot for sold homes is much closer. Not zero percent though.
The discounting for foreclosures is about 14%, and for short sales is 20%.
However, when you compare these figures to last year, you can see (below) that the gap has closed significantly. Last year, the discounting for foreclosures was 32%, and 25% for short sales.
So, the Scottsdale real estate market is improving, with the number of distressed sales diminishing significantly over the past year. Prices are on the rise, too. Definitely good news for sellers heading into the spring 2013 selling season.