It feels like the real estate market has been in a static place for most of the summer, and then several weeks ago, my phone and email started going crazy. Buyers were asking questions and seriously ready to buy homes.
Today’s Altos Research reports show that my experience is pretty much in alignment with the rest of the Scottsdale real estate market. Altos has a proprietary formula, called the Market Action Index, which they use to monitor the market. If the figure is above 30, it’s a seller’s market. Below 30 is a buyers’ market.
Scottsdale has been hovering in the 9-16 range for most of the summer, from mid-March through the end of July. Beginning in August the market action started taking off, most significantly in the first quadrant of housing, which is the highest 25% priced homes on the market. You can see that there’s significant improvement for all price ranges, with the lowest 25% of homes on the market leading the pack.
I did some further digging and have discovered that in South Scottsdale, the entry level of the market is doing VERY well. I know from personal experience that there is very little inventory in the lower price ranges, and that homes in good condition, priced well, are selling quickly. Last week, one of my clients lost out on a house with multiple offers. The house was on the market three days. Excellent condition. Priced very well.
The chart above represents market activity for entry level homes in the four most southern Scottsdale zip codes, 85257, 85251, 85250, 85258. As you can see, entry level homes in 85257 (southernmost Scottsdale) and 85258 (McCormick Ranch) are seeing significant improvement, and we are approaching a much more balanced market in these areas.
Looking a bit more closely at the entry level home market in 85257, you can see that market activity has jumped as median home listing prices have dropped. Three bedroom, 2 bath homes are now listed in this area under $200,000. First time home owners and investors are back in the market.
We are approaching our fall months, where in years past we experience our second busiest home selling season of the year. From the looks of things, I’d suggest that we are positioned for a great market for home buyers, where interest rates and home prices are still low. It’s important to know that as the number of homes for sale continues to drop, selection will become more limited, and there will be more competition for homes that are priced well for their condition and location. This competition will determine where the bottom of the market is. If you are a buyer, thinking about a purchase, please talk to your lender to see what loan programs are available, so you are ready to make your offer when you find a home.
I do believe that this fall will be much more active, and that we’ll be seeing continued improvement in the Scottsdale real estate market. For a real-time real estate update in your Scottsdale zip code, check out the up-to-date market report (Real Estate Statistics for Scottsdale 852xx) just to the right of this column.
Stay tuned.
{ 2 comments… read them below or add one }
This is interesting news. It appears those waiting on the sidelines for a good deal are getting their backs off the wall.
I’d agree that buyers are starting to take more serious action. I believe that this fall is going to be pretty active, at least in the southern parts of Scottsdale.