Realtors often say things like “Location, location, location”, and “Real estate is local”.
Comparing Phoenix and Scottsdale real estate stats really is like comparing apples to oranges, but I’m going to do it anyway.
A few facts:
- Phoenix covers a much larger area, 517 square miles, as compared to Scottsdale’s 184 square miles.
- Phoenix has more than 495,000 housing units, while Scottsdale has 116,000+ housing units.
- In 2008, home sales in Phoenix totaled 13,028, and 4,456 in Scottsdale.
- Year-to-date home sales (as calculated via the Arizona Regional MLS through 5/31/09) in Phoenix were 10,298 and 1,901 for Scottsdale.
From the figures above, sales are up dramatically in Phoenix this year, and may surpass last year’s total number of sales, by mid-year this year. Scottsdale may approach last year’s sales numbers by the end of the year, but it’s really too early to say.
Phoenix Real Estate
Phoenix Foreclosures (REO) made up less that 25% of the active listings, yet accounted for over 75% of the actual sales in the prior 30 days (from June 2, 2009). Normal listing (not a short or REO) accounted for 40-45% of active listings, but only 10-15% of sales. On the lower two bar charts, you can see that, foreclosures and short sales are being listed and selling at a significantly lower price, per square foot. Average price for a normal sale is about $120 per square foot, as compared to an average of $55/sf for a foreclosure. Phoenix home sales prices have depreciated about 45% since this same time last year.
Scottsdale Real Estate
Foreclosures make up a very small part of the homes for sale in Scottsdale, less than 10%, yet account for over 25% of the sales. Normal sales predominate the market (just over 75% of homes listed), and do account for just over half of the sales. Short sales are closing at a proportionately higher level in Scottsdale, too.
Listing prices for both REO and short sales (on a $ per square foot basis) are significantly lower than for a normal home. Sales prices of these normal transactions are being brought down as a result. While the average price per square foot for a normal listing is close to $350/sf, those selling are actually closing significantly less, at and average of $225/sf. Both short sales and foreclosures are listed at an average of $200 per square foot. Short sales are closing at an average of $175 per square foot, while foreclosures are closing at an average of $150 per square foot. Home sales prices (again on a per square foot basis) are down about 22% this year.
Two Cities – Two Markets
Comparing home sales statistics shows just how different the current real estate situation is in these two neighboring cities. Phoenix homes prices are down dramatically, but sales are going through the roof. In Scottsdale, there has been a slowdown, but prices have not been impacted as severely.
What both of these cities do have in common is that sellers are selling, and buyers are buying. Real estate is a local business, and it’s important to know what’s going on in the specific market at the time you are considering making a move.
Ask questions. I’ll do my best to answer.