I have all kinds of great real estate statistics at my fingertips, and I find the Scottsdale real estate market really interesting.
Different from the surrounding cities because of its price range. Highly desirable because of its beauty, features, attractions, schools, and more. People from around the world know Scottsdale, because of its branding. Scottsdale is a destination, that often becomes a first or second or third home for people visiting the city.
What home sellers need to know is that regardless of the attraction Scottsdale has, home buyers are still looking for value. A deal. Concerns exist that real estate prices haven’t reached the bottom of the market. And when you look at these next charts, you will see why buyers have been taking their time and making fairly aggressive offers when they do make a move.
First off, you’ll see the Listing Success Rate, which is a comparison between the number of listings sold and the total number of listings closed (sold, expired or canceled) in the last month, expressed as a percentage. So basically, about the same number of listing were canceled or expired as closed last month.
In the next chart you’ll see a number of different Average List Price per Square Foot gauges.
Active Listings – the average price per square foot for all homes for sale, listed as Active or Active with Contingencies, as of July 8th, 2010
Pending Listings – the average price per square foot for all homes pending (under contract) as of July 8th 2010
Closed Listing – average price per square foot for all homes that closed in the prior month
And, then in the lower graph on the same chart, you will see that the actual sales prices is less than all three of these figures, except for this most recent month where pending listings have dipped below the sales price. This most likely indicates that future sales prices in the next couple months may be down. The most telling number on this page is the List Price Premium, which shows that Scottsdale homes are selling at 46% less than the list price, when comparing on a price per square foot basis.
Taking a more detailed look at Average Sales Price per Square Foot, you’ll see that the home appreciation I wrote about a few days ago, is a potential trend. When looking at the figures on an annual basis, it clear to see that depreciation has definitely slowed, and maybe, just maybe, we are at the bottom of the market. Comparing this past month with the same time last year, you’ll see a 5% increase in appreciation.
Now to look at Sales, which are up and have been for the past several months. The annual trend has been increasing, but shows signs of tapering off. Comparing the number of sales for this past month with the same time last year, you’ll see a 5% improvement.
So, for Scottsdale home owners who are thinking about selling, the market is gradually improving. At the same time, the home buyer’s mindset is one of holding the upper hand.
The good new is that Scottsdale home sales are up. Prices are somewhat stable and even appreciating slightly. However, prices (average per square foot) are on average 46% higher than the actual sales price, which would definitely explain why so many home listings are expiring or being cancelled.
Bottom line: Buyers know when a home is priced well and they will jump on it, making an offer that much closer to the asking price. Selling a home quickly will make some home sellers feel like they’ve left money on the table, but in reality, the sales prices for a home that sells quickly, in most every case, will be higher than a listing that priced too high that stagnates on the market. If you want to sell your home, you need to price it to the current market. First time, every time.