The Scottsdale Real Estate Market is Insane!

The Scottsdale Real Estate Market is Insane!

Frustration

Yes, I think the Scottsdale real estate market is insane. And not just Scottsdale, it’s Phoenix, Chandler, Mesa, Gilbert, and all the rest of the Valley of the Sun.

I’ve been working like a maniac for the month of March, and have seen so much craziness.  I feel for buyers who are totally challenged to find a home in our low inventory situation, and then who have to overbid to get one of the very few homes available.

Sellers on the other hand are starting to come out of the closet. And being surprised to find that they may not have to give their home away. That they actually have a product, their home, that’s in demand.

It’s total craziness.

For example:

  • One of my home buying clients sent me their short list of homes on Friday afternoon, so I can set up showings for Saturday. I schedule the showings, and then Saturday morning, I check the MLS, just to make sure that all of the homes they wanted to view were still available. Three of the six homes they wanted to see were under contract, overnight.
  • This same client now jokes cynically that if a house has been on the market over 20 days, there just must be something wrong with it.
  • Another home buyer is telling that searching for her first home is like another full time job. Her frustration level has escalated, too.

Sellers, on the other hand, are calling the shots.  Setting a price to today’s market, one that’s realistic for the home’s condition and location, will almost guarantee multiple offers.

  • Last night, I called to set up a showing for a Scottsdale home that went on the market a couple days ago.  The first allowed showings were for today.  As of last night, the selling agent said he had ten showing appointments scheduled for today, and that three buyers were ready to make offers, sight unseen. He was sure that the house would sell for over list price.

If that isn’t insanity, what is?

On the plus side, home prices are appreciating. Sellers who thought they would have to short sale,  and aren’t terribly “under water” can see that some day they may have a home with some value.

  • I was able to help a seller last month, who thought she was going to have to short sale her Scottsdale townhouse.  We priced the home so that she could walk away without have to bring any cash to the closing table.  She got her first offer within days, and when the home didn’t appraise, she took a second offer that did appraise over the very same price two weeks later!
  • And for another potential home seller, who thought she was going to have to short sell, we found that the estimated selling price of her home increased over 5% in just a couple weeks.

Nuts!

Some of my comments here are tongue-in-cheek. But, seriously, buying  a home should really be a highlight, not a chore, or a battle, or even a second job.

If you’re a home seller, call me! Let me tell you what I think the value of your home is today. And then, give you some ideas of what the market is doing in your neighborhood.

If you are a home buyer, yes, please call me, too. I will counsel you on what you need to do before you start your home search, and then also on strategies to get your offer accepted.

The real estate market is always changing, here in Scottsdale, as well as the rest of the world. We were hoping for a balanced market and looked how quickly it’s changed back to a seller’s market. And in only seven short years.

Amazing!

2 Comments

  1. I could not agree more, great article!

  2. Jeff, have you seen any slow down in the past two weeks?

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