As we near the end of 2014, I decided to share a quick review of the inventory of Scottsdale homes for sale. Home buyers usually know where they want to live in Scottsdale, but they don’t always know how much homes are selling for.
Here’s a color-coded map showing location and price range of the 2,143 Scottsdale single family homes currently listed for sale.
The dark green dots denote the homes that are listed in the MLS for $100,000 to $200,000. Yellow dots are for homes in the $200,000-300,000 price range, and the lime green dots are for homes in the $300,000-500,000 range. Homes priced $500,000 to $1 million are orange. And, all of the Scottsdale homes for sale that are listed over $1,000,000 are purple.
The majority of the lower priced homes are near the southern border of the city, just north of the 202. As you travel to the north, home prices increase gradually, with the majority of homes in north Scottsdale are listed at over a million dollars.
Check photos and prices for homes in each of these price ranges here:
One of the questions I get most often is: “How’s the Scottsdale real estate market?”
And, Tom Ruff’s latest monthly report for the Arizona Regional MLS and our local real estate market has a ton of good information in it this month, which can be summarized as “Low and Slow”.
“We’ve never seen a low demand / slow new inventory equation like this before.”
Or more completely:
“An uncertain period of waiting for a decision or resolution. That’s the definition of the word limbo and it perfectly describes our current market where low demand and a lack of new inventory have balanced the market into a standstill. This month I will share my thoughts as to why demand is low and why new listings activity has been extremely slow.”
To read his full real estate report and see his detailed analysis, click here: ARMLS September Update
And to search the MLS for Scottsdale homes, click here: Scottsdale home search
Photo Credit: Eric Fischer / Flickr
Scottsdale Real Estate – Pending Listings
The number of single family homes under contract in Scottsdale has been at its lowest in recent years. We are rolling into our busiest season for real estate sales in our city. And the number of home on the market has been increasing fairly dramatically over the past couple of weeks. Definitely good new for Scottsdale home buyers, and something that local home sellers need to be aware of.
Scottsdale – Active Listings
And the Cromford Report has just reported a record number of price decrease for homes currently listed for sale in the Arizona Reggional MLS.
January 31 – In the last 24 hours we have seen 645 price cuts among the active listings. This is by far the highest daily total since we started tracking price changes on January 1, 2013. It also looks likely that we will approach 3,000 price cuts for the week (Sunday through Saturday). This will rival our previous highest total, measured in the last week of October. Clearly sellers are under increasing pressure caused by a growing supply and much weaker demand than normal for the time of year.
I’ve been showing a lot of homes in the past month, and many seemed to be overpriced. Buyers are being very discriminating in comparing homes and making offers. They want to see the “comps”, which are recent comparable sales, NOT comparable properties currently on the market. There’s a big difference.
Stay tuned… we are just going into our “high season” for Scottsdale real estate. We will most likely see a much larger number of homes go under contract in the next 6-8 weeks as our winter visitors arrive and add to the mix of our Scottsdale real estate market.
My sense is that we will have a strong market for spring, but that prices will really stabilize and real estate will be as close to normal as it has been in years.
Here are 7 most recent homes listed for sale in Scottsdale. [idx-listings city=”Scottsdale” mindom=”30″ statuses=”1″ propertytypes=”317″ orderby=”DateAdded” orderdir=”DESC” count=”7″]
Credit: Bryan Mills / Flickr
I received the following information on the government shutdown from Paul Wakefield at V.I.P Mortgage. He has given me permission to share it with you in total.
The last time we went through a government shutdown in 1995, it was a pain, but not a panic. With Monday’s news that the government is in the midst of a shutdown, it’s important to remember that all mortgages purchased and securitized by Fannie Mae and Freddie Mac will not be affected, since their operations are paid for by the fees charged to lenders and borrowers.
Others may not be so lucky. The six points below illustrate how government-affiliated mortgage loans and critical steps throughout the loan process may be impacted:
- Federal Housing Administration (FHA) Loans: With the shutdown, we may see delays but not a complete stop to FHA loan closings. A report from the Department of Housing and Urban Development has stated that FHA’s Office of Single Family Housing will remain open for business, albeit with a smaller staff. The office will continue to endorse loans and it doesn’t expect the impact on the housing market to be “significant, as long as the shutdown is brief.”
- Department of Veterans Affairs (VA) Loans: Like the FHA, disruption is possible–but not absolute. The VA will continue to guarantee mortgages for Americans who have served in the military, since these loans are funded by user fees. It warned, however, in its September 25th contingency plan, that Loan Guaranty certificates of eligibility and certificates of reasonable value may be delayed.
- IRS Tax Transcripts: If a loan requires the verification of at least one previous IRS tax return, this process may be delayed. While prior years’ tax transcripts can be ordered online, there is no indication whether an automated fulfillment system will be impacted.
- Verifications of Employment, for Government Employees: If a federal government employee is seeking a mortgage, and his employment verification is required prior to closing, a lender may be unable to verify this during a shutdown.
- FEMA Homes: Homes in flood zones would not be able to close, as flood insurance could not be obtained.
- USDA Loans: During the shutdown, the Department of Agriculture’s doors will be shuttered. According to the USDA, no new housing loans or guarantees will be issued through its Rural Development programs. The USDA has also warned that a long shutdown will result in construction setbacks and “a substantial reduction” to available rural housing relative to population.
Many thanks to Paul for allowing me to share this information with you.
Paul Wakefield is my personal mortgage lender and I recommend him highly. He’s quite amazing, always staying on top of the loan process and keeping me in the loop. Both the seller’s agent and the title company were very impressed and wanted to know where I found him!
Here is Paul’s contact information, so you can call him for a personal home loan or re-finance consultation.
I’ve heard rumblings from a couple Realtors in the past few weeks about the local real estate market softening just a bit. Having just listed and sold a new Scottsdale home listing in eight days, I wasn’t convinced, so I reviewed the most recent data for Scottsdale real estate.
Looking at home sales, it’s easy to see that homes sales in Scottsdale have definitely been up this year, and holding even stronger during the hot summer months. However, in the past couple of weeks, it appears that there’s been a bit of a decrease.
Next, look at Scottsdale home prices, measured on a sales price per square foot basis. Prices are up over last year, and they held fairly steady over the summer. A small dip was seen during June and July, with an increase in August. However, this was not a new high point, just approaching the high price point seen for Scottsdale in May.
So far all looks well and good.
However, the number of houses under contract has been dropping steadily and significantly, since June. While Scottsdale home sales have been high, there’s a definite indication that this will change over the next several months.
And to put this all in perspective, the next chart shows how Scottsdale home inventory (i.e. the number of homes for sale) is definitely on the rise, and in the past two weeks has jumped higher than the same last year. So while Scottsdale home buyers have been scratching and clawing to buy homes in a Seller’s Market, it appears that they will have more choice in the coming fall months as the market balances out.
Back to the original question: Is the Scottsdale real estate market softening?
It’s safe to say that homes prices are holding steady, and that there will be more opportunity to for buyers to successfully find and buy a home, while sellers are going to need to be more realistic about setting home prices that are based on today’s market, not anticipated appreciation.
If you have any questions about the Scottsdale real estate market, just ask.
Related Scottsdale Real Estate Info:
Zillow provides a significant amount of current home value and forecast data on its web site, including research reports and market overviews. It can be quite overwhelming, because there is so much of it. However, one of the benefits that I’ve gotten from being a member of the Zillow Agent Advisory Board is education about their market statistics and access to researchers who can give me more detailed, or simplified information.
Today, I received the Zillow home value forecasts for Scottsdale, by zip code. It answers a question that I’m often asked, “What part of Scottsdale should I buy in for the best investment”?
My usual response is that I don’t have a crystal ball, which is true. I wish I did, but now I do have access to information that’s been put together by a company that has the resources, methodologies, and models to put a very educated forecast together.
Before I go any further, let’s be clear. The definition of forecast is: “to predict or estimate”. And that is exactly what a forecast is. A prediction, or an estimate.
Zillow’s home value forecast for all home types in Scottsdale is that the average appreciation will be 7.9% for the period from June 2013 to June 2014.
And this chart shows the anticipated increase for each Scottsdale zip code.
||South Scottsdale – between Tempe and downtown Scottsdale
||South and Downtown Scottsdale – north border is Camelback Road
||South Scottsdale – between Camelback and Indian Bend Roads
||Primarily McCormick, Gainey, and Scottsdale Ranches
||North of Shea and West of the 101
||East of the 101, bordering on Fountain Hills
||North of Shea and East of the 101
||North Scottsdale, including Greyhawk, DC, and McDowell Mountain Ranches and the surrounding area
||North Scottsdale including Troon and Desert Mountain, borders Carefree
||North Scottsdale including Terravita, borders Cave Creek
So, for all zip codes in Scottsdale, prices are on the rise, with stronger appreciation expected in the southern part of the city. This is good news for home sellers who’ve been on the fence about selling, not sure if they have equity yet, and stronger motivation for home buyers who are ready to buy now.
Related Information: Scottsdale Zip Code Map
Homes for Sale in Scottsdale