Today, I’ve created some charts (with the help of Altos Research) to show the current differences in these varying markets.

Current median list price for South Scottsdale (85257) has dropped down to just over $200K. While the area just north of downtown Scottsdale (85250), the median listing price is now running about $375K.  The area around McCormick, Gainey, and Scottsdale Ranches (85258) has not see a drop in listing price.  To the north, where DC and McDowell Mountain Ranches are located in zip code 85255, median listing prices have hovered right around the $1 million dollar range.

In this next chart, you can see that in all areas have really experienced a reduction in price, if you look at it from a median price per square foot basis.  South Scottsdale has taken the brunt of this depreciation.

Although the northern part of Scottsdale has kept its listing prices high, inventory has actually increased slightly, where as in the other zip codes to the south, fewer homes are now available for sale. 

Finally, pricing really does have an impact on how long it takes to sell a home.  As you can see here, in 85255 and 85258, it is taking longer and longer to sell a home.  However, in downtown and South Scottsdale, you are seeing a plateauing of days on market, or the number of days it takes to sell a home.

Scottsdale’s real estate market has not been as impacted by foreclosures as many of the other areas around Phoenix.  Also, the majority of the homes on the market in north Scottsdale do not qualify for FHA financing or fall into the jumbo loan category, and with the tightened mortgage market, there has been an impact, resulting in a slower market. 

Move-up buyers have been sitting on the sidelines waiting to see what is going to change.  However, once there’s an increased level on confidence in the real estate market and our economy, I do think that we will see an increased number of home sales.  Owners who purchased prior to the market run up, with equity in their homes, will decide that selling their current home in today’s market will give them the opportunity to buy up.  Lower home prices and the lowest interest rates in years will drive this change.  It’s bound to happen, it’s just a matter of when.

Real Estate Market Distress for Scottdale, Arizona 85258, including McCormick Ranch (Click chart for a larger view)

In reviewing the Cromford Report this morning, I stumbled on the fact that the Scottsdale zip code, 85258, is experiencing the least stress in today’s real estate market. While it’s still in the Caution zone, compared to other areas of Scottsdale and the Phoenix metropolitan area, the area that’s home to McCormick Ranch and also, Gainey Ranch is doing reasonably well.

Approximately 15% of the homes on the market in this area, which is roughly between Indian Bend and Shea, Scottsdale Road and East 106th Street, are either bank-owned or advertised short sales.  These homes are selling at a faster rate and during December 2008, accounted for 36% of the sales.

One very interesting and very unusual aspect I’m seeing in this chart is the price per square foot of short sales.  Typically, normal sale will have a noticeably higher price per square foot, when compared to short and bank-owned sale.  Not so, here.  Even more interesting is that the price per square for solds is higher than those listed, and you will see for normal and bank-owned sales, that the sales price is quite a bit lower than listing price.

Good news is that McCormick Ranch and Gainey Ranch seem to be doing better than most in this tumultuous real estate market.  At the same time, you can see that it’s still a tough market to sell a house in.

Scottsdale Homes Sold in 2008 for $100k or less

Here are a few of the details:

Most of the condos and townhouses are in Belcara at McCormick Ranch (85258) and Woodland Springs (85251), with others in Ciento, Rancho Antiguia, Summerfield, Hallcraft Villas, and Quail Point.

As of today, three homes listed at $100,000 or less are under contract, and 48 more are on the market.  The average time to sell since the beginning of the year has been 110 days, but in looking at just the past three months, the average has dropped to 74 days.  Still, we have a significant inventory in this price range.

Prices for single family homes are starting at $121,000 today.  In my next market report, I’ll focus on the homes price between $100,000 and $200,000, since that is where most first-time home buyers are looking.

This week’s update:

Assessment:  Northern Scottsdale, particularly in the 85259, 85260, 85255, and 85266 zip codes, are still experiencing a market that heavily favors buyers, while activity in southernmost Scottsdale (85257) is holding steady with the improvements we have seen over the past several months.

Good news is that I actually have two listings in the Villages. One is a two bedroom on the ground floor. The other has two bedrooms and a den, on the second floor, with a very private balcony.

The chart below shows you a sample of the report and specifically what the McCormick and Gainey Ranch home listing prices are for today, September 29th.  When you click on the link above, you will get current information for the day it actually is.   A good tool to bookmark as we ride through our current market.