by Dru Bloomfield on August 14, 2008
Sometimes it’s challenging to know what’s really going on in the Scottsdale real estate market. The news tends to focus on large areas and general statistics that don’t really give us an understanding for what is going on in our specific town or neighborhood. Chris Butterworth’s post this morning on the Northwest Phoenix Market Statistics served as inspiration for digging into some of the details of which homes are selling in Scottsdale, and which are not.
The following charts cover the past month, and data was collected from our local MLS service. Overall, you can see that it is still a buyer’s market, for all types of dwellings.
| Scottsdale Real Estate 7/14/08-8/13/08 |
# of Homes
for Sale |
Sold |
Months of Inventory |
| Detached Single Family Homes |
3881 |
292 |
13 |
| Townhouses / Patio Homes |
872 |
53 |
16 |
| Condos |
818 |
74 |
11 |
Looking below at single family homes, we can see that in the lower (Scottsdale) price ranges of $500,000 and under, the market is looking very good, from a seller’s perspective. And then it slows, as price increases.
| Detached Single Family Homes |
# of Homes
for Sale |
Sold |
Months of Inventory |
| 0-$149K |
2 |
1 |
2 |
| $150-299K |
210 |
46 |
5 |
| $300-499K |
735 |
112 |
7 |
| $500K-999K |
1512 |
95 |
16 |
| $1-1.999M |
822 |
30 |
27 |
| $2+M |
600 |
8 |
75 |
Townhouse, patio homes, and condos are selling in the under $150,000 price range, but sales are not keeping up with inventory above that price range, and drop off much more rapidly than with single family homes.
| Townhouses / Patio Homes |
# of Homes
for Sale |
Sold |
Months of Inventory |
| 0-$149K |
35 |
5 |
7 |
| $150-299K |
278 |
22 |
13 |
| $300-499K |
322 |
18 |
18 |
| $500K-999K |
200 |
8 |
25 |
| $1-1.999M |
36 |
0 |
n/a |
| $2+M |
1 |
0 |
n/a |
For the past month, the $1 million and above price range has been less than sluggish, with only one sale. With condos, the drop in sales actually starts with anything priced above $300,000.
| Condos |
# of Homes
for Sale |
Sold |
Months of Inventory |
| 0-$149K |
111 |
17 |
7 |
| $150-299K |
477 |
47 |
10 |
| $300-499K |
119 |
9 |
13 |
| $500K-999K |
57 |
0 |
n/a |
| $1-1.999M |
43 |
1 |
43 |
| $2+M |
11 |
0 |
n/a |
So, if you are a seller with a home priced under $500,000 or a condo, townhouse or patio home priced under $150,000, sales may not be brisk yet, but they happening. And if you are buyer looking in this lower price ranges, be ready to take action, as you may have some competition!
Related Posts:
Phoenix area homes are selling in the lower price ranges
Scottsdale Home Prices: Skiing down hill, or not?
Scottsdale Real Estate: Still a Strong Buyer’s Market
by Dru Bloomfield on March 27, 2008
I received an email from a potential home buyer this week, telling me that it is not a good time to buy a home. I didn’t necessarily agree, so I shared some of the following information with her.
I asked if she’d be following the interest rate forecasts, and let her know that inventories (homes for sale) are starting to level off. In some Scottsdale zip codes, median list prices are starting to increase.
Some other reading that I recommended included the Time magazine article “Ignore the Headlines“.
And also, the article from Tuesday’s Arizona Republic, “After months of declines, existing-home sales up”
My perspective is that we won’t know that we hit the bottom of this market, until it’s past.
The writer responded back asking for more information on the areas where listing prices have been increasing, and I’ll share that Scottsdale update with you tomorrow.
Two other related posts on our current real estate market:
by Dru Bloomfield on March 17, 2008
I got a call from Misty Williams at the East Valley Tribune this past week for an update on the Scottsdale real estate market. It’s challenging to cover such a wide-ranging topic in a twenty minute phone call, yet Misty asked some excellent questions and took away the key points of our conversation. The front page photo coverage was wonderful for my newest Scottsdale home listing and I hope you take the time to read: ”Scottsdale’s desirability helps it in slump“.
by Dru Bloomfield on February 26, 2008
“Should I buy now? Or wait, and rent for awhile?” Seems to be the most popular question to ask here in the Phoenix recently. I was asked the same questions a couple days ago by a prospective client.
Many buyers are looking for some strong signal that the real estate market has hit the bottom so they can hurry up and buy. And when the re-balancing begins, if it hasn’t already, it will not necessarily be all types, or locations, or price ranges of home will improve at the same time or speed.
Real estate is local, even to a specific floor plan in a community. A few weeks back I shared some statistics I compiled for six subdivisions in McCormick Ranch, where several communities had depreciated, and a couple showed appreciation. Until you look closely at the local pricing history, it’s hard to say exactly where a given market it.
Yesterday, I sat down to prepare a market analysis report in preparation for writing a purchase contract for an older, centrally located Scottsdale townhouse, that appeared to be in very good condition. The buyers were very surprised when I showed them that prices were still appreciating in that community, and that the average number of days to sell is a mere 32 days.
Is this a recovery in this segment of the market, or did the community just weather the changes better than other areas?
And then today, this Reuters article pops up: Bargain hunters may toss a lifeline to housing
I especially appreciated Russell Shaw’s perspective:
“I think this is the best buyer’s market that has existed in a decade, maybe longer,” said Russell Shaw, in his 30th year with John Hall & Associates real estate in Phoenix. “There are tons of inventory, great interest rates and the prices are back in line to where houses are decently priced again.”
“If people have a good track record of paying their bills, the loans are there,” Shaw said.
Buying vs. renting is a question that is asked in every market, buyer’s or seller’s. And there are fundamental questions you should ask yourself in making a home buying decision, along with financial evaluation and preparation. And yet, for many home buyers, there is often some intangible internal driver that’s pushing them forward to get into a home of their own. The dream of home ownership is still alive and well. You just may have to work a little bit harder to get there.
