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.

Source: www.cromfordreport.com

1. The percentage of distressed properties on the market in Scottsdale encompass about 20% of the market, but comprise almost 50% of the sales.
2. Both listing and sales prices of short sales and foreclosures are significantly lower than normal properties listed for sale.  In this chart, distressed properties are listed and selling at approximately 60% of normal homes.

There is an important caveat to note for this second point.  Many of these distressed homes are trashed.  Appliances removed.  Wiring, plumbing, and HVAC equipment can be missing too.  Not all homes are like this, but I do speculate that there is a growing market for investors who have the experience and resources to buy, fix, and sell some of these abandoned and abused homes.  

For now, many people are looking specifically at short sales and foreclosures to find a good deal, and weather the current real estate market.  Opportunities do exist, just bear in mind that it takes some leg work, and a good amount of research to make sure you are buying a diamond in the rough, and not a lemon.