by Dru Bloomfield on April 19, 2009
Scottsdale is one of those long, skinny towns that has very definite north, south, and central neighborhoods. Prices tend to increase, from south to north.
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.
by Dru Bloomfield on April 17, 2009
Earlier this week, I read the Phoenix Real Estate Market by Tom Ruff on the John Hall & Associates blog.
Lots of good info that validates some of my experience with lender owned properties over the past month, plus brings to light some additional encouraging news about our local real estate market.
- Phoenix area home sales are up.
- Foreclosure sales are down.
- Foreclosure notices are up.
- Pending trustee sales are being postponed.
- Foreclosures now appear to be being released onto the market in a staged manner.
- Banks are checking on home occupancy prior to foreclosure, and if occupied, attempting to work with occupant.
- Also, the price per square foot for pending foreclosures is now higher than those recently sold.
And, directly from Tom’s report:
In our 25 years of compiling data, we have always considered March a bellwether month. March will normally tell you how the summer will trend all the way through August. Don’t ask me why, it’s just one of those things you notice after 25 years. March is telling us sales volume is up and continuing to climb, the rate at which median home prices are falling is declining, clearly signaling prices are approaching their much anticipated bottom.
I highly recommend reading the whole report.
(Originally posted at Click2AZ.com.)
by Dru Bloomfield on January 12, 2009
Saturday, I wrote about the overall increase in home sales in Phoenix, and promised to give you more detail. What I discovered in researching that blog post was that many cities in metropolitan Phoenix have been seeing these increases for months. I’m in the real estate business, I keep up on statistics fairly well around the valley, and I was somewhat surprised by what I learned.
This chart of Maricopa home sales per year was striking. Did you realize there have been a record number of home sales in that city for the past several months? Granted many of the sales in the past have been for new homes, which may not have been posted in the Arizona Regional MLS, but the fact that homes are selling in the area, is very good news.
Click for a larger view
After stumbling across this first graph on the Cromford Report, I kept searching, wanting to get a feel for the current situation in the Valley of the Sun.
Home Sales Figures from Around the Valley
Anthem is not setting records, but you can see a definite trough in the the number of sales, and it occurred almost 12 months ago.
Click for larger graph
Many have made mention that we will not know we’ve hit bottom until it has passed, and it may take 6-8 months to see if the trend really takes hold. These charts do not take into account that prices have dropped significantly, or maybe they do, and that is why we are seeing homes selling at a good pace again.
Phoenix proper is seeing increased sales.
Click for larger view
So is Glendale…..
Click for larger view
Chandler, too.
Click for better view
In Tempe, we are starting to see what may be a bottom in home sales numbers. It will be interesting to see if the Light Rail system has any impact on real estate sales in the coming months.
Click for larger graph
Scottsdale is also showing signs of stabilizing. We are just entering our crazy-busy season of events which bring large numbers of visitors to the city for Barrett-Jackson, the FBR Open, (formerly know as the Phoenix Open and now known for its one-of-a-kind 16th hole), art shows, horse shows, culminating in our baseball version of March Madness, in the form of Cactus League Spring Training.
Click for larger view
We are at the beginning of a new year, with a lot of unknowns. Data shows a glimmer of hope. Interest rates are low. Home prices continue to fall, yet indications are that the lower end of the market is beginning to stabilize. Arizona is still the second fastest growing state in the nation.
2009 will be a very interesting year.
by Dru Bloomfield on January 6, 2009
by Dru Bloomfield on November 6, 2008
photo credit: Ruth L
The weather is gorgeous, and the Scottsdale Old Town Farmer’s Market is back in business on Saturday mornings from 8:30 a.m. to 2 p.m.
Highlights:
- Best local growers from the Valley of the Sun (Phoenix / Scottsdale and all the surrounding area) providing a variety of organic fruit and vegetables.
- More that 40 vendors that will also be selling flowers, herbs, coffee, and baked goods.
- Live entertainment, cooking demonstrations, and free health screening
The market is located at the Old Town surface parking lot on the northwest corner of Brown Street and Second Street.
View Larger Map
Looking for other Farmer’s markets around the valley, check out the Arizona Community Farmers Markets calendar.
by Dru Bloomfield on October 20, 2008
Here are the latest Altos Research real estate market updates for all Scottsdale zip codes. These freshly updated reports are in a one page executive summary format. If you’d like the more detailed report for your zip code that includes an overview for the whole of Scottsdale, please call or email me.
This week’s update:
85262 – Listing prices have been decreasing. Days on market is increasing. Inventory is decreasing.
85266 – Median list price steady. Days on market and number of homes available increasing.
85255 – Median list price and days to sell are holding steady. Inventory tightening.
85260 – Median list price steady. Days on market increasing. Inventory tightening.
85254 – List price trending down. Days on market and inventory are increasing.
85259 – Listing prices and days on market are holding steady. Number of homes on market is decreasing.
85258 – Listing prices are holding steady. Days on market up. Inventory down.
85250 – List prices trending upward. Days on market decreasing. Inventory tightening.
85251 – Listing prices trending upward. Days on market decreasing. Inventory decreasing.
85257 – List prices holding steady. Days on market increasing. Inventory decreasing.
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.
