Scottsdale AZ Real Estate & Lifestyle

Live Better in Scottsdale - eXp Realty

Blog

Scottsdale AZ Luxury Home Market – August 2021

By

– Scottsdale Luxury Home Market Performance for August 2021 –

August was a mixed bag in terms of sales activity and inventory. Some price points saw increases and other experienced decreases.

And while we are seeing a shift in Scottsdale’s real estate market, we are still in a sellers’ market.

This report looks at luxury home sales in Scottsdale. Each of these homes had asking prices of $1 million or more. We have broken down this information into four price ranges to show additional detail as the activity of $1 million dollar homes is different than those homes priced for more than $3 million.

We track the following four items on a monthly basis:
Active – The number of homes on the market at the end of the month.
UCB (Under Contract Accepting Backup Offers) – The number of homes under contract, but still accepting backup offers at the end of the month.
Pending – The number of pending sales at the end of the month.
Sold – How many homes sold.

– August 2021 –

Scottsdale Homes Priced Between $1,000,000 – $1,499,999

Scottsdale Homes for Sale between $1 and $1.5 million August 2021

– Active Scottsdale Homes on the Market: After a couple of months of inventory gains, the number of homes for sale in this price point fell by over 10%.
– UCB Scottsdale Home Sales: The number of UCBs was up in August and came in ahead of the 12 month average.
– Pending Scottsdale Home Sales: Pending sales saw a nice jump in August and closed the month out at 54.
– Scottsdale Homes Sold: Home sales fell to the second lowest we have seen in the past year. However, with higher UCB and pending contracts in August, we may see this head back up in September.
– Sales Price to Listed Price: 99.1% – On average, buyers saw a discount of 0.9% off of asking price.

Scottsdale Homes Priced Between $1,500,000 – $1,999,999

Scottsdale Homes for Sale between $1.5 and $2 million August 2021

– Active Scottsdale Homes on the Market: Inventory was up 10% compared to the end of July. Seeing that contract activity is high, this is good news.
– UCB Scottsdale Home Sales: UCB contracts fell quite a bit in August. They came in at 20, a 35% decline from July.
– Pending Scottsdale Home Sales: We saw pending sales also fall in August, a decrease of over 33.%
– Scottsdale Homes Sold: Sales activity improved over July, putting it ahead of the 12 month average.
– Sales Price to Listed Price: 98.0% – On average, buyers saw a discount of 2% off of asking price.

Scottsdale Homes Priced Between $2,000,000 – $2,999,999

Scottsdale Homes for Sale between $2 and $3 million August 2021

– Active Scottsdale Homes on the Market: The number of homes for sale in this price range fell over 19%, making this the lowest we have seen this figure in the past year. Last September, there were 161 homes for sale.
– UCB Scottsdale Home Sales: The number of UCB contracts was up by one in August.
– Pending Scottsdale Home Sales: Pending sales were back up at the end of September and were on par with the 12 month average.
– Scottsdale Homes Sold: The number of homes sold in August was 29, up one from the prior month.
– Sales Price to Listed Price: 97.6% – On average, buyers saw a discount off of list price of 2.4%.

Scottsdale Homes Priced $3,000,000+

Scottsdale Homes for Sale over $3 million August 2021

– Active Scottsdale Homes on the Market: The number of homes for sale fell to the lowest level we have seen in the past year and dropped under the 100 threshold.
– UCB Scottsdale Home Sales: After a slower July, UCB contracts rebounded to 18 at the end of August.
– Pending Scottsdale Home Sales: Pending sales were the highest they have been in the past year, coming in well ahead of the 12 month average of 27.
– Scottsdale Homes Sold: Home sales were low. There were 13 sales, which ties last September for the lowest sales month.
– Sales Price to Listed Price: 95.7% – On average, buyers saw a discount off of list price of 4.3%.

If you would like additional detail on home sales activity, please visit our Scottsdale Luxury Home Market Reports page and click on the downloadable “Scottsdale Market Trends” report.

Search Scottsdale Luxury Homes for Sale

Disclaimer: Information deemed reliable but not guaranteed. Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 9/1/2021 and can change at any time. The analysis looks at single-family luxury resale homes in Scottsdale AZ over the last 12 months. There may be new home inventory in these figures if the developer is using the MLS to market its homes. This blog represents the opinion of the author. No warranties expressed or implied.
Copyright ©2021 Heather Tawes Nelson | Joyce Tawes

Halloween Events in Scottsdale for 2021

By

– 2021 Halloween Events In and Around Scottsdale –

Although temperatures still feel like summer, Fall starts tomorrow and Halloween is almost here!

During this time of year, we are treated to lots of Fall Festival and Halloween events. Below you will find a collection of upcoming events going on around the Valley to celebrate.

Scottsdale Halloween 2021

 Halloween and Fall Festivals in Scottsdale and Greater Phoenix

  • Pumpkinfest at the Princess – September 16th – October 31st –  Enjoy the pumpkin patch with lots of photo opportunities and then stroll over to the Jack O’Lantern Lawn and Lane where rides and games await you. Finish up at the Cider Orchard which will be offering a variety of ciders. On weekends in Ocober, there will be nightly fireworks. And, if you want to enhance your experience, they a special hotel offer.
  • Mother Nature’s Farm – September 25th – October 31st – This pumpkin patch in Gilbert is open daily and offers pumpkins of all sizes. The entrance fee is $10 per person and that includes an OZ pumpkin, a hayride, petting zoo, a spider web crawl and maze. There will be food for sale, but you are also encouraged to bring your own picnic and make a day of it
  • MacDonald’s Ranch Annual Pumpkin Festival – October 1st – 31st – This is one close to my heart as we purchased our pumpkins here for many many years. Located in North Scottsdale, MacDonald’s Ranch transforms into a Halloween and pumpkin patch wonderland. Visit the petting zoo, navigate the hay bale maze, pan for “gold” and more. Some paid activities include a train ride, pony rides and the mechanical bull. There will be food for purchase and a marketplace as well. (Closed Tuesdays.)
  • Tolmachoff Farms Corn Maze and Pumpkin Days – Wesnesdays through Sundays – October 1st – 31st – Pumpkin Days and Corn Maze is back in Glendale! Not only will you find a huge assortment of pumpkins, you will also encounter a multiple corn mazes for families, little ones and people who like their corn mazes spooky. They also offer train rides, a petting zoo and more. (Some activities like the train ride and tomato cannon cost additional.)
  • Vertuccio Farms Corn Maze and Fall Festival – Ocotber 1st – 31st – Dubbed “Cooler Days in the Corn Maze,” this Fall Festival in Mesa is a local favorite. Besides pumpkins and kettle corn sales, there are a ton of fun activities for all ages including including a giant hay climb, multiple mazes, a petting zoo, mini-golf, an extreme air pillow, barrel train, a petting zoo and so much more.
  • Halloween Spook-Track-ula at the Railroad Park – October 8th -31st – Enjoy unlimited spooky train and carousel rides at the McCormick-Stillman Railroad Park.  Photo pods will be available to capture the fun. The Railroad Park is limiting capacity and you can select one of two 1.5 hour time slots nightly.
  • Pumpkin and Chili Party at Schnepf Farms – Thursdays through Sundays – October 1st – October 31st –This is one of the largest Halloween events in the Valley and it is located in Queen Creek. With over 35 attractions, there is so much to do! This year they have introduced Wreckoning, a 350 foot long haunted school bus. Add to that over 10 rides, multiple food outlets, mazes, adorable animals, bonfires, pig races and way too many other activities to list. This year, you can purchase a one day General Admission ticket or a Season Pass. (Some activities have an additional fee.)

Prefer to be Scared Out of Your Wits? These Haunted Houses Are Not for the Faint of Heart

Scottsdale Haunted House

If zombies, ghouls, terrifying creatures and getting frightened out of your mind are your preferred way to celebrate Halloween, here is a website that has all of the haunted houses, scary events and more. There are several locations all over the Valley, feel free to visit them all and scream your heart out!
Arizona Haunted Houses

This collection only includes a few of the Halloween and Fall festivals and events going on. If you have any others that you would like to add, please feel free to do so in the comments section!

Disclaimer: Information deemed reliable, but not guaranteed. Event dates, times and pricing subject to change. Most events are paid admission and may have some paid activities.

Phoenix and Scottsdale AZ Luxury Condo Sales – August 2021

By

– Luxury Condo Sales in Scottsdale and Phoenix – August 2021 –

August saw another similar month with the UCB and pending sales categories, but we saw inventory and actual home sales fall by the end of the month.

This report looks at the luxury condo market in Scottsdale and Phoenix. All of these homes were listed for $1 million or more.

ACTIVE LISTINGS AT THE END OF AUGUST

The number of luxury condos for sale fell by 5 compared to the end of July. There were thirty-three homes for sale and of the, twenty-four were in Scottsdale and the remaining nine were in Phoenix.

The highest-priced condo for sale is a new entrant. It is a recently updated unit at The Residences at 2211 Camelback. It has four bedrooms and bathrooms and 5,500 square feet. It was listed for $4,295,000.

The lowest-priced luxury condo on the market is also a new one. Located in Optima Camelview, this unit had two bedrooms and bathrooms, 1,257 square feet and was listed for $1,409,900.

UCB* LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

The number of UCB contracts has held steady at four over the past three months. All of the UCB contracts in August were in Phoenix.

UCB Condos in Phoenix

  • Two units in UCB status were in the One Lexington community in downtown Phoenix.
    • Two bedrooms, two and one-half bathrooms, 2,288 square feet. Asking price was $1,295,000.
    • Two bedrooms, two and one-half bathrooms, 2,835 square feet. Asking price was $2,000,000
  • The other two units were located in Fairway Lodge at Biltmore Estates.
    • Two bedrooms, two and one-half bathrooms, 2,376 square feet. Asking price was $1,350,000.
    • Two bedrooms, two and one-half bathrooms, 2,376 square feet. Asking price was $2,000,000

PENDING LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

Just like in June and July, all of the pending sales in August were located in Scottsdale. There were fourteen pending sales and eight of the fourteen were located within the Seven community at Desert Mountain, which is being built out.

Scottsdale Pending Luxury Condos

  • The Reserve – Three bedrooms and three bathrooms, 2,675 square feet. Asking price was $1,016,000.
  • Seven at Desert Mountain
    • Three bedrooms, three and one-half bathrooms, 2,414 square feet. Asking price was $1,515,800.
    • Three bedrooms, three and one-half bathrooms, 2,414 square feet. Asking price was $1,530,700.
    • Three bedrooms, three and one-half bathrooms, 2,414 square feet. Asking price was $1,536,004.
    • Two bedrooms, three and one-half bathrooms, 2,702 square feet. Asking price was $1,705,300.
    • Three bedrooms, three and one-half bathrooms, 2,716 square feet. Asking price was $1,774,200.
    • Three bedrooms, three and one-half bathrooms, 2,716 square feet. Asking price was $1,787,350.
    • Three bedrooms, three and one-half bathrooms, 2,716 square feet. Asking price was $1,809,900.
    • Three bedrooms, three and one-half bathrooms, 2,716 square feet. Asking price was $1,835,850.
  • Optima Kierland – Three bedrooms, three bathrooms and 2,309 square feet. Asking price was $1,525,000.
  • Optima Camelview – There were two pending sales at Optima Camelview in Downtown Scottsdale.
    • Three bedrooms, two bathrooms, 1,513 square feet. Asking price was $1,250,000.
    • Three bedrooms, two bathrooms and 2,614 square feet. Asking price was $1,450,000.
  • Scottsdale Waterfront Residences – There were also two pending sales in the Scottsdale Waterfront Residences.
    • Two bedrooms, two and one-half bathrooms, 1,927 square feet. Asking price was $1,395,000.
    • Two bedrooms, two and one-half bathrooms, 2,041 square feet. Asking price was $1,595,000.

LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

Sales dropped from thirteen monthly in June and July to seven in August.

Scottsdale Luxury Condo Sales

  • The Reserve – Three bedrooms and three bathrooms, 2,675 square feet. Asking price was $1,000,113 and it sold for asking.
  • Safari Drive – Three bedrooms, three and one-half bathrooms, 2,055 square feet. Asking price $1,100,000 and it sold for asking.
  • Optima Kierland
    • Two bedrooms, two bathrooms, 1,698 square feet. Asking price was $1,175,000 and it sold for asking.
    • Two bedrooms, two bathrooms, 1,461 square feet. Asking price was $1,399,000 and it sold for $1,349,000.
    • Three bedrooms, three bathrooms, 2,018 square feet. Asking price was $1,750,000 and it sold for $1,680,000.

Phoenix Luxury Condo Sales

  • Portland on the Park – Three bedrooms and bathrooms, 2,486 square feet. Asking price was $1,350,000 and it sold for $1,300,000.
  • Esplanade Place – Two bedrooms and three bathrooms, 3,542 square feet. Asking price was $2,200,000 and it sold for $2,000,000.

Learn More About Phoenix and Scottsdale Luxury Condos

Search Phoenix and Scottsdale Luxury Condos for Sale

Disclaimer: Days on market figures are cumulative days on market. Information herein deemed reliable but not guaranteed. Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 9/1/2021 and can change at any time. The analysis looks at resale luxury condos in Scottsdale and Phoenix over the past 12 months. Information deemed reliable, but not guaranteed.  There may be new condo inventory in these figures if the developer is using the MLS to market its homes. This post represents the opinion of the author. No warranties express or implied.
Copyright ©2021 Heather Tawes Nelson | Joyce Tawes

9 Tips for Buying and Selling Your Home at the Same Time

By

Buying and Selling your home at the same time

Selling your home when you still need to shop for a new one can feel daunting to even the most seasoned homeowner––especially in markets like Scottsdale where the demand for new homes keeps rising, but the supply feels like it’s dwindling.¹ You’re not alone either if you’re already feeling drained by the complex logistics of trying to sell and buy a new home all at once.

Searching for a new home can be exciting, but many homebuyers admit that it can also be stressful, especially if you live in an unpredictable market with plenty of competitors. Unfortunately, waiting out a competitive housing market isn’t always the best idea either since listings are expected to remain limited in the most coveted neighborhoods for some time.²

That doesn’t mean, though, that you should just throw up your hands and give up on moving altogether. In fact, as a current homeowner, you could be in a better position than most to capitalize on a seller’s market and make a smooth transition from your old home to a new one.

We can help you prepare for the road ahead and answer any questions you have about the real estate market. For example, here are some of the most frequent concerns we hear from clients who are trying to buy and sell at the same time.

  

“WHAT WILL I DO IF I SELL MY HOUSE BEFORE I CAN BUY A NEW ONE?”

This is reasonable and understandable concern for many sellers since our competitive real estate market makes it tough to plan ahead and predict when you’ll be able to move into your next home. But chances are, you will still have plenty of options if you do sell your home quickly. It may just take some creativity and compromise.

Here are some ideas to make sure you’re in the best possible position when you decide to list your home:

 Tip #1: Flex your muscles as a seller.

In a competitive market, buyers may be willing to make significant concessions in order to get the home they want. In some cases, a buyer may agree to a rent-back clause that allows the seller to continue living in the home after closing for a set period of time and negotiated fee.

This can be a great option for sellers who need to tap into their home equity for a downpayment or who aren’t logistically ready to move into their next home. However, many lenders limit the duration of a rent-back to 60 days, and there are liability issues to consider before entering into an agreement. A rental contract and security deposit should be in place in case of any property damage or unexpected repairs that may be needed during the rent-back period.³

We have also seen many buyers who are willing to wait a few months or longer to close esxrow so that the seller can secure new housing. At this moment in the Scottsdale and Greater Phoenix market, sellers are able to negotiate a lot of the terms.

 

Tip #2: Open your mind to short-term housing options.

While it can be a hassle to move out of your old home before you’re ready to move into your new one, it’s a common scenario. If you’re lucky enough to have family or generous friends who offer to take you in, that may be ideal. If not, you’ll need to find temporary housing. Check out furnished apartments, vacation rentals and month-to-month leases. If space is an issue, consider putting some of your furniture and possessions in storage.

You may even find that a short-term rental arrangement can offer you an opportunity to get to know your new neighborhood better—and lead to a more informed decision about your upcoming purchase.

 

Tip #3: Embrace the idea of selling now and buying later.

Instead of stressing about timing your home sale and purchase perfectly, consider making a plan to focus on one at a time. Selling before you’re ready to buy your next home can offer a lot of advantages.

For one, you’ll have cash on hand from the sale of your current home. This will put you in a much better position when it comes to buying your next home. From budgeting to mortgage approval to submitting a competitive offer, cash is king. And by focusing on one step at a time, you can alleviate some of the pressure and uncertainty.

 

“WHAT IF I GET STUCK WITH TWO MORTGAGES AT THE SAME TIME?”

This is one of the most common concerns that we hear from buyers who are selling a home while shopping for a new one, and it’s realistic to expect at least some overlap in mortgages. To make sure you don’t get into a situation where you are carrying dual mortgages for longer than you can afford, examine your budget and calculate the maximum number of months you can afford to pay both.⁴

If you simply can’t afford to carry both mortgages at once, then selling before you buy may be your best option. (See Tip #3 above.) But if you have some flexibility in your budget, it is possible to manage both a home sale and purchase simultaneously. Here are some steps you can take to help streamline the process:

 Tip #4: As you get ready to sell, simplify.

You can condense your sales timeline if you only focus on the home renovations and tasks that matter most for selling your home quickly. For example, clean and declutter all of your common areas, refresh your outdoor paint and curb appeal, and fix any outstanding maintenance issues as quickly as possible.

But don’t drain unnecessary time and money into pricey renovations and major home projects that could quickly bog you down for an unpredictable amount of time. We can advise you on the repairs and upgrades that are worth your time and investment.

 

Tip #5: Prep your paperwork.

You’ll also save valuable time by filing as much paperwork as possible early in the process. For example, if you know you’ll need a mortgage to buy your next home, get pre-approved right away so that you can shorten the amount of time it takes to process your loan.

Similarly, set your home sale up for a fast and smooth transition by pulling together any relevant documentation about your current home, including appliance warranties, renovation permits, and repair records. That way, you’re ready to provide quick answers to buyers’ questions should they arise.

 

Tip #6: Ask us about other contingencies that can be included in your contracts.

Part of our job as agents is to negotiate on your behalf and help you win favorable terms. For example, it’s possible to add a contingency to your purchase offer that lets you cancel the contract if you haven’t sold your previous home.

This tactic could backfire, though, if you’re competing with other buyers. We can discuss the pros and cons of these types of tactics and what’s realistic given the current market dynamics.

 

 “WHAT IF I MESS UP MY TIMING OR BURN OUT FROM ALL THE STRESS?”

When you’re in the pressure cooker of a home sale or have been shopping for a home for a while in a competitive market, it’s easy to get carried away by stress and emotions. To make sure you’re in the right headspace for your homebuying and selling journey, take the time to slow down, breathe and delegate as much as possible. 

 Tip #7: Relax and accept that compromise is inevitable

Rather than worry about getting every detail right with your housing search and home sale, trust that things will work out eventually––even if it doesn’t look like your Plan A or even your Plan B or Plan C. Perfecting every detail with your home decor or timing your home sale perfectly isn’t necessary for a successful home sale and compromise will almost always be necessary. Luckily, if you’ve got a good team of professionals, you can relax knowing that others have your back and are monitoring the details behind the scenes.

 

Tip #8: Don’t worry too much if your path is straying from convention

Remember that rules-of-thumb and home-buying trends are just that: they are estimates, not facts. So if your home search or sale isn’t going exactly like your neighbor’s, it doesn’t mean that you are doomed to fail.

It’s possible, for example, that seasonality trends may affect sales in your neighborhood. So a delayed sale in the summer or fall could affect your journey––but not necessarily. According to the National Association of Realtors, the housing market tends to be more competitive during the summer and less competitive during the winter.⁵ But it’s not a hard and fast rule, and every real estate transaction is different. That’s why it’s important to talk to a local agent about your specific situation.

 

Tip #9: Enlist help early.

Which leads us to our final tip: If possible, call us early in the process. We’ll not only provide you with key guidance on what you should do ahead of time to prepare your current home for sale, we’ll also help you narrow down your list of must-haves and wants for your next one. That way, you’ll be prepared to act quickly and confidently when it’s time to list your house or make an offer on a new one.

It’s our job to guide you and advocate on your behalf. So don’t be afraid to lean on us throughout the process. We’re here to ease your burden and make your move as seamless and stress-free as possible.

 

BOTTOM LINE: COLLABORATE WITH A REAL ESTATE PROFESSIONAL TO GET TAILORED ADVICE THAT WORKS FOR YOU

Buying and selling a home at the same time is challenging. But it doesn’t have to be a nightmare, and it can even be fun. The key is to educate yourself about the market and prepare yourself for multiple scenarios. One of the best and easiest ways to do so is to partner with a knowledgeable and trustworthy agent.

A good agent will not only help you evaluate your situation, we will also provide you with honest and individually tailored advice that addresses your unique needs and challenges. Depending on your circumstances, now may be a great time to sell your home and buy a new one. But a thorough assessment may instead show you that you’re better off pausing your search for a while longer.

Contact us for a free consultation so that we can help you review your options and decide the best way forward.

 

 

Sources:

  1. Board of Governors of the Federal Reserve System, FEDS Notes – https://www.federalreserve.gov/econres/notes/feds-notes/housing-market-tightness-during-covid-19-increased-demand-or-reduced-supply-20210708.htm
  2. Federal Reserve Bank of St. Louis, FRED Economic Data – https://fred.stlouisfed.org/series/MSPUS
  3. com – https://www.realtor.com/advice/sell/what-is-a-rent-back-agreement/
  4. com – https://www.bankrate.com/real-estate/sell-your-house-while-buying-another/
  5. National Association of REALTORS – https://www.nar.realtor/blogs/economists-outlook/seasonality-in-the-housing-market

 

 

Quick Video Update of the Scottsdale Real Estate Market – August 2021

By

– August 2021 Scottsdale Housing Market Video –

Sales cooled off a little in August compared to July. However, pending sales saw a nice uptick by the end of the month.

Here is a one-minute video overview of the Scottsdale, Arizona real estate market that covers the month of August.

August 2021 – Video

Scottsdale Active Listings

Scottsdale homes for sale August 2021

Scottsdale and Greater Phoenix are still struggling with low inventory levels and it looks like we will be in this position for a while.

At the end of August, there were 582 homes on the market, which is 47% lower than where we were last August. Also, the number of homes for sale was down 13% from July.

Median List Price for Scottsdale Homes

Scottsdale homes median list price August 2021

This next section looks at the median list price of homes in Scottsdale. The median price is where half of the homes are priced higher and the other half are priced lower.

August’s median list price came in at $1.2M, which is just slightly higher than July’s $1.15M and August 2020’s $1.18M.

Days on Market

Scottsdale homes days on market August 2021

Want to get a sense of how hot (or not) a given market is? Simply take a look at the Days on Market (DOM.) The DOM is a quick and easy metric to use.

In June, July and August, the DOM came in at 35 days. This is significantly lower than the 84 days we saw last August.

Median Sales Price for Scottsdale Homes

Scottsdale homes median sales price August 2021

Now we will look at the median sale price of homes in Scottsdale in August. Similar to the median list price, half of the homes sold for a higher amount and the other half sold for a lower amount.

The median sale price was $860K. This is up slightly from July’s $853K and up sharply from August 2020’s $685K.

Number of Homes Sold

This last section looks at home sales on a year-over-year basis as well as a month-over-month basis.

Scottsdale Home Sales August 2020 versus 2021

Sales in August 2021 were down 10% from August 2020. I would guess this drop could be attributed to low inventory combined with higher home prices that may be keeping people out of the market.

Scottsdale home sales July and August 2021

We saw another decrease in sales activity between July and August. Sales were down by 7%.

We hope that you found this video and commentary helpful as you gather more information to make smart informed real estate decisions.

For more Scottsdale real estate information or if you have any questions about the local area, feel free to contact Joyce at (480) 209-7843 or Joyce@LiveBetterinScottsdale.com.

Click to watch other videos on our Live Better in Scottsdale YouTube Channel.

Interested in other stats for our market? Visit our Real Estate Market Update page.

Disclaimer: Data deemed to be accurate, but is not guaranteed.

5 Reasons Today’s Housing Market Is Anything but Normal

By


Scottsdale real estate market

There are many headlines out there that claim we’re reverting to a more normal real estate market. That would indicate the housing market is returning to the pre-pandemic numbers we saw from 2015-2019. But that’s not happening. The market is still extremely vibrant as demand is still strong even while housing supply is slowly returning.

While we have seen a bit of a slowdown of frenzied activity in Scottsdale, more affordable homes and homes in great condition are still selling very rapidly with multiple offers. 

Here’s the definition of normal from the Merriam-Webster Dictionary:

“conforming to a type, standard, or regular pattern: characterized by that which is considered usual, typical, or routine.”

Using this definition, here are five housing industry metrics that prove we’re nowhere near normal.

1. Mortgage Rates

If we look at the 30-year mortgage rate chronicled by Freddie Mac, we can see the average rates by decade:

  • 1970s: 8.86%
  • 1980s: 12.7%
  • 1990s: 8.12%
  • 2000s: 6.29%
  • 2010s: 4.09%

Today, the average mortgage rate stands at 2.87%, which is very close to the historic low.



2. Home Price Appreciation

According to Black Knight, a housing data and analytics company, the average annual appreciation on residential real estate prices since 1995 has been 4.14%.

According to the latest forecast from the National Association of Realtors (NAR), home price appreciation will hit 14.1% this year, which will be greater than any year since Black Knight began collecting this data.

In Scottsdale, if you compare the median price of homes sold in August 2020 and August 2021, the median sales price is up by 25%.

 

3. Months’ Supply of Inventory (Homes for Sale)

According to NAR:

“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly.”

As of the latest Existing Homes Sales Report from NAR, the current months’ supply of inventory stands at 2.6. That’s less than half of a normal supply. In Scottsdale in August 2021, there was one month of inventory available. 

 

4. Days It Takes To Sell a Home

The days-on-market metric gives an indication of how hot a market is and how quickly homes are selling. In 2019, prior to the pandemic, the average days on market stood at 35, according to NAR. Today, that number is cut in half and is now at 17 days. Scottsdale’s days on market in August was 25 days, down from 68 in August of 2020.

 

5. Number of Offers per Listing

According to NAR, the number of offers per listing stood at 2.2 in 2019. Today, that number is double at 4.5.

 

Bottom Line

When…

  1. Mortgage rates are near historic lows
  2. Price appreciation is at historic highs
  3. Housing inventory is less than half of the normal amount
  4. The time it takes to sell a home is cut in half, and
  5. There are twice as many offers on each house

…it’s hard to say we’re in a normal market.

Scottsdale AZ Single Family Home Sales – August 2021

By

-August 2021 Scottsdale Homes for Sale and Home Sales –

While home sales fell to the lowest level we have seen in the past year, pending sales saw a decent uptick in August and UCBs held their course.

SCOTTSDALE HOME SALES ACTIVITY – AUGUST 2021

When we pull our monthly reports, we look at the following four items:

– Single-family homes for sale – Orange Line – The number of homes for sale at the end of the month.
– Under contract, but accepting backup offers (UCB) – Gray Line – The number of homes in UCB status at the end of the month.*
– Pending home sales – Yellow Line – The number of homes in pending status at the end of the month.*
– Home Sales – Blue Line – The number of homes sold during the month.

AUGUST 2021 RESULTS

Scottsdale home sales August 2021
  • Scottsdale Homes for Sale: The number of homes on the market declined between July and August. The demand for more homes for sale is evident in the under $1 million price point where sales to listings in August was over 135%.
  • UCB (Under contract, accepting backup offers): The number of UCB contracts was more or less level with the previous month.
  • Pending Homes Sales in Scottsdale: Pending sales jumped 12.7% between July and August. This is a positive indicator for September sales figures.
  • Scottsdale Home Sales: Sales fell to the lowest level we have seen in the past year. I would attribute this to some seasonality as well as low inventory and higher prices.

Below are two more items we track monthly:

Scottsdale housing market August 2021

Percent Change Month Over Month – Here we look at each of the sales metrics and compare the current month’s performance with the previous month’s. For example, home sales were down 9.2% between July and August.

Sales Price to List Price – This shows you how much homes are selling for on average compared to the average list price. In August, it was 98.7%, so buyers on average saw a discount of 1.3% off on asking prices.


*Figures for active homes for sale, UCB sales and pending sales are based on the numbers at the end of the month.

Curious about your buying power? Click on the link to learn more.

Search Scottsdale AZ Homes for Sale

Here is a sampling of some of the homes on the market, or click the link above to see all of the homes for sale.

Disclaimer: Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 9/1/2021. Information deemed reliable, but not guaranteed. There may be new home inventory in these figures if the developer is using the MLS to market its homes. This post represents the opinion of the author. No warranties express or implied.
Copyright © 2021 Heather Tawes Nelson | Joyce Tawes

What Buyers and Sellers Need To Know About the Appraisal Gap

By

Scottsdale Home

It’s economy 101 – when supply is low and demand is high, prices naturally rise. That’s what’s happening in today’s housing market. Home prices are appreciating at near-historic rates, and that’s creating some challenges when it comes to home appraisals.

In recent months, it’s become increasingly common for an appraisal to come in below the contract price on the house. Shawn Telford, Chief Appraiser for CoreLogic, explains it like this:

“Recently, we observed buyers paying prices above listing price and higher than the market data available to appraisers can support. This difference is known as ‘the appraisal gap . . . .’”

Why does an appraisal gap happen?

Basically, with the heightened buyer demand, purchasers are often willing to pay over the asking price to secure the home of their dreams. If you’ve ever toured a house you’ve fallen in love with, you understand. Once you start to picture yourself and your furniture in the rooms, you want to do everything you can to land the property, including putting in a high offer to try to beat out other would-be buyers.

When the appraiser comes in, they look at things a bit more objectively. Their job is to assess the inherent value of the home, so they’re going to study the facts. Dustin Harris, Appraiser Coach, drives this point home:

“It’s important for everyone to understand that the appraiser’s job in the end is to remain that unbiased third party, to truly tell the client what that home is worth in the current market, regardless of what decisions have been made on the price side of things.”

In simple terms, while homebuyers may be willing to pay more, appraisers are there to assess the market value of the home. Their goal is to make sure the lender isn’t loaning more money than the home is worth. It’s objective, rather than emotional.

In a highly competitive market like today’s, having a discrepancy between the two numbers isn’t unusual. Here’s a look at the increasing rate of appraisal gaps, according to data from CoreLogic (see graph below):What Buyers and Sellers Need To Know About the Appraisal Gap | MyKCM

What does this mean for you?

Ultimately, knowledge is power. The best thing you can do is understand appraisal gaps may impact your transaction if you’re buying or selling. If you do encounter an appraisal below your contract price, know that in today’s sellers’ market, the most common approach is for the seller to ask the buyer to make up the difference in price. Buyers, be prepared to bring extra money to the table if you really want the home.

Above all else, lean on your real estate agent. Whether you’re a buyer or seller, your trusted advisor is your ally if you come up against an appraisal gap. We’ll help you understand your options and handle any additional negotiations that need to happen.

Bottom Line

In today’s real estate market, it’s important to stay informed on the latest trends. Let’s connect so you have an ally to help you navigate an appraisal gap to get the best possible outcome.

Malcare WordPress Security