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Things to Do in Scottsdale – September 2018

August 28, 2018 By Heather Tawes Nelson

– Scottsdale Events September 2018 –

It is time again to look forward and see what fun events are going on in and around Scottsdale in September.

Desert Ridge Live Music and Movies – Weekends in September- Desert Ridge is a great destination for entertainment in September. Multiple musical acts of all genres will be playing on the weekends and free movies kick off on September 13th. And, you can always drop in for a little bocce ball anytime at the bocce ball court.
Labor Day Luau at the OdySea Aquarium – All Labor Day weekend long, enjoy the luau at OdySea. Events to include a penguin parade (!), beach party bingo and Princess Moana will be making a visit.
Children’s Learning and Play Festival – September 8th – This all-day event will be taking place at WestWorld. Dinosaurs, wildlife, live music and play zones will be sure to delight the little ones.
Fall Concert Series at Scottsdale Quarter – Saturdays September 8th – October 27th – This free concert series will be serving up all kinds of musical styles weekly in the Quad. The season kicks off with Rock Lobster, who will be covering all sorts of 1980’s hits.
Junk in the Trunk Vintage Market – September 14th- 16th – This incredibly popular thrift market is back at WestWorld. Outfit your home or yourself with vintage finds from all over.
Fall Arizona Restaurant Week – September 19th – 30th – Head to your favorite places or find a new favorite restaurant during restaurant week. Set menus are offered for great prices all over the Valley.
Brazilian Day Arizona Festival – September 22nd – Celebrate all things Brazil at the Scottsdale Center for the Performing Arts. Experience Brazilian music, dance, food, capoeira and more.
Firebird Music Festival – September 23rd – Come see top names in R&B, Soul and Jazz at WestWorld. Headliners include Jeffrey Osbourne and Earl Klugh featuring Bob James.
Butterfly Exhibit at Desert Botanical Garden – September 29th – November 18th – The butterflies will be returning to DBG at the end of the month. Walk into the butterfly pavilion to view gorgeous butterflies of all colors and sizes.

As always, this is just a partial list. Feel free to add any new local events in the comment section.

What Will A Million Dollars Buy In and Around Scottsdale?

August 25, 2018 By Heather Tawes Nelson

– Million Dollar Homes in and Around Scottsdale –

It is always fun to see what kind of home a million dollars can buy in various places.

Today, we thought it would be interesting to homes for sale in the million dollar price range around the Valley. I selected the following cities and towns:

Scottsdale
Paradise Valley
Cave Creek
Carefree
Phoenix

This price point is a little more common in the larger cities like Scottsdale and Phoenix, so you will see more offerings in these locations.

Million Dollar Homes in Scottsdale

Here, you will see a variety of homes. Many of these are located in North Scottsdale as well as the Shea corridor.

Million Dollar Homes in Paradise Valley

Paradise Valley has some of the most expensive real estate in the Valley. In fact, the average price of homes currently on the market is in excess of $2 million. So, it is pretty rare to see homes in the million dollar price point.

Million Dollar Homes in Cave Creek

Cave Creek also has a selection of million dollar homes. Here you will see a variety of home styles, typically on larger lots.

Million Dollar Homes in Carefree

Because it is a smaller community, Carefree does not typically have a lot of homes for sale compared to these other cities and towns. However, there are a few that fall into the million dollar category.

Million Dollar Homes in Phoenix

Phoenix is a very large city so it too has a good number of offerings in the million dollar range. These tend to be close to the Biltmore neighborhood and further south into Ahwatukee.

So, which community had the million dollar homes that you liked the most?

Want to learn more about homes in these communities at all price points?
We are happy to help.
Simply contact us!

Scottsdale AZ Luxury Home Market – July 2018

August 21, 2018 By Heather Tawes Nelson

– Scottsdale AZ Luxury Home Market Performance for July 2018 –

As we move farther into the year, the seasonal slowdown of the real estate market has started to appear.

In this report, we are taking a look at the luxury home market in Scottsdale. All of these homes were on the market for $1 million or more.

Each month, we track four sales statuses:
Active – How many homes were for sale at the end of the month.
UCB (Under Contract Accepting Backup Offers) – How many homes were under contract, but still accepting backup offers at the end of the month.
Pending – How many pending sales there were at the end of the month.
Sold – The number of home sales for that month.

– JULY 2018 –

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

– Active Scottsdale Homes on the Market: Inventory fell almost 16% to 218 at the end of July. This is well below the 12 month average of 294.
– UCB Scottsdale Home Sales: The number of UBC’s also fell 16% to end the month at 26.
– Pending Scottsdale Home Sales: Pending sales jumped in July to 37. This is strong activity and is higher than the 12 month average.
– Scottsdale Homes Sold: Forty-four homes sold in July, a sharp drop from June’s 64. However, this is almost on par with the 12 month average.
– Sales Price to Listed Price: 94.3% – On average, buyers saw a discount off of list price of 5.7%

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

– Active Scottsdale Homes on the Market: The number of homes for sale was down to 183 at the end of the month.
– UCB Scottsdale Home Sales: UCB homes fell to the second lowest level in the past year.
– Pending Scottsdale Home Sales: Pending sales were almost level and closed out July just ahead of the 12 month average.
– Scottsdale Homes Sold: Sixteen homes sold, which is still a very solid performance.
– Sales Price to Listed Price: 94.9% – On average, buyers saw a discount off of list price of 5.1%.

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

– Active Scottsdale Homes on the Market: Inventory was down almost 14% for this price segment.
– UCB Scottsdale Home Sales: UCB’s came in with a very strong performance. There were 11 at the end of the month, the first time this has been in the double digits in the past year.
– Pending Scottsdale Home Sales: Pending sales were down slightly from June, but still on par with the 12 month average.
– Scottsdale Homes Sold: Ten homes sold in July, a solid performance.
– Sales Price to Listed Price: 91.5% – On average, buyers saw a discount off of list price of 8.5%.

Scottsdale Homes Priced $3,000,000+

– Active Scottsdale Homes on the Market: Inventory dropped under 100 for the first time in a year.
– UCB Scottsdale Home Sales: UCB homes closed out July at three.
– Pending Scottsdale Home Sales: Pending sales were up by one over June, closing out the month at four.
– Scottsdale Homes Sold: After several strong months, sales fell quite a bit to two. This is well below the 12 month average.
– Sales Price to Listed Price: 86.1% – On average, buyers saw a discount off of list price of 13.9%.

July saw things quiet down in terms of invenrtory and sales activity. However, we did see some pending and upcoming activity increase in two price segments. I anticipate September to be someone quiet again though.

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 8/1/2018 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 ©2018 Heather Tawes Nelson | Joyce Tawes

This Made Us Laugh – A Little Scottsdale Humor

August 17, 2018 By Heather Tawes Nelson

– Scottsdale Saguaro Humor –

If you have ever driven up the Scottsdale scenic corridor in North Scottsdale, you have likely seen the markers that indicate what type of plant or tree you are seeing. These markers are a wonderful way to familiarize yourself with the local desert plants.

As we were coming down Scottsdale Road the other day, a sign caught my eye, I did a double take and laughed out loud. I am guessing the folks at Mac Donald’s Ranch were the ones who did this and it is great.

At first glance, it does not look like much…

But if you look a little closer…

Now I am sorry about the demise of the saguaro, but this addition to the sign was pretty clever.

Want to see it in person? If you are going southbound on Scottsdale Road, it is just south of Jomax on your right, near the entrance to Mac Donald’s Ranch.

Want to know more about the Scottsdale desert? Here are some previous posts that look at life in the Sonoran Desert:

What is a Javelina? Followed quickly by, “What the Heck Happened to My Plants?“
What is a Crested Saguaro?
What is Desert Landscaping?
Mexican Bird of Paradise
Saguaros in Bloom
Phoenix’s Desert Botanical Garden
The Southwest Wildlife Conservation Center

Want to know more about the desert lifestyle in Scottsdale? We are happy to help – Simply get in touch!

Phoenix and Scottsdale AZ Luxury Condo Sales – July 2018

August 15, 2018 By Heather Tawes Nelson

– Luxury Condo Sales in Scottsdale and Phoenix – July 2018 –

Here are July’s numbers for the Scottsdale and Phoenix luxury condo market. All of these homes have asking prices of $1 million or above.

Sales activity tapered off in July, which is due to seasonality.

ACTIVE LISTINGS AT THE END OF JULY

Inventory was up slightly at the end of July to 48 units for sale. Thirty-two were in Scottsdale and sixteen were in Phoenix.

The most expensive condo on the market was a carryover from June. It was an expansive unit at the Plaza Lofts at Kierland. It had 4,059 square feet, three bedrooms and three and one-half bathrooms. The asking price was $2,999,000.

The lowest priced condo for sale was located in the Residences at 2211 Camelback in Phoenix. Listed for $1,095,000, the unit had two bedrooms, three bathrooms and 2,875 square feet.

UCB* LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There was a single home in UCB status when July closed out. It was a carryover from June.

Scottsdale Waterfront Residences: This penthouse was the most expensive unit on the market for a couple of months and then went under contract last month. Three bedrooms, three and one-half bathrooms, 3,940 square feet. Listed for $3,495,000.

*UCB status means a condo has an accepted contract, but that the seller has requested that they accept backup offers. Most times you will see this status when the contract is in the inspection/due diligence period.

PENDING LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There were seven pending sales at the end of the month and all of them were in Scottsdale.

With the exception of one home, all of these units are in communities under development and will stay in this status for a while.

Pending Condos in Scottsdale:

Plaza Lofts at Kierland: Two bedrooms, two and one-half bathrooms, 2,054 square feet. Listed for $1,200,000.
Optima Kierland:
- Three bedrooms, three bathrooms, 1,709 square feet. Listed for $1,075,000.
- Two bedrooms, two and one-half bathrooms, 1,950 square feet. Listed for $1,070,000.
Main Street Place: Two bedrooms, two and one-half bathrooms, 2,419 square feet. Listed for $1,450,000.
ICON at Silverleaf:
- Three bedrooms, three and one-half bathrooms, 3,170 square feet. Listed for $2,174,000.
- Three bedrooms, three bathrooms, 3,170 square feet. Listed for $2,074,000.
- Three bedrooms, three bathrooms, 3,170 square feet. Listed for $2,074,000.

LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There was a single sale of a luxury condo in July and it took place in Phoenix.

Esplanade Place: Two bedrooms, three bathrooms, 3,000 square feet. It had been listed for $1,324,000 and sold for $1,300,000.

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 8/1/2018 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 © 2018 Heather Tawes Nelson | Joyce Tawes

Quick Video Update of the Scottsdale Real Estate Market – July 2018

August 11, 2018 By Heather Tawes Nelson

– July 2018 Scottsdale Housing Market Video –

July 2018 – Video

Here is a one-minute video overview of the Scottsdale, Arizona real estate market for the month of July.

Scottsdale Active Listings

We will begin with the inventory of homes for sale in Scottsdale during July.

This first image compares homes for sale at the end of July 2018 versus July 2017. The number of homes for sale was down over 20% between the two years.

Here is a look at inventory comparing end of June and end of July 2018.

There was a 12% decrease in inventory between the two months, with July ending with about 1,500 homes for sale.

Median List Price for Scottsdale Homes

The median list price is the exact midpoint of prices of homes for sale. Exactly half of the homes will be priced above the median and the other half will be priced below the median.

In Scottsdale, the median list price for homes in July was just under $890K.

Days on Market

Days on Market (also shown as DOM) is an indicator of how a market is performing. A high DOM means it is taking longer for things to sell – perhaps the market is slow, or you have a segment of the market without a large number of buyers, like the high-end market.

Scottsdale’s July DOM was 93. This is 15% lower than the same time last year.

Median Sales Price for Scottsdale Homes

Now we will take a look at the median sale price of homes in Scottsdale in July.

The median sale price was $560K. This is higher than July 2017’s $529K, but quite a bit below June’s $606K.

Number of Homes Sold

The final section of this report is home sales.

This first one is Scottsdale homes sales in July 2018 compared to July 2017.

Sales were up an impressive 14%.

This next one is June versus July 2018. Sales were down 15%.

This drop in sales is not surprising as we had a fantastic sales month in June and July tends to be slower due to seasonality.

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

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

Renters for a Weekend or a While: What’s the Best Use of Your Investment Property?

August 9, 2018 By Heather Tawes Nelson

Which is Better for Your Home? Short Term or Long Term Rentals? –

The residential rental market is now the fastest-growing segment of the housing market. In the United States, the demand for single-family rentals, defined as either detached homes or Htownhouses, has risen 30 percent in the past three years.¹

At the same time, the short-term, or vacation, rental market is also booming. The popularity of online marketplaces like Airbnb, HomeAway, and VRBO has helped the short-term rental market become one of the fastest-growing segments in the travel industry.²

In the Scottsdale/Phoenix area, the market for rentals is red hot. The demand is there for both long-term tenants as well as folks looking for a winter retreat during the high season where you can get premium rental rates.

Now, more than ever, there is an abundance of opportunity for real estate investors. But which path is best: leasing your property to a long-term tenant or renting your property to travelers on a short-term basis?

In this post, we examine the differences between the two investment strategies and the benefits and limitations of each category.

WHY INVEST IN A RENTAL PROPERTY? The Top 5 Reasons

Before we delve into the differences between long-term and short-term rentals, let’s answer the question: “Why invest in a rental property at all?”

Here are five key reasons investors choose real estate over other investment vehicles:

1. Appreciation

Appreciation is the increase in your property’s value over time. And history has proven that over an extended period, the value of real estate continues to rise. Recessions may still occur, but in the vast majority of markets, the value of real estate does grow over the long term.

2. Cash Flow

One of the key benefits of investing in real estate is the ability to generate steady cash flow. Rental income can be used to pay the mortgage and taxes on your investment property, as well as regular maintenance and repairs. If appropriately priced in a solid rental market, there may even be a little extra cash each month to help with your living expenses or to grow your savings.

Even if you only take in enough rent to cover your expenses, a rental property purchase will pay for itself over time. As you pay down the mortgage every month with your rental income, your equity will continue to increase until you own the property free and clear … leaving you with residual cash flow for years to come.

3. Hedge Against Inflation

Inflation is the rate at which the general cost of goods and services rises. That means as inflation rises, the money you have sitting in a savings account will buy less tomorrow than it will today. On the other hand, the price of real estate typically matches (or often exceeds) the rate of inflation. To hedge or guard yourself against inflation, real estate can be a smart investment choice.

4. Leverage

Leverage is the use of borrowed capital to increase the potential return of an investment. You can put a relatively small amount down on a property, finance the rest of the investment with a mortgage, and then profit on the entire combined value.

5. Tax Benefits

Don’t overlook the tax benefits that can come with a real estate investment, as well. From deductions to depreciation to exemptions, there are many ways a real estate investment can save you money on taxes. Consult a tax professional to discuss your particular circumstances.

These are just a few of the many perks of investing in real estate. (For more detailed information, visit our previous post: Why Real Estate Investing Makes (Dollars and) Sense.) But what’s the best strategy to maximize returns on your investment property? In the next section, we explore the differences between long-term and short-term rentals.

LONG-TERM (TRADITIONAL) RENTAL MARKET

When most people think of owning a rental property, they imagine buying a home and renting it out to tenants to use as their primary residence. Traditionally, investors would use their rental property to generate an additional stream of income while benefiting from the property’s long-term appreciation in value.

In fact, that steady and predictable monthly cash flow is one of the key advantages of owning a long-term rental. And as an owner, you don’t usually have to worry about paying the utility bills or furnishing the property—both of which are typically covered by the tenant. Add to this the fact that traditional tenants translate into less time and effort spent on day-to-day property management, and long-term rentals are an attractive option for many investors.

However, there are also limitations to long-term rentals, which often come down to your ability to control the property. Perhaps the most obvious one is that you do not get to use the home or closely monitor its upkeep (this is different from a short-term rental, which we’ll share in the next section).

In addition, while you can usually generate a steady, predictable income stream with a long-term rental, you are limited in your ability to adjust rent prices based on increasing or seasonal demand. Therefore, you may end up with a lower overall return on your investment. In fact, according to data from Mashvisor, in the 10 hottest real estate markets, short-term rentals produced “significantly higher rental income” than long-term rentals.³

SHORT-TERM (VACATION) RENTAL MARKET

Short-term rentals are often referred to as vacation rentals, as more and more travelers enjoy the benefits of staying in a home while on vacation. In fact, according to Wells Fargo, vacation rentals are steadily growing and predicted to account for 21% of the worldwide accommodations market by 2020.⁴

In the Scottsdale/Phoenix market, we see demand for both very short-term rentals (vacations to the area and so on) as well as seasonal rentals, where people rent for 3-4 months during the high season.

Investing in a short-term rental or funding your second-home purchase by renting it out can offer many benefits. If you purchase an investment property in a top travel destination or vacation spots like Scottsdale and Greater Phoenix, you can expect steady demand from travelers while taking advantage of any non-rented periods to enjoy the home yourself. In addition to greater control over how your property is used, you can also adjust your rental price around peak travel demand to maximize your returns.

But short-term rentals also have risks and drawbacks that may dissuade some investors. They require greater day-to-day property management, and owners are typically responsible for furnishing the property, upkeep, and utilities.

And while rental revenue can be higher, it can also be less predictable based on seasonal or consumer travel trends. For example, a lack of snowfall during ski season could mean fewer bookings and lower rental revenue that year.

In addition, laws and limitations on short-term rentals can vary by region. For instance, many HOA’s (homeowner associations) have restrictions in place for minimum rental lengths, most commonly 30 days or 3 months. If you are trying to target the VRBO/Airbnb/HomeAway travelers, you need to be sure your community does not have a restriction like this in place.

And in some areas, the regulations are in flux as residents and government officials adapt to a new surge in short-term rentals. So make sure you understand any existing or proposed restrictions on rentals in the area where you want to invest.

Urban centers or suburban communities may be more resistant to short-term renters, thus more likely to pass future limitations on use. To lower your risk, you may want to consider properties in resort communities that are accustomed to travelers. We can help you assess the current regulations on short-term rentals in our area. Or if you’re interested in investing in another market, we can refer you to a local agent who can help.

WHICH INVESTMENT STRATEGY IS RIGHT FOR YOU?

Now that you understand these two real estate investment options, how do you pick the right one for you? It’s helpful to start by clarifying your investment goals.

If your goal is to generate steady, predictable income with less time and effort spent on property management, then a long-term rental may be your best option. Also, if you prefer a less-risky investment with more reliable (but possibly lower) returns, then you may be more comfortable with a long-term rental.

On the other hand, if your goal is to purchase a vacation or second home that you’ll use, and you want to defray some (or all) of the expense, then a short-term rental may be a good option for you. Similarly, if you’re open to taking on more risk and revenue volatility for the possibility of greater investment returns, then a short-term rental may better suit your spirit as an investor.

But sometimes the decision isn’t always so clear-cut. If your goal is to purchase a future retirement home now to hedge against inflation, rising real estate prices, and interest rates, then both long- and short-term rentals could be suitable options. In this case, you’ll want to consider other factors like location, market demand, property type, and your risk tolerance.

HERE OR ELSEWHERE … WE CAN HELP

If you’re looking to make a real estate investment—whether it’s a primary residence, investment property, vacation home, or future retirement home—give us a call. We’ll help you determine the best course of action and share insights and resources to help you make an informed decision. And if your plans include buying outside of our area, we can refer you to a local agent who can help. Contact us to schedule a free consultation or to request our 70+ page Scottsdale Vacation Home and Relocation Guide!

Disclaimer: The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.

Photo by StockSnap

Sources:

Scottsdale AZ Single Family Home Sales – July 2018

August 4, 2018 By Heather Tawes Nelson

– July 2018 Scottsdale Homes for Sale and Home Sales –

Here are the numbers for the Scottsdale real estate market for July. As anticipated, things are tapering off due to the low season. However, we are still seeing strong demand.

SCOTTSDALE HOME SALES ACTIVITY – JULY 2018

We are tracking four different items on a monthly basis:

– Single-family homes for sale – The number of homes on the market at the end of the month is depicted by the orange line.*
– Under contract, but accepting backup offers (UCB) – The number of homes in UCB status at the end of the month is depicted by the grey line.*
– Pending home sales –The number of homes in pending status at the end of the month is depicted by the yellow line.*
– Home Sales – The number of homes that sold that month.

JULY 2018 RESULTS

Scottsdale Homes for Sale: Inventory dropped again as sellers took their homes off of the market and sales were solid. July closed with less than 1,500 homes for sale, the lowest it has been in the past year.
UCB (Under contract, accepting backup offers): The number of homes in UCB status fell almost 16% between June and July.
Pending Homes Sales in Scottsdale: Whereas UCB homes were down in July, pending homes were actually up slightly over June, closing out the month at 286.
Scottsdale Home Sales: Home sales fell back under the 500 mark in July to 464. This is still the fifth-best sales month in the past year.

This next section contains two more things we track on a monthly basis.

The first section is how things are changing on a month-over-month basis. So if you look at the sold data, you can see that sales were down 15.9% in July compared with June.

The second section is a quick look to see how home prices and actual sales prices are faring. Called sales price to list price, it tracks how much homes are selling for relative to their asking prices. In July, homes on average sold for 96.2% of list price. Looking at it another way, buyers on average purchased homes at a 3.8% discount.

July was a transition month for Scottsdale home sales. Inventory and sales activity tapered off and will likely to continue to do so for the next few months.

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

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 8/1/2018. 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 © 2018 Heather Tawes Nelson | Joyce Tawes