Scottsdale Real Estate Market

Housing Supply Is Rising. What Does That Mean for You?

July 20, 2021 By Heather Tawes Nelson

An important factor in today’s market is the number of homes for sale. While inventory levels continue to sit near historic lows, there are indications we may have hit the lowest point we’ll see. Odeta Kushi, Deputy Chief Economist at First American, recently said of our supply challenges:

“It looks like inventory may have hit a bottom (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4.”

To put it into perspective, the graph below shows levels of inventory rising since the beginning of the year:The Scottsdale real estate market is seeing inventory creep up a little bit each month, but we are still well below regular inventory levels. However, seeing the number of homes for sale increase is great for Scottsdale buyers who have been sujected to multiple offers and bidding wars.

We’re still not close to a balanced market, which would be a 6 months’ supply of homes for sale. However, we are seeing a slow but steady increase in homes coming up for sale. And that leaves many buyers and sellers wondering the same thing: what does that mean for me?

Buyers: More Options Are Arriving, so It’s Time To Act

If you’re a buyer, more inventory coming to market is a welcome sight. More supply means more options and less competition, which could mean fewer bidding wars.

According to the latest Monthly Housing Market Trends Report, supply levels are continuing to increase, which is different from the typical summer market:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”

This is especially true with the Scottsdale real estate market. We typically see inventory drop during the warm summer months as home sellers take their homes off of the market. But since there are so few homes for sale right now, sellers have opted to list during the summer.

If you’re having trouble finding your next home, this increase in inventory should give you the hope and motivation to keep your buying process moving forward. Experts project mortgage rates will begin increasing, which will make purchasing a home less affordable as time passes. You can still capitalize on today’s low interest rates, so stick with your search as more homes come to market.

Sellers: Our Supply Challenges Aren’t Over Yet, so Now Is the Time To Sell

If you’ve been putting off selling your house, you shouldn’t wait much longer. The year’s month-over-month gains in homes for sale have helped buyers, but we’re still very much in a sellers’ market.

As the graph below shows, even with the number of homes for sale rising, we’re still well below the supply levels we’ve seen historically:Of course, more homes are coming to market now, and more are expected in the coming months. Selling your house this summer gives you the chance to get ahead of the competition and maximize your sales potential before more homes are put up for sale in your neighborhood.

Bottom Line

More homes for sale means more options for buyers and more competition for sellers. Whether you’re looking to buy or sell, let’s connect today to discuss your options and why it’s still a good time to make your move

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

July 16, 2021 By Heather Tawes Nelson

– June 2021 Scottsdale Housing Market Video –

June was another good month for home sales for Scottsdale, even though there were so few homes for sale.

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

June 2021 – Video

Scottsdale Active Listings

Inventory is still well below where we were at this time last year and homes are still selling quickly.

June ended with 573 homes on the market, 110% lower than last year. However, inventory was up 6% between May and June. This is good news for the many homebuyers out there who have been frustrated with the small number of homes for sale.

Median List Price for Scottsdale Homes

Scottsdale homes median list price June 2021

The median list price is the exact midpoint price of all of the homes on the market. One half of the homes are priced higher and one half are priced lower.

Junes’s median list price was $1.38 million. This is down from May 2021’s $1.4 million, but up quite a bit from last June’s $1.1 million.

Days on Market

Days on Market (also called DOM) is a quick way to test the “heat” of a market. When you see a high DOM, that indicates that homes are taking a while to sell. A low DOM indicates that homes are selling at a more rapid pace.

Scottsdale’s Days on Market was 35 days, down 2 days compared to April and May which both came in at 37 days. Last year, the DOM was 78, which represents a drop of 55%.

Median Sales Price for Scottsdale Homes

Scottsdale homes median sales price June 2021

This section covers the median sales price, as opposed to the list price.

June’s median sale price in Scottsdale was $876K. Although this is a drop from May 2021’s $919K, it was significantly higher than June 2020’s $635K.

Number of Homes Sold

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

Scottsdale Home Sales June 2020 versus 2021

600 homes sold in June, which is a very strong performance. It closed 15% higher than May 2020. May 2020 is when we saw the real estate market returning and 520 homes were sold.

Comparing month-over-month sales performance, sales were down by 5%. I think this decrease may be a combination of Iow inventory and higher prices combined with a little 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.

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

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

Scottsdale AZ Single Family Home Sales – June 2021

July 12, 2021 By Heather Tawes Nelson

-June 2021 Scottsdale Homes for Sale and Home Sales –

Even though the Scottsdale real estate market is quite hot, we are starting to see sales activity taper off a little bit. This could be due to higher competition and higher home prices and/or some seasonality creeping in. Typically, sales start to slow down during the summer months.

SCOTTSDALE HOME SALES ACTIVITY – JUNE 2021

Each month, we pull the information on the following four items:

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

JUNE 2021 RESULTS

Scottsdale Homes for Sale: The number of homes for sale crossed the 500 threshold for the first time since December 2020. This is good news for home buyers, but we are still in dire need of additional inventory.
UCB (Under contract, accepting backup offers): The number of UCB contracts fell to its lowest level in the past year. Some of this is due to low inventory and some is due to buyers pulling back.
Pending Homes Sales in Scottsdale: Pending sales fell about 11% between May and June. However, this was still a solid performance.
Scottsdale Home Sales: Home sales fell just under the 600 mark after three exceptional months. I do think the lack of inventory is a partial factor in this.

Below are two more things we track on a monthly basis:

Percent Change Month Over Month – This compares the current month’s performance with the previous month’s performance. As you can see the number of active homes for sale were up 6.9% at the end of June compared to the end of May.

Sales Price to List Price – This compares actual sales prices with what the homes had been listed for. In June, Scottsdale came in at 99.8% of asking prices. However, when you drill down for June, on average, homes with list prices up to $2,000,000 sold for over asking!

*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 7/1/2021. 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

5 Things Homebuyers Need To Know When Making an Offer

July 9, 2021 By Heather Tawes Nelson

When it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren’t that many homes available to purchase. With inventory hovering near record lows and sky-high buyer demand, a multi-offer scenario is the new normal. Here are five things to keep in mind when you’re ready to make an offer.

1. Know Your Numbers

Having a complete understanding of your budget and how much house you can afford is essential. That’s why you should connect with a lender to get pre-approved for a loan early in the homebuying process. Taking this step shows sellers you’re a serious, qualified buyer and can give you a competitive edge in a bidding war.

2. Brace for a Fast Pace

Today’s market is dynamic and fast-paced. According to the Realtors Confidence Index from the National Association of Realtors (NAR), the average home is on the market for just 17 days – that means from start to finish, a house for sale in today’s climate is active for roughly 2.5 weeks. A skilled agent will do everything they can to help you stay on top of every possible opportunity. And, as soon as you find the right home for your needs, that agent will help you draft and submit your best offer as quickly as possible.

3. Lean on a Real Estate Professional

While homebuying may seem like a whirlwind process to you, local real estate agents do this every day, and we know what works. That expertise can be used to give you a significant leg up on your competition. An agent can help you consider what levers you can pull that might be enticing to a seller, like:

Offering flexible rent-back options to give the seller more time to move out
Your ability to do a quick close or make an offer that’s not contingent on the sale of your current home

It may seem simple, but catering to what a seller may need can help your offer stand out.

4. Make a Strong, but Fair Offer

Let’s face it – we all love a good deal. In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case. According to Lawrence Yun, Chief Economist at NAR:

“For every listing there are 5.1 offers. Half of the homes are being sold above list price.”

In such a competitive market, emotions and prices can run high. Scottsdale and the surrounding areas are no exception. We are seeing multiple offers and sales prices that exceed the asking price. Use an agent as your trusted advisor to make a strong, but fair offer based on market value, recent sales, and demand.

5. Be a Flexible Negotiator

If you followed tip #3, you drafted the offer with the seller’s needs in mind. That said, the seller may still counter with their own changes. Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember, there are certain contingencies you don’t want to forego. Freddie Mac explains:

“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”