Scottsdale AZ Real Estate & Lifestyle

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Scottsdale Real Estate Market

Scottsdale AZ Single Family Home Sales – April 2021

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-April 2021 Scottsdale Homes for Sale and Home Sales –

Even though home sales were through the roof again in April, we started to see the effect of the severely low inventory on UCB contracts and pending sales. The good news is the number of homes for sale was up a little bit by the end of the month.

SCOTTSDALE HOME SALES ACTIVITY – APRIL 2021

Every month, we take a look a the four following items:

– Single-family homes for sale – Orange Line – The number of homes actively for sale at the end of the month.
– Under contract, but accepting backup offers (UCB) – Gray Line – The number of homes showing as 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 contracts that closed that month.

APRIL 2021 RESULTS

  • Scottsdale Homes for Sale: Inventory is dismally low, although we did see a nice 15% uptick between the end of March and April. As I mentioned last month, multiple offers are more or less the norm now, even in the $1 million and above price points.
  • UCB (Under contract, accepting backup offers): UCB contracts fell almost 6% compared to March. I believe this is due to so few homes for sale as the pent-up demand remains incredibly strong.
  • Pending Homes Sales in Scottsdale: Pending sales also fell in April, but only by about 2%. Again, this drop in pendings can tied to our low inventory.
  • Scottsdale Home Sales: April logged the second-highest sales month Scottsdale has seen with 642 sales. If you compare the number of sales to the number of homes listed, we were at 132.1%. This means there was not even a month’s worth of inventory to sell. (A balanced market has about 3-4 months of inventory.)

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

Percent Change Month Over Month – This top chart compares performance on a month over month basis. For instance, home sales in Scottsdale were down 0.3% in April when compared to March’s home sales.

Sales Price to List Price – This compares average actual sales prices to what the homes were listed for. We reached a milestone in April. Home sales prices were higher than the homes’ list prices! On average, homes with list prices up to $2 million sold for more than asking. While we have seen this in the lower price points, we are now seeing it in the luxury segment as well!

*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 5/1/2021. 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

Finding a New Home for Your Next Stage of Life

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Imagine the first place you lived as a young adult. Now imagine trying to fit your life today into that space. That may not work, right?

For most of us, our housing needs are cyclical.1 A newly independent adult can find freedom and flexibility in even a tiny apartment. That same space, to a growing family, would feel stifling. For empty nesters, a large home with several unused bedrooms can become impractical to heat and clean. It’s no surprise that life transitions often trigger a home purchase.Housing for Life Stages

While your home-buying journey may not look like your neighbor’s or friend’s, broad trends can help you understand what to keep in mind as you house hunt. No one wants to regret their home purchase, and taking the time now to think about exactly what you need can save a lot of heartaches later.

The Newly Married or Partnered Couple

The financial and legal commitment of marriage has provided a springboard to homeownership for centuries, though these days more couples are buying homes without exchanging rings. In the last few decades, changing demographics have shifted the median age of first marriage and buying a first home into the late 20s and early 30s, planting most newly married or partnered buyers firmly in the millennial generation.2,3 But no matter your age, there are some key factors that you should consider as you enter into your first home purchase together.

Affordability is Key

There’s no doubt about it—with high student loan debt and two recessions in the rearview mirror, many millennials feel that the deck is stacked against them when it comes to homeownership. And it’s not just millennials—Americans of all ages are facing both financial challenges and a tough housing market. But stepping onto the property ladder can be more doable than many realize, especially in today’s low mortgage rate environment.

While many buyers are holding out for their dream home, embracing the concept of a starter home can open a lot of doors.4 In fact, that’s the route that most first-time homebuyers take—the average home purchase for a 20-something is about 1,600 square feet. While the average size increases to around 1,900 square feet for buyers in their 30s, it’s not until buyers reach their 40s that the average size passes 2,000 square feet.5

Chosen carefully, a starter home can be a great investment as well as a launchpad for your life together. If you focus on buying a home you can afford now with strong potential for appreciation, you can build equity alongside your savings, positioning you to trade up to a larger home in the future if your needs change.6

Taking Advantage of Low Mortgage Rates

Mortgage rates are historically low, making now the perfect time to purchase your first home together. A lower interest rate can save you tens of thousands of dollars over the life of your loan, which can significantly increase the quality of home you can get for your money.

But what if both halves of a couple don’t have good credit? You may still have options. First, boosting a credit score can be easier than you think—simply paying your credit cards down below 30% of your limit can go a long way. But if that’s not enough to boost your score, you might consider taking out the mortgage in only the better-scoring partner’s name. The downside is that applying for a mortgage with only one income will reduce your qualification amount. And if you take that route, make sure you understand the legal and financial implications for both parties should the relationship end.

Commute and Lifestyle Considerations

Whether you’ve lived in a rental together for years or are sharing a home for the first time, you know that living together involves some compromises. But there are certain home features that can make life easier in the future if you identify them now. The number of bathrooms, availability of closet space, and even things like kitchen layout can make a big difference in your day-to-day life and relationship.

Your home’s location will also have a significant impact on your quality of life, so consider it carefully. What will commuting look like for each of you? And if you have different interests or hobbies—say, museums vs. hiking—you’ll need to find a community that meets both your needs. Need some help identifying the ideal location that fits within your budget? We can match you with some great neighborhoods that offer the perfect mix of amenities and affordability.

 

The Growing Family

Having kids changes things—fast. With a couple of rowdy preteens and maybe some pets in the mix, that 1,600 square foot home that felt palatial to two adults suddenly feels a lot more cramped. Whether you’ve just had your first child or are getting to the point where your kids can’t comfortably share a bedroom any longer, there’s plenty to consider when you’re ready to size up to a home that will fit your growing family.

The Importance of School Districts

For many parents, the desire to give their kids the best education—especially once they are in middle and high school— surpasses even their desire for more breathing room. In fact, 53% of buyers with children under 18 say that school districts are a major factor in their home-buying decisions.7 Of course, better-funded (and often higher ranking) schools correspond to higher home prices. However, when push comes to shove, many buyers with kids prefer to sacrifice a bit of space to find a home in their desired location.

But when you’re moving to a new community, it can be tough to figure out what the local schools are actually like—and online ratings don’t tell the whole story. That’s why talking to locals and doing your research can be a gamechanger. 

Lifestyle Considerations

For many families, living space is a key priority. Once you have teenagers who want space to hang out with their friends, a finished basement or a rec room can be a huge bonus (and can help you protect some quieter living space for yourself).

A good layout can also make family life a lot easier. For example, an open plan is invaluable if you want to cook dinner while keeping an eye on your young kids playing in the living room. And if you think that you might expand your family further in the future, be sure that the home you purchase has enough bedrooms and bathrooms to accommodate that comfortably.

Functionality

Try to think about how each room will fit into your day-to-day. Are you anticipating keeping the house stocked to feed hungry teenagers? A pantry might rise to the top of the list. Dreading the loads of laundry that come with both infants and older kids (especially if they play sports)? The task can be much more bearable in a well-designed laundry room. Imagine a typical day or week of chores in the house to identify which features will have the biggest impact.

Chances are, you won’t find every nice-to-have in a single home, which is why identifying the must-haves is very important to the decision-making process. We can help you assess your options and give you a sense of what is realistic within your budget.

 

The Empty Nesters

When we talk about empty nesters, we usually think about someone downsizing. With kids out of the house, extra bedrooms and living space can quickly become more trouble than they’re worth. While the average buyer under 55 trades up to a larger home, buyers over 55 are more likely to purchase a smaller or similarly sized but less expensive home. Even in the highest age groups, the majority of home purchases fall in the single-family category. According to research by the National Association of Realtors, by the time buyers reach their 70s, the median home size drops to 1,750 square feet.5 But there’s plenty for empty nesters to think about besides square footage.

Maintenance and Livability

What factors are driving your decision to move? Identifying those early in the process can help you narrow down your search. For example, do you want to have space for a garden, or would you prefer to avoid dealing with lawn care altogether? What about home maintenance? In many cases, a newer home will require less maintenance than an older one and a smaller one will take less time to clean.

You may also want to consider townhomes, condos, or other living situations that don’t require quite as much upkeep. We have actually seen a lot of this in the Scottsdale and Phoenix markets. Homeowners who no longer want to maintain things like pools and landscaping have been moving into condo and townhome communities. 

Lifestyle Considerations

Many empty nesters have retired or are nearing retirement age. This could be your chance to finally pursue hobbies and passions that were just too hard to squeeze into a 9-5. If you’re ready to move, consider how you’d like to spend your days and seek out a home that will help make that dream a reality. For some, that might mean living near a golf course or a beach. For others, being able to walk downtown for a nice dinner out is the priority. And with more time to spend as you wish, proximity to a supportive community of friends and family is priceless.

Ability to Age in Place

Let’s face it—we can’t escape aging. If you’re looking for a home to retire in, accessibility should be front of mind.8 This may mean a single-story home or simply having adequate spaces on the first floor to rearrange as needed. While buying a home that you plan to renovate from the start is a viable option, being forced into renovations (because of the realities of aging) a few years down the road could seriously dig into your nest egg. Location matters, too—if your family will be providing support, are they close by? Can you easily reach necessities like grocery stores and healthcare? While it’s tempting to put it out of our minds, a few careful considerations now can make staying in your home long-term much more feasible.

 

Finding the Right Home for Right Now

One thing is for sure—life never stands still. And your housing needs won’t, either. In the United States, the median duration of homeownership hovers around 13 years.9 That means many of us will cycle through a few very different homes as we move through different life stages. At each milestone, a careful assessment of your housing options will ensure that you are well-positioned to embrace all the changes to come.

Whatever stage you’re embarking on next, we’re here to help. Our insight into local neighborhoods, prices, and housing stock will help you hone in on exactly where you want to live and what kind of lifestyle and home is right for you. We’ve worked with home buyers in every stage of life, so we know exactly what questions you need to ask. Buying a home—whether it’s your first or your fifth—is a big decision, but we’re here to support you every step of the way.

We support the Fair Housing Act and equal opportunity housing.

 

Sources:

  1. Freddie Mac –
    https://www.freddiemac.com/blog/homeownership/20190104_homebuying_lifecycle.page
  2. PRB –
    https://www.prb.org/usdata/indicator/marriage-age-women/snapshot/
  3. Experian –
    https://www.experian.com/blogs/ask-experian/research/average-age-to-buy-a-house/#:~:text=Buying%20a%20first%20home%20will,by%20real%20estate%20marketplace%20Zillow
  4. Nerdwallet –
    https://www.nerdwallet.com/article/mortgages/starter-home-forever-home
  5. NAR 2020 Home Buyers and Sellers Generational Trends Report –
    https://cdn.nar.realtor/sites/default/files/documents/2020-generational-trends-report-03-05-2020.pdf
  6. Investopedia –
    https://www.investopedia.com/personal-finance/what-look-starter-home/
  7. NAR 2019 Moving With Kids
    https://www.nar.realtor/research-and-statistics/research-reports/moving-with-kids
  8. Kaiser Health News –
    https://khn.org/news/baby-boomers-aging-aging-in-place-retrofit-homes/
  9. National Association of Realtors –
    https://www.nar.realtor/blogs/economists-outlook/how-long-do-homeowners-stay-in-their-homes#:~:text=As%20of%202018%2C%20the%20median,varies%20from%20area%20to%20area

 

Scottsdale AZ Luxury Home Market – March 2021

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– Scottsdale Luxury Home Market Performance for March 2021 –

Scottsdale’s luxury home market had another insane sales month in March. In some cases, the number of homes sold outweighed the number of homes available for sale.

This report looks at the luxury home market in Scottsdale. I am using a list price of $1 million or more as the “luxury” qualifier. And, to give you a better idea of what is going on, I have divided this data into four price bands.

Each month, we look at these four sales metrics:
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 that month.

– March 2021 –

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

Scottsdale homes for sale between $1 and $1.5 million March 2021

– Active Scottsdale Homes on the Market: Although inventory was up slightly at the end of the month, we are still about a quarter of what we were during the same time last time. And in March and April of 2020, we saw many homeowners take their homes off of the market, so numbers were lower than usual last year.
– UCB Scottsdale Home Sales: The number of UCB contracts jumped over 21% between February and March, making this the second-highest performance in the past year.
– Pending Scottsdale Home Sales: Pending sales were also up to 73. This also in the second-highest performance in the past year.
– Scottsdale Homes Sold: Home sales in this price point hit the triple digits for the first time ever! If you compare Sold to Listed (Active) figures for March, we come back at 156.7%!
– Sales Price to Listed Price: 99.6% – On average, buyers saw a discount off of list price of 0.4%.

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

Scottsdale homes for sale between $1.5 and $2 million March 2021

– Active Scottsdale Homes on the Market: The number of homes for sale was level between February and March.
– UCB Scottsdale Home Sales: UCB contracts were the highest we have seen in the past year and historically.
– Pending Scottsdale Home Sales: The number of pending sales fell in March, but I attribute this to lack of inventory versus lack of demand.
– Scottsdale Homes Sold: Sales in this price point hit record levels in March. In incredible 58 homes sold!
– Sales Price to Listed Price: 98.4% – On average, buyers saw a discount off of list price of 1.6%.

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

Scottsdale homes for sale between $2 and $3 million March 2021

– Active Scottsdale Homes on the Market: The falling inventory trend continued for this price point. The number of homes for sale was about half of what it was during the same time in 2020.
– UCB Scottsdale Home Sales: The number of UCB contracts hit a record high of 39 in March.
– Pending Scottsdale Home Sales: Pending sales were also up to record levels and came in at more than twice the 12 month average.
– Scottsdale Homes Sold: In keeping with UCBs and pendings, March was also a record-breaking sales month with 43 sales.
– Sales Price to Listed Price: 93.8% – On average, buyers saw a discount off of list price of 6.2%.

Scottsdale Homes Priced $3,000,000+

Scottsdale homes for sale over $3 million March 2021

– Active Scottsdale Homes on the Market: Inventory was up at the end of March, which is good to see. We are still trending under the 12 month average.
– UCB Scottsdale Home Sales:  The number of homes in UCB status was up slightly.
– Pending Scottsdale Home Sales: The number of pending sales tied for the top performance in the past year.
– Scottsdale Homes Sold: This sales figure continues to be astounding. Another 32 homes sold for $3 million or more in March!
– Sales Price to Listed Price: 96.5% – On average, buyers saw a discount off of list price of 3.5%.

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 4/1/2021 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

Planning to Move? You Can Still Secure a Low Mortgage Rate on Your Next Home

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Planning to Move? You Can Still Secure a Low Mortgage Rate on Your Next Home | MyKCM

This year, mortgage rates have started to slowly climb above recent record-breaking lows. Many homeowners planning to move may feel like they’ve missed the chance to score a great rate on their next mortgage. In reality, there’s still time to secure a rate far below the historic norm. Here’s why.

After creeping up for seven consecutive weeks, average mortgage rates have dropped more recently (See graph below). With rates taking a slight dip over the past two weeks at the same time the inventory of houses for sale is so low, homeowners today are sitting in the optimal seat to sell.

What’s the advantage of selling your house now? Securing a low mortgage rate on your next home.Planning to Move? You Can Still Secure a Low Mortgage Rate on Your Next Home | MyKCMTo take advantage of today’s real estate market, experts are encouraging homeowners to act now before interest rates climb. Danielle Hale, Chief Economist at realtor.com, explains:

“…mortgage rates slid for a second week … but we don’t expect rates to stay at this level for too long.”

Hale continues to say:

“For sellers, getting in early optimizes odds of a quick sale at a good price before there’s too much competition, but that means acting now … In this environment, sellers probably really can’t go wrong, and that’s especially true in the nation’s hottest housing markets where homes are selling quickly and getting the greatest number of viewers online.”

Most experts agree that rates will continue to trend upward. Sam Khater, Chief Economist at Freddie Mac, states:

“Despite the pause in mortgage rates recently, we expect them to increase modestly for the remainder of this year.”

In addition, Freddie Mac recently released their Quarterly Forecast, which notes:

“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.” (See graph below):

Planning to Move? You Can Still Secure a Low Mortgage Rate on Your Next Home | MyKCMWhile buyers everywhere want to secure the lowest rate possible, it’s important to remember that today’s rates are still much lower than the historic norm. Odeta Kushi, Deputy Chief Economist at First American, emphasizes:

“While mortgage rates have trended up in recent months, they are still historically low, so relative to one year ago, housing actually is still more affordable and that’s really thanks to this low mortgage rate environment we find ourselves in.”

Bottom Line

If you’re thinking of moving, don’t miss the opportunity to score a great rate on your next home mortgage. Let’s connect today so you can get your house ready to sell and find your dream home while mortgage rates are still low.

 

Phoenix and Scottsdale AZ Luxury Condo Sales – March 2021

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

While we are seeing a crazy busy market for single-family homes in Scottsdale and Phoenix, the luxury condo market, which is usually more subdued, has decided to join the party. We have seen several months of strong sales, but in March, we saw the highest number of luxury condo sales in a single month.

This report examines luxury condo sales in Scottsdale and Phoenix. All of these condos had been listed for $1 million or more.

ACTIVE LISTINGS AT THE END OF MARCH

March closed out with forty-seven active luxury listings. In comparison, December had sixty-six condos for sale at the end of the month. The bulk of condos on the market (35 or 47) were in Scottsdale.

The most expensive condo on the market is a carryover from previous months. It is in Two Biltmore Estates in Phoenix and had two bedrooms, three bathrooms and 4,817 square feet. The asking price was $3,300,000.

The least expensive condo on the market is also a carryover. It is in the Optima Kierland community. It had three bedrooms and bathrooms and 1,718 square feet. It was listed for $1,000,000.

UCB* LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

Twelve luxury condos were in UCB status at the end of March. This is up quite a bit from February’s seven UCBs.

UCB Condos in Scottsdale

  • Optima Kierland – Two bedrooms, two bathrooms and 1,366 square feet. It was listed for $1,005,000.
  • Landmark Condominiums – Three bedrooms and bathrooms, 2,548 square feet. Asking price was $1,087,777.
  • Tower Residences at Hotel Valley Ho – Two bedrooms, three bathrooms, 1,733 square feet. Asking price was $1,225,000.
  • Scottsdale Waterfront Residences – Two bedrooms, two and one-half bathrooms, 2,469 square feet. Asking price of $2,395,000.
  • Seven at Desert Mountain – Seven had three units in UCB status at the end of March.
    • Two bedrooms, three and one-half bathrooms, 2,702 square feet. Asking price was $1,750,300.
    • 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 $1,971,743.

UCB Condos in Phoenix

  • Fairway Lodge (8 Biltmore) – Three bedrooms, two and one-half bathrooms, 2,748 square feet. Asking price was $1,049,000.
  • Portland on the Park – Penthouse with three bedrooms and bathrooms, 1,941 square feet. Asking price was $1,229,000.
  • Esplanade Place – Three bedrooms and bathrooms, 3,334 square feet. Asking price was $1,815,000.
  • Esplanade Place – Three bedrooms and bathrooms, 3,350 square feet. Asking price was $1,995,000.
  • Two Biltmore Estates – Three bedrooms, three and one-half bathrooms, 3,931 square feet. Asking price was $2,567,500.

*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

At the end of March, eight luxury condos were in pending status.

Scottsdale Pending Luxury Condos

  • Scottsdale Waterfront Residences – The most expensive condo at $5 million, the highest we have seen locally, went into pending status. It is a penthouse with over 4,400 square feet, a wraparound deck and a separate one bedroom guest suite.
  • Tower Residences at Hotel Valley Ho – Two bedrooms, three bathrooms, 1,733 square feet. Asking price was $1,150,000.
  • Optima Camelview – Three bedrooms, two bathrooms, 2,498 square feet. Asking price was $1,195,000.
  • Seven at Desert Mountain – Two bedrooms, three and one-half bathrooms, 2,702 square feet. Asking price was $1,705,300.
  • Plaza Lofts at Kierland – Three bedrooms and bathrooms, 2,284 square feet. Asking price was $2,150,000.
  • Optima Kierland – Three bedrooms, three and one-half bathrooms, 2,451 square feet. Asking price was $2,975,000.

Phoenix Pending Luxury Condo


LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

An unprecedented eighteen luxury condos sold in March. Thirteen of the sales were in Scottsdale and the remaining five were in Phoenix. And with the strong UCB and pending activity we have seen, April may also be a strong month.

Scottsdale Luxury Condo Sales

  • The Mark – Three bedrooms and bathrooms, 2,2898 square feet. Asking price was $1,150,000 and it sold for $1,100,000.
  • Plaza Lofts at Kierland – Three bedrooms, two bathrooms, 1,7588 square feet. Asking price was $1,195,000 and it sold for asking price.
  • Scottsdale Waterfront Residences – Three bedrooms, three and one-half bathrooms, 2,503 square feet. Asking price was $1,450,000 and it sold for $1,300,000.
  • Seven at Desert Mountain – Three bedrooms, three and one-half bathrooms, 2,702 square feet. Asking price was $1,717,719 and it sold for list price.
  • ICON at Silverleaf – Three bedrooms, three and one-half bathrooms, 3,170 square feet. Asking price was $2,199,777 and it sold for $2,100,000.
  • Scottsdale Waterfront Residences – Two bedrooms, three bathrooms, 2,041 square feet. Asking price was $1,650,000 and it sold for $1,625,000.
  • Optima Camelview – Three bedrooms, two and one-half bathrooms, 3,380 square feet. Asking price was $2,299,000 and it sold for over asking at $2,300,000.
  • Third Avenue Lofts – Two bedrooms, two and one-half bathrooms, 2,340 square feet. Asking price was $1,079,000 and it sold for list price.
  • Safari Drive – Three bedrooms, three and one-half bathrooms, 2,328 square feet. Asking price was $1,799,000 and it sold for $1,685,000.
  • Seven at Desert Mountain – Two bedrooms, three and one-half bathrooms, 2,702 square feet. Asking price was $1,872,698 and it sold for $1,815,000.
  • Plaza Lofts at Kierland – Three bedrooms and bathrooms, 1,712 square feet. Asking price was $1,550,000 and it sold for $1,480,000.
  • Plaza Lofts at Kierland – Three bedrooms and bathrooms, 2,704 square feet. Asking price was $2,080,000 and it sold for over asking at $2,170,500.
  • Landmark Condominiums – Three bedrooms, three and one-half bathrooms, 3,547 square feet. Asking price was $1,795,000 and it sold for over asking at $1,797,000.

Phoenix Luxury Condo Sales

  • Two Biltmore Estates – Three bedrooms, four bathrooms, 4,817 square feet. Asking price was $2,890,000 and it sold for $2,795,000.
  • Fourplex in 85003 zip code – Four one bedroom units. Asking price was $1,289,000 and it sold for $1,200,000.
  • Optima Biltmore– Penthouse with two bedrooms, three bathrooms, 2,456 square feet. Asking price was $1,200,000 and it sold for $1,140,000.
  • Two Biltmore Estates – Three bedrooms, three and one-half bathrooms, 3,356 square feet. Asking price was $2,200,000 and it sold for $2,000,000.
  • Fairway Lodge (8 Biltmore) – Three bedrooms, two and one-half bathrooms, 2,992 square feet. Asking price was $1,350,000 and it 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 4/1/2021 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

What It Means To Be in a Sellers’ Market

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Scottsdale home
All over the United States, we keep hearing that we are in a “seller’s market” right now. This holds very true in Scottsdale and Greater Phoenix as there are just not enough homes for sale and demand is very high. 

If you’ve given even a casual thought to selling your house in the near future, this is the time to really think seriously about making a move. Here’s why this season is the ultimate sellers’ market and the optimal time to make sure your house is available for buyers who are looking for homes to purchase.

The latest Existing Home Sales Report from The National Association of Realtors (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a 2-month supply at the current sales pace. In Scottsdale, supply was 0.6 months at the end of March!

Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (See graph below):What It Means To Be in a Sellers’ Market | MyKCMWhen the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive offers.

As this happens, home prices rise and sellers are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so few homes are available to buy, it will likely get a lot of attention from hopeful buyers.

Today, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and a year filled with unique changes have prompted buyers to think differently about where they live – and they’re taking action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.

Bottom Line

Home prices are appreciating in today’s sellers’ market. Making your home available over the coming weeks will give you the most exposure to buyers who will actively compete against each other to purchase it.

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

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– March 2021 Scottsdale Housing Market Video –

March carried on the same trends we have been seeing for months – incredibly high demand and incredibly low inventory.  Even though we posted a record sales month in March, it would have been even higher if there were more homes for sale.  

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

March 2021 – Video

Scottsdale Active Listings

Scottsdale homes for Sale March 2021

The number of homes for sale is dismal and even though new listings are coming onto the market daily, there is just too much demand to keep pace.

We closed out March with 489 homes on the market. This is down 211% from how many homes were for sale at the end of March 2020!.

And between February and March, inventory fell by another 12%.

Median List Price for Scottsdale Homes

Scottsdale homes median list price March 2021

Scottsdale’s median list price in March was $1.65 million. So exactly half of the homes for sale were listed above $1.65M and exactly half were listed for less.

This was up slightly over February’s $1.6M. However, it was significantly higher than the median list price in March of 2020 which came in just under $1M.

Days on Market

Scottsdale homes Days on Market March 2021

Days on Market (also shown as DOM) is a quick measurement to take the temperature of a market. A low DOM means homes are selling quickly and conversely a high DOM means things are taking longer to sell.

Scottsdale’s Days on Market for March came in at 54. This may be the lowest we have seen this figure and it is 32% lower than March 2020. 

Median Sales Price for Scottsdale Homes

Scottsdale homes median sales price March 2021

Now we will examine the median sales price of homes in Scottsdale.

The median list price in March was $875K. This figure is $170K higher than it was in the same month in 2020. It is also a $70K increase over February 2021’s median sales price.

Number of Homes Sold

This final section covers homes that sold.

Scottsdale homes sold March 2020 versus 2021

This first image compares year-over-year activity. An astounding 648 homes sold in March. This represents a 34% increase. As I mentioned at the top of the post, I believe sales would have been a lot higher if there was more inventory.

Scottsdale home sales March 2021 vs February 2021

This second image shows month-over-month sales activity. The number of homes sold in March was up 17% over February.   

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.

Can I Buy or Sell a Home Without a Real Estate Agent?

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Today’s real estate market is one of the fastest-moving in recent memory. With record-low inventory in many market segments, we’re seeing multiple offers—and sometimes even bidding wars—for homes in the most sought-after neighborhoods. 

Buy or sell without a real estate agent

Scottsdale and Greater Phoenix are no exception. Many homes receive multiple offers and many homes are sold at or above asking price. 

This has led some sellers to question the need for an agent. After all, why spend money on a listing agent when it seems that you can stick a For Sale sign in the yard then watch a line form around the block?

Some buyers may also believe they’d be better off purchasing a property without an agent. For those seeking a competitive edge, proceeding without a buyer’s agent may seem like a good way to stand out from the competition—and maybe even score a discount. Since the seller pays the buyer agent’s commission, wouldn’t a do-it-yourself purchase sweeten the offer?

We all like to save money. However, when it comes to your largest financial asset, forgoing professional representation may not always be in your best interest. Find out whether the benefits outweigh the risks (and considerable time and effort) of selling or buying a home on your own—so you can head to the closing table with confidence.

SELLING YOUR HOME WITHOUT AN AGENT

Most homeowners who choose to sell their home without any professional assistance opt for a traditional “For Sale By Owner” or a direct sale to an investor, such as an iBuyer. Here’s what you can expect from either of these options.

For Sale By Owner (FSBO)

For sale by owner or FSBO (pronounced fizz-bow – as in bowtie…) offers sellers the opportunity to price their own home and handle their own transaction, showing the home and negotiating directly with the buyer or his or her real estate agent. According to data compiled by the National Association of Realtors, approximately 8% of homes are sold by their owner.1

In an active, low inventory real estate market, it may seem like a no-brainer to sell your home yourself. After all, there are plenty of buyers out there and one of them is bound to be interested in your home. In addition, you’ll save money on the listing agent’s commission and have more control over the way the home is priced and marketed.

One of the biggest problems FSBOs run into, however, is pricing the home appropriately. Without access to information about the comparable properties in your area, you could end up overpricing your home (causing it to languish on the market) or underpricing your home (leaving thousands of dollars on the table).2

Even during last year’s strong seller’s market, the median sales price for FSBOs was 10% less than the median price of homes sold with the help of a real estate agent.1 And during a more balanced market, like the one we experienced in 2018, FSBO homes sold for 24% (or $60,000) less than agent-represented properties.3 This suggests that, while you may think that you’ll price and market your home more effectively yourself, in fact, you may end up losing far more than the amount you would pay for an agent’s assistance.

Without the services of a real estate professional, it will be up to you to get people in the door. You’ll need to gather information for the online listing and put together the kind of marketing that today’s buyers expect to see. This includes bringing in a professional photographer, writing the listing description, and designing marketing collateral like flyers and mailers—or hiring a writer and graphic designer to do so.

Once someone is interested, you’ll need to offer virtual showings and develop a COVID safety protocol. You’ll then need to schedule an in-person showing (or in some cases, two or three) for each potential buyer. In addition, you’ll be on your own when evaluating offers and determining their financial viability. You’ll need to thoroughly understand all legal contracts and contingencies and discuss terms, including those regarding the home inspection and closing process.

While you’re doing all of this work, it’s likely that you’ll still need to pay the buyer agent’s commission. So be sure to weigh your potential savings against the significant risk and effort involved.

If you choose to work with a listing agent, you’ll save significant time and effort while minimizing your personal risk and liability. And the increased profits realized through a more effective marketing and negotiation strategy could more than make up for the cost of your agent’s commission.

iBuyer

iBuyers have been on the scene since around 2015, providing sellers the option of a direct purchase from a real estate investment company rather than a traditional direct-to-consumer sales process.4 iBuyer companies tout their convenience and speed, with a reliable, streamlined process that may be attractive to some sellers.

The idea is that instead of listing the home on the open market, the homeowner completes an online form with information about the property’s location and features, then waits for an offer from the company. The iBuyer is looking for a home in good condition that’s located in a good neighborhood—one that’s easy to flip and falls within the company’s algorithm.

For sellers who are more focused on speed and convenience, an iBuyer may offer an attractive alternative to a traditional real estate sale. That’s because iBuyers evaluate a property quickly and make an upfront offer without requesting repairs or other accommodations.

However, sellers will pay for that convenience with, generally, a far lower sale price than the market will provide as well as fees that can add up to as much or more than a traditional real estate agent’s commission. According to a study conducted by MarketWatch, iBuyers netted, on average, 11% less than a traditional sale when both the lower price and fees are considered.5 Other studies found some iBuyers charging as much as 15% in fees and associated costs, far more than you’ll pay for a real estate agent’s commission.6

In a hot market, this can mean leaving tens of thousands of dollars on the table since you won’t be able to negotiate and you’ll lose out on rising home prices caused by low inventory and increased demand. In addition, iBuyers are demonstrably less reliable during times of economic uncertainty, as evidenced by the halt of operations for most iBuyer platforms in early 2020.6 As a seller, the last thing you want is to start down the road of iBuying only to find out that a corporate mandate is stopping your transaction in its tracks.

If you choose to work with a real estate agent, you can still explore iBuyers as an option. That way you can take advantage of the added convenience of a fast sale while still enjoying the protection and security of having a professional negotiating on your behalf.

BUYING YOUR HOME WITHOUT AN AGENT

According to the most recent statistics, 88% of home buyers use a real estate agent when conducting their home search.1 A buyer’s agent is with you every step of the way through the home buying process. From finding the perfect home to submitting a winning offer to navigating the inspection and closing processes, most homebuyers find their expertise and guidance invaluable. And the best part is that, because they are compensated through a commission paid by the homeowner at closing, most agents provide these services at no cost to you!

Still, you may be considering negotiating your home purchase directly with the seller or listing agent, especially if you are accustomed to deal-making as part of your job. And if you are familiar with the neighborhood where you are searching, you may feel that there is no reason to get a buyer’s agent involved.

However, putting together a winning offer package can be challenging. This is especially true in a multiple-offer situation where you’ll be competing against buyers whose offers are carefully crafted to maximize their appeal. And the homebuying process can get emotional. A trusted agent can help you avoid overpaying for a property or glossing over “red flags” in your inspection. In addition, buyer agents offer a streamlined, professional process that listing agents may be more likely to recommend to their clients.

If you decide to forego an agent, you’ll have to write, submit, and negotiate a competitive offer all on your own. You’ll also need to schedule an inspection and negotiate repairs. You’ll be responsible for reviewing and preparing all necessary documents, and you will need to be in constant communication with the seller’s agent and your lender, inspector, appraiser, title company, and other related parties along the way.

Or, you could choose to work with a buyer’s agent whose commission is paid by the seller and costs you nothing out of pocket. In exchange, you’ll obtain fiduciary-level guidance on one of the most important financial transactions of your life. If you decide to go it alone, you’ll be playing fast and loose with what is, for most people, their most important and consequential financial decision.

SO, IS A REAL ESTATE AGENT RIGHT FOR YOU?

It is important for you to understand your options and think through your preferences when considering whether or not to work with a real estate professional. If you are experienced in real estate transactions and legal contracts, comfortable negotiating under high-stakes circumstances, and have plenty of extra time on your hands, you may find that an iBuyer or FSBO sale works for you.

However, if, like most people, you value expert guidance and would like an experienced professional to manage the process, you will probably experience far more peace of mind and security in working with a real estate agent or broker.

A real estate agent’s comprehensive suite of services and expert negotiation skills can benefit buyers and sellers financially, as well. On average, sellers who utilize an agent walk away with more money than those who choose the FSBO or iBuyer route.3,5 And buyers pay nothing out of pocket for expert representation that can help them avoid expensive mistakes all along the way from contract to closing.

According to NAR’s profile, the vast majority of buyers (91%) and sellers (89%) are thrilled with their real estate professional’s representation and would recommend them to others.1 That’s why, in terms of time, money, and expertise, most buyers and sellers find the assistance of a real estate agent essential and invaluable.

QUESTIONS ABOUT BUYING OR SELLING? WE HAVE ANSWERS

The best way to find out whether you need a real estate agent or broker is to speak with one. We’re here to help and to offer the insights you need to make better-informed decisions. Let’s talk about the value-added services we provide when we help you buy or sell in today’s competitive real estate landscape.

 

 

Sources:

  1. National Association of REALTORS –
    https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers
  2. Washington Post –
    https://www.washingtonpost.com/business/2020/12/09/factors-consider-when-determining-whether-use-an-agent-buy-or-sell-home/
  3. National Association of REALTORS –
    https://www.nar.realtor/blogs/economists-outlook/selling-your-home-solo-to-save-money-you-ll-actually-make-less-than-you-think
  4. Seattle Times –
    https://www.seattletimes.com/business/real-estate/redfin-is-first-major-ibuyer-to-sell-in-seattle
  5. MarketWatch –
    https://www.marketwatch.com/story/selling-your-home-to-an-ibuyer-could-cost-you-thousands-heres-why-2019-06-11
  6. Forbes –
    https://www.forbes.com/sites/nataliakarayaneva/2020/03/19/billion-dollar-real-estate-businesses-ibuyer-suspended/?sh=c7f59f921747

 

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