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Scottsdale Real Estate Market

Quick Video Update of the Scottsdale Real Estate Market – September 2020

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– September 2020 Scottsdale Housing Market Video –

Even though we typically see things slow even further in September, apparently September 2020 did not get the memo…

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

September 2020 – Video

 

Scottsdale Active Listings

Scottsdale homes for Sale September 2020

The number of homes on the market finally increased, which is a great thing to see as we have been operating with incredibly low inventory. 

September ended in the 1,000+ range, but this is still down 43% from September 2019. 

Low inventory actually holding sales figures back as the demand is very  much there, but there are not enough homes to meet it. 

Median List Price for Scottsdale Homes

Scottsdale homes median list price September 2020

The median list price gives you the exact midpoint of the prices of homes on the market.  That means exactly one half of the homes are priced higher and one half is priced lower. 

The median list price in September was $1.2 million. This is up over September 2019’s $956K. August and September of this year had the same median list price. 

Days on Market

Scottsdale homes Days on Market September 2020

Days on Market (also referred to as DOM) is a quick and easy tool to see how a market is performing. If we see a high days on market, things are not selling as quickly. However, if you see a low days on market, you know things are moving faster. 

The DOM for September was down to 71. This is down 12% from the same time last year. 

Median Sales Price for Scottsdale Homes

Scottsdale homes median sale price September 2020

We looked at the median list price above, and now we can explore the median sales price for September. 

The median sales price was $726K. This is up from both September 2019’s $585K and August 2020’s $695K.

Number of Homes Sold

This final section covers home sales. 

Scottsdale homes sold September 2019 versus 2020

Year-over-year, we saw a 29% increase in home sales in September. We went from 424 last year to 547 this year.

Scottsdale home sales September 2020 vs August 2020

Month-over-month, we saw a 2% increase in sales, with August having 535 sales and September having 547. 

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 – September 2020

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– September 2020 Scottsdale Homes for Sale and Home Sales –

And we have another atypical, but positive sales month for Scottsdale in September. I have been doing this monthly report since 2007 and this year has been the most interesting that I have seen.

Typically, we see a slowdown starting in late summer and continue throughout the end of the year. However, low inventory and pent-up demand are keeping sales at high numbers as we move into the final month of the year.

SCOTTSDALE HOME SALES ACTIVITY – SEPTEMBER 2020

We track each of these items on a monthly basis:

– Single-family homes for sale – Orange Line – How many homes were on the market at the end of the month.
– Under contract, but accepting backup offers (UCB) – Gray Line – How many homes were in UCB status at the end of the month.*
– Pending home sales – Yellow Line – How many pending sales there were at the end of the month.*
– Home Sales – Blue Line –  How many homes sold that month.

SEPTEMBER 2020 RESULTS

Scottsdale home sales September 2020
  • Scottsdale Homes for Sale: Thankfully, inventory was up 6.5% at the end of September. However, we were still at less than 1,000 homes for sale, which is very low.
  • UCB (Under contract, accepting backup offers):  UCB contracts jumped 12.6% between the end of August and September. This is quite unusual to see this increase at this time of year.
  • Pending Homes Sales in Scottsdale: Pending sales were down slightly, but still strong at this point in the year.
  • Scottsdale Home Sales:  Home sales moved back up in September, closing out at 548. Last September, there were 423 sales.

And now we will move on to two more metrics we look at monthly:

Scottsdale real estate market September 2020

Percent Change Month Over Month – The first metric looks at how things change on a monthly basis. For instance, sales were up 3.1% between August and September.

Sales Price to List Price – The second metric compares sales prices compared to what they were on the market for. In September, this figure came out to 97.7%. On average, buyers saw a 2.3% discount off of asking prices.

*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.

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

Disclaimer: Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 10/1/2020. 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 © 2020 Heather Tawes Nelson | Joyce Tawes

5 Secrets Buyers and Sellers Must Know About Virtual Home Tours

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Virtual Home Tours

For years now, virtual home tours have helped real estate buyers far and wide find the perfect home. From long-distance military personnel being relocated, to investors expanding their portfolio, to homeowners looking for a vacation getaway, this technology makes finding a house that’s a bit out of driving distance that much easier. And for real estate agents, virtual tours have been a useful way to help buyers with their home search and to assist sellers in creatively marketing their listings.

Because of the pandemic, virtual home showing options recently experienced a huge spike in popularity. One survey found that nearly 33% of recent home tour requests were for virtual tours, as compared to just 2% pre-pandemic.1 And it’s easy to see why.

Buyers want to quickly find their next safe haven, one that may need to serve as their office, gym, and even classroom for months to come. And sellers want to limit the number of strangers in their home, yet still have the ability to reach enough potential buyers to get the best offer on their property.

Virtual home tours are the popular thing right now, but that doesn’t automatically mean they’re the only option for your home buying or selling experience. In this post, we’ll reveal five important secrets behind the virtual real estate scene. Read on to learn how they impact today’s home buyers and sellers.

SECRET #1: Virtual Tours Have Evolved

Lots of real estate professionals who had never used virtual tours before were forced to quickly adapt when the pandemic struck. Because of restrictions on time and resources, not everyone is able to create what would have been deemed a “virtual tour” last year. So instead, we’ve expanded the definition of the phrase by creating innovative new ways to show homes while keeping our clients safe and socially-distanced.

Here are some terms you might come across as you explore homes with virtual tours.

Traditional virtual tours use 360° Photos, which are images that allow you to see all angles of a space. These are what allow virtual tour viewers to look up, down, and all around the interior and exterior shots of a home. Using a software program, 360° photos can be stitched together to create a digital model that looks like a dollhouse. This is called a 3D Tour. Sometimes agents will also add Virtual Staging, which decorates rooms with digital furniture and accents like wallpaper or paint.

Traditional virtual tours allow you to click to move from room to room in the home, but Online Walkthroughs feature the actual act of walking around. Either the seller or the agent (depending on factors such as time and safety requirements) will create a video by holding their camera or smartphone and simply moving through the home.

Online Walkthroughs can be filmed in advance or happen live. If they are live, they can also be referred to as Virtual Showings or Online Open Houses. A Virtual Showing is often a scheduled, one-on-one event that mimics an in-person tour of the home, in which the agent and viewer start at the exterior and move their way through the property. If your agent offers to FaceTime or Skype you from a home you’re interested in, for example, that would be a type of Virtual Showing. In contrast, an Online Open House is more free form, allowing more viewers to pop in and out of a group video call on apps such as Facebook or Zoom.

Personalized virtual tours

SECRET #2: Virtual Doesn’t Mean Impersonal

All these styles of virtual tours showcase the property’s details better than static photos ever could. But for a purchase as significant as your next home, details like a new refrigerator or the size of the master closet aren’t the only deciding factors. Luckily, virtual tours are exceptional tools for personal connection.

As a prospective buyer, virtual tours give you a feel for the property, inside and out, so you can easily picture yourself in the space and decide if the home’s flow and features work for your lifestyle. Live video walkthroughs with the real estate agent will give you insights on those crucial non-visual aspects, like creaky floors, super-fast internet speed, and neighborhood dynamics. Plus, you’ll be able to ask questions and get an insider’s perspective on what’s so great about the home.

For sellers, if your agent recommends using a virtual tour to market your home, you could attract more buyers.2 And you can be sure that those interested buyers are still getting the up-close and personal look inside your home that will inspire their strongest offers.

SECRET #3: Virtual Is Just The First Step To Safe Home Sales

Even as government restrictions begin to ease in some areas, virtual tours are still recommended as a safer way to buy and sell real estate.3 Buyers don’t have to worry about exposure to anyone who previously visited the property, and sellers cut down on the foot traffic in their home. Some data even suggest that virtual tours keep agents safer as well, since they’re hosting fewer in-person showings and open houses.4

But despite the variety of virtual tours available, some buyers will still need to visit a home themselves in order to feel confident enough to submit an offer. In this situation, listing agents and sellers will work together to come up with a procedure that ensures everyone feels safe and comfortable. Some recommendations include requiring interested buyers to present a pre-qualification letter, conducting tours only by appointment and with essential parties, and asking buyers to self-disclose whether they have COVID-19 or exhibit any symptoms.3

The day of the in-person tour, agents might ask buyers to remain in their vehicle until they arrive at the property, and to wear protective gear such as face coverings and gloves. Many will provide hand sanitizer and will ask buyers to refrain from touching any surfaces in the home. Instead, the agent (or seller, prior to the buyers’ arrival) will turn on lights, open doors, and pull back curtains. Then, after everyone has left, the agent will return the home to its original state and disinfect it as needed.3

SECRET #4: The Speed of Closing Depends on Your Goals

Though maybe not literally, virtual tours are opening doors for both buyers and sellers in terms of options available to them. In 2019, buyers viewed an average of 10 homes over a period of 10 weeks before submitting an offer.5 But thanks to an increased prevalence of virtual tours saving them driving time, they’re able to peek inside that number of homes in a much shorter period to make their final choice.

With all this viewing activity, it makes sense that sellers whose listings feature virtual tours are receiving more offers on their properties. According to one study, virtual tours can add between two and three percent to the sales price of a home, in part because increased buyer interest has made sellers feel confident waiting for the exact right offer.2

So if you’re a buyer luxuriating in viewing homes from your couch, just remember that you’re not alone in your search. Your competition is virtually viewing the same properties you are, so it’s still important to work with your real estate agent to quickly submit a strong offer when you find the home of your dreams. And for sellers, if a speedy sale is important to you, carefully weigh that against the temptation to entertain more and more offers, which can keep your home on the market up to six percent longer.2 Your agent can help you decide the right strategy for your priorities.

SECRET #5: Virtual May Not Always Be the Right Choice

Creating, editing, uploading, and marketing virtual tours for a listing can be pricey. Packages through popular 3D imaging platforms like Matterport and Immoviewers can cost hundreds of dollars on their own.6 Virtual staging will further drive up a listing’s marketing budget, and then you also have to factor in the advertising dollars needed. Even seemingly inexpensive options like video call walkthroughs still require time and energy on behalf of both the seller and agent.

These costs mean that a full virtual tour package might not always be the right choice for sellers. When you talk to your agent about marketing your home, it may be that an elaborate virtual tour, showing, and open house just don’t make sense. It could be that your potential buyers may not resonate with that type of marketing, that the investment-to-return ratio isn’t in your favor, or that there are more effective ways to get your listing seen by qualified buyers.

Buyers, you may notice that some listings within your search parameters don’t offer virtual tours. That’s because those for-sale homes might not have needed a full virtual marketing package to entice buyers to submit offers, or those homes are better marketed through more traditional tactics. Don’t close the door on your dream home because it doesn’t have virtual events and features. Stay open-minded so you can consider the wealth of home options that fit your lifestyle, needs, and budget.

ARE VIRTUAL HOME TOURS IN YOUR FUTURE?

As technology develops, it will become easier and cheaper to create virtual tours. Coupled with the high demand for them, this means that virtual tour options are likely not only here to stay, but will continue to grow into a common addition to listings.

If buying or selling a home is on your mind, we’d be happy to discuss how virtual tours can play a part in your real estate experience. Reach out to us today for help finding local homes for sale that have virtual tours, or to chat about if adding a virtual tour to your upcoming listing is the right fit.

 

Sources:

  1. Rocket Mortgage – https://www.rocketmortgage.com/learn/evolution-of-home-showings-during-covid-19
  2. Radio Iowa – https://www.radioiowa.com/2020/07/28/trying-to-sell-a-house-ui-study-finds-virtual-tours-will-bring-more/
  3. NAR Showing Guidance During Reopening – https://cdn.nar.realtor/sites/default/files/documents/Showing-Guidance-During-COVID-05-14-2020.pdf
  4. NAR 2020 Member Safety Report – https://cdn.nar.realtor/sites/default/files/documents/2020-member-safety-report-08-31-2020.pdf
  5. NAR 2019 Profile of Home Buyers and Sellers – https://cdn.nar.realtor/sites/default/files/documents/2019-profile-of-home-buyers-and-sellers-highlights-11-21-2019.pdf
  6. Realtor.com – https://www.realtor.com/advice/sell/how-to-host-virtual-home-tours-almost-as-good-as-the-real-thing/

Scottsdale AZ Luxury Home Market – August 2020

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– Scottsdale Luxury Home Market Performance for August 2020 –

Here are the luxury home numbers for August. All of these homes had asking prices of $1 million or more.

To get better insight, we have broken the sales activity into four different price ranges.

Each month, we track the following four things:
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 homes sold.

– AUGUST 2020 –

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

– Active Scottsdale Homes on the Market: Inventory was up slightly at the end of August. This is good as inventory has been decreasing steadily since March.
– UCB Scottsdale Home Sales: UCBs closed out the month at the second highest we have seen them in the past year.
– Pending Scottsdale Home Sales: The number of pending sales is the highest we have seen in the past year. Typically, things are slowing down in August, not jumping up.
– Scottsdale Homes Sold: Eighty-one homes sold in August. I have been tracking the luxury home market since 2007 and I have never seen them so high.
– Sales Price to Listed Price: 96.0% – On average buyers saw a discount off of list price of 4%.

Scottsdale homes for sale between $1 and $1.5 million August 2020

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

– Active Scottsdale Homes on the Market: Inventory fell another 5% by the end of August to end the month with 131 homes on the market.
– UCB Scottsdale Home Sales: The number of UCB contracts moved back up after falling in July.
– Pending Scottsdale Home Sales: Pending sales declined 13% from July, but they are still higher than the 12 month average.
– Scottsdale Homes Sold: Twenty-six homes sold in this price point in August. And while that was a drop from last month’s record month, this is still a very strong performance.
– Sales Price to Listed Price: 96.2% – On average, buyers saw a discount off of list price of 3.8%.

Scottsdale homes for sale between $1.5 and $2 million August 2020

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

– Active Scottsdale Homes on the Market: Inventory was more or less level between the end of July and August.
– UCB Scottsdale Home Sales: The number of UCBs fell quite sharply, but they were still ahead of the 12 month average.
– Pending Scottsdale Home Sales: Pending sales were up over 29% at the end of August. This is the highest they have been in the past year. The next closest month was 20 pendings.
– Scottsdale Homes Sold: There were eighteen homes sales in August. This is a drop from July, but still a very solid performance.
– Sales Price to Listed Price: 94.5% – On average, buyers saw a discount off of list price of 5.5%.

Scottsdale homes for sale between $2 and $3 million August 2020

Scottsdale Homes Priced $3,000,000+

– Active Scottsdale Homes on the Market: The number of $3 million+ homes for sale was down slightly.
– UCB Scottsdale Home Sales: The number of UCB contracts was up over 37% compared to July and this figure is by far and away the highest we have seen in this price range in the past year.
– Pending Scottsdale Home Sales: The number of pending sales was down in August, but it was still the third-highest performance of the past year.
– Scottsdale Homes Sold:  Sales also set another annual record. Fourteen homes sold in August.
– Sales Price to Listed Price: 93.5% – On average, buyers saw a discount off of list price of 6.5%.

Scottsdale homes for sale over $3 million August 2020

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 9/1/2020 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 ©2020 Heather Tawes Nelson | Joyce Tawes

Phoenix and Scottsdale AZ Luxury Condo Sales – August 2020

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– Luxury Condo Sales in Scottsdale and Phoenix – August 2020 –

August was another decent month for the luxury condo market in Scottsdale and Phoenix. Sales were solid and there is still quite a bit of inventory under contract.

This report looks at Scottsdale and Phoenix’s luxury condo market. All of these condos were listed for $1 million or more.

ACTIVE LISTINGS AT THE END OF AUGUST

Inventory remianed level at sixty-seven units for sale. Forty-seven of the sixty-seven were located in Scottsdale and the remaining twenty were located in Phoenix.

  • The most expensive luxury condo for sale is a carryover from July. This Two Biltmore Estates home has 4,817 square feet and was listed for $3,300,000.
  • The least expensive luxury condo for sale was listed for $1,000,000 even. It was a two bedroom, two bathroom unit with 1,261 square feet in Optima Kierland.

UCB* LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There was a single UCB contract at the end of August.

This unit was located in the Envy community. It had two bedrooms, two and one-half bathrooms and 1,991 square feet. It was on the market for $1,599,000.

*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

August closed out with six pending listings. Five of the six were located in Scottsdale.

Scottsdale Pending Luxury Condos

  • Scottsdale Waterfront Residences had a single pending sale. It was for a two bedroom, two and one-half bathroom home with 2,117 square feet. The list price was $2,195,000.
  • Optima Kierland is under development, so these condos have been in pending status for a while.
    • Two bedrooms and two and one-half bathrooms with 1,956 square feet. It was listed for $1,750,000.
    • Three bedrooms and bathrooms with 2,704 square feet. It was on the market for $1,816,000.
    • Three bedrooms and bathrooms with 2,018 square feet. It was on the market for $1,939,000.
    • Three bedrooms and bathrooms with 2,704 square feet. It was listed for $2,080,000.

Phoenix Pending Luxury Condos

  • Two Biltmore Estates also had a single pending sale. It was for a three bedroom, three and one-half bathroom home with 4,817 square feet. The list price was $2,400,000.

LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

August saw five luxury condo sales.

Scottsdale Luxury Condo Sales

  • Optima Kierland – Two bedrooms, two bathrooms with 1,665 square feet. It was on the market for $1,390,000 and sold for $1,250,000.
  • ICON Silverleaf – Three bedrooms, three and one-half bathrooms with 3,173 square feet. It was on the market for $1,680,000 and closed for $1,630,000.
  • Optima Camelview – Three bedrooms, two bathrooms with 2,094 square feet. It was on the market for $1,295,000 and closed for $1,310,000.

Phoenix Luxury Condo Sales

  • Two Biltmore Estates. This unit had three bedrooms, three and one-half bathrooms and 3,000 square feet. It was on the market for $1,875,000 and sold for $1,750,000.
  • Fairway Lodge at the Biltmore – Three bedrooms and two and one-half bathrooms with 2,376 square feet. It was listed for $1,042,000 and sold for $1,020,000.

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 9/1/2020 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 ©2020 Heather Tawes Nelson | Joyce Tawes

Quick Video Update of the Scottsdale Real Estate Market – August 2020

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– August 2020 Scottsdale Housing Market Video –

August, usually a month where things start to slow down, bucked the trend and experienced strong sales activity. 

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

August 2020 – Video

 

Scottsdale Active Listings

Scottsdale homes for Sale August 2020

The number of homes on the market fell again to end under 1,000. This happened last month and such low inventory is pretty much unheard of. August 52% fewer homes for sale than last August and 10% fewer homes for sale than July 2020.

As I have been saying, this very love inventory of available homes will hold sales activity back, even as we move into traditionally slower months. Demand for lower-priced homes is so high, most have several offers on the first day. 

Median List Price for Scottsdale Homes

Scottsdale homes median list price August 2020

The median list price measures the exact midpoint of home prices. One half of the homes are priced higher and one half is priced lower. 

August’s median list price came in at $1.25 million. This is up significantly over August 2019’s $899K and is up slightly from last month’s $1.14 million.

Days on Market

Scottsdale homes Days on Market August 2020

Days on Market (DOM) is a basic, but effective, measurement we use to gauge the health of a market.  A  high DOM means that homes are taking a  long time to sell and a low DOM means homes are selling more quickly. 

August’s DOM came in low and this was backed up by the rapid pace of home sales. The DOM for August was 84 days, a 14% decrease from last August. 

Median Sales Price for Scottsdale Homes

Scottsdale homes median sale price August 2020

Now we will take a look at the median sales price for homes in August. 

It came in at $692K. This is lower than July 2020’s $695K, but up over $100 over last August. 

Number of Homes Sold

Now we will take a look at actual home sales. 

Scottsdale homes sold August 2019 versus 2020

This first image is comparing home sales year-over-year. Sales were up 17% over August 2019.

Scottsdale home sales August 2020 vs July 2020

This next image is a month-over-month comparison. Sales were down 8% from last month.  

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 – August 2020

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– August 2020 Scottsdale Homes for Sale and Home Sales –

This is probably the most interesting year in real estate that I have tracked, and I have been doing this monthly report since 2007.

After about a two month pause in March and April , real estate activity came roaring back. Usually, we see sales fall off in August and continue to fall off for the next few months.

However, low inventory and pent-up demand are keeping sales at high numbers.

SCOTTSDALE HOME SALES ACTIVITY – AUGUST 2020

Each of the following items are tracked monthly:

– 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 showing UCB status at the end of the month.*
– Pending home sales – Yellow Line – The number of pending sales there were at the end of the month.*
– Home Sales – Blue Line –  The number of home sales over the course of the month.

AUGUST 2020 RESULTS

Scottsdale Home Sales August 2020
  • Scottsdale Homes for Sale: It is shocking how low inventory is currently. It was eye-opening when it dropped to under 1,000 and now it has dropped another 5.8% to close out the month at 864.
  • UCB (Under contract, accepting backup offers):  UCB contracts were up at the end of August to 334. This is about 100 contracts more than where we were this time last year.
  • Pending Homes Sales in Scottsdale: The number of pending contracts was also up. Typically, we see pending and UCBs start to trail downward at this time of year.
  • Scottsdale Home Sales:  Home sales were down, but were still at a very strong pace for this time of year. In August of 2019, there were 449 sales.

Below are two more sales statistics we track on a monthly bais.

Scottsdale real estate market August 2020

Percent Change Month Over Month – This top chart compares sales activity to the previous month’s activity. For instance, pending sales were up 6.5% over July.

Sales Price to List Price – The lower chart looks at the sales price of homes compared to what they had been on the market for. In August, this figure was 96.9%. And to look at it another way, buyers saw an average of 3.1% off of asking prices.

*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.

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

Disclaimer: Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 9/1/2020. 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 © 2020 Heather Tawes Nelson | Joyce Tawes

Move-Up vs. Second Home: Which One Is Right For You?

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Move Up Home or Second Home

More Space or a New Location? 

The pandemic has changed the way many of us live, work, and attend school—and those changes have impacted our priorities when it comes to choosing a home.

According to a recent survey by The Harris Poll, 75% of respondents who have begun working remotely would like to continue doing so—and 66% would consider moving if they no longer had to commute as often. Some of the top reasons were to gain a dedicated office space (31%), a larger home (30%), and more rooms overall (29%).1

And now that virtual school has become a reality for many families, that need for additional space has only intensified. A growing number of buyers are choosing homes further from town as they seek out more room and less congestion. In fact, a recent survey found that nearly 40% of urban dwellers had considered leaving the city because of the COVID-19 outbreak.2

But not everyone is permanently sold on suburban or rural life. Instead, some are choosing to purchase a second home as a co-primary residence or frequent getaway. Without the requirements of a five-day commute, many homeowners feel less tethered to their primary residence and are eager for a change of scenery after spending so much time at home.

If you’re feeling cramped in your current space, you’ve probably considered a move. But what type of home would suit you best: a move-up home or a second home? Let’s explore each option to help you determine which one is right for you.

WHY CHOOSE A MOVE-UP HOME?

A move-up home is typically a larger or nicer home. It’s a great choice for families or individuals who simply need more space, a better location, or want features their current home doesn’t offer—like an in-ground pool, a different floor plan, or a dedicated home office.

Most move-up buyers choose to sell their current home and use the proceeds as a down payment on their next one. If you’re struggling with a lack of functional or outdoor space in your current home, a move-up home can greatly improve your everyday life. And with mortgage rates at their lowest level in history, you may be surprised how much home you can afford to buy without increasing your monthly payment.3,4

To learn more about mortgage rates, contact us for a free copy of our recent report!
“Lowest Mortgage Rates in History: What It Means for Homeowners and Buyers”

One major benefit of choosing a move-up home is that you can typically afford a nicer place if you spend your entire budget on one property.

However, if you’re longing for that vacation vibe, a second home may be a better choice for you.

Wrok Life Balance from Home

WHY CHOOSE A SECOND HOME?

Once reserved for the ultra-wealthy, second homes have become more mainstream. Home sales are surging in many resort and bedroom communities as city dwellers search for a place to escape the crowds and quarantine in comfort.5 And with air travel on hold for many families, some are channeling their vacation budgets into vacation homes that can be utilized throughout the year.

A second home can also be a good option if you’re preparing for retirement. By purchasing your retirement home now, you can lock in a low interest rate, start paying down the mortgage, and begin enjoying the perks of retirement living now. Plus, it’s easier to qualify for a mortgage while you’re employed, although you may be charged a slightly higher interest rate than on a primary home loan.6

One advantage of choosing a second home is that you can offset a portion of the costs—and in some cases turn a profit—by renting it out on a platform like Airbnb or Vrbo. However, be sure to consult with a real estate professional or rental management company to get a realistic sense of the property’s true income potential.

WHICH ONE IS RIGHT FOR ME?

 You may read this and think: I’d really like both a move-up home AND a second home! But if you’re dealing with a limited budget (aren’t we all?), you’ll probably need to make a choice.  These three tactics can help you decide which option is right for you.

1. Determine Your Time and Financial Budget

You may meet the bank’s qualifications to purchase a home, but do you have the time, energy, and financial resources to maintain it? This is an important question to ask yourself, no matter what type of home you choose.

Most buyers realize that a second home will mean double mortgages, utilities, taxes, and insurance. But buyers also need to consider all the extra time and expense that goes into maintaining two properties. Two lawns to mow. Two houses to clean. Two sets of systems and appliances that can malfunction. Second homes aren’t always a vacation. Make sure you’re prepared for the labor and carrying costs that go into maintaining another residence.

Of course, some move-up homes require more work than a second home. For example, if your move-up option is a major fixer-upper, you’ll probably invest more energy and capital than you would on a small vacation condo by the beach. Have an honest discussion about how much time and money you want to spend on your new property. Would a move-up home or a second home be a better fit given your parameters?

2. Rank Your Priorities

 If you’re still undecided, make a wish list of the characteristics you’d like in your new home. Then rank each item from most to least important. This exercise can help you determine your “must-have” features—and which ones you may need to sacrifice or delay. Here’s a sample to help you get started:

   RANK

FEATURE

 

Dedicated home office

 

Extra bedroom

 

Pool

 

Walk to the beach

 

Big backyard

 

Close to friends and family

 

Short commute to the office

 

Investment potential

3. Explore Your Options

Once you’ve determined your parameters and priorities, it’s time to begin your home search.

If you’re still not sure whether a move-up home or a second home is right for you, we can help.

Contact us to schedule a free consultation. We’ll discuss your options and help you assess the pros and cons of each, given your unique circumstances.

We can also send you property listings for both move-up homes and second homes within your budget so you can better envision each scenario. Sometimes, viewing listings of homes that meet your criteria can make the decision clear.

LET’S GET MOVING

Whether you’re ready to make a move or need help weighing your options, we’d love to help. We can determine your current home’s value and show you local properties that fit within your budget. Or, if your heart is set on a second home in another market, we can refer you to an agent in your dream locale. Contact us today to schedule a free, no-obligation consultation!

Sources:

  1. Zillow –
    https://www.zillow.com/research/coronavirus-remote-work-suburbs-27046/
  2. The Harris Poll –
    https://theharrispoll.com/should-you-flee-your-city-almost-40-have-considered-it-during-the-pandemic/
  3. MarketWatch –
    https://www.marketwatch.com/story/mortgage-rates-keeping-falling-so-will-they-finally-drop-to-0-2020-08-13
  4. Toronto Star –
    https://www.thestar.com/business/2020/08/07/you-can-get-a-fixed-rate-as-low-as-184-per-cent-which-is-unbelievable-low-mortgage-rates-driving-up-home-prices.html
  5. Kiplinger –
    https://www.kiplinger.com/real-estate/buying-a-home/601091/timely-reasons-to-buy-a-vacation-home
  6. The Press-Enterprise –
    https://www.pe.com/2018/11/17/5-tips-on-when-should-you-buy-a-retirement-house-hint-before-you-quit-work/

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