Scottsdale Real Estate Market

Phoenix and Scottsdale AZ Luxury Condo Sales – September 2018

October 20, 2018 By Heather Tawes Nelson

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

The luxury condo market in Scottsdale and Phoenix had very little to report after an almost equally quiet August.

This analysis is looking at luxury condos that are priced above $1 million.

ACTIVE LISTINGS AT THE END OF SEPTEMBER

At the end of September, there were forty-eight luxury condos for sale. Thirty two of these were located in Scottsdale and the remaining sixteen were in Phoenix.

The most expensive condo for sale was at the Plaza Lofts at Kierland. It came onto the market in September priced at $3,750,000. This unit has three bedrooms, two and one-half bathrooms and 3,567 square feet.

The least expensive condo was located in Optima Camelview. Listed for $1 million, it has two bedrooms, two and one-half bathrooms and 1,955 square feet.

UCB* LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There was a single condo in UCB status at the end of September. This unit was located in Silverleaf’s Icon community that is under development. This unit will have three bedrooms, three and one-half bathrooms and 3,170 square feet. It had been listed for $2,174,000.

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

PENDING LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There were five pending luxury condo sales at the end of the month and they were all located in Scottsdale.

Four pending sales have been carryovers for several months as they are being built out. The newest pending condo was located at Optima Camelview.

Pending Condos in Scottsdale:

Optima Camelview: Three bedrooms, two bathrooms, 1,871 square feet. Listed for $1,150,000.
Main Street Place: Two bedrooms, two and one-half bathrooms, 2,419 square feet. Listed for $1,450,000.
ICON at Silverleaf:
- Three bedrooms, three and one-half bathrooms, 3,170 square feet. Listed for $2,174,000.
- Three bedrooms, three bathrooms, 3,170 square feet. Listed for $2,074,000.
- Three bedrooms, three bathrooms, 3,170 square feet. Listed for $2,074,000.

LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There were no luxury condo sales in Scottsdale or Phoenix in September.

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 10/1/2018 and can change at any time. The analysis looks at resale luxury condos in Scottsdale and Phoenix over the past 12 months. Information deemed reliable, but not guaranteed. There may be new condo inventory in these figures if the developer is using the MLS to market its homes. This post represents the opinion of the author. No warranties express or implied.
Copyright © 2018 Heather Tawes Nelson | Joyce Tawes

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

October 16, 2018 By Heather Tawes Nelson

– September 2018 Scottsdale Housing Market Video –

September 2018 – Video

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

Scottsdale Active Listings

This first snapshot is comparing the number of homes for sale in September 2018 compared to the same time period a year earlier. Inventory was down significantly with a 20% decrease.

This is also looking at the number of homes for sale, but this time it is a month-over-month comparison.

Inventory was up 2% at the end of September compared to the end of August.

Median List Price for Scottsdale Homes

A median price is the exact midpoint of home prices. So, half of the homes are priced higher and half are priced lower.

This metric looks at the median list price for Scottsdale homes. $870,000 was the median asking price for September.

Days on Market

Days on Market (abbreviated as DOM) is a measurement that tracks how long it takes homes to sell once they come onto the market.

The DOM for September 2018 was 94. This is down 7% from the same time period last year.

Median Sales Price for Scottsdale Homes

This is now a look at the median sales price of homes in September.

The median sales price was $580,000. This is up from the previous month’s median sales price of $560,000 as well as September 2017’s median sales price of $550,000.

Number of Homes Sold

This final section shows sales performance.

This first snapshot compares homes sales in September 2018 to September 2017.

Sales were down 9%.

This second snapshot compares September’s sales to August’s.

Sales were down sharply (27%) between the two months.

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

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

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

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

As 2018 Starts Wrapping Up, What’s Ahead for Real Estate?

October 13, 2018 By Stefan

“How’s the Market?” What’s Ahead for Real Estate

While no one can predict the future with certainty, most experts expect to see modest growth in the U.S. housing market for the remainder of this year and next. Inventory will remain tight, mortgage rates will continue to creep up, and affordability will remain a major issue in many parts of the country. For instance, Scottsdale’s median home price has been rising at a solid pace since the recovery began.

So what does that mean for home buyers and sellers? To answer that question, we take a closer look at some of the top indicators.

CONTINUED GROWTH IN HOUSING MARKET

There’s good news for homebuyers! In many markets across the country, prices have begun to stabilize after a period of rapid appreciation. Nationwide, home sales experienced a slight decline of 1.6 percent in the second quarter, primarily due to higher mortgage rates and housing prices combined with limited inventory.

However, buyers who have been waiting on the sidelines in anticipation of a big price drop may be disappointed. Demand remains strong across the sector and prices continue to rise. The Case-Shiller U.S. National Home Price Index reported a 6.2 percent annual gain in June, a healthy but sustainable rate of appreciation.¹

In its latest Outlook Report, Freddie Mac forecasts continued growth in the housing market due to a strong economy and low unemployment rate, which dropped to 3.9 percent in July.²

“The housing market hit some speed bumps this summer, with many prospective homebuyers slowed by not enough moderately-priced homes for sale and higher home prices and mortgage rates,” according to Sam Khater, Chief Economist at Freddie Mac. “The good news is, the economy and labor market are very healthy right now, and mortgage rates, after surging earlier this year, have stabilized in recent months. These factors should continue to create solid buyer demand, and ultimately an uptick in sales, in most parts of the country in the months ahead.”³

INVENTORY TO REMAIN TIGHT, NEW CONSTRUCTION MAY HELP

Experts predict that demand for housing will continue to outpace available supply, especially in the entry-level price range.

“Today, even as mortgage rates begin to increase and home sales decline in some markets, the most significant challenges facing the housing market stem from insufficient inventory accompanying unsustainable home-price increase,” said National Association of Realtors (NAR) Chief Economist Lawrence Yun in a recent release.

“The answer is to encourage builders to increase supply, and there is a good probability for solid home sales growth once the supply issue is addressed,” said Yun. Additional inventory will also help contain rapid home price growth and open up the market to prospective homebuyers who are consequently—and increasingly—being priced out. In the end, slower price growth is healthier price growth.”⁴

With so much demand, why aren’t more builders bringing inventory to the market? According to the National Association of Home Builders, a crackdown on immigration and tariffs on imported lumber have made home construction more difficult and expensive. Those factors—combined with the rising cost of land and increased zoning requirements—have put a damper on the industry overall.⁵

Still, there’s evidence that a modest rise in the rate of new building projects may be on the way. Freddie Mac predicts new housing construction will increase slightly after a stall last quarter.² And a recent report by Freedonia Focus Reports forecasts an annual increase in housing starts of 2.4 percent through 2022, led by an uptick in single-family homes.⁶The boost in inventory should help drive sales growth and relieve some of the pent-up demand in tight markets.

Scottsdale and Greater Phoenix have been seeing an uptick in new spec home builds, meaning builders are optimistic about our local market and that we have additiona new home inventory coming onto the market.

While the current lack of inventory is generally preferred by sellers because it means less competition, a combination of high prices and rising interest rates has narrowed the pool of potential buyers who can afford to enter the market. Sellers should seek out real estate agents who utilize technologically-advanced marketing tactics to reach qualified buyers in their area.

AFFORDABILITY REACHES LOWEST LEVEL IN A DECADE

According to a recent report by Morgan Stanley, Americans are paying the most in monthly mortgage payments relative to their incomes since 2008.⁷ And prices aren’t expected to come down any time soon.

“We believe that the current supply and demand environment will continue to push home prices higher, just at a decelerating pace,” said John Egan, Morgan Stanley’s Co-Head of U.S. Housing Strategy.

Fortunately, economists aren’t concerned about affordability levels triggering another housing crisis, as lending standards are much higher today than they were during the run-up before the recession. According to credit reporting agency TransUnion, the share of homeowners who made mortgage payments more than 60-days past due fell in the second quarter to 1.7 percent, the lowest level since the market crash.⁷

NAR Chief Economist Lawrence Yun agreed with this assessment in a recent statement. “Over the past 10 years, prudent policy reforms and consumer protections have strengthened lending standards and eliminated loose credit, as evidenced by the higher than normal credit scores of those who are able to obtain a mortgage and near record-low defaults and foreclosures, which contributed to the last recession.”⁴

MORTGAGE RATES EXPECTED TO CONTINUE RISING

The Federal Reserve has taken measures to help keep the housing market—and the overall economy—from overheating. It has raised interest rates twice this year so far, causing mortgage rates to surge in the first half of the year.

Economists predict that the rise in mortgage rates will continue at a more gradual rate through this year and next. The U.S. weekly average mortgage rate rose from 3.99 percent in the first week of January to as high as 4.66 percent in May. Freddy Mac forecasts an average rate of 4.6 percent for 2018 and 5.1 percent in 2019.²

The good news is, mortgage rates still remain near historic lows and a whopping 14 points below the recorded high of 18.63 percent in the early 1980s.⁸ Buyers who have been on the fence may want to act soon to lock in an affordable interest rate … before rates climb higher.

“Some consumers may be thinking that because mortgage rates are higher than they were a year ago, maybe I should just wait until rates fall down again,” said NAR’s Chief Economist Lawrence Yun in a recent speech. “Well, they will be waiting forever.”⁹

WHAT DOES IT ALL MEAN FOR ME?

If you’ve been waiting to buy a home, you may want to act now. A shortage of available homes on the market means prices are likely to keep going up. And a lack of affordable rental inventory means rents are expected to rise, as well.

If you buy now, you will benefit from appreciating property values while locking in an historically-low interest rate on your mortgage. Waiting to buy could mean paying more for your home as prices increase and paying higher interest on your mortgage as rates continue to rise.

And if you’re in the market to sell your home, there’s no need to wait any longer. Prices have begun to stabilize, and rising interest rates could decrease the number of available buyers for your home. Act now to take advantage of this strong seller’s market.

LET’S GET MOVING

While national real estate numbers and predictions can provide a “big picture” outlook, real estate is local. As local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood.

If you have specific questions or would like more information about where we see real estate headed in our area, let us know! We’re here to help you navigate this changing real estate landscape.

Sources:

S&P Dow Jones Indices Press Release –
https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/766551_cshomeprice-release-0828.pdf?force_download=true
Freddie Mac Outlook Report –
https://www.freddiemac.com/research/forecast/20180827_strong_economic_growth.html
DSNews –
https://dsnews.com/daily-dose/08-28-2018/freddie-weighs-in-on-housing-market
PR Newswire –
https://www.prnewswire.com/news-releases/realtors-chief-economist-reflects-on-past-recession-whats-ahead-for-housing-300702632.html
CNN Money –
https://www.keyt.com/lifestyle/where-is-the-us-housing-market-headed-4-things-you-need-to-know/787471572
PR Newswire –
https://www.prnewswire.com/news-releases/us-housing-starts-to-rise-2-4-yearly-to-2022–300711989.html
Business Insider –
https://www.businessinsider.com/housing-affordability-slowing-market-sales-2018-8
Value Penguin –
https://www.valuepenguin.com/mortgages/historical-mortgage-rates
Times Free Press –
https://www.timesfreepress.com/news/business/aroundregion/story/2018/aug/14/despite-prospects-higher-mortgage-rateshousin/476979/

Disclaimer: This post is informational and is not to replace professional advice.

Scottsdale AZ Single Family Home Sales – September 2018

October 8, 2018 By Heather Tawes Nelson

– September 2018 Scottsdale Homes for Sale and Home Sales –

September was another quiet month for the Scottsdale real estate market in terms of home sales. However, this is a seasonally slow month, so this is not surprising.

SCOTTSDALE HOME SALES ACTIVITY – SEPTEMBER 2018

We track the following four items on a monthly basis:

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

SEPTEMBER 2018 RESULTS

Scottsdale Homes for Sale: Inventory saw a jump of over 5% to end the month at 1,573. The number of homes for sale tends to stay pretty level at this time of year, so perhaps sellers are trying to get a jump on the market.
UCB (Under contract, accepting backup offers): UCB contracts fell again to close out the month at 207. This is the lowest they have been in the past year.
Pending Homes Sales in Scottsdale: Pending sales edged up slightly to 255 at the end of September.
Scottsdale Home Sales: Home sales fell sharply. They were down 21.5% compared to August.

This next section includes two more metrics we track each month.

The top part is a look at how each of the four sales statuses we are tracking compares to the previous month’s performance. For instance, pending sales were up 2% between the end of August and the end of September.

The lower part is something called Sales Price to List Price. It is a quick measurement to see how much homes are selling for on average based upon average list prices. In September, it was 96.3%. This means on average, buyers saw a 3.7% discount off of asking prices.

As expected, September was a little slow and I anticipate October to be similar.

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

Search Scottsdale AZ Homes for Sale

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

Disclaimer: Data and information were pulled from the Arizona Regional MLS (ARMLS) as of 10/1/2018. Information deemed reliable, but not guaranteed. There may be new home inventory in these figures if the developer is using the MLS to market its homes. This post represents the opinion of the author. No warranties express or implied.
Copyright © 2018 Heather Tawes Nelson | Joyce Tawes

Scottsdale AZ Luxury Home Market – August 2018

September 30, 2018 By Heather Tawes Nelson

– Scottsdale AZ Luxury Home Market Performance for August 2018 –

As to be expected to due to seasonality, the luxury home market had a pretty quiet month in August, although we did see some stronger sales activity on the higher-priced homes.

This report covers Scottsdale’s luxury home sales activity. The homes have been split out into four prices ranges to show additional detail.

Each month, we track the following four things:
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 over the course of the month.

– AUGUST 2018 –

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

– Active Scottsdale Homes on the Market: Inventory edged up 4.6% in this price segment. Typically, we see it decreasing or staying level.
– UCB Scottsdale Home Sales: UCB contracts fell to the lowest level we have seen in the past year.
– Pending Scottsdale Home Sales: Pending sales fell over 21% between July and August.
– Scottsdale Homes Sold: Forty-three homes sold in August, just under the 12 month average of 44.
– Sales Price to Listed Price: 94.1% – On average, buyers saw a discount off of list price of 5.9%

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

– Active Scottsdale Homes on the Market: Inventory fell over 13% over the end of last month. This is the lowest we have seen in the past year.
– UCB Scottsdale Home Sales: There was a nice spike in UCBs after two quieter months.
– Pending Scottsdale Home Sales: Pending sales also saw a big jump and ended the month at the highest level we have seen in the past year.
– Scottsdale Homes Sold: Only ten homes sold in August, well below the 12 month average of 14.
– Sales Price to Listed Price: 94.0% – On average, buyers saw a discount off of list price of 6%.

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

– Active Scottsdale Homes on the Market: The number of homes for sale fell 8.1% in August to 114.
– UCB Scottsdale Home Sales: After a great July, UCB contracts fell back down to six.
– Pending Scottsdale Home Sales: Pending sales ended up one higher and right on par with the 12 month average.
– Scottsdale Homes Sold: Thirteen homes sold in August, which is a great performance at this time of year.
– Sales Price to Listed Price: 90.6% – On average, buyers saw a discount off of list price of 9.4%.

Scottsdale Homes Priced $3,000,000+

– Active Scottsdale Homes on the Market: The number of homes on the market has been decreasing since January. August closed out at 93.
– UCB Scottsdale Home Sales: UCB contracts more than doubled compared to the end of July.
– Pending Scottsdale Home Sales: While UCBs were strong, pending sales dropped to a single home. This is the lowest it has been in the past year.
– Scottsdale Homes Sold: There were three sales in this price point in August.
– Sales Price to Listed Price: 94.4% – On average, buyers saw a discount off of list price of 5.6%.

Sales activity was in mixed in August. While we saw sales taper off in the lower price bands, the higher priced homes posted higher sales figures.

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 9/1/2018 and can change at any time. The analysis looks at single-family luxury resale homes in Scottsdale AZ over the last 12 months. There may be new home inventory in these figures if the developer is using the MLS to market its homes. This blog represents the opinion of the author. No warranties expressed or implied.
Copyright ©2018 Heather Tawes Nelson | Joyce Tawes

Phoenix and Scottsdale AZ Luxury Condo Sales – August 2018

September 18, 2018 By Heather Tawes Nelson

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

The Scottsdale and Phoenix luxury condo market had a quiet August, which is common for this time of year.

In this report, I am looking at condos where the list price is at or above $1 million.

ACTIVE LISTINGS AT THE END OF AUGUST

Inventory stayed level at forty-eight luxury condos for sale. Thirty-three were located in Scottsdale and the remaining fifteen were in Phoenix.

The most expensive condo on the market remains a carryover from the past several months. Located in the Plaza Lofts at Kierland community, it was on the market for $2,999,999. This home has three bedrooms, three and one-half bathrooms and 4,059 square feet.

The least expensive condo on the market at the end of August was in Safari Drive. This three bedroom, three and one-half bathroom home has 2,055 and was listed for $1,049,000.

UCB* LUXURY CONDO SALES IN SCOTTSDALE AND PHOENIX

There were no condos in UCB status at the end of the month.