Scottsdale Market Update

Scottsdale’s real estate market has witnessed significant shifts over the past year. In this LUXE BLOG update, we’ll get into the key statistics and trends shaping Scottsdale’s housing market. Most of this data was from August yet not much has changed. With that said and out of the way, let’s take a look at Scottsdale’s latest stats.

Scottsdale Trends

The Scottsdale real estate market has undergone notable changes over the past year. Let’s examine the key trends:

• Active Listings: The number of available homes for sale in Scottsdale has decreased by almost 21% compared to the previous year.
• Sold Listings: Conversely, sold listings have seen an increase of nearly 9% compared to last year.
• Median Sale Price per Square Foot: Despite recent fluctuations, the median sale price per square foot in Scottsdale is up by 2%. This suggests a stabilization in home values after a period of uncertainty.
• Months of Supply: With fewer listings and increased sales, the months of supply in Scottsdale has dropped by over 27% compared to the previous year, currently standing at 2.39 months. This indicates a seller’s market, albeit not a hyper-competitive one.

Also Read: What Is The Cost of Living In Scottsdale?

Understanding The Stabilization

The past few years have seen substantial home value increases in Scottsdale, leading to double-digit year-over-year gains. However, the market experienced a setback last year, with home values decreasing by around 6-7% over six months. The current 2% increase indicates a return to normalcy, as typical appreciation falls within the 2-4% range.

Factors Influencing The Scottsdale Market

Several factors are influencing the current state of the Scottsdale real estate market:

• Interest Rates: Mortgage rates have risen slightly but remain close to the historical average of around 7.7%. The shift in rates has not deterred buyers significantly.
• Population Growth: Scottsdale has seen consistent population growth, contributing to increased housing demand.
• Supply Shortage: A decade-long shortage of housing supply remains a challenge in Scottsdale, preventing the market from achieving affordability for all.

Also Read: Guide To Scottsdale, Arizona

Market Segmentation

Now, let’s discuss how different price ranges are performing in the Scottsdale market:

$0 – $100,000

• No substantial data available.
• Likely limited financing options or undesirable properties.

$100,000 – $200,000

• 14 months of supply, indicating a buyer’s market.
• Properties may be harder to finance or in poor condition.

$200,000 – $300,000

• 1.78 months of supply, a hot seller’s market.
• Expect multiple offers and strong sales prices.

$300,000 – $500,000

• 1.36 months of supply, another seller’s market.
• Competitive market with potential for multiple offers.

$500,000 – $700,000

• 1.78 months of supply, indicating high demand.
• Sellers can expect competitive offers.

$700,000 – $1 Million

• 2.3 months of supply, a solid seller’s market.
• Offers may not be significantly above asking price.

$1 Million – $3 Million

• 2.57 months of supply, showing demand.
• Offers will likely be fair, but not necessarily above asking price.

$3 Million & Over

• 10.44 months of supply, a buyer’s market.
• Luxury market tends to be slower, especially during the summer months.

Also Read: What Area Of Scottsdale Should I Move To?

Scottsdale’s Latest CMI Per Cromford Report

A score of 90 and under = buyer’s market. 90-110 = balanced market. 110+ = seller’s market.

As of September 14th, 2023 – Scottsdale’s CMI was 168.8. This was down -6% month over month. However, it is necessary to realize that is still 58.8 points higher than the beginning of a seller’s market. Bottom line is, Scottsdale’s market, just like the rest of the country has slowed. Yet, as you can see, it remains in favor of sellers.

We rely on CromfordReport.com, a trusted market data provider in the Phoenix area. CromfordReport.com employs the Cromford Market Index (CMI), which assesses various aspects of the market by analyzing data from 17 key cities and municipalities in the Greater Phoenix region. This index measures seller and buyer demand, overall market health, and the health of specific areas within the region, providing a comprehensive overview of the real estate landscape.

Looking Ahead

The Scottsdale real estate market certainly has much going for it. And while the rate of appreciation has slowed, there’s a lack of inventory. As we move into the fall and winter months, the market typically gains strength. January, February, and March are big months for the city. We shall see what happens with rates and buyer demand. Remember, the real estate market can vary by neighborhood, so it’s essential to work closely with experienced professionals who understand the nuances. If you’re a buyer, seller, investor, or developer, our multilingual team at Williams Luxury Homes is here to help.

Thank you for stopping by LUXE BLOG.