BY KADDIE STEPHENS | APRIL 15, 2015
Scottsdale residential market strong and on the rise
Scottsdale realtors said during last Monday’s evening meeting that Scottsdale boasts some of the highest-priced homes in the valley with a market steadily on the rise.
Melanie Nemetz, a Realtor® who has worked with multiple real estate companies state-wide, said the market finally feels “stable and refreshing.”
“When the market was down, I watched lenders go out of business and home inspectors have to lay people off," Nemetz said. "Now, we have a four month absorption rate," she added, meaning that without putting any other homes on the market, it would take four months to sell all the current inventory.
According to the Arizona Regional Multiple Listing Service Inc.’s 2014 numbers, sales per month have been the highest in May, with over 600 sales and 2,300 active listings occurring that month. Sales per month then drop and hit a low in October, with only about 350 sales.
Numbers also show the lowest average housing prices within the city in the 85251 area code in south Scottsdale, with houses costing around $255,000. Central Scottsdale, with area codes 85259 and 85260 has average home prices anywhere from $375,000 to $599,900. North Scottsdale, between area codes 85255 and 85262, has the highest average home prices within the city, with houses ranging from $679,900 to $799,500. The only area with prices higher than Scottsdale is the Paradise Valley area, near Camelback and 40th Street, with houses going for around $1 million.
"The market definitely fluctuates, but interest rates have stayed low enough and home conditions have improved enough the market is pretty steady year round,” said Mike Warren, a retired Scottsdale Realtor®.
Ken Hartman, a local Scottsdale resident, bought his home for $375,000 in 1998, and said “now that the recession is over, I can confidently put it on the market for over $600,000.”
According to Nemetz, people now have the money to put into their homes and are pricing the homes higher, but the buyer is going into it knowing they are getting a much better home.
"A majority of the houses on the market are now owner-occupied and have been maintained, as opposed to houses that were in poor shape or had been abandoned due to the owners’ financial situations during the recession,” Nemetz said.
The rental market is also high in Scottsdale, and according to Warren, the valley is a big market for rental properties.
"There are 3.5 renters for every buyer,” Warren said, and the market is currently best suited for buyers.
Both realtors emphasized how important presentation can be.
“It’s all about first impression,” Warren said.
“Everything about buying and selling homes is visual, so when selling your home keep in mind staging, lighting, and the quality of the photos you choose to put in your ad,” Nemetz added.
