The Scottsdale Real Estate market is expected to show price increases during 2012. During 2011, the economic forecasting firm Fiserv predicted that home values would sink around 5% in 2011, and that prices in three-quarters of the nation’s major metro areas would fall. This turned out to be fairly accurate. The good news is that Fiserv is predicting that in Scottsdale prices will rise in 2012. In fact, Fiserv thinks 95% of the 384 real estate areas it tracks will see prices rise.
We don’t expect to see huge price increases during 2012. The prices will change significantly enough, however, that those that wait can expect to pay up to 5% more the following year. On a $450,000 house (approximately the average price of homes in Scottsdale) the price will increase $22,500.
Foreclosures in Scottsdale will continue to weigh on the market. The number of Scottsdale foreclosures, however, is much less than in previous years. The trustee notices and sales in all of Maricopa County have been steadily decreasing for the past 2 years. As the foreclosures dry up they will have less and less effect on the Scottsdale real estate market.
Historically low interest rates will also help the market recover. It is unbelievable how cheap it is to borrow money right now. This is a huge advantage to anyone who can qualify for a mortgage. The 4.2% rate on a 30-year fixed rate in late October might not last long. Still, he expects the 30-year fixed mortgage rate to stay below 5% throughout 2012.
For those purchasing a Scottsdale home, 2012 could be a great opportunity, with cheap prices and low interest rates.
Carmen Brodeur JD
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260