Home sales are up across Scottsdale. This is blatantly obvious in the more affordable Scottsdale neighborhoods. Many families looking for affordable places to live in Scottsdale are getting squeezed out as more and more investors move in.
Investors are taking advantage of the market and paying cash. Regular buyers who need a mortgage are losing out because they can’t compete again the cash buyers. Sellers always prefer cash deals over financed deals.
The saying “Cash is King” is truer than ever. The people who have the cash to buy a home are in the driver’s seat. Mike Orr, a professor at ASU’s W.P. Carey School of Business, says “We went straight through normal and back from a fear-dominated market to a greed-dominated market with nothing in between.” Orr says 40 percent of home sales are cash deals today, compared to about 10 percent in normal times.
Prices appear to increase quickly for Scottsdale homes under $400,000. The inventory of Scottsdale homes for sale is very low and the number of sales is up. “Prices are currently going up at about 1 percent per week,” says Orr. “At first the price change was quite subtle and now it is quite significant and that just makes people anxious to get their house now because next month, it might be 5 percent more expensive.”
In the $250,000-and-under range, last year, there was a 130 day inventory of homes for sale. Today, the number of homes on the market will last only 27 days — and every month that supply is shrinking. “I don’t know yet when it is going to reach an end because there is no obvious source of new supply right now.” Orr says the number of foreclosures is going down and so is the number of people behind on their mortgages.
Schedule an appointment to view the current homes for sale in Scottsdale by calling me at (602) 791-0536.
Carmen Brodeur JD
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260