The Scottsdale market is continuing on its steady recovery. Across the Phoenix area, a smaller number of homeowners are underwater on their mortgages, and prices of homes are soaring upward. This, of course, includes the prices of Scottsdale homes, which are some of the most popular on the market.
Figures from Zillow Inc. show that the negative equity rate in metro Phoenix has fallen to 36 percent during the first quarter. This is a large drop from last year’s rate of more than 50 percent.
When a homeowner owes more money on his or her mortgage than the property is worth, this translates into negative equity. According to Zillow, at the current rate, even more homeowners will recover from negative equity by next year, dropping the rate below 30 percent.
While a decrease in the number of underwater homeowners presents another milestone in the real estate market’s recovery, it has not yet resulted in a larger inventory of homes for sale. Many homeowners in Phoenix have less than 20 percent equity on their homes, leaving them unable to sell.
As the Scottsdale market continues to improve, however, more homeowners will become confident enough to sell their homes. Until then, supply of homes will be limited, prices will continue to go up throughout the year and the competition for prime Scottsdale real estate will be fierce.
Do not miss out on the great deals that remain throughout Scottsdale. Visit our page on Scottsdale Market Trends to track the market’s improvements, and call me at (602) 791-0536 to learn more about Scottsdale homes for sale
Carmen Brodeur JD
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260
Cell (602) 791-0536