The Scottsdale real estate market is on fire. The market trends are improving with the help of strong economic growth, once in a generation affordability levels, and a surge in investment activity. The number of investors buying Phoenix and Scottsdale homes is off the charts and is at a level that surpasses the numbers during the housing boom. Phoenix was at ground zero of the housing market collapse. Despite this, Phoenix is rising from the ashes and has shown a dramatic turnaround in recent months. Phoenix is outpacing other distressed markets such as Las Vegas, Riverside-San Bernardino and Sacramento. Phoenix was one of the hardest hit housing markets during the bust, with home values declining 57% from 2006 through mid-2011.
Since the mid 2011, the Phoenix and Scottsdale real estate market conditions have improved considerably and prices have begun to rise. Certainly, record affordability has helped nudge hesitant homebuyers off of the fence. Investors and foreign buyers are playing a big role in recovery. Investors have flooded into Phoenix and Scottsdale. They now make up 45% of all buyers in Maricopa County. Investor demand is so strong in the lower end of the market that first time buyers have a difficult time competing with the investors who routinely pay all cash. Bidding wars are common and many homes are sold above list price.
Second homeowners from Canada are also rushing into the market to take advantage of the strong Canadian dollar and the huge decrease in prices. 4% of all sales are to Canadian buyers.
Inventory of Scottsdale homes for sale is the lowest levels since 2005. Low inventory means fewer homes on the market and more competition amongst buyers. However, with prices still close to half of the previous levels, it is still a great time to buy. Homebuyers just need to be strategic when making offers. Low ball offers is a thing of the past. Homes in Scottsdale are now selling on average for 98.4% of the list price.
Call me to view any Scottsdale homes for sale. I would be happy to show you the newest homes on the market.
Carmen Brodeur JD
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260