The North Scottsdale Summer Real Estate Market is Hot
The North Scottsdale summer real estate market starts as temperatures rise. There can be no doubt that we have entered the summer market here in Arizona. Temperatures on a daily basis are recorded in triple digits, and we are starting to see some rains from our much-welcomed Monsoon storms. In North Scottsdale, the market traditionally slows down as the temperatures rise, but it is likely that this year is going to be somewhat different. As we reported in a previous post, summer is not necessarily an unfavorable time to put a home on the market here.
The Average Price of a Home in Phoneix Has Risen Dramatically
Looking at the market so far this year, it is easy to see that we have been in the midst of one of the strongest seller’s markets that we have ever seen in years. Inventory continues to be down dramatically, days on market are at all-time-lows at most price points and prices have been on the rise. One statistic that drove home the upswing in market prices was a snapshot of the average price for a home in the entire Phoenix metro market. One year ago at the end of June, the average home price was $370,971. At the end of June this year, the average had risen to $512,743; a 38 percent increase as can be seen in the chart below.
North Scottsdale’s Summer Real Estate Market is Not Slowing Down
Looking at the three zip codes that comprise the North Scottsdale Market (85255,85262, and 85266), we see an even greater increase in average price from $1,085,432 to $1,558,124, which is a 44 percent price increase. The number of units sold in North Scottsdale also increased dramatically comparing the first half of the year 2020 to 2021. In the first half of 2020 a total of 1,015 single-family homes closed and in 2021, that number increased by nearly 60 percent to 1,614 homes. Price per square foot is another indicator of market strength. On a 12-month moving average, the price per square foot has increased nearly 23 percent for homes ranging in size between 2,800 and 6,000 square feet in North Scottsdale. This is a record high of $362 per square foot.
North Scottsdale Real Estate Inventory Remains Low
Still, the increase in prices has not led to a dramatic increase in home supply. The overall metro market has seen a slight increase in supply, but nothing like previous years, and in North Scottsdale, the number of single-family homes available for sale at all price points remains at a historical low. At present, there are only 279 homes for sale in North Scottsdale, this is 27 percent below where we were at the beginning of 2021, and 56 percent below where we were last year at this time.
North Scottsdale Days On Market Decreases
Seasonality does make a difference in terms of the number of listings in our market. If we look at the average of the last three years, summer inventory at the beginning of July is usually down by 21.5 percent, so this year’s drop is significantly greater.
Finally, homes are selling quickly if they show well and are priced correctly. In North Scottsdale, the average number of days a home was on the market before closing was 53 days, which is up slightly from May, but down 46 percent from the same month in 2020.
What the North Scottsdale Summer Real Estate Market Is Telling Us
What the market is telling us is that if you are looking to sell a home, the market is still in the seller’s favor. Every week we receive calls from agents representing buyers that cannot find homes that meet their clients. If you are interested in learning what your home is worth in this changing market, please give us a call at 602-603-0708.