THE SCOTTSDALE AND PHOENIX REAL ESTATE MARKET – INVENTORY AT A HISTORIC LOW
This week we want to share some details of what some are calling the hottest real estate market in Scottsdale and Phoenix in recent history. If you pay attention to the news, you have undoubtedly seen how real estate is booming in many parts of the country. Scottsdale and the entire Phoenix metro market is indeed one of the areas benefiting from the upswing. The lowest interest rates in modern history have combined with changing housing needs based on people’s experience with the pandemic and insufficient inventory, to create a strong seller’s market in many areas and price points.
We have written about the decline in housing inventory, but we decided to dig deeper into the data and see what low inventory means in this market and at different price points.
PHOENIX METRO MARKET REAL ESTATE INVENTORY
Looking at the entire Phoenix real estate market, we start to quickly get a sense of why we see multiple offers, back-up offers, and fewer days on the market for lower-priced homes. We measure inventory in various ways, but one of the most useful methods is Days of Inventory Remaining. This statistic measures that if no more homes came onto the market, and sales remain at the current rate, how soon would there be no more homes left to sell? In the sub $500,000 market for the entire Phoenix metro area, that number is 19 days. When you compare this with where the market was last year at the same time, we had 35 days of inventory remaining, and on a running average basis, the number is 61 days. More homes need to be listed to meet market demand.
The chart below shows the number of days inventory is available in the Phoenix metro market at each price point for this year, last year, and on a running average basis.
NORTH SCOTTSDALE REAL ESTATE INVENTORY
If we turn to the North Scottsdale real estate market specifically, we see a similar picture. The sub $500,000 market has slightly more inventory at 29 days compared to 57 days a year ago and 113 days on a running average. As we start going up in price, every single price band has fewer remaining days of inventory than last year, and all are significantly lower than the running average, as you can see in the chart below:
In speaking with some of the industry analysts, the inventory numbers are somewhat understated, as in the most active pricing bands, homes that are “coming soon” and then go under contract before they go live on MLS, or go under contract on the same day as they are listed do not show up in the data.
IS IT TIME TO BUY OR TIME TO SELL A HOME IN THE SCOTTSDALE OR PHOENIX REAL ESTATE MARKET?
The answer is yes! If you are looking to buy, there is market competition; the key is to stay on top of listings and be fully ready to purchase when the home of your dreams becomes available. We invite you to use the search features on our site or feel free to contact us and allow us to custom configure MLS searches to meet your requirements. Internet search tools such as Zillow and Realtor.com are not as useful when inventory is low because they do not flag homes under contract, which can be quite frustrating for buyers.
If you are looking to sell in the Scottsdale or Phoenix real estate market, the market is ready for your home. The key is to price it correctly and to have it set up to show well. This is where we excel because if we list your home, you can access our staging and styling team who ensures that your home shows at its absolute best. If you are considering listing your home, please allow us to show you why we are Real Estate Reimagined and earn your business. In the video below, one of our clients shares their experience when we listed their home, which we sold the day it hit the market.