NORTH SCOTTSDALE REAL ESTATE MARKET SNAPSHOT
We wanted to take a look at what happened to our Scottsdale real estate market in April 2020, the month where Arizona was effectively shut down. There is no doubt that COVID-19 continues to have a major impact on many aspects of the market. You can read our most recent post that tells some of the story. We thought, however, that a look at our overall market, North Scottsdale (85255,62 and 66), and then some specific neighborhoods might tell an interesting story, and it did.
The number of Scottsdale real estate closings in is down as one might expect, but the data is starting to inch back up
Scottsdale Real Estate April Statistics
Looking at the entire Scottsdale real estate market, we see that the number of homes that sold in April of this year compared to the same time period in 2019 fell steeply by 53.4 percent. The rest of the numbers don’t tell such a dire story and may point to a strong market moving forward.
Going into the pandemic the Scottsdale real estate market was very robust. Inventory was down significantly and depending on price points, homes were moving relatively quickly. As a result, we were in a seller’s market at many price points. The pandemic definitely put the breaks on sales, and many transactions fell out of escrow for a variety of reasons. Lenders started looking very closely at what kind of employment people had and stopped lending to those in jobs that would be the slowest to come back. Also, almost overnight the market for Jumbo loans dried up at all but the largest banks. Lenders also dramatically increased the credit score required for certain products. The result was very visible with nearly 100 Scottsdale deals falling out of escrow each week during March, many of those homes would have closed in April.
There is Some Good News
However, here’s the good news in Scottsdale real estate; the median price for a home sold in Scottsdale in April rose by nearly 9 percent over last year. The average price per square foot increased by nearly eight percent and the average number of days homes sat on the market before they sold dropped by 15 days.
When we look at the North Scottsdale real estate market, the numbers are not as strong, but the price points are also higher, and right now, demand is definitely down in the luxury segment. Fewer snowbirds are in town and Canadians who have made up a portion of the buyer’s pool are not able to get here. If we pull the three North Scottsdale zip codes out of the data, the overall number of units sold for the rest of Scottsdale is down 38 percent year over year.
Here is the data broken down for each of the three key Scottsdale real estate zip codes we analyze:
We decided to look at a sample of North Scottsdale neighborhoods so we pulled data for Bellasera, The Boulders, Terravita, Legend Trail, Sincuidados, Winfield, and Whisper Rock . If you live in a community that is not included in this list, but would like to see the data for your neighborhood, please email us, and we are happy to provide a customized report for you.
Considering selling Scottsdale Real Estate?
If you are considering selling real estate in Scottsdale, you may be asking if this is a good time to put your home on the market. There are many ways to answer this question, and it is probably different for each home. From a market perspective, there are still buyers looking for a home and with the state opening up for business, we are likely to see an uptick in market interest. We have been tracking showing activity in Scottsdale since the beginning of the pandemic, and the number of showings for homes priced below $1,000,000 in the area has been trending upward from the point where they bottomed out in late March.
Showings of real estate in Scottsdale above $1,000,000 are also on the rise, albeit at a slightly slower rate:
We keep a watchful eye on the North Scottsdale real estate market. If you are considering selling or buying a home in the area, we would appreciate the opportunity to earn your business. Right now we are meeting with clients on-line to discuss their needs, creating 360-degree tours for showings to allow a potential buyer to see a home virtually before taking an actual tour, conducting virtual open houses on Facebook, and doing everything possible to ensure the safety of our clients. If you would like to discuss any aspect of the real estate market, please don’t hesitate to call or email.