July 23, 2024

Illuzzi Letter

Envisioning And Creating Your Dream Home

The Real Estate Market of Scottsdale Arizona

The Real Estate Market of Scottsdale Arizona

The Real Estate Market of Scottsdale Arizona

The real estate market of Scottsdale Arizona has changed quite a bit in recent years, what with turmoil in the markets and the recent problems in the mortgage and loan industry. It can be nerve-wracking and even dangerous for the uninitiated, but with proper guidance and the right Scottsdale Arizona real estate agent working for you – someone who knows the ins and outs of the local market – it’s possible to get a great deal on the Scottsdale Arizona condo or home you’re looking for.

Despite the “doom and gloom” you’ve probably heard about the “real estate bubble bursting” and the coming disaster, the fact is that every market in the nation is unique and different from every other – and nobody can really predict the future. Home values in the Scottsdale area are a good example. In May of 2005, there were fewer than 10,000 housing units on the market, and the average length on the market was just a little over three weeks; with a median price of nearly a quarter million dollars. Two years later, there were over five times that many homes on the market, and these were listed nearly three months before moving. Although the median prices had dipped slightly from the previous year (2006), home values were still well over $20,000 higher than they had been two years earlier.

What is interesting here is that since May of 2007, these prices have remained level, and have even risen slightly as people continue to move to the Scottsdale area. Key indicators such as population, employment and growth in personal income point to a Scottsdale Arizona real estate market that will continue to be robust in the coming years. The Phoenix metro area has been adding an average of 100,000 new residents per month; U.S. Census data suggests that the Arizona state population could more than double in the next twenty-five years, driving up the demand – and thus the price – of housing accordingly.

In the meantime, homebuilders are cutting back on new construction until balance is restored between supply and demand. If you are in the Scottsdale Arizona real estate market as a seller, you may wish to hold on for a year or two if possible – or be prepared to lower your asking price.

Buyers on the other hand will have an easier time finding motivated sellers. In combination with current low mortgage rates, this is likely to make good deals easier to find. However, mortgage rates – along with demand – are likely to rise, meaning that now is the best time to buy.

In either case, the kind of run-up in housing prices that resulted in quick profits such as was seen between 2001 and 2007 is unlikely to be repeated. Scottsdale real estate is a long-term investment; be prepared for the long haul.