August Monthly Market Update
Scottsdale, AZ—Scottsdale continues to be a low velocity, strong real estate market, driven by limited demand and even more limited supply.
Our June 2023 numbers show the median sales price at $830,000, an encouraging 5.4% increase over June 2022. This shows that the market is optimistic and stepping in to snap up anything with a great price. Median days on market (DOM) is up 15% to 55 DOM, as bargain hunters take more time to evaluate the best opportunities. The median sale-to-list ratio improved slightly from 97.4% to 98% vs June 2022. Contrary to some commentary on a soft market, the fundamentals are still strong.
With skyrocketing rents, purchasing vs renting still makes more sense, evidenced by the months supply of 1.71. Translated, this means that if no new listings entered the market, at the current pace the inventory would be exhausted within about 7 weeks~still a seller’s market.
New listings are down 21.3% to 534 in June, and total active listings are down 8.8% to 1159 in June. With increasing rents and rates that are 200-300% higher than their current mortgages, you can see the sellers doing the math and deciding to wait out the interest rate spike. If you need to sell or just really want to live somewhere else, never fear, there are a number of creative lending solutions that we can show you to offset the current interest rates.
Total sold properties are down 26.7% to 679 vs June 2022, although price per square foot is up 3% to $400. Low velocity on strong prices seems to be the verdict in Scottsdale real estate. If you are a buy and hold type buyer or investor, it’s a very attractive market indeed.
Technically Still a Seller’s Market
As of this writing, Scottsdale has a Cromford Market Index of 184. A value of 90-110 is a balanced market, and anything over 110 indicates a seller’s market, although about 80% less of a seller’s market vs the peak in February 2022. The 184 index indicates 76% of normal buyer demand chasing 40% of normal listing supply. So very competitive if you are a seller, and fewer choices than normal if you are a buyer.
For those of us that live here in Scottsdale it seems that every year more and more people are waking up to what a great place this is to live. High incomes are driven by a strong corporate presence, and the Scottsdale Air Park business district is the state’s second largest economy, second only to Greater Maricopa County. The quality of life emanates from an abundance of luxury accomodations, endless entertainment options, and a multitude of outdoor recreation options in all seasons.
Speaking of golf, with more than 200 golf courses in the Scottsdale area, a portfolio of luxury resorts and year-round sunny skies, it's no wonder Scottsdale is known as The World's Finest Golf Destination.
There is also a vibrant art and cultural presence, a thriving food and drink scene, and ready access to the NFL, NBA, MLB, NHL and NCAA sports and championships.
Let us know if you have any questions, are considering buying or selling, or would like to share your favorite places and things with us for our next blog. Until then—-stay hydrated!
August Market Update for Scottsdale
Average Sales Price
Months of Supply
Average Days on Market
The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, The Griffin Team makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Tiffany Griffin, The Griffin Team makes no claims or assertions about the future housing market conditions across the US.