Scarcity continues to define Scottsdale Dwellings & Multifamily
By Terrance Thornton | Digital Free Press
The Phoenix metropolitan housing market is a testament to the tenets of the supply-and-demand equation whereas affordable single-family homes are scarce, and the values and prices of homes in every corner of the Valley of the Sun are rising steadily.
The Scottsdale housing market is no outlier, numbers show, and one local expert offers the highs and lows of the local real estate game are the ebbs and flows of a free marketplace.
“All markets are local and are driven by assorted issues governed by the law of supply and demand. Factors also vary depending on the type of property, its location, features, and amenities,” said Scottsdale Realtor Gary Shapiro. “Scottsdale is a coveted location and buyer demand exceeds supply. As such, sellers currently have the upper hand.”
Numbers from the Arizona Multiple Listings Service (MLS) show:
- The low selling price for a single-family home in May 2021 was $288,000, meanwhile during this same time period this year that number has swelled to $480,000.
- The average selling price for a single-family home in May 2021 was $1,254,844 meanwhile during this same time period this year that number is $1,416,502.
- The high point of the Scottsdale single-family housing market in May 2021 was $10,500,000 meanwhile during this same time period this year that number fell to $7,460,000.
These numbers are derived from the total sold volume recorded at Maricopa County, which in May 2021 were a total of $776,748,297, and a total of $631,760,066 changed hands this past month in Scottsdale.
The rate at which values are increasing is anticipated to increase over the next few months but moderate to a more sustainable one, Mr. Shapiro says.
“The average price per square foot for single-family homes in Scottsdale a year ago was $380 a foot. Today, it’s $464 a foot. That appreciation rate is probably unsustainable,” he said of his perspective.
“The average days on market last year was 33. Today, it is 13. Real estate experts expect future appreciation to moderate to a more sustainable rate. I don’t expect a bubble to burst, as our market is driven by sunshine and the lack of natural disasters.”
Mr. Shapiro also reminds the sun is still shining in the Valley of the Sun.
As long the weather is crummy somewhere else and as long as people are victims to floods, tornadoes and hurricanes, people will flock to Arizona,” he said noting the staggering population growth numbers in Maricopa County, which have garnered headlines for leading the nation in the number of new residents.
The Washington Post reported June 1 the federal interest rate could see seven interest rate hikes throughout the calendar year, inflation could fall to 4.3%.
“We’ve been spoiled by low interest rates,” Mr. Shapiro noted of low interest rates that had reached historic lows not seen since the Baby Boomer years. “Recent hikes have impacted buyers who find it more difficult to qualify for loans. Higher interest rates erode purchase price and loan limitations for some buyers and limit their options.”
The bottom line for Mr. Shapiro? No matter the economic climate, or perhaps what is lurking down the pike, doing business well is about listening more than talking, he says.
“As a 50-year veteran Realtor, I pay attention to whatever factors impact my buyers, sellers, tenants and landlords,” he said. “My focus has always been to listen to their needs and develop a strategy to accomplish their goals.”
