North Scottsdale Median Price Rose 10% in One Month?!

North Scottsdale Median Price Rose 10% in One Month?!

The North Scottsdale real estate market is killing it! The seven zip codes which comprise North Scottsdale are currently showing a monthly median sales price of $715,000. One month ago, the median sales price was $650,000. This is a median increase of $65,000 in one month! Yes, you heard me correctly, the North Scottsdale median sales price rose $65,000 – 10% – in one month.

Listing inventory in North Scottsdale has plummeted. One year ago, North Scottsdale home inventory was at 1409. This year, there are only 1044 homes currently for sale in North Scottsdale – a 26% drop!

How about North Scottsdale rentals? Rising to record lease prices, North Scottsdale home rental prices just hit $1.45 per square foot (psf) this September. This is .06 cents psf higher since last month and a rise of .17 cents psf in one year – a 13% rental price increase.

North Scottsdale Friday Focus – 85254 Market Update

North Scottsdale Friday Focus – 85254 Market Update

The 85254 zip code is one of North Scottsdale’s great central locations, however there is a not-so-dirty little secret about what’s known as the “magical zip code.” The 85254 zip is not in Scottsdale but is in the City of Phoenix and includes Phoenix city services. And the school district? It’s in the Paradise Valley School District. So why is it called Scottsdale? Mailing only. Talk to the postal service.

All of that doesn’t change what a cool place it is for many who call it home.

It’s also exploding in value, with prices up 22% in one year! The supply of homes for sale has dropped in half from 170 one year ago to 112 this month – a 34% inventory drop.

Today Last Month Last Year 1 Year Change
Active Listings: 112 117 170 -34%
Pending Listings 40 37 52 -23%
Sales Per Month 84 110 79 +06%
Sales Per Year 854 849 807 +06%
Months of Supply 1.3 1.1 2.2 -41%
Appreciation – Median* 22% 15% 11% +100%
Average Price – Sales** $665K $606K $543K +22%
Median Price – Sales*** $627K $593K $515K +22%

*Monthly Median

**Monthly Average

***Monthly Median

All Data courtesy of the Cromford Report

Considering Buying or Selling in North Scottsdale or the Northeast Valley. Give Mike a call at 602.689.3100 or send an email to: [email protected]

Scottsdale Highest Net Migration?

Scottsdale Highest Net Migration?

A newer study by HireAHelper, has examined the origin, destination and distance of each
moving job since the Covid-19 pandemic was declared on March 11 th 2020. As it turns out,
Scottsdale, Arizona won the popularity contest for top city by net moves, with 68% more
people moving in versus moving out.

Most popular state? Idaho saw 194% more people moving into the state than out. New York
city and San Francisco, CA had 80% more people leave than move in.

Read the Full Story Here

Is Scottsdale Going to the Dogs?

Is Scottsdale Going to the Dogs?

A recent article from Realtor.com, our national trade organization, revealed that Americans love their pets, and especially their dogs, and even more so their dogs in Scottsdale, Arizona. Scottsdale was named one of the top ten (4th place) cities in the country for dog ownership.http://www.realtor.com/news/trends/top-10-cities-for-dog-lovers/

More and more clients these days are asking where the nearest dog park is in the community they’re considering buying into. The neighborhood where I live seems to annually request the HOA to provide a dog park even though there are miles upon miles of already existing grass and walking paths.

According to www.HumaneSociety.org, a 2015-2016 survey reported:

  • There are 78,000,000 dogs in the U.S.
  • 44% of all homes have at least one dog
  • 50% of all pet owners own small dogs
  • 66.7% of dog owners consider their dogs to be family members
  • $1436 is the average amount spent on veterinary care per year
  • 69% of Scottsdale homes have at least one dog

Referring to Scottsdale, the article shared this about the city as it relates to dogs:

  • This wealthy suburb of Phoenix has no shortage of retirees who can spend all day with Fido alfresco. The city boasts a long list of restaurants and cafes with extensive outdoor dining for you and your furball, along with 20 bars where dogs can sit alongside your bar stool. (Don’t knock it if you haven’t tried it.)
  • There’s also an abundance of pet shops that cater to petite dogs. Check out miniature frilly dresses and collars at Mackie’s Parlour, or Louis Vuitton knockoff dog toys, plush sports car-shaped dog beds, and rhinestone collars at  

Oh My Dog. But please don’t go overboard-dogs embarrass easily.

Buyer beware about this! Some communities limit the number and/or size of dogs. That information is found in the CC&R’s (neighborhood rules) and is an important read even if you don’t own pets. Some clients of ours who have three dogs recently sold their home in McCormick Ranch, and purchased a home a little further north in a community that limited the number of pets to two. Our clients spoke in person with the President of the HOA about their three, and they were given approval. That’s good, because that rule could have been the proverbial deal killer.

 

Stocks Versus Real Estate?

Stocks Versus Real Estate?

At last glance this Monday morning, the stock market’s DJIA was off 200 points. That’s really good news considering it started the day being negative by 1000 points — something about China’s slowing economy affecting our market. Hmm.

     What usually occurs when this happens is people begin to consider where they should put their investment monies if they were to sell off their stock. Is there a safe harbor out there? What’s interesting to me is that this global stock selloff is confirming what gold and silver investors have known for the past month, that world instability is good for them as the shaky markets drive up the price of precious metals. These commodities have risen 7% in the past 30 days. There are some however who are not as bullish on these metals as they used to be.
     An industry expert told me today that Phoenix real estate should perform relatively well with the sort of deflation that many fear we will be driven into based on China’s current economic trend.  This, he said, was because of our chronic short supply in relation to our growing population, which if you have been following us for a while, you probably have heard us talk about more than a few times!
     I wonder if many will see Phoenix real estate investments as that safe harbor. Why?  We have rapidly rising rent prices, low mortgage rates, and even though it’s a seller’s market for most investor price ranges, prices are still competitive compared to other metropolitan areas in the country.  It’s a market that many see stability and future growth in.
    Though my near 40 year career has been in real estate, and I’ve always been an advocate for Real Estate investment, my intention is not to bash stocks. In fact, my father’s success in investing utilized a balance of both real estate AND stocks. He was a common butcher with uncommon trust in his advisors who helped him select singular stocks based on their individual merit. He kept them for the long haul and never seemed to worry about the day to day gyrations of his stock because he was secure with the inherent strength of these selected companies. In the end he was financially well cared for and more importantly he lived life well, relatively free of worry, excepting of course for some of his wayward children – present company included.  The point being, I’m not going to sit here and tell you that Real Estate is always better than stocks.
     While real estate and the stock market are entirely different animals, they do both share that quality where the little guy is most successful when he plays the long term buy and hold strategy, like my father did.
      “In the end…my father was financially well cared for and more importantly he lived life well, relatively free of worry…”
     These are fascinating times we live in – in every corner of the globe.
     Let us know if we can help you. If you or someone you know is considering a rental investment, or a first time home purchase, have them call me at 602-689-3100. We can help.
By 
Mike Bodeen

When Winning Means Losing

I met Pam (an alias) at a home listing I was holding open about three years ago in North Scottsdale. Pam liked the home but it wasn’t the one for her. She lived in SoCal and for the next few years she made an annual trek to look at patio homes. Each time she came out there would usually be one home that rose to the top of her interest list, but really she wasn’t quite ready to make the move – until now.

On this recent visit, she found the home! It was very close to a community she loved, it was a great floor plan, was a larger lot than others, and it was within her price range.  The house had been on the market for almost 5 months, though they had a deal on it before but a poor home inspection sank the escrow.  We came in with a lower priced offer, and through a series of counter offers, which took extra time, we agreed verbally on a price.

There are a number of risks in negotiating a home sales transaction that we explain to the buyer as we start to go down this road. With a willing buyer and seller most everything can be negotiated, and most of the time emotions are held in check, but the one thing we can’t control is what sank our deal – and that was another offer. Just before the seller was going to sign our deal another offer came in for more money. The seller accepted the other offer. We lost.

To say that Pam was bummed out was an understatement! After three years, she had finally found the right home and was thrilled she was going to be making this move soon.  I explained to Pam that in my almost 40 years’ experience, there were countless times that when something like this happened, that there was a better home right around the corner. Pam, however, wasn’t really too interested in hearing my sermon right then.

To say that Pam was bummed out was an understatement!  … She wasn’t really too interested in hearing my sermonette right then.

Over the next ten days, communication had pretty much stopped from her end. Calls and e-mails were not being responded to, and I was suspecting the worse – a lost business/friend relationship due to huge disappointment. Well, it wouldn’t be the first time for sure, but my own disappointment was gnawing on me as well.

I’ll be honest, sometimes I don’t think God’s too interested in my lost business deals, or more importantly, I remind myself, my clients loss. But this time, I asked. “Lord, could you actually make this work out for Pam? Either bring this other house back into the picture or bring her another one?” Yes, my faith wasn’t big enough to ask for a better one.

But guess what? A better one came. I got an e-mail from her last Thursday which simply said, “This is it!!!!!!” with a link to a new MLS listing we had automatically set up for her. It was in her favorite gated community, was located on a private golf course viewing huge pine trees and a pond, had a vaulted floorplan, terrific large patio with sunken spa and built in BBQ. She saw the photos online, saw that it was her first choice neighborhood, saw the mapped location and wanted it. But she was now back in California.

How do I get it she asked? This is where adrenaline takes over. I went over to see the house to make sure that it’s everything it seemed to be online. (Actually it was better). While I was there another agent was previewing. I knew this was going to go fast. The home was very well priced even under-valued. I called the listing agent who told me that she was having lots of action on the home and that a cash buyer was contemplating an offer, but she had nothing at that point. I reported to Pam my findings and she gave me a thumbs up on my recommendations.

Long story short we crafted an offer as best we could considering Pam was not a cash buyer. We came in over full price by $2500. We reduced the term of the inspection period to 7 days. We eliminated the appraisal as a condition of the purchase and we tripled the earnest money deposit.  Another came in, also for more than asking price, but it wasn’t cash. Pam’s offer was accepted. The other buyer was bummed.

To say that Pam was ecstatic was an understatement.  The same goes for me.

By 
Mike Bodeen
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