How is The Scottsdale Real Estate Market 2019?
Buying Scottsdale real estate can be a worthy investment opportunity. If you are looking at investing in the Scottsdale real estate market as a potential investment opportunity, you must read till the end. Scottsdale is a suburb of Phoenix, sitting on the eastern side of Maricopa County.
It is overshadowed by Phoenix, Arizona, unless you’re a golf aficionado or watch baseball. Scottsdale is home to around a quarter million people, making it one of the largest suburbs in the Phoenix metro area. The city is roughly a twenty minute drive to the famous Phoenix Sky Harbor International Airport.
It retains its suburban feel despite heavy development and tourist attractions. The area contains a mix of families, young professionals and retirees. There are a number of reasons to consider investing in the Scottsdale real estate. Over the last five years data shows a stable Scottsdale housing market with average sale point and price per square foot seeing steady increase.
If you are an investor, Scottsdale has a track record of being one of the best long term real estate investments in the nation. In the last twelve months, Scottsdale real estate appreciation rates continue to be some of the highest in the nation due to which the short-term real estate investors have found good cash-on-cash returns.
Is Scottsdale going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Scottsdale housing market trends and find out the prospects of investing in the Scottsdale real estate in 2019.
Scottsdale Real Estate Market Forecast 2019 & 2020
According to Zillow, the Scottsdale real estate market is very hot. The median home value in Scottsdale is $478,300. Scottsdale home values have gone up 3.6% over the past year and Zillow's Scottsdale real estate market prediction is that the prices will rise 1.1% by June 2020.
The median list price per square foot in Scottsdale is $257, which is higher than the Phoenix-Mesa-Scottsdale Metro average of $163. The median price of homes currently listed in Scottsdale is $599,990 while the median price of homes that sold is $368,100. The median rent price in Scottsdale is $2,200, which is higher than the Phoenix-Mesa-Scottsdale Metro median of $1,595.
Here is the Scottsdale real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1.1% till June 2020.
Scottsdale Real Estate Market Trends
Scottsdale real estate market trends indicate an increase of $23,900 (5%) in median home sales and a 0% rise in median rent per month over the past year. The average price per square foot for this same period rose to $244, up from $234. Trulia has 2,846 resale and new homes for sale in Scottsdale, AZ, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Scottsdale for May 1 to Jul 31 was $483,900 based on 2,286 home sales. Average price per square foot for Scottsdale was $244, an increase of 4% compared to the same period last year. The median rent per month for apartments in Scottsdale for Jun 28 to Jul 28 was $2,495.
As per the real estate company named Redfin, the Scottsdale housing market is somewhat competitive. Homes in Scottsdale receive 1 offers on average and sell in around 59 days. The average sale price of a home in Scottsdale was $490K last month, up 3.2% since last year.
The average sale price per square foot in Scottsdale is $235, up 5.9% since last year. Homes typically receive 1 offer. Homes in the Scottsdale housing market sell for about 3% below list price and go pending in around 59 days. Hot homes in Scottsdale, AZ can sell for around list price and go pending in around 28 days.
Scottsdale Housing Market Statistics
|Median Sales Price||$483,900 (On Trulia)|
|Price Per Square Ft||$244|
|Median Rent Per Month||$2,495|
|Median Household Income||$81,049|
|Transportation||96% people commute by car; 1% commute by public transportation|
There are 4,408 homes for sale in Scottsdale, AZ ranging from $30K to $32M on Realtor.com. 267 of which were newly listed within the last week. Additionally, there are 1,828 Scottsdale rental properties, with a range of $795 to $430,000 per month. On Realtor.com, the median list price of homes in Scottsdale, AZ was $549K in June 2019, trending up 8.5% year-over-year. The median listing price per square foot was $245.
The median list price in Scottsdale, AZ is $735,000 on Movoto.com. The median list price in Scottsdale was less than 1% change from July to August. Scottsdale's home resale inventories is 1,864, which decreased 1 percent since July 2019. The median list price per square foot in Scottsdale is $265. July 2019 was $266. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.
Scottsdale, AZ Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Scottsdale, AZ is $556,950, which indicates that home prices in Scottsdale are well above the national average for all cities and towns in the United States.
Single family detached homes are the single most common housing type in Scottsdale, accounting for 54.56% of the city's housing units. Owner-occupied, three and four bedroom dwelling are the most prevalent type of housing you will see in Scottsdale's single family detached homes. Scottsdale's housing market also has large apartment complexes and multi-family homes.
Scottsdale's single-family home values continue to see dependable gains in 2019. Data provided by the Arizona Regional Multiple Listings Service shows that in 2018 the average price per square foot sold was $245 while the average sold price was $736,897. In 2017 the average price per square foot sold was $231.33 while the average sold price was $683,080.
Single family homes for sale in Scottsdale from $300,000 up to the $900,000 price point are considered very hot. If they are marketed right, the sellers & builders do very well.
Here is the report (Data provided by Arizona Regional Multiple Listings Service) that analyzes the activity for single-family homes in the Scottsdale resale market for July 2019. There is data on the number of homes for sale, pending sales and sold homes broken into price range and time period.
Within each price band, you will be able to see price per square foot, average days on market, cumulative days on market as well as sales price to list price.
Currently, there are 1,588 single family homes for sale in Scottsdale, AZ on Zillow. Additionally, there are 562 single family homes for rent in Scottsdale, AZ. Under potential listings, there are about 0 Foreclosed and 96 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Scottsdale, AZ Foreclosures And Bank Owned Homes 2019
According to Zillow's data, in Scottsdale 0.4 homes are foreclosed (per 10,000). This is lower than the Phoenix-Mesa-Scottsdale Metro value of 0.5 and also lower than the national value of 1.2.
The percent of delinquent mortgages in Scottsdale is 0.3%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Scottsdale homeowners underwater on their mortgage is 6.1%, which is lower than Phoenix-Mesa-Scottsdale Metro at 7.1%.
|Foreclosures in Scottsdale||184|
|Homes for Sale in Scottsdale||2,249 (RealtyTrac)|
|Median List Price||$549,000 (0% ⇓ vs May 2018)|
There are currently 184 properties in Scottsdale, AZ that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 2,249. In June 2019, the number of properties that received a foreclosure filing in Scottsdale, AZ was 57% higher than the previous month and 13% lower than the same time last year.
Home sales for May 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Scottsdale was $0. The median sales price of a foreclosure home in Scottsdale was $0, or 0% higher than non-distressed home sales.
Best Places To Buy Real Estate In Scottsdale, AZ
If you are looking to buy real estate in Scottsdale, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Scottsdale real estate and you should be able flip it for a lump sum profit.
When looking to invest in Scottsdale real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Scottsdale investment property should be low. The neighborhoods in Scottsdale must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 28 neighborhoods in Scottsdale. There are 69 elementary schools, 37 middle schools, 28 high schools and 33 private & charter schools.
Some of the best neighborhoods in Scottsdale, Arizona are Monterey Arcadia, Indian Bend and Via Linda Corridor. Desert Mountain has a median listing price of $1.5M, making it the most expensive neighborhood. Monterey Arcadia is the most affordable neighborhood in Scottsdale, with a median listing price of $339,000.
Here are the 10 best neighborhoods in Scottsdale to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
N Scottsdale Rd / E Indian School Rd
E Thomas Rd / N 60th St
N 68th St / E Osborn Rd
N 68th St / E Oak St
N 82nd St / E Camelback Rd
N Pima Rd / E Indian School Rd
N Pima Rd / E Thomas Rd
Scottsdale Mobile Home Park / Riviera Mobile Home Park
Wheel Inn Ranch
Should You Invest In Scottsdale Real Estate In 2019?
Is it worth buying a house in Scottsdale, AZ? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Scottsdale is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Scottsdale housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Scottsdale but we have collected ten evidence based positive things for those who are keen to invest in the Scottsdale real estate in 2019.
Investing in Scottsdale real estate will fetch you good returns in the long term as the home prices in Scottsdale have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Scottsdale real estate market which can help investors who are keen to buy an investment property in this city.
1. The Excellent Quality of Life
A city in a large metropolitan area is literally competing with every other city for residents. If the city is poorly managed or simply deteriorates, they’ll lose residents who only have to move a few miles to get away from it.
In this regard, Scottsdale real estate investment is a wise choice because the city stands out in terms of quality of life. We’ll ignore the golf courses and focus instead on A-rated public schools and family friendly amenities. They could do a little better on crime, but there are areas in Phoenix real estate market that are far worse.
2. Scottsdale's Job Market
The Scottsdale job market has consistently averaged an unemployment rate a full point lower than the state average and roughly half a point lower than the Phoenix metro area average.
That alone would bolster the Scottsdale housing market. However, the relatively high property values mean many work here but live in other cities.
Yet it contributes to a higher than expected rental rate in the Scottsdale housing market. Ironically, the high per capita income of 54K per person, twice the state average, drives up rents and housing prices.
3. Scottsdale's Tourist Market
Scottsdale is famous with locals for its Fashion Square Mall. However, you see more people coming here on vacation to enjoy the 200 local golf courses, many of which are world-class.
Others come to see the Major League Baseball teams in spring training in Scottsdale. Others stay in Scottsdale while watching teams practice in nearby Mesa.
All of this explains why the city has the fourth largest number of AAA four diamond hotels in the United States. The nature of the tourist market, though, gives you the ability to rent out properties both nightly and for weeks at a time.
4. The Diverse Scottsdale Rental Market
The Scottsdale housing market has a more diverse rental market than just catering to those who can’t afford to buy a single family home. For example, the area is famous for its snowbirds, retirees who come for the winter before returning home.
Some of them buy a one or two bedroom home to live in half the year. Others rent such properties. While many live in Sun City and other age-restricted communities, others choose to rent elsewhere in the Scottsdale real estate market.
They’ll prioritize amenities, proximity to healthcare providers and low maintenance over cost in many cases. This population also increases demand for RV friendly homes and trailer parks.
That provides an unusual play for those who want to profit off affordable housing in the Scottsdale housing market but don’t want to deal with Section 8 rentals.
5. The High Return on Investment
The Phoenix area is growing, and this includes the Scottsdale area. Construction can’t keep up with demand, so the median home price is more than 400,000 dollars.
The average rent is 1200 dollars a month, though you’ll get much more for a single family home rented out in the Scottsdale housing market. Mashadvisor estimated the Scottsdale real estate investment returns to be 2.6 percent, the best in the region.
6. The Geographic Constraints
The Scottsdale real estate market is certain to experience appreciation for the same reason the local quality of life is so good – it is nearly surrounded by parks. The northern end of the city touches Tonto National Forest.
The western edge borders McDowell Mountain Regional Park. Homes with views and access to the national parks command a premium. Fort McDowell is a Native American reservation likewise off-limits. Tempe, Phoenix and Mesa are all heavily developed.
The city simply doesn’t have much room to expand to meet demand. This means most new development will require redevelopment, increasing the cost of such properties and the value of existing housing stock.
7. The Economics
At first glance, Scottsdale seems like a home-buyer’s dream. It is full of suburban neighborhoods. The median household income is more than 70,000 dollars a year, and that’s pulled down by a retiree population so large that the average age is 46.
However, affordability in the Scottsdale real estate market is relative. The median wage is 73,000 but the median home price is approaching 400,000 dollars a year. This means many cannot afford to own a home though they may want to.
This drives demand for rentals in the Scottsdale housing market. It is actually surprisingly only a third of the residents rent, though this is somewhat higher than the 20 percent average for the area.
Conversely, the high paying jobs in the area are one reason many people move here, generating demand for rental properties by new residents.
8. The Landlord Friendliness of the Area
Arizona is landlord friendly compared to neighboring states like Nevada and California. What makes it notable is that it is becoming more landlord friendly. For example, the city is passing laws that make it easier for landlords to enter units to make repairs.
The state is making it easier to discard abandoned personal property and limiting appeals by those going through eviction. And it was already relatively fast and easy to evict people in Arizona.
9. The Opportunities in the Short Term Rental Market
The Scottsdale real estate investment options include the short-term rental market. The city requires short term and vacation rentals to be registered with the county. Landlords must pay the transaction privilege sales tax and transient tax.
A sales tax license is required. However, that’s simply the city saying you can rent out these units if you pay the same taxes hotels do. The rest of the city’s regulations make the Scottsdale real estate market friendly for renting out via sites like AirBnB.
They don’t limit short term rentals to a tourist district. You can rent out both a main house and accessory dwelling unit on the same property. And state law doesn’t give cities the ability to apply new regulations that essentially ban short term rentals.
However, home owners associations can regulate these types of properties, so do your research before you buy a Scottsdale real estate investment property assuming you can generate short term rental income.
10. The Relatively Low Tax Burden
Arizona has a surprisingly low property tax rate. It averages 0.85 percent of the property’s assessed value, while the national average hovers around 1.1 percent.
Another benefit of Arizona real estate law is that the state limits the increases in the assessed value of property to 5 percent (or less) per year. This means your property taxes probably won’t rise at the same rate as the property value.
That’s good, since the Scottsdale housing market saw appreciation of roughly five percent last year and is predicted to see at least 2 percent growth in 2019. Income taxes are competitive with the rest of the country and a bargain compared to tax-and-spend states like California, too.
Scottsdale Real Estate Investment
Maybe you have done a bit of real estate investing in Scottsdale, AZ but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Scottsdale real estate investment opportunity would be a key to your success. in If you invest wisely in Scottsdale real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Scottsdale investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Scottsdale, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Scottsdale, AZ. You’ll see better than average returns on the average Scottsdale real estate investment property, and its value will be bolstered by a variety of factors. This makes Scottsdale a better choice for investors than Phoenix.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Scottsdale, AZ is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Scottsdale real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Bakersfield, CA. Bakersfield is developing and diversifying, maturing beyond the farming hinterland that led it to be written off as a California backwater.
Its stabilized real estate market won’t offer skyrocketing property valuations or equally shocking rental rates, but that makes it a good choice for investors seeking solid, steady returns.
Whether seasonal workers who will never settle down or locals whose seasonal employment precludes home ownership, this has created a strong rental market.
Median rents hovers around 1500 dollars a month for single family homes in the Bakersfield real estate market. When you take apartments into account, the median monthly rent is a little under a thousand dollars a month.
Another sizzling market to invest in real estate in 2019 is Honolulu, HI. The Honolulu real estate market is dense, profitable and unable to growth except at the margins. This will result in high returns for almost any Honolulu real estate investment property. The possibility of staying for free in a Hawaii condo or bungalow you own is just a bonus.
There is a rising demand for rental units year-over-year. The issue however is that rent prices are too high to be affordable for many renters.
Housing in Honolulu is expensive, and the relatively large number of people working in low-pay retail and tourism jobs results in many who will never be able to afford owning a home or condo.
Roughly sixty percent of Hawaii residents are cost-burdened renters, people who spend more than a third of their income on rent.
Compounding the matter is that they’re competing with several large pools of renters who are almost immune to local economics, driving up rental rates.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments 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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Short term rentals
Landlord friendliness https://www.avail.co/education/laws/arizona-landlord- space here tenant-laws
https://www.mashvisor.com/blog/ more spaces here 5-most-landlord-friendly-states https://www.american-apartment-owners-association.org/property-management/latest-news/another-state-goes-landlord-friendly
Quality of life
Housing Market Data, Trends & Statistics