Scottsdale, Arizona is a vibrant city with a thriving real estate market. Whether you're looking for a luxurious estate or a cozy starter home, Scottsdale offers a range of options. In this article, we'll explore the current state of the Scottsdale housing market, including trends and forecasts for 2023. Scottsdale is a suburb of Phoenix, sitting on the eastern side of Maricopa County.
It is overshadowed by Phoenix 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 several reasons to consider investing in 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 a 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.
Current Scottsdale Housing Market Trends
The Scottsdale, AZ 2023 Housing Market presents an exciting landscape for both buyers and sellers. With a steady increase in median listing prices, a balanced market environment, and a relatively short time on the market, Scottsdale continues to be a desirable location in the real estate realm.
Median Listing Home Price Soars to $972.5K
According to Realtor.com, in October 2023, the median listing home price in Scottsdale, AZ reached an impressive $972.5K, marking a substantial 8.2% year-over-year increase. This upward trend reflects the robust and dynamic nature of the local real estate market, making Scottsdale an enticing destination for homebuyers.
Breaking down the numbers further, the median listing home price per square foot stood at $440. This metric provides a valuable perspective for those looking to understand the cost-efficiency of different properties in Scottsdale, AZ.
Median Home Sold Price: $794.5K
For those interested in the actual transaction prices, the median home sold price was $794.5K in October 2023. This figure provides a realistic benchmark for both buyers and sellers, offering insights into the actual market values.
Scottsdale, AZ boasts a sale-to-list price ratio of 98.11%, indicating a market where homes are typically sold for 1.89% below the asking price on average. This balanced ratio suggests a fair negotiation environment for both buyers and sellers.
Buyer and Seller Balance
As of October 2023, Scottsdale, AZ is classified as a balanced market. This equilibrium signifies that the supply and demand for homes are relatively equal, creating an environment where both buyers and sellers can find favorable conditions for their respective needs.
Median Days on Market: 41 Days
One crucial factor for buyers and sellers to consider is the median days on market, which stands at 41 days in Scottsdale, AZ. This metric indicates that, on average, homes in the area sell within a relatively short period. The trend has shown a slight decrease compared to the previous month and a more significant decline from the same period last year.
Scottsdale Housing Market Forecast 2023-2024
Scottsdale, AZ, has been a popular real estate market for years, and its popularity only seems to be increasing. With its sunny weather, vibrant culture, and luxurious amenities, Scottsdale has become a favorite for those seeking a high-quality lifestyle.
The Scottsdale housing market is a dynamic landscape with key indicators that provide insights into the current state of real estate. As of October 31, 2023, according to Zillow, the average home value in Scottsdale stands at $798,176, reflecting a 1.0% decrease over the past year. Homes in Scottsdale are moving swiftly, going pending in approximately 28 days.
Key Metrics (Data through October 31, 2023)
- For Sale Inventory: 1742 homes (October 31, 2023)
- New Listings: 554 (October 31, 2023)
- Median Sale to List Ratio: 0.976 (September 30, 2023)
- Median Sale Price: $761,150 (September 30, 2023)
- Median List Price: $908,000 (October 31, 2023)
- Percent of Sales Over List Price: 11.6% (September 30, 2023)
- Percent of Sales Under List Price: 72.1% (September 30, 2023)
Note: All data is current as of the latest available information, up to October 31, 2023.
Insights and Analysis
The Scottsdale housing market presents a diverse range of opportunities for buyers and sellers. Despite a modest decrease in the average home value, the market's pace remains quick, with homes typically spending less than a month on the market before going pending. The median sale price and list price indicate the financial dynamics, showcasing the current valuation trends.
One notable metric is the median sale to list ratio, which is a crucial indicator of market competitiveness. At 0.976 as of September 30, 2023, this ratio suggests a balanced market where prices are relatively close to the listing figures.
Understanding the percentages of sales over and under list price provides valuable insights into buyer-seller negotiations. With 11.6% of sales occurring over the list price and 72.1% under the list price as of September 30, 2023, it's evident that negotiation dynamics vary within the Scottsdale real estate landscape.
Are Home Prices Dropping?
As of the latest available data through October 31, 2023, the average home prices in Scottsdale have experienced a 1.0% decrease over the past year. While this indicates a modest decline, it's essential to consider other factors such as market dynamics and historical trends for a comprehensive understanding of the real estate landscape.
Will the Scottsdale Housing Market Crash?
While the Scottsdale housing market has experienced a slight decrease in average home value, there is no clear indication of an imminent crash. The market's resilience, quick turnaround time for home sales, and a balanced median sale to list ratio suggest stability. However, the future trajectory of the housing market depends on various economic factors. It's crucial for stakeholders to stay informed about market trends and economic developments for a more accurate assessment of the potential for a market shift.
Scottsdale Real Estate Investment Overview
Scottsdale, Arizona is a highly desirable location for real estate investment. With its warm climate, stunning natural scenery, vibrant nightlife, and high-quality educational institutions, Scottsdale has something to offer for everyone. The city has been ranked as one of the best places to live in the United States, and it is not hard to see why.
The Scottsdale real estate market has been thriving in recent years. The average home value in Scottsdale is $782,937, down 5.8% over the past year, indicating that it cooling off. The median days to pending is around 36 days, indicating that homes are still selling quickly.
There are many investment opportunities in Scottsdale, ranging from single-family homes to multifamily properties. The city has a diverse range of properties available, from luxury homes to more affordable options. One of the most promising investment opportunities in Scottsdale is in rental properties. The rental market is strong. The city has a high demand for rental properties, making it a great location to invest in rental real estate.
Another promising area for real estate investment in Scottsdale is commercial real estate. The city has a thriving economy, with a range of businesses and industries that are in need of commercial space. With a growing population and a strong economy, the demand for commercial real estate is likely to continue to grow in the coming years.
The Excellent Quality of Life
A city in a large metropolitan area is competing with every other city for residents. If the city is poorly managed or simply deteriorates, it’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.
Scottsdale's Job Market
Scottsdale is also an emerging tech market, with companies GoDaddy, Yelp, Paypal, Indeed.com, and Paradigm Tech all opening offices downtown. This is a great town for businesses, including small businesses and entrepreneurs. 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 much 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.
Scottsdale's Tourist Market
Scottsdale is famous among 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.
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 for 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 the 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.
Latest Rental Trends
As of September 2023, the average rent for a 1-bedroom apartment in Scottsdale, AZ is currently $1,759. This is an 8% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Scottsdale decreased by -1% to $1,500. The average rent for a 1-bedroom apartment increased by 1% to $1,759, and the average rent for a 2-bedroom apartment increased by 3% to $2,460.
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.
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 that 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 the 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, homeowners 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.
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 the newest development will require redevelopment, increasing the cost of such properties and the value of existing housing stock.
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 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.
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 an 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.
References
Housing Market Data, Trends & Statistics
https://scottsdalerealtors.org/
https://scottsdalerealtors.org/benefits/market-data/
https://www.zillow.com/scottsdale-az/home-values
https://www.redfin.com/city/16660/AZ/Scottsdale/housing-market
https://www.neighborhoodscout.com/az/scottsdale/real-estate
https://www.realtor.com/realestateandhomes-search/Scottsdale_AZ/overview
https://www.zillow.com/phoenix-mesa-scottsdale-metro-az_r394976/home-values
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
Short term rentals
https://www.scottsdaleaz.gov/codes/vacation-short-term-rentals
Quality of life
https://www.niche.com/places-to-live/scottsdale-maricopa-az
Job market
https://www.areavibes.com/scottsdale-az/employment
Snowbirds
https://www.tripsavvy.com/what-is-a-snowbird-2683049
Geographic constraints
https://en.wikipedia.org/wiki/Fort_McDowell,_Arizona
Tourist
https://imaginesports.com/news/2018-cactus-league
https://livability.com/az/scottsdale/things-to-do/8-reasons-to-move-to-scottsdale-az
Taxes
https://www.tripsavvy.com/arizona-property-tax-2682000
https://smartasset.com/taxes/arizona-property-tax-calculator
