TRENDING REAL ESTATE NEWS_______________________
The Hottest Housing Season Isn’t Behind Us: These Are the 7 Best Cities To Buy a Home this Fall
Phoenix is listed as the #2 Best City to buy a home!
Timing is everything—and that is particularly true when it comes to buying a home.
The dream? Drop into the market when prices, mortgage rates, and competition from other buyers is low—and then snag a large, move-in ready home in a desirable area for a sweet deal.
The reality? Today’s real estate market is highly competitive and highly expensive—and many homebuyers are having to settle, or drop out of the market entirely.
Scottsdale Real Estate Forecast, Scottsdale Area Housing Prices and Home Value Trends and Predictions
Is buying a house in Scottsdale a good investment? The median home price in Scottsdale City today: ▲543704 USD (+0.173%)
Phoenix is listed as the #2 Best City to buy a home!
Based on our forecasts, a long-term increase is expected, the predicted price of an average home in the “Scottsdale” area is 600334 USD by 2028-11-30. For a 5-year investment the profit is expected to be around +10.42% meaning that investing 100000 USD today may yield a profit of 110420 USD by 2028.
It’s a Buyer’s Market Once Again In These 8 Cities
Median Seller Incentive Hits a New High
Buyers who felt they lost out on the buyer’s market last year will be getting another chance this year. The Greater Phoenix housing market, on the whole, only has a few days left before it enters a balanced market. However, as 18 cities are still in seller’s markets, there are 11 that are either already in balance or in buyer’s markets.
What does a buyer’s market mean for buyers? Most buyers assume it means that sales prices will come down, but by the time sales price measures show a decline the buyer’s market could be 2 months old, or already over like it was last year. The first thing to move isn’t a sales price, but a list price combined with higher seller incentives for buyers.
Over the past 2 months, as mortgage rates peaked at 8%, weekly price reductions increased in number by 33%. Meanwhile, the median seller incentive to buyers increased from $8,000 to a new high of $9,900 so far this November, the previous high was recorded last January at $9,700. Increases in the dollar amount and percentage of sales with incentives were most noticeable in the first-time home-buyer price range of $300K-$400K and also in cities with a significant number of competing new home communities.
How long this trend will last is unclear as conventional mortgage rates fell sharply this month to 7.3% and FHA/VA fell to 6.7%. The higher mortgage rates are, the higher the cost to the seller to buy them down. Mortgage rates have been near impossible for experts to predict over the past 18 months, however there are strong feelings that the end is near for rate hikes by the Federal Reserve. If mortgage rates decline in response, then the current market decline will be short lived.
In short, it’s a good idea for buyers to stay engaged and vigilant in identifying opportunities in November and December. Once 2024 begins, the peak home-buying season is back in swing with more buyer competition.
This is not a good time to test a price higher than market value for your home. As the seller’s market weakens on a daily basis, it’s the outskirts of town that are affected first as the interior cities follow quickly. As of November 9th, the following cities are in buyer’s markets: Surprise, Litchfield Park, Goodyear, Buckeye, Maricopa, Casa Grande, Gold Canyon, and Queen Creek. Balanced markets are Cave Creek, Peoria, and Sun City. All others are still seller’s markets, but weakening fast.
Seasonally, the best time to list your home is not in the 4th quarter. However, sellers always want to be selling in a seller’s market. While it’s not a bad idea to wait until the 1st quarter typically, under these circumstances the benefit could be offset by a weaker buyer’s market. That means more competition from new listings, more days on market, and more price reductions. The determining factor that could change the course of the current market trend is mortgage rates, which have been unpredictable and volatile this year.
For those who are in need of selling, you may get your asking price, but at a higher expense as long as rates are elevated. As a result, sales price measures will not show a decline, but the sellers’ net proceeds will be squeezed. It may not be the market we love, but it’s the market we’re with.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2023 Cromford Associates LLC and Tamboer Consulting LLC
FOR THE HOME_______________________
How to Host Thanksgiving: Prep and Clean Up Tips
Read these 7 easy tips to make hosting Thanksgiving at your home less stressful this holiday season.
Martha Stewart’s Wine Tip Takes the Guesswork Out of Thanksgiving Parties
When Martha Stewart began her venture into the world of cookbooks, her first publication, “Entertaining,” included tips for plating and hosting alongside her recipes. She now frequently shares tips and tricks for hosting the perfect holiday get-together, and her website even features an entire section dedicated to Thanksgiving. Stewart is well-versed in sharing holiday-ready recipes, and when picking out the perfect wine to serve with Thanksgiving dinner, she has that covered, too. Instead of selecting one type of wine for everyone to share or purchasing several different wines that may wind up unfinished at the end of the evening, Stewart told Food & Wine that hosts should stick with just two bottles: A light red and a white wine.
A Scottsdale Bucket List
With luxurious resorts, world-class restaurants and Sonoran Desert vistas, Scottsdale is a destination where bucket-list-worthy experiences and memories are created. Looking to compile your own list of unforgettable life adventures? Here are six of the top things to do in Scottsdale.
Arizona State Parks for Every Interest
Arizona’s 34 state parks have something for everyone—from contemplative nature walks to stargazing to camping. Here’s our abbreviated look at some of the more niche offerings to add to your bucket list.
See something that interests you? Contact me and we can check it out together! Feel free to call me directly at 480-788-5446.