Happy Friday Urban LIfe readers. A bunch of people have asked what's going on in Scottsdale real estate. In an effort to please the masses, Ron and I pulled stats, chatted with fellow real estate kind-of-guys, put all the info in the blender and have come up with the following information and analysis for July 2008. Now that we are done we can use the blender for it's intended purpose... Margaritas.
Abbreviations used are
SFH = Single Family Homes
Condo = condos, lofts, town homes, patio homes
DOM = Days on market.
85250
12- SFH sold
11- condo sold
83- active home listings
189- active condo/TH listings
88 - Average DOM
25- new foreclosures recorded
Analysis:
Number of sales increased while prices dropped in July. Stats indicate 85250 is finding some stability and headed for recovery. Foreclosure numbers rose slightly in July. SFH are fairing better than condos.
85251
21- homes sold
34- condos sold
130- active home listings
467- active condo listings
90- DOM
30- new foreclosures recorded
Analysis:
SFH market gained strength as sales and prices were steady. Condo/TH market is over-saturated with listings. Expect condo prices to continue declining into 4th quarter of 2008 with inventories so high. Since this is an older area and nearer Old Town and the Waterfront, we expect it to recover ahead of the pack. However, foreclosure could be a factor in recovery. May be a good time to find a condo deal or bank owned home.
85254
61- homes sold
7- condos sold
455- active home listings
129- active condo listings
114- DOM
27- new foreclosures recorded
Analysis:
High inventory levels are still a problem, especially for the condo market. One of the hardest hit foreclosure areas in Scottsdale., Prices will probably continue to fall. No indication for quick recovery here. If you can buy a bank owned right it could be a good long term hold/investment.
85255
52- homes sold
18- condo/townhouse sold
912- active home listings
229- active condo/TH listings
128- DOM
Analysis:
Sales dropped off significantly and inventory levels were very high in July. Hardest hit zip code in Scottsdale for foreclosures thus far in 2008. A bad combination of factors suggesting further price declines. We're not too surprised by the state of real estate in 85255. Many homes were built and bought in 2002-2006 and subject to the crazy loans and buying stampede. Many buyers stretched
to buy the homes and variable interest rates are coming back to bite. I'd be very alert if buying in this zip code. We believe prices will continue to drop.
85257
23- homes sold
4- condos sold
154- active home listings
113- active condo listings
83- DOM
22- new foreclosures recorded
Analysis:
One of the best performing zip codes in Scottsdale. Homes are doing better than condos. We like the lower inventory levels in the SFH market and the southern parts of Scottsdale appear to be more stable and are probably being supported by the Waterfront developments and lower drive times. Foreclosure numbers are relatively low in this zip code suggesting prices won't be effected as much as some other areas.
85258
22- homes sold
17- condos sold
243- active home listings
243- active condo listings
120- DOM
20- new foreclosures recorded
Analysis:
Sales have fallen off dramatically and DOM is rising. Not unusual for this zip code in late summer. Inventory rates are in the 18 month range. Probably sluggish until November. If you wanted to live in the McCromick/Scottsdale Ranch area there are probably some good deals to be had during the summer and fall.
85259
22- homes sold
6- condo sold
410- active home listings
63- active listings
107- DOM
Analysis:
Home prices fell sharply in July as did the number of sales. High inventory is a problem. We like to see inventory rates in the 6-8 month range rather than the 18 months we are currently seeing. (Inventory rates are the number of months it would take, at current sales volume, to sell all the homes on the market.) On the good news front, 85259 had the fewest foreclosures in Scottsdale during July, Condos are likely to do better than SFH for the rest of the year. Again, this may be a good time to find a deal on a SFH since DOM are still pretty high and there are a lot of homes competing for your dollars.
85260
42- homes sold
32- condos sold
384- active home listings
218- active condo listings
114- DOM
37- new foreclosures recorded
Analysis:
The number of sales rose in July while prices dropped significantly. We feel this is partially due to the relatively large number of bank owned homes in the area... a number not likely to come down in the near future. Condo market less stable than SFH. If you were very careful, getting a great deal on a condo in 85260 is a good possibility. Keep an eye on bank owned home prices as they can significantly effect a market quickly.
The graph below gives an overall view of what's happening in Scottsdale. As you can see, the number of sales has been steadily rising in 2008 and the prices have continued to dive. The good news is that strong sales will eventually bring stabilization to the prices. It just takes time.
Have a great weekend and please let us know if you have any questions, thoughts or comments on this post.
Gene & Ron Urban
The Urban Team