Scottsdale Arizona real estate market update
Though Arizona real estate sector has suffered tremendously since the onset of the U.S. housing crisis triggered by the larger U.S. financial crisis and recession, with home values in some cases falling by more than 50% from highs in 2006, Scottsdale real estate has nonetheless showing signs that perhaps it has at least hit bottom and is now beginning to steady out. In 2009, though Scottsdale’s homes prices were still well below ideal levels, sales volume was markedly up, accounting for some of the highest sales volume since 2005.
According to the Arizona Regional Multiple Listing Service, sales volume in the Scottsdale region in 2009 finished up the year with more than 7,650 sales in October, lower than some of summer 2009’s sales volume, but still accounting for some of the highest levels since late 2005. Total sales volume for 2009 was the highest it has been since 2005, much of that spurred on by the government’s stimulus program offering generous tax rebates to those buying houses.
Scottsdale median home prices finished the year with a level of $126,600 in December, down slightly from 2009’s high levels of $130,000 in both January and November, and down by mid-2000 highs by nearly 50%: The region’s record median price came in June 2006, at $264,800. Average prices fared better: December’s average price was $177,572, the highest level since January of 2009, after which it steadily fell before beginning to climb back up. This suggests that prices could continue to slowly climb in 2010, offering a glimmer of hope to those underwater on their homes, but giving those wanting to get in on cheap real estate an impetus to do so soon. The average price peaked in May 2007 at $350,400.
The number of days homes are spending on the market has continued a general steady decline over 2009 as well. In January, the average number of days on the market was 115, which rose into the 120s over the next four months before eventually declining when summertime hit. In October and November, days on the market reached a yearly low of 90, and it rose slightly in December to 92. Meanwhile, listings of new homes on the market also fell in the latter half of the year, reaching the lowest levels since late 2007 as inventory cleared out.