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Scottsdale Housing Market Trends and Forecast for 2024 – Norada Real Estate Investments

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The Scottsdale housing market is one of the hottest in the country, with home prices rising steadily over the past year. The median listing home price in Scottsdale is now $1.1 million, and homes are typically selling for 2.73% below the asking price. However, there is still a strong demand for homes in Scottsdale, and inventory is low. This means that buyers need to be prepared to act quickly when they find a home they love.

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. 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. If you are an investor, Scottsdale has a track record of being one of the best long-term real estate investments in the nation. Let’s discuss about the latest trends in this market.


Buy/sell, rent/lease residential &
commercials real estate properties.

How is the Scottsdale Housing Market Doing Currently?

Scottsdale, AZ emerges as a balanced market in December, demonstrating equilibrium between the supply and demand for homes. This balance is reflected in the median days on market at 72 days. Homes in Scottsdale take an average of 72 days to sell, presenting a favorable scenario for both buyers and sellers.

Median Listing Home Price and Year-Over-Year Growth

According to Realtor.com, in December 2023, the median listing home price in Scottsdale, AZ soared to $1.1 million, reflecting an impressive 27.6% year-over-year growth. This surge indicates a robust real estate market, making Scottsdale an enticing destination for prospective homeowners. As the demand for homes continues to rise, so does the overall value of properties in the area.

Median Listing Home Price per Square Foot

The median listing home price per square foot in Scottsdale, AZ stood at $451, showcasing the premium value attributed to each square foot of living space. This metric is crucial for buyers who seek transparency in pricing and want to ensure they are making informed decisions based on property size and cost.

Sale-to-List Price Ratio

One of the key indicators of market dynamics is the sale-to-list price ratio, which in Scottsdale, AZ is at 97.27%. This means that, on average, homes were sold for 2.73% below the asking price in December 2023. Understanding this ratio provides valuable insights for both buyers and sellers, indicating the negotiation landscape in the market.

Trends in Median Days on Market

Examining the trend in median days on market reveals that, on average, homes in Scottsdale, AZ sell after 72 days. This figure indicates a slight increase from the previous month, but a marginal decrease from the same period last year. The fluctuation in this metric provides valuable insights into the pace of the market, helping individuals gauge the speed of property transactions.

Scottsdale Housing Market Forecast 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.

Current Status of the Housing Market

The Scottsdale housing market has shown resilience and growth over the past year, with the average home value reaching $789,920, reflecting a 2.6% increase. As of December 31, 2023, homes in Scottsdale are going pending in approximately 36 days.

Competitiveness in the Market

The market remains competitive, as indicated by the presence of 1,885 homes available for sale as of December 31, 2023. With 469 new listings entering the market in the same period, buyers have a variety of options to consider.

Meeting Buyer Demand

Scottsdale’s housing market has a median sale to list ratio of 0.975 as of November 30, 2023. This suggests a healthy balance between listing prices and actual sale prices. The median sale price in November 2023 was $782,500, while the median list price as of December 31, 2023, stood at $944,317.

Market Outlook: Will There Be a Housing Market Crash?

Considering the robust performance and stability in the Scottsdale housing market, there is currently no indication of an impending market crash. The data shows a 11.0% percentage of sales over list price and a 72.8% percentage of sales under list price as of November 30, 2023. These figures suggest a balanced market with opportunities for both buyers and sellers.

It’s important to note that these insights are based on data through December 31, 2023, and the real estate market can be influenced by various factors. However, the current trends indicate a positive outlook for the Scottsdale housing market in the coming months.

Scottsdale Housing Market Forecast 2024
Source: Zillow

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 $789,920, up 2.6% over the past year. The median days to pending is around 36 days, indicating that homes are still selling quckly.

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 January 2024, the median rent for all bedroom counts and property types in Scottsdale, AZ is $2,647. This is +36% higher than the national average. Rent prices for all bedroom counts and property types in Scottsdale, AZ have increased by 20% in the last month and have decreased by 17% in the last year.

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

This post was originally published on 3rd party site mentioned on the title of this site

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