Home prices are climbing nationally and in Scottsdale. According to a recent report released by the National Association of Realtors, existing home prices in the first quarter of 2016 jumped 6.3 percent year over year to a median $217,600, up from $204,700 in the first three months of 2015.
Johnathan Smoke, chief economist for Realtor.com, said in an online article that, nationally, demand is increasing faster than the supply of properties. New home construction is down roughly 6 percent, and there’s fierce competition for affordable housing in areas with a strong job market.
“The level of single-family (home) construction is not enough to make a dent in the limited inventory of homes for sale,” he said. “In the strongest markets in the country, we’re going to continue to see rapidly moving homes for sale, multiple bids on the most desired properties, and above-average price increases.”
Phoenix as a whole is one of those strong markets. According to the National Association of Realtors report, existing home prices climbed 8.2 percent in the first quarter of 2016, raising the median home price to $223,100. That’s a full 2 percent higher than the national level.
If you break it down even further, the news for Scottsdale is mixed, according to the Cromford Report. Prices for existing single family homes in South Scottsdale (85257) and Old Town (85251) have increased 12 percent and 16 percent, respectively.
However, northeastern Scottsdale is not faring as well. Prices for homes in zip code 85266 have dropped 10 percent, 85260 have dropped 4 percent, 85353 have dropped 3 percent, and 85259 have dropped 1 percent. Home prices in 85259 have remained flat. (While that’s bad news for sellers, it could be good news for buyers looking for a deal.)
Looking at the market based on the price of the house instead of its location, you get a similar mixed picture. Sales of homes priced under $500,000 are down 2 percent over the last three months (March through May) compared to the same period one year ago, according to the Cromford Report. But, active listings are also down 2 percent in this market, and based on priced per square foot, the homes have appreciated 5 percent.
Between $500,000 and $1 million, sales are up 4 percent, but the supply is up a strong 16 percent. As a result, appreciation is fairly weak at 1 percent. The news is not good for the $1 million and over segment, though. Sales are down 5 percent while active listings are up 10 percent. Not surprisingly, prices of existing homes at this price have declined an average of 4 percent since last year.
Since so many factors go into determining exactly what your home (or any home) is worth, you’ll want to consult a real estate agent before jumping to conclusions on the value of your home. If you’re looking to buy a home, an agent can also point you toward homes where you’ll get more for your money.