If you’re considering a move for a fresh start, raise your family, or grow your real estate investments, the Scottsdale area is considered one of the best places to live in the country.
Scottsdale, Arizona, a city in the lush Sonoran desert, prides itself on being a destination for luxury resorts and spas, upscale shopping, trendy restaurants, exclusive golf clubs, and hiking trails. Each year, 11 million tourists visit Scottsdale and impact the local economy to the tune of $3.3 billion, according to the local government.
It’s also well-loved by its residents for year-round sunny weather, great neighborhoods, top-performing schools, and a thriving job market.
Thus, the Scottsdale real estate market continues to grow. Investment in residential condos, townhomes or apartment complexes, and single-family homes has yielded attractive returns, making this Arizona city a hot real estate market.
Looking back: Scottsdale real estate market in 2021
The pandemic gave rise to remote work, forcing people to rethink their living conditions and realize the value of a home in locations less dense and with more room to breathe, literally and figuratively. Thus, Arizona became one of the top states to move to.
Because of Scottsdale’s climate, attractions, and relatively affordable cost of living compared to other metropolitan cities, homebuyers from other states such as California and Colorado made a beeline to the desert city. Migration to Scottsdale, Phoenix, and other areas in Maricopa County boosted the local population.
The luxury housing market experienced higher market demand, which began when the pandemic started in 2020 and surged into 2021.
High demand paired with low inventory pushed prices up. With historic-low interest mortgage rates, the market saw demand increase for homes priced over a million dollars. Luxury homebuyers realized that a spacious, comfortable home with lots of outdoor space was the best investment for the times.
As homebuyers grew, inventory shrunk. This was the common scenario in many housing markets across the East Valley. Strong demand coupled with a dwindling supply fueled rising housing prices in the area.
According to market reports, the median sale price of single family homes soared to $900,000, an increase of almost 46% compared to the previous year.
Will the same real estate market trend continue in 2022? Let’s look at what experts, trends, and forecasts are indicating when it comes to buying or selling real estate property in The West’s Most Western Town.
Looking forward: 2022 housing market predictions
Predictions
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- The housing market will not crash
The housing market was a bright spot in 2021. Will it continue to do well or crash in 2022? With record low-interest rates and the highest number of home sales in a decade, the signs clearly show that the U.S housing market is expected to remain robust.
The likelihood of a 2022 housing crash looks very slim due to the continued lack of inventory. One report indicates that it is unlikely there will be enough to meet the demand.
The same trend of high demand, scarce supply, and low mortgage rates will also characterize the Scottsdale real estate market in 2022.
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- Home sales will remain strong
Low mortgage rates, limited inventory, and working remotely will drive home sales this year.
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- Interest rates remain relatively low. While interest rates have begun rising, they are still low relative to historic levels.
- Tight supply. Delays in construction due to labor shortages, supply chain issues, and soaring prices will stall the construction of new homes. Without the needed inventory meeting demand, Scottsdale and the entire Arizona housing market will see higher home prices.
- Migration to suburbs. As working remotely becomes part of the norm, homebuyers will continue to move away from dense metro areas. In fact, one in five homeowners prefer to move to suburbs as they no longer have to be in their workplace. Remote work is also driving the sales of luxury homes as buyers look for a bigger place to enjoy their family and work more productively.
- Prices will rise
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The Phoenix metro area ranks in the top ten list of hottest housing markets in 2022. The recovery from the pandemic has upended the demands which resulted in growth in home value.
From 18.5% from February 2020 to February 2021, property values in Phoenix-Mesa-Scottsdale climbed by 31% from February 2021 to February 2022. Experts predict home prices to go up in Phoenix, Paradise Valley, and Scottsdale.
Scottsdale, a suburb of Phoenix, has a competitive housing market dealing with high demand and low inventory. In the first quarter, home prices in Scottsdale went up 27.8%, with a median selling price of $805,000, compared to $715,000 in 2021.
Across the country, the median home sales price is expected to rise by 2.9%.
Property types
Every year, Scottsdale is rated as one of the most desirable communities to live in. The city bordered by Phoenix to the west is a great place to raise a family.
Surrounded by stunning landscape and modern amenities, The West’s Most Western City has a diverse range of top-rate residential options and master-planned communities.
- Single-family detached homes comprised the majority of the housing types in Scottsdale. The city is a popular choice for luxury single-family detached homes.
- Luxurious single-family detached homes in Scottsdale come with 8 to 10 bedrooms and 6 to 15 lavish spa-bathrooms. The multi-million dollar estates sit on massive acreage, complete with posh amenities and prized views.
- You can also expect to find the most sought-after luxury apartments and condo communities. Considered an undisputed leader in larger new apartments, Scottsdale is #3 in U.S apartment size growth.
Luxury condo communities deliver superior resort-style amenities, and 24/7 security, including exclusive concierge and butler services. Millennials, empty nesters, and frequent travelers find condos and apartments ideal for their lifestyle.
Perks include worry-free maintenance for owners and a steady source of income as they can be rented out to vacationers.
Read our guide about condo property in Scottsdale, here.
Development projects
The Scottsdale real estate market shows no sign of slowing down. Enormous luxury apartments and high-rise condos, mixed-use towers, commercial buildings, and high-end hotels are shaping the city’s skyline.
The city with a population of 240,000 is one of the top markets for business and commercial real estate. Job growth, livability, and competitive tax environment attract companies from the East and West coasts to relocate to Scottsdale. The city has more than 15,000 businesses and nearly 25% of Arizona’s corporate headquarters are located in Scottsdale.
Stymied by travel restrictions for two years, tourists are raring to make a comeback. One of the most anticipated grand openings is The Ritz Carlton Paradise Valley, The Palmeraie. Luxebook named it as one of the most-awaited luxury hotel openings to watch out for. The 215-room luxury destination will sit on 20 acres near Camelback Mountain and feature secret gardens, oxygen-enriched guest rooms, specialty boutiques, and restaurants.
A high-profile master-planned office, retail, and residential community is being developed in North Scottsdale that includes commercial office space, hotels, retail, restaurants and convention center. The city council recently approved a mixed-use development envisioned to be community-wellness focused with modern residential, retail, outpads, and a golf course facing the restaurant pad.
With exciting developments in the Scottsdale real estate market, be one of the first to take advantage of completed new construction homes. Check the residential listings here.
Buying a home in Scottsdale in 2022
The Scottsdale real estate market continues to captivate buyers despite the surge in home prices. The West’s Most Western Town comes with strong factors that make it a reliable pick for homebuyers.
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- Scottsdale real estate enjoys agreat appreciation rate
Scottsdale has shown a good track record of appreciation rate for years. Nationally, the city has been in the top 20% for real estate appreciation. Since 2000, the total home appreciation value in Scottsdale reached its highest rate at 193%.
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- Scottsdale real estate offers luxury you can afford
Scottsdale boasts extravagant amenities, a paradise of natural beauty and is considered one of the most luxurious cities in Arizona. But the cost of living is relatively affordable compared to other metros in the country.
Affluent families, retirees, and established and young professionals buy properties in Scottsdale because they know the city offers a million dollars lifestyle.
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- Scottsdale is one of the best places to live
Named as one of the best cities to live in the U.S, Scottsdale has 22 private schools and charter schools in the area.
Moving to Scottsdale means improving your quality of life. With a multitude of activities from choosing where to play golf from more than 200 golf courses, wine, and food tasting, hiking, kayaking, enjoying the resort pools with sandy beaches, and so much more.
Scottsdale has consistently ranked in the Top 5 Cities in the US for Luxury Homes.
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- Scottsdale has reasonable property taxes
One attractive draw of Scottsdale is that it has one of the lowest property tax rates in the country at 0.60%.
The total primary tax rate can’t exceed 1% of the home’s limited value for owner-occupied houses. For a homeowner with a primary tax rate below 1%, a homeowner rebate equal to 40% of school taxes will be granted by the state.
The tax cap benefits families, retirees, and luxury homeowners. Scottsdale also has a tax deduction eligibility for pensioners and no tax on social security for retirees.
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- Scottsdale is a haven for vacation homes
Scottsdale is a top retirement city offering a top-notch selection of luxury vacation homes.
If you plan to visit your Scottsdale vacation home every now and then, consider turning it into a rental when you’re not around. Scottsdale is one of the best places to buy a vacation home in 2022.
Working with a Realtor
The Scottsdale real estate market remains robust. However, expect a competitive market with the number of buyers outweighing the inventory. Slim pickings for buyers mean you need a seasoned local Realtor to help you navigate a hot real estate market.
Experienced local agents have on-ground knowledge and a valuable network to aid them in terms of learning about the latest homes for sale even before they hit the market. You will also benefit from their expertise in making your offer stand out and preparing your finances and documentation needed to close the deal.
Browse homes for sale in Scottsdale, AZ.
Selling my home in Scottsdale in 2022
If you’re selling your home in Scottsdale, it’s your time to shine. The Scottsdale real estate market has never been better for sellers, with the demand for properties outstripping supply.
Houses in Scottsdale can sell after 28 to 35 days on the market compared to 41 days in 2021. As of February 2022, the median selling price of homes was $800,000. Homes sold at approximately their asking price. For updated figures on the Scottsdale real estate market, click here.
In a seller’s market, you can raise the price tag of your home based on comparable properties in your area. A tight market can result in multiple offers for your home, sparking a bidding war. A desirable property can sell about 5% higher than the list price and stay on the market for a shorter period of time. Consult your Realtor before you price your home.
Home values in Scottsdale have jumped 31% and data shows that the trend continues to be on the upswing. If you’ve been thinking about selling your home in Scottsdale, now is the time to do it.
To get a ballpark figure on your luxury home in Scottsdale, use this home value calculator.
Working with a REALTOR
Selling a home is not a walk in the park. The transactions are complex and time-consuming. If you want to sell your luxury home, reach the best buyers with strategic pricing, getting a Realtor is vital to a successful sale.
As home values in Scottsdale and the rest of Maricopa County inch ever upward, a Realtor looks at the big picture, considers the smaller picture, and employs tools to come up with a competitive price tag. Their comparative market analysis will provide you with the best list price for your luxury home.
How to prepare my home for selling?
Selling your luxury home for the best price needs preparation. You have to make your home ready for every potential buyer that walks in. A well-staged home that puts buyers top of mind will impress house hunters enough for them to make an offer.
- Declutter each room. Pack away personal items and show ample storage. Decluttering gives an impression of a clean, larger living space. Removing clutter allows buyers to see their belongings in the home.
- Make minor repairs. You don’t need major renovation but fix minor issues that can affect the sale.
- Do a deep clean. A clean home sparkles, looks new, and appears well-maintained. You can hire a cleaning crew to do the job.
- Boost curb appeal. The exterior of your home gives a valuable first impression to buyers. Give your door a fresh coat of paint, trim hedges, improve landscaping, put lights along the entryway, powerwash your driveway, and add outdoor accents to impress buyers from the get-go.
Potential challenges when moving out of your home
Moving to a new home can be exciting and stressful at the same time. Here are a few challenges that can derail your plans.
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- Challenge #1: You’re running out of time
Packing your things can take longer than expected and leave you disorganized.
Solution:
Create a checklist with a timeline that will help you stay on track. Don’t hesitate to ask help from your moving company if you think you can’t do it alone. It will cost you some dollars but it will save you time and stress.
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- Challenge #2 : You have more stuff than you can pack
Underestimating the amount of your stuff can leave you with insufficient packing materials.
Solution: Before packing, go through your items and sort them into items to keep, throw away, and donate. This will downsize the stuff you have to move. items. Talk to your movers about what supplies they can provide and let them estimate how much you need. It’s wise to have extra bubble wrap, boxes, and tape.
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- Challenge #3 : You may injure yourself or damage items
Moving large furniture can nick doorways and fragile items can break during transport. You can also injure yourself in the course of hauling stuff.
Solution:
Use protective bubble wrap on delicate items before securely sealing the box. Put padding on the edges of your furniture and check that boxes with heavy things are not stacked on top of containers with fragile items.
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- Challenge #4 : You may lose or misplace items
Valuable items and documents like birth certificates, contracts, passports, jewelry, and cash can be misplaced or lost when you move.
Solution:
If possible, keep such items on your person – in a bag or a case. Don’t leave them unattended in the course of the move nor should you pack them along with your everyday things at the back of the truck.
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- Challenge #5: You may run into bad weather
It can be difficult to move when the weather isn’t on your side. Weather can be unpredictable and no matter how you prepare, unexpected weather changes can be a stressful issue to deal with.
Solution:
Ask the moving company about their policies on moving in bad weather. If the day is scorching, prepare plenty of water for you and the movers, wear lightweight clothing, and take breaks to cool off. During heavy rain, cover the floors of the entryway with moving blankets and tarps. In case of heavy snow, you may opt to reschedule your move for safety.
Sell your home in Scottsdale, AZ with the Matheson Group
When buying or selling residential real estate, it’s necessary to seek a reputable Realtor to ease the stress and guide you in the process. Let us, The Matheson Team, give you our professional expertise in navigating the real estate market in Scottsdale, AZ.
As one the leading RE/MAX teams around the world, we have the expertise to market your home to the right buyers and if you’re buying a new one, we can show you the best listings that suit your needs. You can also leave us a message here.
Call us today at 888.656.4830, or send a message to Don(at)ScottsdaleRealEstate(dotted)com. You can also leave us a message here.
