By Scott Gaertner
Last month our article here explored how some believe the housing market is poised for a 180-degree turn in the opposite direction this fall. This month I would like to consider the opposite side of that argument. What if that isn’t true and doesn’t happen? With interest rates now below 3%, is it the right time to buy a home in Scottsdale North or is it at top market?
Scottsdale North’s appreciation rates are some of the highest in the country
The chart below is a chart of the annual average. The updated annual median appreciation is over 12 percent.
Experts overwhelming believe 2021 will see more homes sold nationally than in 2020.
More Reasons Scottsdale North is a Hot Place for Investment
Arizona’s COVID-19 rates are down. As I write this on August 15, Arizona’s COVID-19 case counts are now some of the best in the country. Scottsdale’s main feeder markets such as California, Washington, Minnesota, Illinois, and Oregon, are just becoming comfortable enough to travel due to lower COVID-19 rates.
Buyers shift to rural. Due to COVID-19, buyer preferences have shifted from the urban living trend of living in the city close to everything to more rural locations after the pandemic. Scottsdale North has a rural feel but is a short drive to fantastic shopping, dining, sports franchises, and world-class golf.
We are popular. Relocation reports consistently show the Phoenix area is becoming a top destination for people living in high-cost cities like Los Angeles, Portland, Seattle, and Chicago.
Lower taxes. Scottsdale North taxes are much lower than most of our feeder states.
A strong economy. The Scottsdale area had the lowest unemployment rate of all the Metropolitan Statistical Areas (MSA’s), with more than 1 million in population. The area has reasonably priced housing, lower cost of living, available workforce, and stable climate forecast a growing economy and stronger housing growth.
Job growth. Job growth has been vigorous for the past few years, while single-family building permit activity has been relatively modest. There are simply not enough homes to feed demand. Low supply with high demand equals higher prices.
Luxury sales are the highest ever. July 2020 had the highest number of sales over $500,000 we have ever seen in the Greater Phoenix area, with 1,788 sales. Much higher even than the funny money days of 2005. At the same time, Maricopa County currently has the lowest number of pending foreclosures we have ever recorded.
A better investment. The record stock market makes many nervous these days, but where do equities go to find any kind of ROI? Many believe real estate is safe and are moving from other equities to real estate. Metro Phoenix tops the nation in rent price growth of single-family homes.
Still a good value. If you consider inflation, Phoenix home prices are still 20% below the inflation-adjusted peak in 2005. The Scottsdale North monthly median price is still just 76% of the peak. There is plenty of room to grow and homes to safely appreciate.
Do you want to know your home’s value?
With the market so hot, would you like to know immediately what your Scottsdale North home is worth? Here are two ways:
• Not ready to sell but like to watch the market? Become a Nosey Neighbor. Receive just one email per week with all listing activity in your community. IAmANoseyneighbor.com will keep you up to date on the homes in your specific community that went on the market this week, under contract or sold. It’s free.
• Want an immediate evaluation of your Scottsdale North home? Go to ScottsNorthHomeValue.com.