Posted On: February 13th, 2018 6:54PM
I thought I'd update you on what the 2018 Scottsdale real estate market is looking like for 2018, now that we have some data on January and we can begin comparisons to last year.
The general Phoenix market in January started out with 14% fewer listings compared to 2017. In Scottsdale, the number of listings on the market is down 9% from this time last year, although sales are up by 7% from a year ago.
Low inventory is still an issue. Buyers will find the market for Scottsdale real estate very competitive, especially at the price ranges under $400,000. Low inventory reduces the selection for buyers, extending the time it takes to find a home. Bidding wars are now more common. Some properties sell over asking price, sometimes forcing a buyer out of the market because the price becomes more than they can afford. A good Realtor is key to winning in this type of market – someone who knows the market well and knows how to position their buyer for success.
The low supply and higher demand should put upward pressure on prices. It does look like appreciation will be higher in 2018 than in 2017. But how much higher remains to be seen. Other factors like rising interest rates, stock market volatility, politics and foreign affairs may put a damper on appreciating home prices.
The situation is different for homes priced over $1 million. Buyers have an easier time in this price range because there are a greater number of homes for sale and as a result, the buyer is in a stronger negotiating position.
If you are thinking about selling and would like to get an idea of the current market value of your home and an estimate on how long it might take to sell, please contact me for a free, no obligation analysis. You may be pleasantly surprised!
If you are in the market to buy, there is good news for you too. Although prices continue to rise, the rate of appreciation has slowed. But you probably don’t want to wait any longer. Either prices will continue to increase, or interest rates will increase, or both. Either way, the cost of home ownership is bound to go up. Give me a call for a free no obligation consultation on your options for home buying this year.