Here on LUXE BLOG, we enjoy sharing the latest vibes from the Scottsdale real estate market. Our team of hand-picked agents, fluent in multiple languages, is quite passionate about what we do. With that in mind, we’d like to share our analysis of the current state of the market. Of course, we don’t predict markets, but these are our thoughts.
Last year (2022), the Scottsdale real estate market was in an absolute whirlwind. Prices per square foot were soaring, and listings were receiving many offers. The excitement was real (but everyone knew it wouldn’t last). However, a change was observed in April and May as interest rates began their upward climb. Fast-forward to May 2023, we’re witnessing a market that has gradually stabilized and adapted to the earlier surge.
In the previous year, the entire Valley had approximately 5,300 homes available. This was an alarmingly low number. Currently, we’re looking at under 9,000 listings in the MLS. Although this is an improvement, more is needed to meet the demand.
A stable market in AZ typically requires 20,000 to 25,000 listings. We’re pretty far from that equilibrium. Meanwhile, interest rates have taken a hike but are now predicted to stabilize or decrease slightly. Lower interest rates and reduced inventory could create increased buyer competition.
Traditionally, the summer months in Scottsdale are characterized by a peak in inventory and lower prices. However, this year’s reduced inventory may disrupt that pattern. And this MIGHT lead to higher prices.
Reflecting on 2022, the price per square foot reached its zenith in April or May, then took a nosedive. Moreover, it leveled out in October. Interestingly, we’re now seeing a steady increase in this metric over the past few months, suggesting a trend of rising prices. Buyer Demand is higher than
Given these new conditions, some prospective buyers who were priced out or hesitant last year may feel ready to reenter the market. Low interest rates, despite recent hikes, could be a strong motivator. Remember, while these rates may seem high compared to the ultra-low rates of recent years, they are still below the historical average. Decreasing interest rates and escalating prices could lead to a vibrant seller’s market this summer. Only time will tell.
At WLH, we believe in the power of informed decisions. As we navigate this dynamic market together, we’ll continue to provide the clear, direct insights you’ve come to expect from us. Stay tuned to LUXE BLOG for more Scottsdale real estate market updates.