Okay, so predictions don’t always come true, but I am going to go out on a limb here. Check out my predictive report–2019 Scottsdale real estate market–hot or not? For frame of reference, you may wish to read my 2018 Scottsdale real estate wrap-up before continuing.
First an important disclaimer: information contained in this article is not meant to be acted upon–nor does it constitute investment advice. The following is just my thoughts about the type of Scottsdale real estate market we might have in 2019.
Interest rates and home loans
Interest rates were on an upward climb much of 2018, but just before the year ended, rates took a dip. The drop from around 5% to 4.5% (30 year fixed) currently was a welcome change and while rates may remain below 5% for a spell, I expect that rates will rise to 5% or higher before the year is over. Keep in mind that home loan rates are dependent upon a number of factors–to find out what you qualify for, check out my list of vetted lenders in my Scottsdale real estate guide.
Housing inventory levels
One of the most important numbers that realtors© watch is the inventory level. As we came out of the housing crash, inventory levels began to fall–slowly at first and then at a breakneck pace before leveling off. For most of last year, inventory ranged from 16,000 units to just North of 18,000 units. As of January 2019, the inventory across Maricopa County is 18,600 (highest we’ve seen for quite some time) and in Scottsdale the inventory is around 2587 active units.
I figured that there would be a small rise at the beginning of the year, but I am hopeful that pent up demand will bring more Scottsdale buyers off the fence–then we’ll see levels drop a bit. My prediction is that inventory may rise before dropping as home buyers begin to surface.
Best zip codes to look for deals
For $1M plus buyers in the 85255 zip code, I feel like there are some good deals out there–whereas other parts of the county are suffering from low inventory, this zip code has had a glut of homes for some time now. Another zip code to look at for high-end deal shoppers is 85266.
Scottsdale areas that should be in high demand
I think the following parts of Scottsdale will do well in 2019.
- Any waterfront homes in Scottsdale (not facing power lines)
- Town homes and condo’s in Gainey Ranch priced under $500K
- DC Ranch single family homes priced under $1M
- Renovated homes in McCormick Ranch
- Optima Camelview Village condominiums
- Any renovated homes in South Scottsdale and the Old Town area
- Homes priced under $400K that need renovation
Scottsdale 2019 market summary
In closing, rates should remain steady for a spell and then rise throughout the year. Scottsdale inventory levels will likely rise before falling below current levels. Although we are not in an entirely balanced market, 2019 should be a great year for both home buyers and sellers. If you are an upcoming Scottsdale home buyer, be sure to check out my Scottsdale real estate guide–luxury buyers may want to read my Scottsdale luxury real estate article.
Thank you so much for reading my 2019 Scottsdale real estate market hot or not report! If you have questions about the market, a particular community or property, please contact me any time–I am here to serve.