Let’s dive right in to my Scottsdale 1st quarter market update for 2020.
First the good news.
There is still real estate activity despite COVID-19. We’ll get into the numbers in just a minute.
The bad news is that the number of COVID-19 cases reported in Arizona is likely a gross undercount and as new numbers come in, things are bound to get much worse around the state. I am not a doom and gloom person–quite the opposite; however, these are crazy times for everyone and with the volatility of the stock market, unemployment skyrocketing, a state-wide lock down likely coming soon and many other issues, the real estate market will be affected.
Back in January, the big news was super low inventory–not just in Scottsdale, but around the county. As of today, there are 1953 active listings in Scottsdale–compare this to 1792 in January. Inventory across the county has jumped by several thousand units since the first reported COVID-19 case in Arizona. My hunch is that people fear another crash is coming and want to cash in now “before it’s too late”. My humble advice is to not panic.
This shall pass and in time, our market will regain normalcy. If selling is the right move for you, then list your home; but don’t sell out of fear. We will get through this. Also, know that if you do decide to list your home, things could change very rapidly–it’s a fluid situation.
Active listings in Scottsdale have been on market an average of 123 days. There are 880 properties currently under contract and since the end of February, there have been 709 sales–not bad considering what’s going on in the world. The recently sold properties were on market an average of 80 days.
The graph below summarizes supply v demand across Scottsdale and it compares last month to 12 months ago:
Scottsdale Luxury Homes
Luxury real estate accounts for 44% of the total active housing inventory in Scottsdale. There are 171 properties under contract and since the end of February, there have been 119 closed sales.
The average days on market for the closed sales was 140.
Due to stock market volatility, I believe the luxury end of the Scottsdale market will be harder hit. The average sold price per square foot over the past month was $359 and sellers reduced their homes on average 5% to effect a sale.
A shelter-in-place order for Arizona is coming; and, even though real estate is deemed an “essential service”, only those with an absolute need to sell or buy will be in the marketplace. Be prepared to hunker down until we start rounding the COVID-19 corner.