Metro Phoenix Real Estate Update by Jeff Cameron
Metro Phoenix and Scottsdale Real Estate Market Update for July 2014
Active Homes in the ARMLS
Metro homes for sale 19,743. +52% since last year and -2% since last month
Scottsdale homes for sale 1,921. +44% since last year and -5% since last month
McDowell Mountain Ranch homes for sale. Up since last year and -5% since last month.
Pending Homes in the ARMLS
Metro pending homes 7,739. -19% since last year and -7% since last month
Scottsdale pending homes 513. -11% since last year and -12% since last month
McDowell Mountain Ranch pending homes. -9% since last year and +38% since last month
Closed Homes in the ARMLS
Metro closed homes 5,780. -16% since last year and -06% since last month
Scottsdale closed homes 396. -20% since last year and -16% since last month
McDowell Mountain Ranch closed homes 16. -45% since last year and -20% since last month
Price Per Square Foot
Metro $121.71 +7% since last year and -1% since last month
McDowell Mountain Ranch $222
While our team experienced a fantastic July, the rest of the market experience a bit of a pull back. The 5,780 closings in Metro Phoenix is 16% below last year and 6% below last month. Scottsdale was not immune from this action, its 396 closings were down 20% from last year and 16% from last month. McDowell Mountain Ranch had 16 closings, down 45% from last year and 20% from last month.
On the contrary we saw inventory drop for the 4th month in a row, a good sign for the market. The 19,743 single family homes on the market valley wide is 52% higher than last year, but 2% lower than last month. This is our first reading under 20,000 since January. New listings were down below new sales, creating the reduction in inventory. I am not so sure there were so fewer listings coming on the market as more people giving up and canceling their listing. Scottsdale followed the trend, with 1,921 homes for sale, up 44% from last year, but down 5% from last month. McDowell Mountain was up from last year but down 7% from last month.
Pending sales have dropped to 7,739, valley wide, a drop of 19% from last year and 7% from last month. In Scottsdale, with 513 homes Pending, it dropped 11% from last year and 12% from last month. McDowell Mountain dropped 9% from last year, but jumped 38% compared to last month.
Average price per square foot continued forming a ceiling valley wide at $121.71, up 7% from last year, but down 1% from last month. It has been bouncing around $121-$122 all year. Scottsdale and McDowell Mountain follow the same activity at $204 and $222 respectively. McDowell Mountain may be above last August, but it is below June of last year and from September 2013 to May 2014.
In reading everything I can find about our market and why we are experiencing a pull back, I would say the experts don’t know.
The experts blame The Millenniums, tough lending standards, the lack of investor interest and out of state buyers. They are correct and it may just be the combination of all these issues. I think it got too hot! Investors were no longer getting a SCREAMING deal. Sellers began pricing too high and with buyers so “tuned in” to the market, they pulled back.
All I can say is 5,206 people decided to buy a home last month and went under contract. There are buyers out there for every home. But they are persnickety. Today, and this always changes, they will pay more for upgrades and condition. It is extremely important to price your home for what it is in today’s market. If you are thinking of buying or selling, call me Jeff Cameron at 480-652-2004. The Cameron Team, HomeSmart. We continue to serve the metro area for 20 years and of course love working in our backyard – the north east valley, Scottsdale and McDowell Mountain Ranch.
Lastly, we have a fantastic split 3 bedroom home in McDowell Mountain Ranch for sale. It offers a 3 car garage, greatroom and awesome yard with flagstone patio, built in BBQ and above ground spa. Priced to sell at $437,500. Click HERE to find out more about this home located at 10453 E Pine Valley Drive, Scottdale.
Watch for our coming soon 5,700 sf horse property on nearly an acre in north Scottsdale. This home has been fully remodeled and is fantastic. Priced at $1,400,000!