Scott Note: We know that your time is valuable, so we are trying to create a new format to respect that. This month’s format has more content, but rather than me just prattling on with my thoughts; we broke it up. This way, you can choose what to read, and how deep you want to go. We would love to hear any thoughts you might have.
October Market Update
- Terravita October Market Update
- Scottsdale North Property Taxes Dropped!
- Soon To Be A Complete Buyers Market
- Phoenix Housing Cooling Faster Than Most Major Cities
- Arizona named one of the 20 safest states in the U.S
1. Terravita Market Update
While we are only two weeks into the Terravita selling season, we are learning a lot. As always, there is a great demand for Terravita homes, and while prices are not what they were headed toward, they are holding up well. Pricing is clearly key.
Why It matters:
What we are seeing is that if a home is marketed well, and priced appropriately, it can not only sell but still with multiple offers. One of our sellers was concerned about a market correction and wanted to be sure to sell quickly. To ensure it sold, we priced $65,000 below what I felt the market would pay for it. Through multiple offers the home got bid up to exactly $65,000 above list price!
Other Terravita Sales
The most interesting sale in October was one that had been on for sale before the market correction. (I view May 22nd as the final great weekend for sellers.) It was a crazy listing that stayed on the market for 136 days in total.
At one point, the home was priced at $1,588,000, or $630 per square foot. After a number of price reductions, it finally closed escrow this month at $1,250,000, or $496 per square foot. I’m not sure if this is a cautionary tale, but it was interesting to watch.
What This Means To You
In one of my ancillary articles below, you will see that Scottsdale is one of the few cities in the valley that is still in a seller’s market. But it is eroding. Demand keeps getting weaker, but new supply is also getting lower every week. The market is shrinking and sellers and buyers are both thin on the ground. We have interesting days ahead of us.
Go Deeper into Terravita Data
- TV Market Stats
- October Closed Sales Data By Floorplan
- Active Terravita Listings
- Terravita Floorplans
- Read Past Market Updates
2. Excellent News Your Scottsdale North Property Taxes Dropped!
Those of you who paid your 2021 property taxes this year should have noticed a decrease when you paid your first half this past month. Even though it was only an 8% cut, I don’t think many counties in the country are seeing their taxes move in a downward direction.
It looks like the Maricopa County supervisors have decided to give us a break. It does make some sense since inflation is at its highest level in 40 years and Arizona’s economy is literally the hardest hit in the country. And they aren’t just robbing Peter to pay Paul in this case. As part of the American Recovery and Reinvestment Act, the federal government gave $435 million to the state to help pay for it.
What’s The Catch?
However, the reduction only affects the county’s share of the total property tax. This does not include local taxes, school levies, or bonds that have been authorized and assessed by a local government. And I thought you might find it interesting to know that even these added expenses in Scottsdale North are much more affordable than many other areas.
Why it Matters:
Just one more piece of evidence that while Scottsdale home prices are a bit higher, it is a better value. You always get what you pay for.
The difference in taxes is shocking, and the difference between what the assessor says the property is worth and what it is actually worth probably makes you at least curious.
Go Deeper: Scott’s Article In The Scottsdale North News Newspaper
3. Soon To Be A Complete Buyers Market
Things are still getting worse for sellers, with all 17 cities having seen a fall in their CMI over the past month. Scottsdale is still a seller’s market but rapidly deteriorating. (Values below 100 indicate a buyer’s market, while values above 100 indicate a seller’s market. A value of 100 indicates a balanced market.)
Why it Matters
There are few signs that inflation is subsiding, and it appears clear that rates will need to go higher again. The market remains intently focused on inflation as the key driver of Fed policy and rate volatility. This week, the biggest inflation report combined with more UK market drama to pushed rates to another 20yr high.
Go Deeper: From Eliott Pollack: Monday Morning Quarterback
4. Phoenix housing cooling faster than markets in most other major cities
This is according to a recent report from Redfin. Redfin examined price drops, supply, pending sales, sale-to-list ratio, speed of homes sales and more from February to August to determine which housing markets in the 100 most populous U.S. cities are slowing the fastest.
Why it matters:
Not only have prices fallen in recent months, but sellers see the market cooling and they’re more open to negotiating prices, giving concessions and paying closing costs. They may accept an offer that’s $20,000 below asking price and pay for repairs the buyer found during an inspection. Sellers can still get a fair price — but it’s with the understanding that they may have to wait several weeks for the right offer, and buyers are no longer willing to overpay.”
Go Deeper: Redfin Reports Seattle’s Housing Market Is Cooling Faster Than Any Other in the U.S.
5. Arizona named one of the 20 safest states in the U.S.
Arizona has been named one of the 20 safest states in the U.S., according to WalletHub’s 2022’s Safest States in America list. It ranked No. 8 for emergency preparedness and No. 9 for workplace safety. The Grand Canyon State’s overall ranking was hurt by finishing No. 49 in road safety.
Why it matters:
Crime is up in many of the cities and states that are Arizona’s feeder states. Higher taxes and Crime are what many are looking to escape.
Go Deeper: 2022’s Safest States in America
6. Phoenix Has Bargains
Phoenix has been on the leading edge of real estate trends for years. During the pandemic, baby boomers, families, and investors flocked to the city, bidding up prices to mind-boggling new highs. Some of the steepest decreases are in Sun Belt destinations.
That trend is reversing, and it has the 2nd fastest dropping median price.
Why It Matters:
- Sellers need to adjust their expectations of copious quantities of buyers and quick fast sales.
- The article says that Phoenix was number 2 in the fastest-dropping median price. That isn’t true in Terravita, but that won’t stop buyers from believing that it is.
Go Deeper: Buyer Bargains: Here Are the 10 U.S. Cities Where Home Prices Are Dropping the Most Right Now
Just for fun:
Mega Mansions That Are Now Worthless
PRICEY! SCOTTSDALE PROPERTY FOR SALE FOR $55,000,000
Thank you all for reading and supporting our updates. We know there are a lot of things out there pulling for your attention these days. Please let us know anything we can do better.