Terravita Market Update
December 1, 2022
November Market Update
- Terravita November Market Update
- The Bigger Picture
- The Park is Done!
- Superbowl Rental$ For Fun And Profit
- Tell Your Story
- Fun Stuff
- The Bottom Line
1. Terravita Market Update
Last month we mentioned that pricing is key in this market. This month we see that there is much more to it than that.
Much of the valley is suffering from slow sales, but Terravita had a good month with 7 homes going under contract and prices holding up nicely. Five homes closed escrow with a $416 per square foot average price, which is quite good. AND the average was skewed downward by an astonishingly low sale. We mentioned here last month that pricing is key. This aberrant sale demonstrates that there is much more to it than just that. This home sold over $100 per square foot below the average and over $200 per foot below a home just 9 doors away on the same street!
Why It matters:
The largest determinant of value in Terravita is location. This home has a good floor plan and is located on an extraordinary lot backing to pristine desert and golf course in a very quiet section of the community. More importantly, it has unobstructed Black mountain views. Summation: This location is far above average, yet it sold for a far below-average price.
The Bottom Line:
There is much I could say about this but I will leave it at that.
Go Deeper into Terravita Data
- TV Market Stats
- November Closed Sales Data By Floorplan
- Active Terravita Listings
- Terravita Floorplans
- Read Past Market Updates
2. The Bigger Picture
Since the market changed last May, demand in the Valley has dropped incredibly and across all areas and price ranges, but some are less affected than others.
Of the 17 major cities in the Valley, all but 3 are now officially buyers’ markets. Scottsdale is one of the remaining Seller’s Market cities, but it is very close to being a balanced market. Surprisingly, even though demand has dropped, there is still a shortage of supply.
Why it Matters:
When the demand dropped in the last market crash of the very early 2000’s the supply of homes soared. As we all remember, prices plunged. Not so this time.
Michael Orr of the Cromford Report says: “Although the lack of demand causes concern, the shortage of supply goes a long way to counter-balance this and downward pressure on prices is fairly light.”
The chart above details the overall price per square foot across the valley going back to 2015. As you can see, prices are far from plummeting right now and are actually about where we were this time last year. And remember this chart is Vallywide. Some areas like Scottsdale North are holding values even better.
Where does that leave us? Pretty much with a shrunken marketplace. We have fewer sellers and fewer buyers choosing to enter the marketplace.
The Bottom Line:
We will definitely see less sales this year, but some actually see prices moving up again.
Go Deeper: Phoenix-area home sales to drop in 2023 while prices grow, Realtor.com projects
3. The Park is Done!
It was a long process, and we almost lost it at the very end, but we are getting the park!
It appears that Ashler Hills Park has jumped through all the necessary hurdles and that construction will begin early next year. Yee Haaa! We were in danger of losing it at the very last minute, but Scottsdale North residents stepped up huge!
Why it Matters
This will be Scottsdale North’s first (and probably only!) park, and it is almost a perfect representation of the community it serves. So perfect that we believe it should be named that way!
Go Deeper: To see why the park is a perfect reflection of your community and should be named that way, see Scott’s article from this months Scottsdale North Newspaper: Scottsdale North to Have its First Park
Go Even Deeper After You Read The Article
Note: The Wikipedia page I am having created is taking way longer than I expected. They tell me that it should be up and running by Mid-December. The Scottsdale North draft below will give you an idea of how it will read, and you can see what Arcadia’s says.
Wikipedia: Scottsdale North Wikipedia Draft
4. Superbowl Rental$ For Fun And Profit
The second week of February will have a HUGE demand for rentals this year because we have both the Waste Management Golf Tournament and the Super Bowl that same week!! Many local residents are renting out their homes for some serious coin that week. Could this make sense for you? Maybe if you are careful.
Why it matters:
This really can be profitable, but there are pitfalls. Here are a couple of articles to help:
5. Tell Your Story
The fact that life can be shorter than we expect was vividly driven home to me last month as I lost my oldest and dearest friend. His death was an absolute shock, and we still have no idea why he died, but it was far too early. While he was incredibly close to his family, and they heard a ton of high school and college stories at the funeral, it really wasn’t enough. He didn’t get the time he expected to retire and spend time fishing and hanging out with them. There is much they will never know about his experiences.
Why it matters:
This, of course, brought up my own mortality and that we have no guarantee of being around to share our experiences and stories. I am not a big talker and even less so about myself, and I was reminded that I need to share more with my family. And that if I don’t make it happen right now, it won’t.
I found a cool tool that can help called Storyworth. It is a simple but effective program that will prompt me with one email question per week. They have many question choices, and the family can choose them, or I can. I will answer the question each week, and at the end of the year, Storyworth will compile the answers or stories into a bound hardcover book. It isn’t the answer, but it is the start.
Go Deeper: I have no relationship with Storyworth, but I think it will be a nice thing for my family and thought you might want to know about it too. If you would like to preserve your memories for the people you care about, we are giving away two subscriptions to the first two people that reach out. Happy Holidays!
6. Fun Stuff I thought you Might like
7. The Bottom Line
We are alive and blessed to live in an amazing area that is about to become even more amazing. Let’s remember that through the rest of this holiday season. God Bless us, every One.
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.
Click Here For Past Market Updates: Past Market Updates
*Please note this report is created as of the first of the month and is prone to changes.
**The term “Contracts Accepted” means that there was a new contracted accepted on this home this month. This is to say that this listing has moved from an “Active” status in the MLS to a “Sold” status and begun the escrow process and is heading toward “closing”.
*All information is provided by the Arizona Regional MLS and is deemed reliable, but not guaranteed.
