Is Scottsdale a good place to invest in real estate?
The City of Scottsdale has shown a solid appreciation rate for its real estate. For instance, Scottsdale has been in the nation's top 20% when it comes to real estate appreciation stats. The appreciation rate in 2018 was 7.8%, making it an outstanding performer when you look at some of the other areas in Arizona.
Over the last five years, data shows a stable Scottsdale housing market with average sale point and price per square foot seeing a steady increase. If you are an investor, Scottsdale has a track record of being one of the best long-term real estate investments in the nation.
According to data by Moody's Analytics, three housing markets within Arizona rank among the country's most overvalued markets: Lake Havasu City-Kingman, Flagstaff, and Phoenix-Mesa-Scottsdale.
In July 2022, Scottsdale home prices were up 18.2% compared to last year, selling for a median price of $810K. On average, homes in Scottsdale sell after 36 days on the market compared to 30 days last year. There were 429 homes sold in July this year, down from 810 last year.
Phoenix is without a doubt one of the best places you can invest in real estate right now. Property prices are going up, the rent-to-price ratio is great, and the population is steadily increasing due to the great quality of life Phoenix offers!
Are Home Prices Dropping in Phoenix? According to Zillow's home value index, typical property values in Phoenix-Mesa-Scottsdale Metro grew by 29.3% from May 2021 to May 2022, compared to 23.9% from May 2020 to May 2021, and 9.2% from May 2019 to May 2020.
This is due to the fact that Scottsdale mainly carries high-end brands, stores, boutiques and vehicles, so homeowners are paying extra for the superior quality they are receiving. This same is true for Scottsdale's services, as the city contains many top-tier salons, tailors, spas and hotels.
Recent projections for the Arizona housing market indicate that home prices may continue to rise steadily through 2022 and into 2023.
It has an abundance of safe suburban areas, low crime, and some of the best schools in the state. It's also ideal for young adults just starting out. There are plenty of job opportunities, an abundance of nightlife, great dining, and plenty of shopping opportunities.
Per Realtor.com, the median home listing price in the Scottsdale housing market is currently $699,900 — a 12% rise year over year, and about $320 per square foot, on average. Listing prices hit an average of $725,000 in September 2020 — the highest in more than two years.
Is Phoenix housing market overvalued?
As previously reported by Newsweek, Phoenix was named by Moody's Analytics as among the top five cities in the U.S. with overvalued homes. Its assessment said that properties in the South and Southwest got "juiced up by remote work" during the pandemic.
“People are able to sell their homes in California, and buy all cash here. The homes are bigger and there's more available land. Arizona is also known for its great weather and mild winters, stunning landscapes, abundance of jobs, and a decent cost of living. We have really become a magnet for people.”
PHOENIX — Amid a cooling housing market, median sale prices in the Valley are dropping by 5% month over month, leaving home buyers wondering if the market is headed for a crash. As of July 11, the median sales price dropped to $457,500, down from $480,000 in May, according to The Cromford Report.
More Affordable to Buy Than Rent
Closer to home in the Phoenix metro, homeowners and renters are neck-and-neck with their monthly payments, where the median gross rent is $1,572 per month and the median monthly mortgage payment is $1,540 per month.
Phoenix is a great place to live, and the fact that home values have steadily increased over the past five years means that buying one could be a solid investment.
Buying Investment Property in Arizona
In fact, the Arizona housing market is strong in 2019 and might be considered one of the best states to invest in at the moment. This is due to its affordability and thriving economy. Plus, Airbnb is legal – making this a great spot for short-term vacation rentals.
Per Realtor.com, the median home listing price in the Scottsdale housing market is currently $699,900 — a 12% rise year over year, and about $320 per square foot, on average. Listing prices hit an average of $725,000 in September 2020 — the highest in more than two years.
Arizona's housing market has been particularly hot over the past two years. While property throughout the US has been in high demand, cities like Tucson and Phoenix have some of the hottest housing markets in the country. This has stayed true throughout all of the setbacks Americans have faced recently.
Phoenix Home Price Index Rising
According to data from realtor.com, the median listing price for a home in Phoenix in November 2020 was $417,500; a year later, median listings have risen to just under $485,000.
