The Scottsdale real estate market is always evolving, and October 2024 is no exception. The latest Cromford Report provides valuable insights into the current state of the market, highlighting trends that buyers, sellers, and real estate professionals should be aware of. In this review, we’ll break down the key findings from the report and what they mean for the Scottsdale market going forward.
Current Market Conditions
The October 2024 Cromford Report shows a market that remains strong, but with some signs of stabilization following the rapid appreciation seen in recent years. Scottsdale continues to be a desirable area, known for its luxury homes, stunning landscapes, and vibrant lifestyle. However, market activity has slightly slowed, reflecting broader national trends as interest rates have remained elevated.
The report indicates that the inventory of homes for sale in Scottsdale has increased modestly compared to earlier in the year. This shift in inventory gives buyers more options, though the market is still considered a seller’s market due to relatively low inventory levels. However, homes are staying on the market a little longer, averaging about 45 days, up from 35 days last quarter.
Scottsdale Real Estate Price Trends
According to the Cromford Report, the median sales price in Scottsdale has remained stable, with a slight increase of 2% compared to the same time last year. The luxury market, which Scottsdale is well-known for, has seen more pronounced gains, with homes in the $1 million-plus range continuing to command premium prices. Properties in high-demand neighborhoods, particularly in North Scottsdale, are still experiencing multiple offers and strong competition.
However, there is a growing trend of price reductions, particularly for homes that are overpriced or that lack recent updates. As the market stabilizes, sellers are encouraged to price their homes more strategically to attract serious buyers.
Supply and Demand
One of the key metrics from the Cromford Report is the supply and demand index. Scottsdale’s demand remains relatively high, but supply has started to catch up, particularly in the mid-range market. New listings have increased, which may alleviate some of the competition for buyers. This rise in supply is also creating opportunities for those looking to upgrade, as more homes are becoming available in desirable areas.
For sellers, the increased inventory means that pricing competitively and preparing your home for sale is more important than ever. Staging, updates, and curb appeal can make a significant difference in attracting buyers in a more balanced market.
Interest Rates and Their Impact
The higher interest rates throughout 2024 have impacted buyer activity in Scottsdale, as in other parts of the country. Many potential buyers have been hesitant to move forward due to concerns about mortgage rates, which are hovering around 7%. This has particularly affected first-time homebuyers and those looking to downsize, who are finding it more difficult to afford a new mortgage.
However, cash buyers and those with significant equity are still active in the market, especially in the luxury segment. These buyers are less affected by interest rate fluctuations and continue to seek out Scottsdale’s high-end properties.
Luxury Market Overview
Scottsdale’s luxury market continues to be one of the most robust in the region. High-net-worth individuals and investors remain interested in properties with exceptional features, views, and amenities. The Cromford Report highlights that while overall market activity may have slowed slightly, the luxury sector remains strong. High-end homes in exclusive communities like DC Ranch and Silverleaf are still in high demand, and prices in these areas have continued to appreciate.
Buyers in the luxury market are less price-sensitive and tend to prioritize unique architectural designs, privacy, and access to upscale amenities. For sellers in this segment, it’s a great time to list, especially if your property is positioned to stand out in the competitive luxury landscape.
What to Expect Going Forward
As we move into the final months of 2024, the Scottsdale real estate market is expected to remain relatively stable, with a continued emphasis on higher inventory and moderate price growth. Buyers may find that they have more leverage in negotiations, particularly if they are not in a rush to purchase. For sellers, it’s a time to be strategic—pricing your home correctly and ensuring it is in top condition will be key to achieving a successful sale.
While interest rates are likely to remain a challenge, the fundamentals of the Scottsdale market—high demand, strong local economy, and desirable lifestyle—continue to make it a solid investment for both buyers and sellers.
Conclusion for the Scottsdale Real Estate Market
The October 2024 Cromford Report provides a clear snapshot of where the Scottsdale real estate market stands: still thriving, but experiencing a more balanced dynamic between supply and demand. As inventory rises and prices stabilize, both buyers and sellers will need to adjust their strategies accordingly.
For homeowners considering selling, now is a great time to assess your property’s value and consider listing while the market is still in your favor. Buyers, meanwhile, should be on the lookout for opportunities as more homes become available, particularly in the mid-range and luxury markets.
