One question seems to be on the mind of buyers right now--"Can I still get a good deal on a home in Scottsdale?"
Â There is certainly some confusion as to where our market is headed and while I wish that I had a crystal ball, I don't--I do have some solid, statistical info that may help answer this question and assist folks who are shopping for a home right now:
- Foreclosed homes [also known as REO's or bank owned] continue to account for less and less of the available real estate inventory in Scottsdale and other cities in the greater Phoenix metro area. Â According to the Arizona Regional Multiple Listing Service, there are currently 2178 available properties for sale in Scottsdale, Arizona and of those, just 70 are bank owned properties.
The Realty Trac Foreclosure Rate Heat Map shows the number of foreclosure actions to housing units in several Scottsdale zip codes:
- Another type of distressed property [the short sale] also has begun to disappear from Scottsdale housing inventory. Â As of today, there are just 77 pre-foreclosure and active short sales available--this number is down considerably from six months ago.
- The third most common type of distressed sale [the auction property] is following in the footsteps of its ugly cousins. Â There are 21 active auction properties available in Scottsdale.
In total, distressed inventory represents just 8 percent of the total inventory in Scottsdale. Â By contrast, distressed property in Phoenix accounts for 17 percent of the total number of properties for sale. Â What does this mean for today's buyer? Â There are still some distressed opportunities available for value minded buyers, but the discount [off normal market pricing] is getting thinner by the day.
It has taken a while, but most major lenders now have sophisticated REO and short sale departments in place--this means that property values are under much more scrutiny. Â In the case of a short sale or REO property, there are often multiple valuations that take place before a sale is consummated--these valuation points are tied to recent, comparable sales. Â As distressed inventory levels fall, lenders are less likely to take big hits on their assets--especially when demand is strong. Â With current 30yr fixed mortgage rates under 3.5%, there is still strong buyer demand in our marketplace. Â Of course, the amount of the home purchase comes into play when speaking of demand. Â
In summation, there are still some good buys, but the hot "deals" are not near as hot as they used to be. Â I dare say that we may be heading towards a more balanced market with modest rates of appreciation to be seen over the next few years.