Foreclosures in Scottsdale Arizona Doubled!
Foreclosure sales and deals on the city's more-affordable homes are helping to keep the Scottsdale housing market going, according to the latest sales figures.
Foreclosure sales in Scottsdale in August more than doubled from a year ago, while home sales overall dipped just 4 percent to 345. That is according to the monthly report from the Arizona State University Realty Studies Department.
"It's almost a carbon copy of last August," Scottsdale Realtor Candice Boggs said. "We seem to be selling the same number of houses."
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But prices are falling because of foreclosures and short sales. Scottsdale's median price last month for traditional home sales was $447,500, down 20 percent from a year ago. The median price for foreclosure sales was off 12 percent.
In south Scottsdale the median price for a traditional sale was $242,000 compared with $525,000 in north Scottsdale.
Investors hunt for bargains
"The declining prices have fueled renewed investor interest and potential owner-occupants, especially in the lower-income ranges," said Jay Butler ASU Realty Studies director.
Foreclosures accounted for 28 percent of Scottsdale sales. That compares with 23 percent in Tempe, 41 percent in Mesa and a whopping 56 percent in Avondale.
Sales at the upper end of the Scottsdale housing market are slow, in part because of challenges in getting financing, said Boggs, of Arizona Homes Realty
Only about 2 percent of homes listed at more than $1 million sold last month, according to figures from the Arizona Regional Multiple Listing Service. Scottsdale homes listed at less than $350,000 accounted for 18 percent of the sales, according to MLS data.
Sales slow for high-end homes
Scottsdale has about 3,850 homes on the market, a roughly 12-month supply, and more than one-third of those are homes listed at over $1 million, he said.
Investors are starting to take note of some of the bargains that are out there. Homes on large lots in the Rio Verde area, for example, that were listed for $800,000 to $1 million are now priced at $500,000,
Scottsdale Realtors are looking forward to a return of seasonal visitors, who help boost the real estate market, especially Canadians,
Realtors and developers also are looking for ways to market homes and condominiums to the Canadian market.
That includes the Four Peaks Condominium Homes in Fountain Hills where they took to flying a Canadian flag to lure buyers from up north.
Foreclosures climb for condos
Scottsdale's condo market also has had a huge jump in foreclosure sales, along with a significant drop in prices and overall sales.
In August, the median price for traditional condo sales was $210,000, down 11 percent from a year ago, and the number of those sales fell 33 percent.
About 28 percent of the condo sales were foreclosures last month, compared to 7 percent a year ago.
Nearly one-third of condo sales Valleywide were foreclosures.
Paradise Valley's median price last month was $1.2 million with a median square footage of 3,420. That compares to a median price of $1.95 million a year ago with a median square footage of 4,220.
Candice Boggs
Arizona Homes Realty, LLC.
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