The zip code is known as the “magic” zip code by some for several reasons. The 85254 zip code has a Scottsdale address, is technically within the City of Phoenix municipality, is in the Paradise Valley School District which ranks well, and there is great retail and proximity to freeways.
Reports you see here are furnished by subscription to the Cromford Report!
This first report reflects Active listings. Notice they’ve spiked for the price range $600,000 – $800,000. This is typical for this time of year as June is our biggest sales month by volume and the market has been rising steadily in the second quarter. The swing looks large, but there are only 65 homes for sale in 85254 in this price range, versus 36 a year ago and this report only covers 4 years time when inventory remained low due to low interest rates and move-up sellers waiting for their prices to rise in order to list for sale.
This next report shows the Pending Sale activity for the same zip code, but not price range. Generally speaking, the majority of our sales occur from March through October, but there are always seasonal buyers in town during the winter months “shopping.” Notice that pending listings dipped from Q4 2018 to Q1 in 2019, but picked up nicely in the second quarter.
The Average Cumulative Days on Market in 85254 for homes priced $600,000 – $800,000 is currently 66.4 days, which is much lower than the average in the entire Metro Area of Phoenix of 105.4 days. This zip code fairs well in faster sales than other areas. The quickest sale date on this chart in 85254 for this price range was October, 2013 when a home within those parameters sold in 12 days. Homes were selling quickly due to very low inventory when the housing market was recovering.
As you can see from this graph, sales have increased every year since the bottom of the market in 2011, except for 2014. The peak sales of 221 homes in May, 2006 is still higher than the current high of 173 homes. Experts say that MANY baby boomers aren’t moving as they are retiring in their homes and may not move until later in life as they have short memories of the housing recession. Some may have paid more for their homes in 2005 through 2007 than they are currently worth. I’m seeing this for homes purchased at the height of the market over $750,000.
This next chart shows the Median Price in 85254. Median prices are derived from eliminating the very top and least expensive homes to come up with a mean average. In 85254, the median price has surpassed the June, 2006 price of $530,000 as it’s currently $560,000 as of June 12, 2019. It remains to be seen if that price is sustaining. To compare, the median price in 85254 in April, 2011 was $237,000.
Compare the change in average list price for this price range versus others to see where the hot markets are by pocketbook. With rising prices, segments of the market show decreased inventory. Since the median price is rising and is at an all time high of $264,800 in Maricopa County, demand is high for lower prices and affordable homes are disappearing pricing first time home buyers out of the market. Those flipping homes are making little money on the lower priced homes as well. Those with deeper pockets are buying homes!
These reports are for one price range in one zip code. If you’d like to see other reports for different zip codes in Maricopa County, please contact me. And if you’re looking for a Scottsdale REALTOR to assist you in buying or selling homes, I’m happy to help!
Reports are furnished by subscription to the Cromford Report.