Hello, fellow Scottsdale Real Estate owners and investors!
The last time we spoke I shared how much home values have risen for our specific Scottsdale zip code, 85251. This increase was a whopping ~25% over the past 3 years. ~25% more equity in the bank!
More recently, I wrote an article for my brokerage website, ubgre.com in which I talk about what is driving the ongoing increase in home prices. What my research showed was that there are 2 major reasons, 1) an ongoing, significant decline in residential home inventory and a broad and significantly higher confidence in our economy. Buyers are ready to invest. In other words, low supply, high demand.
For today, let’s take a look at home equity increases for all of Scottsdale. For our analysis, let’s set a sold price range of $200,000-$1,000,000. I chose this range because in Scottsdale, ~93% of all homes sell for less than $1,000,000 (in greater Phoenix 98% of homes are sold for less than $1,000,000).
This time last year, Scottsdale homes (in our price range) sold for ~$198.10 per sq./ft.
Today the sold price for these same homes is ~226.41per sq./ft, an increase of ~8%. Great news if you are the seller!
Now let’s take a look at this from the buyer’s side. Prices are rising about 7-9%/yr. Every year a buyer waits, he or she (or they:) are spending more for their next home. In Scottsdale this could be as much as ~$45K-~$55K higher for Scottsdale’s median-priced home; every year the buyer waits!
This upward trend in prices is not expected to change anytime soon. Interest rates, however, have risen and their outlook is uncertain.
The bottom line is: buy now and bank the equity in your newly purchased home, buy later and donate that equity to the seller!