Valley Housing Market Sees Increase in Buyer Confidence, Reports Show

By: Kyle Castro

Cronkite Special to AZLatinos.com

Five years ago, the median sales price for homes in Scottsdale hit rock bottom coming just under $328,000, and earlier this month the median sales price was recorded at $405,000, according to the Comford quarterly report.

“The housing market is coming back now, it has taken years but now I would say it’s brisk,” said Lisa Montana, a Scottsdale real estate agent.

Byron Short, a Scottsdale United Real Estate broker, said 2016 has been an “up year for us,” with more “strength rolling into the summer than usual.”

Short said the “out-of-state” buyers looking for new homes seemed a “little uncertain” a year ago and are more confident now, resulting in good activity in the higher price points.

According to an Arizona Regional Multiple Listing Service report, the number of sold listings hit its peak in 2005 selling 104,725 houses that were listed across the Valley. Of course, this came right before the big market crash around 2007, resulting in millions of foreclosures nationwide.

“When the market crashed it was a hard time for everyone, Scottsdale has seen a slow process, but a good process,” said Jason Predovich, a business development manager for Driggs Title Agency.

Predovich said the main problem of the crash was from banks that were offering “crazy loan programs” that they knew were a high risk. He noted the banks were more worried about making money on the loans more than they were about “servicing” the loans.

The development manager said Scottsdale people were “spoiled” with the home value rising so quickly, noting how people lived “well above their means.”

“People were buying and living in homes they couldn’t afford and the banks took advantage of that,” Montana said.

After a rough 5 years in real estate, Short said the housing market is picking up and given the right market, people can sell their house within a week.

“Homes priced under $300,000 and priced properly often sell in the first week with multiple offers,” Short said in an email.

He said that homes in the $300,000 to $1 million range are “decent right now,” adding that it is a “vastly” different market.

“You have to list the house for what it’s worth in order to sell it quickly. For example, I listed my mom’s house reasonably and within 10 days I got an offer,” Montana said.

Short said homes that are over priced by 3 percent in “our market” don’t get offers at all and “rarely” gets showings.

“The penalty for overpricing a home is severe and this is largely because there are too many choices that are properly priced, so buyers are reluctant to start by being too high and making a lower offer,” Short said.

The Scottsdale broker also noted that there is no “best season” to sell houses. The Valley’s market is successful year-round, despite common belief of the summer to be the driving force in sales.

“All of the seasons are merely influencers of each other, there isn’t necessarily a primary driver for our sales and our housing market is far more stable year round than Snowbelt markets are,” Short said.