After having written the recent Scottsdale HousingMarket Report for September 2018, I noticed that the Median Sales Price has bounced around quite a bit in 2018. Thinking I should investigate, the following shows sales in different price categories to determine why prices are stalling.
The average price in Scottsdale is $611,882 and the Median Price in Scottsdale is $470,000, removing the very high prices in Scottsdale.
Statistics provided by the Cromford Report. The Median Price is explained:
Median Price - Annual Sales is based on the homes included in Annual Sales, and is the price point which separates the higher half of the sales prices from the lower half. It is usually substantially lower than the Average Price - Annual Sales, since sales of large expensive homes have little impact on the median but a large impact on the average.
Scouring the MLS, there were 85 sales this year for homes up to $300,000. Since the Median Sales price in Scottsdale is $470,000, that explains part of the slow down. Inventory is dropping for home spriced under $300,000. In fact there are only seven homes for sale under $300,000.
Homes are becoming less affordable in Scottsdale as prices have risen this year on average 8% year over year.
For sales priced from $300,000 - $600,000, a noticeable increase in sales, but not as dramatic as the last 2 charts shown. Sales in the last part of 2018 are a contributing factor to the Median Sales price report as shown above.
Comparing the increases in sales by price range, it's obvious that this next price range has risen dramatically. Homes priced from $600,000 to $1.5 million have increased steadily with one plateau during 2014 and mid 2015.
This last sales category shows a jump of 20 sales for the September, 2018; however this category would have been eliminated for a Median Sales price chart shown at the top of this post.
In conclusion, I'd have to say that the market up to $600,000 pales in comparison to the $600,000 to $1.5 million, which creates a lag on the top report.
Pleaes contact me if you have questions or would like to see these reports generated for a different cityor zip code in Maricopa County!
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