I got asked this morning by a client (and get asked a lot mainly by my 2nd homeowners & snowbirds from Minnesota, Illinois, Wisconsin, Michigan, Iowa and Nebraska) "How's the real estate market in North Scottsdale?" So let's take a look shall we?
Let me start by stating some obvious facts....
- Usually( I say this because these are truly unprecedented times) when Interest Rates are LOW =, Buying is HIGH. Makes sense right?....And vice versa
- When Buying is High, rents are typically lower....If more people are buying because rates are low, the demand for rentals goes down...right???.....Wrong in 2015 & 2016!!!
We currently have sky-high RENTAL RATES AND Historically Low INTEREST RATES... What does this mean though? Hurry up and buy a 2nd home, and investment home in North Scottsdale, a condo in DC Ranch or Grayhawk, a small single family home in Troon...JUST DO SOMETHING if you are thinking about investing!!!
OR
You can stick your $ in the Volitile Stock Market....
Now obviously you need to diversify.... and long-term growth in the Stock Market yields a respectable average. But real estate is tangible, solid, true each month. I mean I would love to Buy Google Stock and have someone else BORROW my stock while paying me each month a portion of what I bought it for... while I retain the ownership of it and receive all the dividens (tax deductions). That's essentially what you are doing when you buy a solid investment in North Scottsdale rental homes or condos
So what was the results of 2015 North Scottsdale Real Estate Market?
We happily saw our real estate market in North Scottsdale and 85255 hold a Smooth & Steady 4.7% increase...I'll take it! I don't want to see my house spike 20% and then drop 20% (sound like 2015 stock market? Average house price in 85255 was $634,000.
DId you know that the market finished almost exactly where it started on Jan 1, 2015 as it did Dec. 31, 2015?)
We see the market continuing on the same course for 2016 with a likely increae of 1.6% in the next year
Have a great day! Hope this helps understand North Scottsdale real estate market trends and where we are going for 2016!
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