$2 - $3 million Housing Market Report, Scottsdale, 85262

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Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

This scenic zip code in Scottsdale is home to about 12,000 residents.  The median home price is currently $1,312,500 for June, 2022.  There are homes within gorgeous subdivisions and some have several horses, and a lot of them have some of the best views in Scottsdale!   

 

Attractions in 85262 include hiking Pinnacle Peak trail (next to the Four Seasons, hiking Browns Ranch (part of the McDowell Sonoran Conservancy) bikes and hiking, golfing at Troon North7 golf courses at Desert Mountain for residents, and retail shopping in quaint Carefree, Arizona. 

 

This segment of the market has experienced a lot of sales activity during the last 2 years.  Inventory had dropped dramatically at the start of 2022, but has risen during the last 2 months.   A year ago there were 23 homes for sale in 85262 priced between $2 and $3 million.   Today there are 7 more in that same category, not much of a change. 

Active Listings $2 - $3 million, Scottsdale, AZ

 

The time it takes to sell those homes isn't long!  As of May 2022, the days on market total is 39 days to sell a home priced between $2 and $3 million in 85262!  June isn't a full month yet, so it will be interesting when the month coms to an end where this number will land. 

Cumulate DOM $2 -$3 million Scottsdale, AZ 85262

And prices don't seem to be dropping as seen in this Price per Square Foot chart for 85262, prices from $2 - $3 million.  Sales prices for homes sold in 2016 were $287.41 per square foot as compared to $610.79 per square foot for todays sales.

Under Contract Price per Sq Ft $2 - $3 million 85262

One of the most telling charts is this one.  List versus contract prices are nearly the same, a first time every occurrence since 2007!  Buyers are paying full price, slightly under, and many times over list price for homes priced from $2  to $3 million in 85262.  It's a beautiful place to be  and the views are spectacular. 

12 Month Under Contract List Vs Sales Prices 85262

These reports are provided by the Cromford Report, by private subscription. 

Ending this report with a direct quote from the creator of the Comford Report, Michael Orr, seems fitting with so much uncertainty about the housing market as compared to the last housing debacle in 2008-2011. 

"The situation in 2022 is very different, yet similar in some important ways. Many people have made a lot of very large paper profits in housing over the past 10 years, without having to resort to loan fraud. Those profits have been especially large in the last 2 years. What is driving the market today is fear of those profits disappearing. If they sell now, those paper profits become hard cash, always useful when the rest of the economy is going a bit wonky. Or they can be converted into different assets using a 1031 exchange. Hard cash profits incur capital gains tax, so the 1031 exchange looks an attractive way to avoid that tax. However, if you exchange into something that is exposed to the same market risks, your profits stay at risk too. Cash can be exchanged for almost anything (not love, though). But cash itself, is still a poor vehicle to store wealth when inflation is running at close to 10%. If we were all logical, it would make some sense for everyone to stay invested in the housing market and sit tight. But we are not all logical. Fear will cause some people to sell and those people can easily spook more people and with the social media environment we now inhabit, a stampede is happening almost as soon as you realize what is going on. The promotion of disaster stories gets a lot of clicks and clicks reward the poster no matter how untrue their content might be. You could say it is logical to be fearful, because fear is highly contagious."

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Scottsdale, AZ 85255                                                         

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www.AZGreenRealty.com

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