Yes, The Scottsdale Real Estate Market is Up :)
As you can imagine, we get a lot of questions around the real estate market in Old Town Scottsdale seeing as how we sell a lot of homes and condos in and around Old Town Scottsdale as well as reside in a condo in Old Town in the Optima Camelview.
Since 2008 we've seen the prices of single family homes and condos around all of Scottsdale increase substantially. One of the main questions people have is will the prices of homes in Old Town Scottsdale maintain their current value, will they go up in value, or will they potentially decrease in the next several years (some people like to ask us if the Scottsdale housing market is going to crash).
I can't tell you what the real estate market is going to do, but I can look at what it has done.
Let's take a look at the average price per square foot of all homes that sold in the Phoenix metro area over the last 5 years
We certainly see an upwards trend here. In fact, 2018 appears to be off to quite the start really blowing the numbers for the same period in 2017 out of the water. Q2 of 2017 averaged $159.41 and thus far in Q2 of 2018 (we're only 20 days in keep in mind) we're at $191.09.
If this is the Phoenix metropolitan area as a whole, how does Old Town Scottsdale specifically compare? To keep things simple, let's define Old Town Scottsdale as being the 85251 zip code since that encompasses the majority of Old Town.
It isn't surprising that the average price per square foot in Old Town Scottsdale is higher than the entire Phoenix metro, but it is interesting how steep the trendline is. With that being said, 2018 isn't seeing the super large push that the rest of the metro is.
Guess where we are seeing the big price explosion? Scottsdale as a whole!
The price per square foot of homes in Scottsdale are really skyrocketing as of the last year and a half.
Continuing to look at the 85251 (Old Town) zip code, let's break this up by dwelling type:
Price Per Square Foot for 85251 / Old Town Scottsdale Condos and Townhouses
As you can see, the price per foot of condos and townhouses in Old Town was extremely volatile between the end of 2012 and 2015 before the price started pretty steadily climbing into today.
Let's compare this to single family homes:
Price Per Square Foot for 85251 / Old Town Scottsdale Single-Family Houses
Clearly, the price of condos in Old Town Scottsdale is much more volatile than the price of single-family homes.
What does all of this mean about the price of real estate in Old Town Scottsdale?
The one thing that we can probably derive from this is that if you're looking a short-term investment with minimum market volatility then purchasing a single family home is likely the safer option based on these numbers. What we can't determine, is if the market will continue to rise or if there will be an adjustment to it.
Please note that with all of the above I've done my best to use as accurate data as possible but can't be held liable for any of the data or how you use it. Purchasing real estate is a serious commitment and investment and you should seek professional guidance before making any sort of real estate investments.
If you're interested in learning more you can fill out our contact form or please give us a call at (480)-387-3990.