Housing market Q&A: Carolyn Rock offers insights of Scottsdale sub-market

Carolyn Rock

Experts agree the Phoenix metropolitan housing market is on even footing as economic indicators suggest good times are here to stay.

But, real estate experts also say every real estate market is truly local and the Valley of the Sun is no exception, so the Scottsdale Independent reached out to local Realtor Carolyn Rock of Russ Lyon Sothebys International Realty at Reisdorf Metz & Partners to better understand the Scottsdale sub-market.

Answering the following questions, she offers insights to the kind of Scottsdale market consumers are encountering:

•For the Scottsdale real estate market what kind of environment are consumers experiencing?

The Scottsdale market has a very low inventory. Numbers from July 2018 showed Scottsdale homes prices at $1 million-plus at an 8.5 month’s supply while homes listed at less than $1 million show a 2.1 month supply.

•Is the Scottsdale market acting as a microcosm of the greater Phoenix metropolitan area?

Scottsdale has a strong market for second homes and for homes in golfing communities that impact sales. Both are experiencing a decreased inventory of homes with the entire metropolitan area having a 2.2 months supply of inventory.

Per the Cromford Report since last year active listings — including UCB — decreased by 7.1 percent but up are 2.1 percent from last month. Finding homes under the $250,000 range continues to be a challenge in both Phoenix and Scottsdale.

The good news is that the Cromford Report predicts that 2018 will be the strongest on MLS record including 2005. The main cause of this is that 40 percent of sales were off the MLS in 2005.

•How about remodeling — many folks spoken to express the idea that more and more homeowners are using equity to remodel their homes, especially in Scottsdale — are you seeing that trend as well?

There are 1,222 active listings from $250,000 and up in Scottsdale that were built between 1970- 2010. Many of them have been remodeled but many will require significant updating.

Homes that have been listed for sale typically require cosmetic changes such as new paint and carpet but not the extensive remodel. Buyers tend to invest in the larger projects including flooring, elevations, new kitchens etc.
One need only drive through any neighborhood to witness the remodeling activity as people invest in their greatest asset, their home.

•Are you seeing any new trends you think our readers should know about?

With 10,000 Americans turning 65 every day, housing requirements will adjust to meet the needs of this growing market. Downsizing is certainly a trend as seen by the rapid growth of condos with their no-maintenance lifestyle.

Also, the Senior Real Estate Council states eight out of 10 seniors live in a metropolitan area to be close to excellent medical facilities, transportation, shopping and culture. Scottsdale with its many hospitals and medical research centers, museums and cultural activities along with its sunny weather is very desirable to seniors.
Also, the trend of master planned communities that provide the security of a gated community along with the interactive lifestyle that seniors enjoy is an important one.

• How is business?

At Russ Lyon Sothebys International Realty, 2017 was an excellent year with just under $3.5 billion dollars in sales. We look forward to another successful year.

Independent Newsmedia Arizona Managing Editor Terrance Thornton can be contacted at tthornton@newszap.com

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