Scottsdale Real Estate Market Forecast 2023

Scottsdale Real Estate Market Forecast 2023

Scottsdale, Ariz., has been one of the fastest-growing cities in the U.S. for at least the last 20 years. For good reason: it’s the definitive “Western town” and among the most beloved metropolitan centers in the U.S. regarding cultural sites and entertainment.

The housing market in Scottsdale has taken off just like its population. In fact, Scottsdale’s real estate market is among the hottest in the entire country. All signs point to continued growth in real estate in the area. Let’s take a closer look at what’s going on in Scottsdale with a comprehensive real estate market forecast for 2023.

Scottsdale housing market forecast 2023

It’s hard to avoid talking about Scottsdale and Phoenix in general whenever a conversation begins about the hottest real estate markets in the country. There’s no doubt that the state of Arizona is in a position to be an attractive one for homeowners and sellers in the coming decade. Let’s dive into the details.

Home values increasing

Looking closer at the trends in home values in Scottsdale, it’s easy to see an upward pattern. The median sold price for Scottsdale homes is on the rise. As of February 2023, the median home price in Scottsdale was $812,000 — a year-over-year increase of 9.2%. The median list price reached $1 million in the same timeframe. Across the board, home values are trending up.

Rising interest rates

Since late 2022, interest rates across the country have been climbing. This is also true for homeowners and sellers in Scottsdale. As of this writing, 30-year fixed mortgage loans in Scottsdale currently sit at around 6.79%, near historic highs for 2023. For comparison, the rate for a 15% fixed loan is just under 6%.

Investing indicators will favor landlords

Housing development in Scottsdale is hot in 2023 after a slight decline in 2020–2022. At the same time, more and more residents are turning to rental housing options over family homes. Those patterns indicate that 2023 is an excellent opportunity for landlords to join the market.

Positive net population migration

As stated above, net migration in Arizona as a whole is up, up, up. Scottsdale is a model case for mid-sized cities and suburban areas experiencing a net positive migration. In 2022 alone, Arizona saw a population increase of just under 100,000 new residents. Phoenix and Scottsdale are the leading sites for population increase statewide.

Maricopa County housing market trends 2023

When we look at Maricopa County, we see the same positive trends across the board. Population growth is booming, new housing development has returned to form after the pandemic, and home sold values are climbing (though not to the degree they are in Scottsdale).

Though it has recovered from the lows of January 2022, inventory in Maricopa County is low, as fewer sellers are on the market than we would have predicted pre-pandemic. Home values have risen, and more new residents continue purchasing homes here. That fuels the booming market we see now in 2023.

Scottsdale foreclosure statistics 2023

Foreclosure rates have been rising across the country, and that’s also true in Scottsdale. The number of foreclosure filings in Arizona has risen nearly 170% since 2022, including defaults, repossessions, and scheduled auctions.

Scottsdale home trends 2023

As mentioned above, the average price that homes sell for in Scottsdale is also on the rise. As of February 2023, the median home price was $812,000. The distribution of home sales saw 346 homes sell for $1 million or more (with a sweet spot between $1.6 million and $1.8 million). On average, that comes out to about $400 per square foot. Scottsdale luxury homes are large, many exceeding 3,000 square feet, while many are less than 10 years old.

Scottsdale real estate market: should you invest?

When we look at all the indicators listed above, it’s difficult to exaggerate the health of the Scottsdale housing market. 2023 looks to be a historic year for home buyers and sellers and a return to form after the slight dip in the market since 2020. If you’re considering investing in real estate in Scottsdale, now would be an opportune time to join the market.

Expert tips for buying and selling Scottsdale homes in today’s market

To close out our forecast of the housing market in Scottdale in 2023, we’ve included a few insider tips to navigate the market today. Here are the highlights:

  • Meet with your agent to discuss your priorities and discern whether your neighborhood of choice favors sellers or buyers.
  • Gather insights into any planned changes in your neighborhood that may affect home values, like new interstates, hospitals, schools, or any housing developments the city is considering building.
  • Compare and contrast the median sold price for homes in nearby towns like Paradise Valley or Fountain Hills.
  • Look into the proportion of homes selling below or above their asking price. As of April 2023, most homes on the market in Scottsdale sold under their asking price, but those trends could change.
  • Learn more about the total number of homes for sale in your area and the average time they spend on the market.

Reach out to a local real estate agent today

With that, you’ve concluded the real estate market forecast for 2023 in Scottsdale. If you have any questions or comments about real estate in the area, don’t hesitate to reach out! As her clients testify, you won’t find a more knowledgeable, personable, and effective agent in Scottsdale. Contact Tracy Phillips today for more information.

*Header photo courtesy of Shutterstock

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