Hats off to Polaris Pacific, real estate research and marketing consultants, for its August 2018 New Market Update for Phoenix and Scottsdale.
The Phoenix/Scottsdale housing markets were hit hard 10 years ago by the housing crisis. Today, those housing markets have come back…almost. Prices have seen a +70% increase from the trough point but still prices are 16% lower than peak periods.
Let’s take a look at what was happening in August 2018 within new condominium markets in Phoenix and Scottsdale.
According to Polaris Pacific, the median sale price of a single-family unit was $207,465 in August 2018, a y/y increase of +9%. This price is expected to appreciate.
Condominium closings increased +9.6% y/y during this same period and the MRI (months of remaining inventory) dropped a whopping -20.8%.
Changes in condominium square footage costs in August 2018 looked like
- low-rise (1-4 stories) – $247/sq.’, an increase of 6.9%
- mid-rise (5-12 stories – $396/sq.’, an increase of +2.7%
- high-rise (13+ stories) – $332/sq.’, an increase of +23.7%**********
Changes in condominium sales in the submarkets of Phoenix/Scottsdale looked like this in August 2018 when compared with June 2018:
- Encanto – +6.0%
- Downtown Phoenix – -6.2%
- Biltmore – +15.1%
- Central Phoenix – +7.0%
- South Scottsdale – +15.7%
- North Scottsdale – +7.6%
Changes in condominium sales in the submarkets of Phoenix/Scottsdale looked like this in August 2018 when compared with August 2017:
- Downtown Phoenix – +50.0%********
- Encanto – +58.7%**********
- Biltmore – -1.9%
- Central Phoenix – +58.7%*********
- South Scottsdale – -0.2%
- North Scottsdale – -0.8%
Downtown Phoenix had the highest median price of $285,000.
Central Phoenix had the lowest median price of $165,995.
South and North Scottsdale had the most sales – 440 and 360 respectively ending on July 31,2018.
As of July 31, 2018, all cash buyers represented 52.9% of total buyers, an increase from 42.0% compared with the same period in 2017.
Also as of July 31, 2018, investor buyers represented 42.7% of all buyers, a slight increase from 41.2% compared with the same period last year.
Condominiums have remained on the market (DOM) for +60 days since 2007. DOM was 66 days ending July 31,2018.
