Welcome to 2024. I hope this is a great year for you. Lot's of positivity, good health and great deals! This year some of the people eligible to vote will have been born in 2006 😱

Scottsdale is busy. Barrett Jackson is under way and the golf is in two weeks. Fun times.

Just Listed | Under Contract | Cactus Corridor

CACTUS CORRIDOR GEM! Incredible opportunity! Santa Barbara custom home nestled gracefully on an expansive .8-acre parcel within the highly sought-after Cactus Corridor, Scottsdale Arizona. Resort style backyard with Pebble Tec pool, waterfalls, built-in BBQ, and an extended patio. And Best of All! Ample land leftover to add a Tennis Court / Picklelball court, additional garages, or casita. NO HOA. Other luxuries include: formal living room with custom maple fireplace, family room with Tennesse rock fireplace, bonus room to make into a media, game or hobby room. Gourmet kitchen, honey maple cabinets, stainless steel appliances, 2 Sub-Zeros, and ample of slab granite counters. See it before it is gone.

MLS Link: https://www.flexmls.com/link.html?1toc7ens6o37,12,1
7811 E Charter Oak Dr, Scottsdale 85260 | $1,575,000

Market Stats

Cromford Daily Observations ~

January 21 - The average price per square foot of active listings just hit a new all-time high of $366.43 yesterday. This surpassed previous peaks set in May 2022 and June 2023.

Active listings are arriving in much larger numbers than last year, when they were unusually scarce. The new listing arrival rate is back to normal, but the seller's expectations seem to be unusually positive, judging by the asking prices. The average $/SF has risen 2.1% in just the last two weeks. These figures are averaged across all areas & dwelling types.

January 20th - A few cities have seen a sharp rise in their contract ratio over the past 2 weeks. The percentage increases for single-family detached homes are shown in the table below:

1. Apache Junction +64% to 94
2. Anthem +47% to 71
3. Arizona City +47% to 57
4. Gilbert +46% to 65
5. Sun Lakes +45% to 59
6. Chandler +43% to 72
7. Tempe +31% to 53
8. Peoria +31% to 49
9. Gold Canyon +30% to 32

These are the locations that have experienced the most rapid improvement in demand versus supply.

A handful have gone backwards:

1. Fountain Hills - down 11% to 36
2. Laveen - down 15% to 67
3. Goodyear - down 7% to 33
4. Sun City West - down 5% to 36

Phoenix is up 18% to 48.

In most areas, a contract ratio over 40 is consistent with a seller's market. More expensive locations tend to have lower contract ratios, so Paradise is only 21, (up 20%), while Scottsdale is 30 (up 15%).

The contract ratio is one of the leading indicators of a change in the market.

Our Take

OK this is the strongest numbers coming out of the Cromford Report in a while.

Firstly, listing prices at an all time high shows sellers are confident. Some of that confidence may be slightly misplaced but if sellers demand high prices buyers really have little option but to pay them. In luxury markets the monthly payment is kind of irrelevant. But for the vast majority of our Metro the monthly payment / affordability is very important. Falling interest rates means that while prices stay high affordability is falling for buyers.

Secondly, contract ratio as noted is a leading indicator. If that is rising it shows the market moving to a healthy place.

Lastly, it is an election year so I anticipate both buyers and sellers will become more cautious by around August. SPring may be very busy for people hoping to get ahead of election fever.

Coming Soon Listings

We have some coming soon listings in Paradise Valley, McCormick Ranch, Biltmore and North Scottsdale. But in this market things go fast so if you are looking be sure to let us know :-)

Interiors

646-Square-Foot Parisian Apartment

12 homes trends for 2024

In The Neighborhood

Ceasar's Republic to open in Scottsdale in March.

Uchi to open in Old Town Feb 1st.

Women are winning real estate.
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That's it folks. Have a great week!