March 2007 Home Sales Statistics for Scottsdale, Arizona and Phoenix Metro Area

Home inventories in the Greater Phoenix Metro area are still high for a total of 48,811 homes for sale (condos not included).  Although there were 5,479 homes that sold in the month of March, we are still left with an absorption rate of 8.9 months.  “Absorption Rate” simply indicates the time it will take to sell the current inventory of homes based on the current rate of home sales.  Obviously, this figure can change daily as more homes go on the market and the number of sales fluctuates.   If you would like to sort through all the statistics, click here for more numbersAs we break down the numbers by cities, we see that the Scottsdale real estate market has a brighter picture than the valley overall.    Because the Scottsdale market has such a wide range of prices, we have two statistical groups:  homes under $1 million and homes over $1 million.  As of March 31, there were 2088 homes for sale under 1 million with an absorption rate of 6 3/4 months and 1326 homes over 1 million with a 13 month absorption rate.

Now for the “good news”!

• In Phoenix, valley wide, 28.3% of the homes that sold in March, sold within 30 days of listing and another 18.3% sold between 30 and 60 days of listing.
• In Scottsdale, as of March 24, 2007, with 2136 active homes on the market, there is a total of 166 homes that have sold and 426 that are pending.  Obviously, all these pending homes will not close by the end of the April, but it certainly does indicate an increased number of buyers making decisions.

If you’ve been watching the market with hesitancy but you want to buy a home – NOW is a good time to buy a house in Scottsdale, Arizona.  During the days when homes sold fast and prices went up hourly, many buyers felt they had to choose a home quickly, even if they had reservations.  There are currently a lot of very nice homes for sale and you should be able to purchase a home you like in Scottsdale that will feel comfortable and serve your needs for the next 3-7 years (about the average time homeowners stay in their homes).  Prices have come down and are stabilizing now.  Eventually the inventory will decrease, and when that happens, the delicate balance of supply and demand will tip and the prices will again start a slow incline.

Human behavior is very peculiar.  I had a few listings that had been on the market for quite a while.  We had reduced prices and they were lovely homes at great values.  They both went under contract in the last few weeks and as soon as they were no longer available, I received calls from agents wanting to know if we would accept backup offers.  Their clients had been unwilling to make a decision when they first saw the homes.  Why is it that people only want what others want, especially when they can’t have it?

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