North Scottsdale Real Estate Market Trends to Watch in 2023

North Scottsdale stands out as one of the most coveted parts of the Phoenix area. Buyers flock to the luxury golf course communities, outdoor amenities, and pristine neighborhoods, even in a competitive market. If you are ready to select a home in this exclusive area, it pays to know what the real estate forecast looks like.

While the housing market has cooled slightly since its peak in 2021, buyers and sellers alike need to be savvy to arrive at the best deal. This is especially true in places like North Scottsdale, where houses still are selling for over 10% more than they were at this time in 2022. Bidding wars are not out of the question, but sellers should plan on being more flexible when it comes to concessions. Below you will discover the trends you need to know about with homes for sale in North Scottsdale.

Potential buyers will be interested to know that house prices are continuing to fall nationwide in 2023. Market research suggests that prices in Scottsdale will go down in the next year, but investing in the area remains a strong long-term strategy. One market research report suggests that prices in Scottsdale may go up by 19.408% over the next decade. 

After a huge spike in 2021, prices have slowly started to decrease as demand has diminished. Sellers eager to sell their homes quickly will need to price their homes accordingly. Buyers who have waited patiently for the market to cool may finally be able to find a home without offering significantly more than the asking price. Reports show that 68% of recent home sales were under the seller’s asking price. This bodes well for buyers who have waited patiently for the market to cool. New buyers, in particular, may finally be able to find a home in their budget. And with Scottsdale homes spending around 70 days on the market, as opposed to 26 days last year, buyers could find a better deal.

A big contributing factor to lower listing prices is the rise in mortgage interest rates. While 2021 saw record-low rates of around 3%, those rates hit 7% by the end of 2022. The Federal Reserve increased interest rates to help curb inflation. Even into 2023, interest rates continue to sit above 5%, and as of May, the average interest rate is 6.83%. While this is lower than historical rates, which often topped 7%, it seems significantly higher than the new but perhaps unrealistic normal established in 2021. Some potential buyers may have the luxury of waiting to purchase a home until rates come down to a more palatable level. With some experts suggesting that interest rates could hit 7% again by the end of 2023, these buyers may be waiting a long time. 

Under normal conditions, buyers could expect a six-month supply of homes. In 2023, however, that supply has been cut in half. All of this equates to a low inventory for buyers hoping to find the perfect home. With Arizona’s population continuing to boom, buyers may need to settle for a future that shows a strong imbalance between supply and demand. 

Yes, the housing inventory remains low. However, with houses stagnating on the market longer, this could lead to an apparent increase in inventory. When houses do not sell as quickly, and new listings are added, these two conditions can coalesce to create a stronger inventory at times. This, in turn, favors the buyers. Buyers will have more houses from which to choose and more leverage in negotiations for houses that have been sitting on the market for a while. A skilled real estate team will know how to take advantage of this opportunity to arrive at a good deal. 

In the hot North Scottsdale real estate market, buyers and sellers can anticipate that bidding wars will continue to be a common expectation, too, because of the limited inventory. Luxury golf courses, galleries, excellent schools, and greenbelts make North Scottsdale a desirable place to plant roots for Phoenix transplants and current residents alike. Consequently, some buyers will be unwilling to consider other neighborhood options.

Given that home prices have slipped and rising interest rates have made some would-be buyers wary of making bids, sellers are losing the upper hand. Unlike the 2021 scenario, where a seller’s market enabled bids above the asking price and minimal negotiations, 2023 paints a different picture.

This means that sellers will need to concede to making essential repairs that a home inspector identifies. It also may mean that the seller needs to absorb closing fees that they may have been able to avoid two years ago. Closing fees can include loan origination fees, property taxes, title insurance, and inspection fees. Although this scenario may seem to benefit only the buyer, the seller can benefit, too. For individuals hoping to avoid lengthy negotiations and make a quick transaction, agreeing to concessions is key. Sellers who receive multiple offers, however, may be able to avoid making concessions. As such, sellers can avoid considering offers that require concessions as part of the initial request.

When you are ready to navigate North Scottsdale real estate, an experienced real estate agent can help you discover tempting properties and land the one of your dreams. At The Karas Group, we stay on top of market trends so we can provide the most targeted help to our clients. We assist out-of-state clients relocating to the Phoenix area and help them understand the benefits of each neighborhood. Further, we will work with clients for as long as necessary to pinpoint the right property.

Experience matters in a tight market with limited inventory. Our team has managed over a billion dollars in transactions in some of Phoenix’s most ideal neighborhoods. Contact us today when you want to explore the North Scottsdale real estate market.