As we desert denizens wave goodbye to another scorching summer, we eagerly anticipate the Real Estate market improvements that migrate here annually with the cooler temperatures.  Packed between the socks and the sunscreen of our seasonal visitors, cautious optimism always visits in the winter.  While the statistics for the quarter marked by July 15^th – October 15^th on the calendar are not particularly inspiring, it is not altogether unexpected.  Between the hundred and bazillion degree temps and general market slowdown, it hasn’t helped matters as the nation nervously watches Wall Street and election polls. 

Believe it or not, year to year inventory levels for active listings across the Valley are actually down by about 4,000, but the pervasive foreclosure presence has still precluded demand from catching up to supply.  Decreased purchasing power has contributed to the housing slump as well.  As banks have failed or been gobbled up, the financial institutions and investors have become increasingly skittish about lending their money.  As such, the buyer pool has diminished.  That’s the bad news.

The good news is that many people are realizing that there has never been a better time to buy Real Estate in Scottsdale in general and McCormick Ranch specifically.  When the market is depressed, buyers return to the central, and historically desirable, neighborhoods first.  Given the uncertainty with fuel costs, that factor looms even larger today than in years past.  Investors are currently gobbling up the bargain basement properties at a frenzied pace, thus bringing hope that we are at or very near the mythical bottom that market watchers seek.  As our friends from the North, Midwest and back East descend upon our receptive community, we are confident that many will seek to take advantage of the plentiful values and eat further into the over abundance of listings which is holding our respective equities hostage.

As the following statistics were prepared near All Hallows Eve, I look forward to trading in the trick of the past few months for the treat of a stabilized market.  It’s still a phenomenal time to buy, and hopefully, it will be a good time to sell again in the not so distant future.

There have been 27 closed sales of single-family homes in McCormick Ranch over the past three months (7/15 – 10/15), for an average of 9 per month.  There are currently (as of 10/15) 110 active listings.  Even allowing for the historical pattern of a summer slowdown in total sales, those figures demonstrate the challenges involved in selling a home in the current environment.  A basic extrapolation of the absorption rate tells us that we have just over a 12 month supply.  In short, if no new homes were listed, it would take a year to sell the current inventory based on the current average. 

The closed sales averaged a sales price of $503,397 and 2484 square feet, for an average of $213.73 per foot.  Average market duration was 117 days.

Current active listings average a list price of $728,541 and 2676 square feet, for an average of $264.81 per foot.  Average market duration is 166 days.

There are currently 10 pending sales (in escrow).  These properties average a list price of $551,670 and 2376 square feet, for an average of $230.57 per foot.  Average market duration is 136 days.  Please bear in mind that only list prices are available for pending sales.  The actual sales prices will not be disclosed until settlement.

It’s been a trying stretch for homeowners, no doubt about it.  The numbers reflect what we’ve all known to be true for some time.  It’s just a difficult time to sell a house.  That does not mean it is impossible, however.  Proper pricing, staging and marketing strategy will produce results.  Believe it or not, but many sellers still overprice their homes or fail to whip them into show worthy condition.  To be fair, this is the domain of a Real Estate professional.  This is no time to hire that cousin who has a license that he never uses or a limited service brokerage.  Regardless of which McCormick Ranch specialist you ultimately employ, this is not a market for amateurs.

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Ray and Paul Slaybaugh

Realty Executives

The Ranch Experts

(480) 948-9450

www.RayandPaul.Com

www.McCormickRanchHome.Com