When I first got into this business a decade ago, it didn't take long to encounter one of the favored pastimes of consumers and professionals alike: Reveling in prices that once were.
Whether it was the colleague pointing out a development where he lamented not purchasing five units back when they could be had for $75,000 apiece, or the investor who regretted selling that rental property years before now that it was worth three times as much, the underlying wish was to turn back the clock to grab as much Real Estate as humanly possible at the never to be seen again values.
Of course, the downside to the markets that spawned the low price housing in Scottsdale in years past was diminished purchasing power due to elevated interest rates, and the speculative nature of our community. Always a winter haven for the well-heeled, we were still very much a community in progress. All the signs pointed to a city on the upswing, but with abundant raw land and subdivisions still in their infancies several decades ago, there was still a bit of a gambling aspect to home ownership in the desert.
Flash forward to today, and those who rolled the dice on our bustling town hit paydirt, while those who were late to the speculative party (2005-2006) were the unfortunate ones who wound up with snake eyes.
The subsequent erosion of values has hurt many Valley homeowners, but it has also spawned an opportunity that many previously thought had been lost forever. Affordable housing has returned to Scottsdale.
- In all of 2006, there were 39 total sales of single-family homes listed at or below $250,000 in Scottsdale.
- In 2007, that number rose slightly to 48.
- 2008 saw that figure rise dramatically to 247.
*As of today (1/25/09), there are currently 159 Active Listings for single-family homes under $250,000!
Okay, McFly, you've climbed behind the wheel of your DeLorean, coaxed the odometer to precisely 88 miles per hour, and now find yourself back in 2003-2004. Of course, it is a parallel universe in which pricing reflects the period immediately before the boom while interest rates are lower, competition for properties is diminished due to tightened financing guidelines and the available home inventory from which to choose is infinitely greater. Our little town is all grown up now, so who knows when the opportunity for the scaled back pricing in a destination city that is presented today will ever return?
Time to fix some of those investment laments or find that entry-level Scottsdale home that is back within reach.
*Facts and Figures Gleened from ARMLS*
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For a Complete Guide to Affordable Housing in Scottsdale AZ
Paul Slaybaugh, Realty Executives
(480) 948-9450
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Slaybaugh - Okay. The "Alternative Scottsdale Real Estate Reality" picture almost made me go into a robust seizure. Well, not really. But the picture makes me dizzy.
I've said it before, the best time to buy is when nobody else wants it. I'm sure there are loopholes in that statement, but the philosophy reigns true. It's an area to area thing, but qualified folks stand to make a nice coin in buying Real Estate at cheaper prices right now. As far as financing that cause, it is alive... just do your homework with the right professor.
Paul, your post is so the evidence of cycles in life. If you wait long enough we come full circle. Your numbers speak volumes on this.
I love how you put this together and hope it gets featured.
I've been trying to express this and it has never come out quite as the job you did.
I especially enjoyed your "McFly" reference!
From 39 to 247 in just two years - amazing.
And yet it is still amazing to me how many people are still claiming that housing is still unaffordable.
Very nice post, Paul. As soon as we can get an overdue shift in perspective by the media, we'll seee an entirely new market. ;-)
Dear Paul,
Great post. I am subscribing and flagging you for a feature. I hope AR listens because this post has everything. Keep up the great job!
Betina
Dear Paul,
Great post. I am subscribing and flagging you for a feature. I hope AR listens because this post has everything. Keep up the great job!
Betina