At the end of the year, I compiled all of the sales data for Scottsdale AZ single-family homes and wanted to see how Scottsdale foreclosures and short sales impacted the market for 2009. I looked at the information on a quarterly as well as on an annual basis. Earlier this year, I did the same Scottsdale Foreclosure and Short Sale analysis for the first three quarters of 2009 and wanted to see how the end of the year and annual results turned out. I also looked at two specific North Scottsdale zip codes, 85255 and 85262, to see how the numbers compared. The specific charts of 2009 sales by zip code will be further down in this post.
For the purposes of this analysis, I pulled Scottsdale single-family home resale activity and then broke the information into three classifications:
– Non-Distressed Sales – These are your traditional, “regular” home sales.
– Short Sales – These are where the homeowners are trying to sell the home for less than is owed with their lender’s approval.
– Foreclosures – These are homes the lender has foreclosed upon and now owns. You will see them referenced as “Lender-Owned”.
Overall Findings for 2009 – Scottsdale Single-Family Home Market
- Active Homes For Sale: Non-distressed sales comprise the bulk of the active homes on the market. Between Q1 2009 and Q4 2009, the percentage of non-distressed homes on the market in Scottsdale ranged from 77% to 81%. Over the course of the year, this percentage shrunk as short sales increased from 13% in Q1 to 15% by Q4. Foreclosures ranged between 6%-8%.
- Pending Homes for Sale: 81% of the pending sales at the end of the year were non-distressed and short sales. The rest were foreclosures.
2009 Scottsdale Home Sales: At the end of the year, 83% of closed sales were divided between non-distressed sales (52%) and foreclosures (31%.) Short sales only comprised 17% of the closed sales. So, even though inventory for foreclosures was low, demand was very high.
- Home Prices: Non-distressed sales went for the highest average price ($643,439), short sales and foreclosure average sales prices came in quite a bit lower at $470,082 and $409,499 respectively. Average price per square foot also followed the same pattern.
- Days on Market: Short sales have the longest days on market figure. This makes sense as short sales take a longer time to negotiate and close. Foreclosures have the lowest days on market since they often go under contract quickly and often close relatively quickly once the lender has agreed to the terms.
- Discounts Off of List Price: The largest discount off of list price in 2009 was seen with non-distressed Scottsdale homes at 91% of asking price, or 9% off. Conversely, the discount on short sales was 7% and foreclosures was 5%. So, while asking prices for short sales and foreclosures were more aggressive, they ultimately sold for pretty close to asking price.
In this next section, I looked at 2009 home sales data for North Scottsdale zip codes 85255 and 85262. It is interesting to see how the numbers vary from Scottsdale as a whole.
- 2009 home sales in 85255 had a higher proportion of non-distressed sales at 59% versus all of Scottsdale’s 52%. However, in 85262, only 39% of the sales were non-distressed.
- Short sales in 85255 were pretty similar to Scottsdale as a whole with 16% and 17% respectively. However, short sales in 85262 were much higher in 2009 with 22% of all sales.
- Foreclosures in 85255 made up only 25% of all sales versus Scottsdale’s 31%. But in 85262, foreclosures accounted for almost half (40% )of all 2009 home sales.
- Discount off of List Price: Again, we saw the biggest discounts off of asking price for non-distressed sales in both zip codes (9% in 85255 and 14% in 85262) and smaller discounts off of list price for short sales and foreclosures.
Disclaimer: Data and information was pulled from the Arizona Regional MLS (ARMLS) and can change at any time. The analysis looks at single-family resale homes for sale and sales in Scottsdale AZ over the last 12 months. There may be new home inventory in these figures if the developer is using the MLS to market its homes. Information deemed reliable but not guaranteed.