The theory of supply and demand is well known. When supply exceeds demand prices will fall, and when demand exceeds supply prices will rise. The Scottsdale real estate market certainly adheres to this theory. When inventory levels spiked up in 2005, Scottsdale home prices correspondingly began to crash. Buyers had more choice than ever before and Buyers had the upper hand in all negotiations.
This is a graph of the inventory of homes in the entire Phoenix Metro area from Jan. 2001 – Aug. 2011.
As you can see, inventory levels rose dramatically starting at the end of 2005 and peaked in early 2008. This corresponds directly to the decline of prices of Scottsdale homes. At the peak, there were almost three times the amount of inventory as there should be in a normal market cycle. 2001-2003 is more indicative of what a normal cycle looks like.
The Scottsdale real estate market has shifted. The current inventory levels are actually below where they were in 2001 and are continuing to decline. The prices are still low so now is the perfect time to buy before the prices of homes rise due to lack of inventory. This is a very positive sign for the Scottsdale real estate market. Economists and analysts have repeated over and over again that it is the perfect time to be a buyer.
Call me at (602) 791-0536 or Carmen@TopScottsdaleHomes.com to start the search for your new home. I would be happy to personally show you any of the homes for sale in Scottsdale that you are interested in.
Carmen Brodeur JD
Realtor
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260
(602) 791-0536
Carmen@TopScottsdaleHomes.com
www.TroonRealEstate.com
Voted in the Top 3 Realtors in Arizona, by the readers of Ranking Arizona Magazine, 2015-2025. Her background as an Attorney gives her special expertise with contracts and negotiations. Carmen has a proven track record of success with buyers and sellers in Scottsdale.
