The new year is approaching and with it comes some big decisions. We’ll help you out with one- the Scottsdale real estate market. Here’s why you should invest in Scottsdale real estate in 2019.
In what direction is the Scottsdale housing market heading for 2019? Well, we won’t be able to answer that question without looking at some real estate market trends first.
Scottsdale Real Estate Market 2019- Housing Market Predictions
Here’s how things are looking for the Scottsdale market right now, and how this is going to play out in 2019.
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Scottsdale Housing Inventory
The Scottsdale real estate market is currently facing a shortage in housing supply. There is still affordable housing, but the market is in need of more inventory. The shortage of Scottsdale houses for sale hasn’t weakened the market though. With houses for sale down 24.5 percent, a noticeable healthy gain in median sales prices and closed sales is evident.
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Median Sales Price
Knowing that a tighter inventory gives sellers the upper hand, an increase in sales price was a given. Median sales price in the Scottsdale real estate market has increased 8.5 percent over the last year. However, this hasn’t slowed down home sales; numbers show that 5,908 single family homes sold in Scottsdale this year.
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Population Growth Drives Demand
Scottsdale is located in Maricopa County, which is the fastest growing county in the nation, according to US Census Data. It has been ranked the number one county in the country for net new people moving to it. The annual increase in population continues to boost demand while keeping supply low.
All in all, the general direction of the Scottsdale real estate market forecast for 2019 is a positive one. Experts see a strong market, with moderate appreciation, indicating a healthy future for the Scottsdale real estate market.
Positive signs are great, but what about some more numbers. To ensure you’re making the best real estate investments in 2019, make use of real estate data. Here’s what we’re talking about.
Related: US Housing Market Predictions: What’s to Come in 2019
Scottsdale Real Estate Market- The Data
So you have a general idea of how things are looking for the Scottsdale housing market. But what does this mean for Scottsdale real estate investors? To understand how Scottsdale investment properties are actually performing in the market, you need to know the market’s key real estate metrics and measures.
Related: Is Buying a Scottsdale Investment Property a Smart Choice?
Mashvisor’s investment property calculator has provided us with just that for Scottsdale real estate. Here are the important numbers for long term rentals (traditional rentals) in the Scottsdale real estate market.
Scottsdale Real Estate Market: City-Level Data
- Median Property Price: $896,060
- Price per Square Foot: $298
- Average Days on Market: 217
- Price to Rent Ratio: 21
- Monthly Traditional Rental Income: $3,599
- Traditional Cash on Cash Return: 3%
- Traditional Cap Rate: 3%
Median property prices are a little bit on the higher side of things, but that was warranted. They are, however, met with a good average cash on cash return for traditional rentals on the city-level. Real estate investors can expect high rental demand in the Scottsdale real estate market according to the price to rent ratio.
Related: Price-to-Rent Ratio: Everything You Need to Know
Note that cash on cash return and cap rate are the same. This is because the calculator doesn’t take into account financing methods when calculating city level averages. To get property-specific metrics, sign up for Mashvisor to customize the data for your investment analysis, where results can be adjusted for financing methods, budget, and more. Start out your 14-day free trial with Mashvisor now.
Let’s now get into our neighborhood analysis for the Scottsdale real estate market. You’ll get the same kind of data, just for more narrow markets. Here are the best neighborhoods in Scottsdale for long term rentals.
South Scottsdale
- Median Property Price: $555,128
- Price per Square Foot: $298
- Average Days on Market: 304
- Price to Rent Ratio: 19
- Monthly Traditional Rental Income: $2,476
- Traditional Cash on Cash Return: 3%
- Traditional Cap Rate: 3%
Pinnacle Peak
- Median Property Price: $1,495,553
- Price per Square Foot: $338
- Average Days on Market: 231
- Price to Rent Ratio: 19
- Monthly Traditional Rental Income: $6,437
- Traditional Cash on Cash Return: 3%
- Traditional Cap Rate: 3%
North Scottsdale
- Median Property Price: $823,161
- Price per Square Foot: $280
- Average Days on Market: 138
- Price to Rent Ratio: 23
- Monthly Traditional Rental Income: $2,975
- Traditional Cash on Cash Return: 2%
- Traditional Cap Rate: 2%
All three neighborhoods have their own shining points. Pinnacle Peak definitely has the most expensive properties, but also the highest monthly rental income. North Scottsdale has the highest price to rent ratio indicating a hot market for rental properties. South Scottsdale has the lowest median property price out of the three.
How to Find Profitable Investment Properties in the Scottsdale Real Estate Market
Mashvisor’s many search tools make it easier and faster than ever to find investment properties in your city and neighborhood of choice. Our most unique tool, the Property Finder, is easy to use and shows the most profitable investment options in the market. We’ve already used it and have picked out some prospective investment properties currently listed for sale in the Scottsdale real estate market.
Investment Property #1
- Neighborhood: Pinnacle Peak
- Property Type: Single Family Residential
- Listed Property Price: $429,900
- 2,493 Square Feet
- $172 per Square Foot
- 4 Beds and 2 Baths
- Comparable Traditional Rental Income: $7,360
- Traditional Cash on Cash Return: 13%
- Traditional Occupancy Rate: 92%
Investment Property #2
- Neighborhood: South Scottsdale
- Property Type: Townhouse
- Listed Property Price: $254,900
- 1,584 Square Feet
- $161 per Square Foot
- 4 Beds and 2 Baths
- Comparable Traditional Rental Income: $4,600
- Traditional Cash on Cash Return: 13%
- Traditional Occupancy Rate: 92%
Investment Property #3
- Neighborhood: South Scottsdale
- Property Type: Townhouse
- Listed Property Price: $260,000
- 1,584 Square Feet
- $164 per Square Foot
- 4 Beds and 3 Baths
- Comparable Traditional Rental Income: $4,600
- Traditional Cash on Cash Return: 13%
- Traditional Occupancy Rate: 92%
These are just a couple of the top-performing Scottsdale investment properties from our list. Notice how all the mentioned properties are listed at prices well below the median property price, both on the city-level and neighborhood levels.
With a free Mashvisor account, you can use our Property Finder tool to find lucrative investment properties that match your criteria in a matter of minutes! You can filter out the list of properties based on your budget, rental strategy, property type, and the number of bedrooms and bathrooms. For more details on these properties, and to search for others in the Scottsdale real estate market, click here.