Now that May is fully in the books and closed out, we can take a closer look at the activity and sales throughout McCormick Ranch.
First, the charts!
Sales prices of single family homes and condos have continued the upwards trend of the prior years. Using the 6 month rolling average, single family homes hit an average sales price of $580,665 in May. Compared to April's price of $577,747, this is around a 6% annualized gain.
Patio homes look like they have ticked down a hair over the last few months but this isn't representative of the market, as a whole. Patio homes make up a smaller grouping of homes compared to single family and the data can be skewed by a couple sale outliers.
Townhomes have also gone down a smidgen. Part of this could simply be classification (and it could also be contributing to a condo's rise). If a townhome is put into MLS as a condo or a condo as a townhome, it can alter the data slightly. I'll continue to look at this long term to see how this changes.
While a terrible way to price a single home, price per square foot is a good way to look at the market as a whole. May price/sq foot was mostly even or ticked up. Once again, townhomes were low point especially when compared to 2016 activity.
Days on Market (DOM) has continued for most segments. Single family went from 82 to 83 DOM, which is a pretty negligible amount. Condos did the opposite going from 83 to 82. Patio homes and townhomes had a large drop, showing some late demand.
Lastly are our monthly sales. Sales are up overall comparing year over year. Thus far, there have been 267 sales in McCormick Ranch compared to 234 in 2016. That's a sizeable jump.
One more note: inventory is still low! As of this writing, there are just 117 actives homes for sale. With 45 sold in May, this gives us just 2.6 months of inventory. This is very tight and could start creating additional price appreciation. While the spring tends to be busier than the fall, we will have to keep watching this.
One of my favorite times of the year is Restaurant Week. Dozens of restaurants in Scottsdale participate and offer a 3 course meal for $33 or $44. A handful even make it a meal for 2 with a drink.
This is a great time to try new restaurants or go back to your favorite for a nice evening out.
The participating restaurants in the greater McCormick Ranch Area are:
Grassroots Kitchen and Tap at 8120 N Hayden (one of my favorites!)
Ling & Louie's at 9397 E Shea
The Melting Pot at 8260 N Hayden
Roka Akor at 7299 N Scottsdale Rd
Sonata's at 10050 N Scottsdale Rd, #127
SWB at 7500 E Doubletree Ranch Road
Twisted Grove at 8220 N Hayden
Go to Arizona Restaurant Week for a full list of restaurants throughout the Valley.
Over the last 18 months, real estate prices in McCormick Ranch have been raising almost across the board. Condos have been the biggest gainer at around 6% a year. Single family homes have continued to increase around 5% a year. Patio homes are up around 4%, and townhomes are down less than 1% (essentially flat).
A lot of the fueling for condos comes from the huge pressure put on affordable housing Valley-wide. When looking through the Phoenix metro area, homes under $250,000 or $300,000 have been skyrocketing. Condos in McCormick Ranch are no exception.
Why the increase in prices? Lack of inventory! Right now, there are just 133 homes for sale in McCormick Ranch. Over the past 12 months, we've seen an average of 47 homes sell every month (including condos/townhomes/patio homes/and single family homes). Thus, we have a scant 2.83 months of inventory. Anything under 6 months is considered a seller's market.
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​In March and April, we saw a large uptick in the number of sales across the board. This coincides with same increase that happened in 2016. The large number of winter visitors that come through Arizona increases activity quite substantially.
The last few months have continued the trend of homes selling faster. This goes hand in hand with the lack of inventory and increase in prices.
A quick note on the data- in order to help smooth outliers (like a beautiful $1.75M sale in Palo Viento), I'm using a 6 month rolling average of home prices, $/sq foot, and day on market for these charts. Thus, March sales prices are an average of October 2016 through March 2017. April sales prices are an average of November 2016 through April 2017. And so on and so forth. This helps to provide a better picture of the market.
