McCormick Ranch Sales Update: February 2024

As we move into the busy season for Scottsdale, we are starting to get a glimpse of what the year may bring. The busy season for us runs from mid-January through June and we are seeing the usual trend so far for 2024.

When I look back to the prior 7 or 8 years, we are actually lining up closely with 2020 numbers. At the beginning of February, 2020 there were 69 homes on the market and 50 under contract. As of this writing, we have 60 homes listed and 40 under contract. That year was appearing to be a busy year with modest gains before the pandemic hit. But, as well all know, pricing and sales did not stay even remotely modest for the few years that followed.

Having 60 homes listed and 40 under contract shows us we have around 1.5 months of supply. This is still putting us in a seller's market.

Diving further into the numbers, we see that single family home continued to hit highs for the average price per square foot through the beginning of 2024. Patio homes and townhomes have waivered back and forth a bit and are sitting slightly below their highs. Condos are a few percent off as well.

In terms of pure pricing, single family is just a touch off the highs. All other categories are sitting lower. We are seeing fully renovated homes in McCormick Ranch sell for a huge premium right now with multiple homes eclipsing $2,000,000.

Why is this? I'm convinced it is partly due to our central location and the fact that AirBNBs are not allowed in our neighborhood. South Scottsdale was the hot spot five or six years ago. McCormick Ranch was seeing price increases but not at the same level as near Old Town. However, AirBNBs moved in and those that wanted to put down roots began to look in other parts of Scottsdale. We are still close to Old Town and other fantastic restaurants have continued to expand here. So, be thankful for our HOA!

The Days on Market for all homes here has followed a pretty similar track. It was insanely low in 2022 before hitting more regular numbers over the past 12 months. They are all sitting between 50 and 70 days right now. As a result, anything that is priced within a reasonable range moves quickly.

So, what happens from here on out? We are still very rate based. Any change in interest rates could create or kill demand and the Fed is being cautious. I am also closely watching the rest of the real estate market in Phoenix. Unlike McCormick Ranch, the entire Phoenix metro area has seen inventory creep up since the beginning of 2024. If inventory begins to rise here as well, it could soften the market and change the direction of prices.

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Yours in McCormick Ranch Real Estate,

Randy Arriola