by Paul Slaybaugh | Jun 16, 2010 | Home Selling, Scottsdale Real Estate
Among the interesting turnabouts that abound in the Scottsdale Real Estate market as of late, the rental market has demonstrated surprising new strength. Where there was formerly a preponderance of housing options for prospective tenants over the last couple of years, what with all the struggling homeowners out there eager to find someone else to pay their mortgage while they shacked up in less costly digs, a noticeable contraction in available properties for lease is occurring. With more and more people walking away from their upside down homes, whether by necessity or by choice, the credit and financial hits they take in the process renders them radioactive to the purchasing option for years to come (though, some have perfected the “buy and bail” strategy of purchasing a new home before abandoning the current residence). As such, the rental market has become inundated with demand.
With this surge in demand and a subsequent decrease in supply, rental values have not only held firm, but have noticeably increased in the markets I work. From a purely anecdotal standpoint, I have been shocked by the level of competition for not only the properties I have had listed for lease recently, but for the tenants I have worked with to secure rental properties as well. Mind you, I am not simply referring to the low end pricing (sub $1000/month) where heightened competition is always to be expected, but in more expensive price ranges to boot. In particular, I am seeing a LOT of interest in properties that are renting in the $1400-1800 per month range.
Checking the latest statistics to see if what I have noticed is playing out on a larger scale, I see active Scottsdale rental listings are down to roughly 1800 units (as of ARMLS’s May figures). This marks a steady decline from an inventory that reached a high point of 2568 in November of 2008 and did not dip under the 2000 unit threshold until January 2010. The 5.19 months of rental housing supply (as determined by the current rate of absorption) is at its lowest point in years. Interestingly, the overall average rental rate has not shown a noticeable jump, despite my recent personal observations. Given the decrease in total inventory and increase in absorption (units leasing per month), however, I fully anticipate next month’s numbers to reflect a higher baseline average.
This shift in the rental market tells me two things:
1) Before deciding to walk away from a house that appears irretrievably underwater in terms of negative equity, homeowners (and potential future renters) really need to study their options carefully. If I had a nickel for every misguided homeowner who erroneously believed there was an unmitigated plethora of housing options, at bargain basement prices, waiting for them once they pulled the plug on the Bank of Extortion … er, I mean “America” … I could comfortably retire to my literary tinkerings. The assumption that lower selling prices go arm in arm with lower rental rates is patently false. Further, with all of the newfound competition for rental housing, your chewed up credit report will be scrutinized a bit more by potential landlords than most would expect. Sure, a human landlord may be more understanding of the recent economic woes than some faceless underwriter, but as in any free market, it always comes back to options. If there are renters out there with fewer credit issues and deeper pockets, you are going to get aced out. Please consider where your escape pod is heading before abandoning ship and scuttling that home turned financial Death Star. If there is no soft landing, how have you benefitted?
2. Our market may have reached (or is close to reaching) that sweet spot in which it makes sense for the homeowner with designs on a move-up purchase to revisit the rental potential of his/her existing home. While the notion of renting an existing house out (to offset the mortgage) to free oneself up to take advantage of the market conditions and purchase a considerably larger home for a fraction of its prior value is nothing new, the increasing strength in the rental market makes the strategy more feasible at present. The biggest hurdle to this play, other than deciding whether one is really cut out to become a landlord, remains the qualification process. Unless you are one of the fortunate few who maintain at least 25% equity in your home, you will essentially have to qualify to carry both loans (the existing house as well as the new one you would purchase). Even if you secure a tenant whose rent will cover the payment, you will be qualified for the new loan as if you were qualifying for both properties. If you have the means to do so, the time could be right to finally leverage the conditions that seemingly everybody and their brother’s mail carrier have already managed to exploit.
Whatever your goals for the Scottsdale Real Estate market, drop us an email or give us a call with your specific needs / questions. You might not be as trapped as you think.
(480) 220-2337 | paul@scottsdalepropertyshop.com
by Paul Slaybaugh | Jun 10, 2010 | McCormick Ranch Subdivisions, Scottsdale Real Estate
One of a select few subdivisions in McCormick Ranch (and all of Scottsdale, for that matter) that boast waterfront property, the Island at McCormick Ranch neighborhood is a true gem. Hugging the banks of all three of McCormick Ranch’s primary lakes (Lake Margherite, Lake Nino and Lake Angela), the Island is a custom home subdivision which features single family homes of a wide variety of style and architecture.
With 85 improved lots in the neighborhood, there are 74 single-level homes and 11 two-story homes. Zoned R1-10 for 10,000 square foot lot minimums (approx. 1/4 acre), the average house size is 3288 square feet (per the county assessor). 72 of the homes (93%) feature private pools. There is one undeveloped lot left in the community that is privately owned. Sitting on the North bank with a view right down the throat of the Lake Margherite, a multi-million dollar property will eventually replace one of the last pieces of bare dirt in all of McCormick Ranch. Home prices are similar to those of the nearby waterfront community of Vista Del Lago, with lakefront properties commanding well in excess of $1 million (multi-million in some cases), and interior lots selling for considerably less. Most construction took place in the late 1970s through the early 1980s, but there have been homes built as recently as 1998.
Click Map to Zoom
Though the island moniker is a bit of a misnomer, the subdivision is essentially a peninsula. Bordered by water on the North, South and East, the Island can only be accessed from Via Linda Rd at Del Camino (South entry) & Del Cadena (North entry).
The Island at McCormick Ranch falls within the Cochise Elementary / Cocopah Middle / Chaparral High School districts of the Scottsdale Unified School District.
Notable amenities, aside from the private boat dock privileges of those lucky residents with lake properties, include immediate access to the bike paths, fishing, boating, shops and restaurants of The Village and Mercado Del Lago centers (including Buster’s On the Lake, The Melting Pot, Chipotle, TCBY, Royal Barge Thai Cuisine, Zipps Bar & Grill and more), Camelback Walk (section of the multi-use path which traverses the McCormick Ranch golf course(s), neighborhood parks (Rotary Park & Mountain View Park are within walking distance), etc.
If you are drawn to both unique, custom homes and waterfront living, it doesn’t get much better than the Island at McCormick Ranch. While the lifestyle will not fit every budget, it is a fitting reward for those enterprising souls fortunate enough to call it home.
View of Lake Margherite from Via Linda
(The Island lies on the left bank, Vista Del Lago on the right)
Overview of McCormick Ranch in Scottsdale AZ
View McCormick Ranch Home Floor Plans
McCormick Ranch Foreclosures
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Homes For Sale in the Island at McCormick Ranch
(Updated Daily)
Ray and Paul Slaybaugh are your guides to McCormick Ranch Real Estate. With nearly 50 years combined experienced selling homes in Scottsdale, put McCormick Ranch’s resident specialists to work for you when the time comes to buy or sell. Nobody knows the Ranch like Ray & Paul.
(480) 220-2337 | paul@scottsdalepropertyshop.com
by Paul Slaybaugh | Jun 2, 2010 | Market Data, Scottsdale Real Estate
Arizona Regional MLS Market Statistics: May 2010
*Click Links Below for the Greater Phoenix Area Market Overview of Your Choice*
Market Stats 5-10 (Inventory Levels)
Market Stats 5-10 (Sold DOM vs Sold Price)
Market Stats 5-10 (Sold DOM vs Units Sold)
Market Stats 5-10 (Volume & Average Price)
Looking for something a bit more specific? Select the Scottsdale, East Phoenix, Cave Creek or Paradise Valley zip code of your choice for detailed Real Estate statistics (current inventory levels: total active, sold and new listings) from the 5/1/10 – 5/31/10 date range.
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85018 (May 2010)| 85020 (May 2010)| 85022 (May 2010)
85028 (May 2010)| 85032 (May 2010)| 85050 (May 2010)
85250 (May 2010)| 85251 (May 2010)| 85253 (May 2010)
85254 (May 2010) |85255 (May 2010) |85257 (May 2010)
85258 (May 2010) | 85259 (May 2010) | 85260 (May 2010)
85262 (May 2010) | 85266 (May 2010) | 85331 (May 2010)
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Want to drill down even further? Contact us through the form below for additional indicators, or for the latest statistics from specific communities/developments!
Error: Contact form not found.
by Paul Slaybaugh | May 31, 2010 | Home Selling, Scottsdale Real Estate
The collection of hats in a Scottsdale Real Estate listing agent’s closet grows at an exponential rate. We alternately don the garb of property evaluator, pitchman, marketing pro, receptionist / showing coordinator, contract prep specialist, home inspection consultant, appraisal jouster, loan oversight committee (of one), repair foreman, closing editor, schedule contortionist, marriage counselor, dime store psychologist, balloon animal fashionista, etc, etc, etc. With the advent of Internet marketing, you can add a couple more titles to the overflowing job description: Google Engineer and Social Media Cruise Director.
Before you place too much importance on these latest additions, make sure your virtual Captain Stubing has what it takes to avoid the icebergs of an honest to goodness Real Estate transaction.
The great equalizer, the cyber-world provides the blank slate upon which even the most novice agents can paint a colorful picture of expertise. Years of experience trumped in the search engines by weeks of keyword optimized content. Those with their hard hats on in this soft medium can easily be mistaken for proven veterans of the Real Estate world. As such, even the most obstinate curmudgeons have yielded to the inertia of technology and joined the online fray in the ever-expanding global search for the next business prospect.
While we here at the Scottsdale Property Shop are ardent followers of the Internet prophets, we realize that this shiny new(er) medium is only the latest and greatest hat to hang on our business rack. The fixation with getting to the top of the pagerank heap has distracted many agents and consumers alike from the actual job of selling Real Estate. Think getting the most online exposure possible for your home is key to the probability of a sale? Well, you’re right. That said, raw exposure in the absence of ability is tantamount to brain surgery via an enthusiastic first year med student with a text book, albeit it one with exceptional illustration.
If you are reading this, you already know that we are adept at getting our services and our properties in front of a target audience. What you may overlook, however, is the fact that this is but one minute portion of the job. You must fully vet the agent(s) you choose to employ on all facets of the service, not simply the “Cool, my house will be on page 1!” factor. Click through the articles, peruse our thoughts on the state of the market, review our credentials. Only then, if you believe we’ve got the chops to handle the full responsibility of listing and selling your Scottsdale home, give us a call to move into stage 2 of the vetting process: a personal consultation.
While the Internet is a valuable tool, there is no magic Real Estate bullet or panacea for an overpriced or under-represented property. Your agent should know the community, the builders, the amenities, the home sales, the effective means of procuring a buyer, the nuance of negotiation, the ability to close and how to effectively navigate the escrow to the finish line. Google and Facebook will do none of those things for you (him). To add another clumsy metaphor, consider the various legs that prop up your home sale. If your agent does not have adequate experience with / knowledge of the product, the integrity is suspect. If your agent cannot effectively close buyer leads, the integrity is suspect. If your agent cannot, or does not know how to handle the various hurdles of the escrow process, the integrity is suspect. And yes, if your agent does not leverage the proper media for attracting suitors for your property, the integrity is suspect. Ask any particular leg to support more than its burden, and watch the entire structure collapse.
While I know a few terrific agents who have been in the industry for relatively brief durations, I am aware of all too many Internet marketing wizards who lack the first clue about the process of selling a home. It seems that the only thing taught in new agent training these days is how to leverage social media and/or drive traffic to one’s site. Valuable tools, but am I crazy to posit that learning to actually do the job is every bit (or more) as valuable as tracking hits?
I see such agents in my keyword Google alerts often enough to know that they have the marketing portion of the job wired, but who exactly are they? For all of that search engine juice, I’ve never seen their names on a sign in the communities they target. I applaud the promotional efforts, but cringe for the consumer who hires the Internet warrior out of mistaken belief in his/her expertise. After all, are we Real Estate professionals who market on the Internet, or Internet professionals who occasionally dabble in Real Estate?
I can buy dominant online position for a particular neighborhood for about $20/month, but I can’t buy ability. Even in the 24/7 virtual “what have you done for me lately” world, a track record is always in vogue.
Consumers … choose your weapons wisely.
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*Now, because I am a full-time Real Estate agent who moonlights as on online personality, you may follow me on the social network of your choice via the icons in the footer. One more Twitter follower and I win a free chicken!
Subscribe to my blog or an angel loses its wings.
by Paul Slaybaugh | May 25, 2010 | Community Info, Home Buying, Scottsdale
The Scottsdale Unified School District is one of the primary drivers for relocation to Scottsdale, Arizona. Consistently ranked at the top of school districts across the state, it is little wonder that many new Arizona residents with families opt to begin their searches for a new home here.
Saguaro High School Homes
With composite test scores that outpace state and national averages by a wide margin, the Scottsdale Unified School District consists of 5 high schools, 7 middle schools, 20 elementary schools and 1 alternative school (Notre Dame Prep is not considered part of the SUSD). Total student population is approximately 27,000.
Boundary Map
The High Schools:
Arcadia
Chaparral
Coronado
Desert Mountain
Saguaro
The Middle Schools:
Cocopah
Copper Ridge (K-8)
Desert Canyon
Ingleside
Mohave
Mountainside
Supai
The Elementary Schools:
Anasazi
Aztec
Cherokee
Cheyenne Traditional
Cochise
Desert Canyon
Hohokam
Hopi
Kiva
Laguna
Navajo
Pima
Pueblo
Sequoya
Tavan
Yavapai
Tavan
Tonalea
Yavapai
Zuni
Alternative Schools:
Sierra Vista Academy (Grades 6-12)
Concerns about Arizona’s poor overall national reputation for education? When it comes to Scottsdale, they are unfounded. Check out the latest test results (for individual schools as well as the district averages) as compared to state and national averages. The Scottsdale Unified School District surpasses both with regularity.
Scottsdale Unified School District Test Scores
To keep up with the rapidly expanding population of Scottsdale, new schools and major renovations to existing facilities have come on line in recent years. Three of the longer tenured high schools, Saguaro, Chaparral and Arcadia are not long removed from the throes of massive overhaul. To keep pace with some of the newer facilities in the district, and to match the combined performance of the faculty and student bodies, each school was virtually reconstructed from the ground up. Please visit each school through the individual links provided above to view additional project scheduling, curriculum, events calendar, mission statements, etc.
Click here to visit the Scottsdale Unified School District’s website to view the district calendar, school locator, information on open enrollment, faculty, and more.
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Full Disclosure: Paul attended Cochise Elementary, Cocopah Middle and Chaparral High Schools. Don’t be deterred. The schools really are terrific despite the dubious distinction for the scholastic molding of yours truly.
by Paul Slaybaugh | May 20, 2010 | Home Buying, Scottsdale Real Estate
No matter the state of the national economy, political climate, or the price of beans in Uganda, Scottsdale, Arizona remains a coveted relocation address. Official population estimates put our grown-up resort town at 237,000+ residents and climbing (as of 2015). For those of you keeping score back in Delaware, that’s a 10% increase from the year 2000, even with the uneasy Real Estate market that spanned the latter half of that decade. Not too shabby for a town whose 1951 origins boasted a total population of two thousand hardy pioneers!
So what exactly is it that keeps this one-way conveyor belt moving? What intrinsic value of the Arizona lifestyle keeps folks coming in droves to the Valley of the Sun? Why does the city still nostalgically known as “The West’s Most Western Town” continue to add labels, such as the nation‘s “Most Livable City,” and find inclusion amongst various new best-of lists, such as the “Top 100 Cities for Young People,” (1) with each passing year?
Young people? In Arizona? Bet you didn’t see that coming!
Let’s examine why exactly Scottsdale might appeal to people of all walks of life.
Is it the 314 days of deep blue skies and sunshine? A horizon so boundless that the occasional passing cloud is quickly chased away like a stray tumbleweed through the Sonoran Desert? The average high temperatures of 85 degrees, and a scant 7 & a half inches of annual rainfall? Where the only ice you will find in December lies inside a cocktail glass?
Possibly.
Is it the Scottsdale Unified School District, which routinely ranks atop the state in performance and outpaces local and national averages by a wide margin in critical categories such as SAT and ACT scoring? Which boasts an off the charts percentage of schools categorized as “excelling?” With 50% of the adult populace holding a bachelor’s degree or higher (which likewise outdistances the state and national averages by a wide margin), education has always been a top priority to the citizenry of Scottsdale. Surely the robust school system is the reason an out of towner looks to Scottsdale with a longing eye?
Possibly.
Could it be the vibrant nightlife and fine dining that boasts an inordinate amount of upscale eating establishments, wine bars and the like? Where you can’t fall down without landing on the finest Fillet Mignon or Prickly Pear Margarita you have ever tasted? The more than 125 art galleries which make Scottsdale a bastion of high culture? Is it Taliesin West, the former winter home and school of renowned architect Frank Lloyd Wright which lives on as a popular tourist destination?
Possibly.
Is it the golf? The more than 40 courses which can be found within Scottsdale‘s city limits alone? From Par 3 executive courses to PGA venues, there is something for every skill level. You are moving to Scottsdale, Arizona. It simply must be for the golf. Right?
Possibly.
Is it the strong local economy? The one with the ultra low unemployment figures and strong income levels (median family income of $85,000+ per 2009 estimates)? The one powered by tourism (39% of city workforce), convention revenue, 2nd home buyers, strong aviation industry presence centered around the Scottsdale Airpark, medical field stalwarts such as Scottsdale Healthcare (largest private employer with nearly 6700 employees), the Mayo Clinic (2nd largest private employer in Scottsdale with nearly 5000 employees), etc? Notable businesses include the Fortune 500 company, Allied Waste, as well as Rural Metro (private fire protection), Go Daddy, General Dynamics, Dial Corporation, Cold Stone Creamery and TASER International. So, is it the allure of a healthy job market for a highly skilled workforce that makes Scottsdale Real Estate so historically vibrant?
Possibly.
Or how about the shopping? The spender’s paradise which boasts Kierland Commons, Fashion Square Mall, The Promenade, Old Town, Gainey Village and The Borgata, just to name a few? Where you will find that perfect something that you can’t live without in every shop? As synonymous as Scottsdale has become with retail therapy, it has to be the shopping, right?
Possibly.
Perhaps it’s the unbelievable location and access to the rest of the Valley? Minutes from Sky Harbor International Airport, Scottsdale is connected to the rest of the greater Phoenix area by freeway. Bisected by the Loop 101, previously distant reaches of the Valley such as Chandler/Mesa/Gilbert to the south and Glendale/Peoria to the west are now readily accessible. Could the prime central location be the reason for Scottsdale’s popularity?
Possibly.
Wait, it has to be the resorts, right? After all, our well-earned reputation as a resort town is what first put Scottsdale on the national map. With over 70 resorts and hotels, half of the Valley’s resorts are located in Scottsdale. Might the lure of an afternoon at the Hyatt Regency’s pool or the Westin Kierland’s spa be the source of enticement? Maybe afternoon tea and relaxation at The Phoenician, or reaching out to touch the mountains at The Four Seasons in Troon?
Possibly.
How about the immediate access to escape from the daily grind? The ability to trade the heat of a July day for an afternoon in the high mountains with only an hour and a half’s drive north as payment? Or to dip toes in the Pacific Ocean by making the 6 hour drive to San Diego? Heck, less distance than that puts a traveler on a lazy beach in Rocky Point, Mexico. Is it the convenient getaway capacity that attracts all of these new Scottsdale residents?
Possibly.
These are all very strong contenders for the title of most alluring, but I think it boils down to something far more simple, yet somewhat indescribable. Most people move to Scottsdale, Arizona for the very reasons that I have never left. Those reasons are hard to express with words. Less a physical place than a state of mind, Scottsdale is that internal intersection where an unencumbered side street of your soul meets the thoroughfare of refined, modern living. The desert Southwest stirs something ancient and irresistible within the romantic ventricles of even the most hardened heart. Lacking the eloquence to due her justice with my pen (or keyboard, as it were) alone, I yield to pixels. The images below should provide greater insight as to why this native son still calls Scottsdale, Arizona home after all these years.
(1) Phoenix Business Journal (2007)
Statistics courtesy of the City of Scottsdale (2009)
Ready to Start Your Own Scottsdale Adventure?
Let the Scottsdale Property Shop be your relocation guide. Follow the links below to all things Scottsdale.
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Scottsdale Schools
Scottsdale Homes for Sale
Scottsdale Neighborhoods & Communities
Things to do in (and around) Scottsdale
Scottsdale Real Estate Market Data
Scottsdale Home Buyer Resources
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