Now is the time to buy into the Scottsdale condominium market, particularly for those looking to invest in a second home, or for first-time buyers. Housing prices for the condo market in Scottsdale, AZ have mostly declined since the middle of 2008 and seem to have reached a plateau for now, with only a slight upswing visible in the middle of January 2011.

Median Prices

Median prices on condos in Scottsdale, AZ at the end of January were less than $200,000 and were comprised of price ranges from $12,500 to $3.2 million, with an average selling price of just under $140 per square foot. Some of these condominiums have been on the market for six months or more, but about half of them have been listed for less than four months.

Almost half of these condos have had price reductions and close to ten percent have been re-listed; only four percent reflect a price increase. Although it is not unusual for higher priced homes to take longer to sell, the days on market figure also reflects homes in the lower price range.

Number of Condos Available

Even though the number of condominiums on the market has declined recently, this doesn’t necessarily reflect an increased sales volume; rather it can be attributed to other factors. The Scottsdale condo market is currently almost stagnant, with prices and inventory at a relative standstill. With more than a thousand condominiums on the market, at current sales levels this equates to several months of inventory on hand.

Market Action Index

The slowdown is confirmed in the Market Action Index (MAI) which computes housing trends based on supply and demand in the real estate market. A value of 30 or more indicates a seller’s market; a value below 30 indicates a buyer’s market. Current value is 15, indicating that Scottsdale, AZ is a strong seller’s market.

For those buyers looking for a great investment deal on a condo and willing to wait a bit for the inevitable upswing, this is an excellent time to look into the Scottsdale condominium housing market. There are great deals to be had on that vacation home, home for retirement, or starter home.

Show Appeal Realty, an Arizona real estate brokerage selling Scottsdale Homes and Phoenix real estate.

Data provided by Altos Research