On this week’s episode, we have the privilege of chatting with none other than Shawn Shackleton, a seasoned expert from the Shackleton Group, a name well-known and respected in the real estate world. Scottsdale’s real estate market is like a rollercoaster, constantly changing and shifting. Lately, there has been a noticeable slowdown in home sales. However, don’t let that mislead you; home prices remain fairly consistent. This dip in sales isn’t a cause for alarm, as it signifies a return to more typical seasonal patterns after a period of unpredictability driven by global events like the COVID-19 pandemic. October marks a resurgence in interest in the Scottsdale market, mainly driven by the arrival of snowbirds and the cooler weather, which draws people back to the area.
Understanding Mortgage Dynamics
One key factor in today’s real estate landscape is the current interest rates, which are hovering around 7.4%. This figure might raise eyebrows, especially among potential buyers who’ve grown accustomed to historically low rates of around 2.75% to 3%. But let’s put things into perspective. Seasoned homeowners, particularly those from Gen X and the Baby Boomer generation, might fondly recall locking in rates of 12% to 18%. So, while today’s rates may seem
steep compared to recent lows, they are relatively modest when viewed historically. For prospective homeowners, it’s essential to focus on their potential mortgage payments rather than just the overall mortgage amount. This approach allows buyers to understand what they can afford over the long term, taking into account potential future rate fluctuations.
The Locked-In Effect and Popular Scottsdale Zip Codes
Interestingly, many homeowners who locked in historically low rates are feeling “locked in” to their homes. They’re hesitant to give up their enviable rates for the unknowns of a new purchase. This ‘locked-in effect’ means that even those desiring to relocate are carefully weighing the financial pros and cons. For those still eager to jump into the market, certain Scottsdale zip codes are exceptionally appealing. The 85255 area maintains consistent demand due to its prime location near the McDowell Mountains and easy access to the 101 freeway. The 85254 zip code, often referred to as the “magic zip code,” offers the best of both Scottsdale’s prestige and Phoenix’s favorable tax rates. It’s an ideal spot for those looking to avoid homeowners’ associations, though the architectural style here might not suit everyone’s taste.
Autumn in Scottsdale promises a blend of community spirit and festive cheer. So, gear up, mark your calendars, and prepare to make the most of this season. Until next time, keep vibing, Scottsdale!