Scottsdale has long been known for its luxurious lifestyle, stunning desert landscapes, and world-class amenities. The real estate market here has been strong for years, and during the 2020 pandemic, it became one of the top destinations for people moving to Arizona. Combined with an influx of investors cashing in on the short-term rental boom thanks to Scottsdale being a top tourist destination, home prices have risen significantly in the past four years. As we head into 2025, many prospective buyers wonder whether now is a good time to buy a home in Scottsdale.
Are House Prices Dropping in Scottsdale?
Many buyers have sat on the sidelines wondering if home prices in Scottsdale will drop back to pre-pandemic levels. The short answer is no, prices are not dropping, and they are actually continuing to appreciate. After the explosive price growth in 2021, when home values in Scottsdale increased by more than 30% due to low supply and high demand, the market has remained strong.
Data from the Arizona Regional Multiple Listing Service (ARMLS) shows that, while the rapid price acceleration seen in 2021 has slowed, Scottsdale home values continue to rise steadily. As of late 2023, median home prices in Scottsdale remain significantly higher than they were pre-pandemic, with no signs of a major correction.
Despite fluctuating mortgage rates, the demand for Scottsdale real estate remains robust. Buyers looking to wait for a price drop may find themselves waiting longer than expected. According to market analysts, housing supply in Scottsdale continues to be tight, and demand from both local and out-of-state buyers is pushing prices upward.
While higher mortgage rates might make some buyers hesitant, those planning to purchase can benefit from buying now and refinancing if rates decrease in the future. The market conditions suggest that waiting for a price crash isn’t a sound strategy, and buying before prices rise further would be a wise decision.
Is Scottsdale a Good Place to Invest?
Scottsdale has long been a sought-after destination for real estate investors, and that reputation holds strong in 2024. The city offers a variety of investment opportunities, from luxury homes and condos to older properties that can be renovated for profit.
Long-Term Investment Potential
Scottsdale’s real estate market has consistently appreciated over time, making it an excellent option for long-term investors. The city’s strong economy, job growth, and appeal as a lifestyle destination contribute to its steady demand.
The Phoenix metro area, including Scottsdale, continues to grow rapidly, driven by the influx of businesses, tech companies, and healthcare providers setting up operations in the region. Companies such as Axon and HonorHealth have major operations here, providing a stable employment base that drives housing demand. Homes in Scottsdale have shown consistent appreciation over the years, and the trend is continueing even in 2024’s housing market (the median sale price is up 15.3% year-over-year for Scottsdale).
Luxury properties in communities like Silverleaf and DC Ranch remain popular with high-net-worth buyers, while established neighborhoods like McCormick Ranch continue to attract families and professionals. These areas offer stability and long-term appreciation potential, making them attractive for investors seeking capital growth.
Short-Term Investment Opportunities
Scottsdale also offers opportunities for short-term investors looking to capitalize on renovation projects. Many homes in neighborhoods like Scottsdale Ranch and McCormick Ranch were built in the 1990s and are in need of an update. Investors who purchase these properties at a lower price point, renovate them with modern finishes, and resell or rent them out can see significant returns.
Additionally, the short-term rental market is still strong in Scottsdale. As a popular tourist destination and host to world-class events, Scottsdale has a steady stream of visitors looking for an Airbnb’s convenience. Neighborhoods in the 85254 zip code have no HOA, allowing investors the creative freedom to make a home into a memorable destination.
Is Now a Good Time to Buy a House in Scottsdale?
The Phoenix metro area, including Scottsdale, continues to experience population growth, creating strong demand for housing and increasing home prices. With businesses relocating to the area and remote work offering more flexibility, Scottsdale has become a popular destination for homebuyers and investors from across the country. This steady demand and limited housing supply make waiting to buy while hoping for a significant dip in home prices unwise.
While mortgage rates have risen from the historically low levels seen in 2021, they are still within a reasonable range. Buyers concerned about higher rates should consider purchasing now and refinancing when rates eventually decline. Waiting for rates to drop could lead to higher home prices, making properties even more expensive in the future.
Work With a Scottsdale Real Estate Agent
Scottsdale remains one of the most desirable places to buy real estate in 2024. While home prices continue to rise, the city’s steady demand, growing economy, and high quality of life ensure that buying a home here remains a solid investment. Waiting for prices to drop or for mortgage rates to fall could mean missing out on a valuable opportunity in one of the nation’s hottest real estate markets.
In this competitive housing market, you can rely on the local real estate experts at Walt Danley Local Luxury | Christie’s International Real Estate. Our Scottsdale buyer’s agents can help you find the right home and community for you. Call us at (480) 450-1518 to get started today!