Scottsdale Requires Short Term-Vacation Rental License- Ordinance 4655

On November 28, 2022 Scottsdale passed a new Ordinance 4655 that requires all short term rental or vacation rental owners to maintain a license through the city.  This is inline with the recent Arizona State law SB1168 that recently passed that requires each city to require a license to operate short term/vacation rental.  

Scottsdale is a large vacation destination and therefore has a high number of short term and vacation rentals, estimated by the city to be about 4,300 as of November 2022.  This new ordinance will be of interest for those who currently own and operate a short term/vacation rental as well as those who are considering operating one in the future.  

Here is a short recap of a few of the details of Ordinance 4655, 

• Effective Date -January 8, 2023 - All short-term rentals will need to have a license by January 8, 2023 to operate within the city of Scottsdale.

• License Fee- The Fee for a Scottsdale short-term rental License will be $250.  

• Liability Insurance - Liability Insurance of $500,000 must be maintained.

• Violations - Violations will be fined at a rate of $1,000 per violation.  

• Suspension of License - Three (3) violations within one 12 month period will result in a suspension of License

• Emergency Contact- An emergency contact must be provided. 

For more information, click on the following links; Scottsdale Short Term Rental License or for the entire 120 page Ordinance 4655

if you need any help in buying or selling Scottsdale real estate please give the Dahl Real Estate Group a call at 480-630-3888.  Over $1 Billion in Real Estate Sales and more than 30 years experience. Your Scottsdale Condo Expert. 

Scottsdale Real Estate Report October 2022

The Scottsdale real estate market continues on its path to a normal real estate market, after two years of the low inventory and super low interest rate real estate market we experienced during Covid.  October saw 433 sales of Scottsdale homes and condos, which was basically flat from September.  The average sales price in Scottsdale bounced back after a decline in September. 

The normal Scottsdale seasonal sales pattern of a slow Summer Season and better Fall Season seems to have contributed to the increase in average sales price, due to more high-end sales causing the higher average price.  Looking at all metrics, Scottsdale prices are down about 5% from the heights of April-May of this year. 

Looking forward, mortgage interest rates will continue to be the biggest component effecting the market.  Mortgage interest rates are currently hovering around 7 to 7.25%, up from the Spring low of 2.5 to 3%.  Expect mortgage interest rates to continue to increase slightly over the next two quarters.  This increase will have two impacts on the Scottsdale Real Estate Market, some buyers will move forward to lock-in todays rates while some buyers will be priced out of the market.  The Scottsdale Real Estate market is less effected by mortgage interest rates than the overall Phoenix-Metro real estate market, as Scottsdale buyers are more likely to be larger down payment buyers and all cash buyers. 

The overall Scottsdale Real Estate fundamentals remain strong with a strong jobs market,  a strong rental market and still below normal inventory levels.  This may change some in the first quarter of the new year as the FED continues to flight inflation with rate increases.    

If you are looking to buy or sell in Scottsdale please give us a call at the Dahl Real Estate Group, 480-630-3888.  With over 30 years and over $1 Billion in Real Estate Sales, Experience Matters.  

Scottsdale Named Best Golf City - Recent Study Finds

A recent study featured on Golf.com named Scottsdale as the best Golf city in the United States.  This does not surprise anyone who lives in Scottsdale, yet it is nice to recognized nationally for something we all know.   Scottsdale is home to more than 50 golf courses with another almost 50 golf courses within 20 miles.  

The study was done to celebrate National Golf Lovers Day, October 4th and was done using 22 key indicators, including climate, access to both public and premium courses and access to golf training.  You can read the study on golf.com here. 

Other cities on the list included well known golf destinations such as Las Vegas, Orlando as well as a few lesser known destinations that included Cincinnati, OH and Rochester, NY.  

Scottsdale Real Estate Report September 2022

The Scottsdale Real Estate Market continues to maintain a typical summer pace, with total sales and sales prices down from the super hot spring season.  Mortgage Interest rates continue to rise, with rates now in the high 6% to low 7% range.  The underlying fundamentals of Scottsdale Real Estate remain strong with a solid job market, relatively low supply still under normal supply levels.  

Both Maricopa County and Scottsdale prices were down slightly as the data below indicates.  Maricopa County actually had a month over month increase in total sales, while Scottsdale total sales were down about 10% and prices were down about 13% from August.  Scottsdale's Average Price dropped below $1 million for the first time in quite some time.  This is probably more representative of the property mix and low July new escrows than a trend.  August saw 166 new escrows over $1 Million which have not yet closed and should close in October.  I would expect October sales and price data to bounce back near the August numbers.  

Overall, the Scottsdale Real Estate market will continue to bounce along with the fall bringing more cash buyers not effected by higher rates.  Interest rates should continue to climb slightly over the next few months as the FED raises rates to fight inflation.  These higher mortgage interest rates should have a downward pressure on prices, but with Scottsdale higher percentage of Cash buyers, any price decrease should be moderate in the short term.    

If you are looking to buy or sell in Scottsdale please give us a call at the Dahl Real Estate Group, 480-630-3888.  With over 30 years and over $1 Billion in Real Estate Sales, Experience Matters.  

Optima Kierland Area Restaurants - Walkable 

Living at Optima Kierland offers one of the best location in North Scottsdale, it is close to everything that makes Scottsdale a great place to live.  Do you commute to work? The Loop 101 is just a few miles away, opening up the entire valley.  Are you looking for Golf?  There are 20 golf courses within 20 minutes, including Kierland Golf Course within walking distance and TPC Scottsdale, home to the WM Phoenix Open, is  just 5 minutes away.  These are all great reasons to live at Optima Kierland but the many great restaurants within walking distance may be one of the most important location based amenities for of calling Optima Kierland home. 

Optima Kierland great location across from two of North Scottsdale's best shopping and dining districts, Kierland Commons and The Quarter, offers many great dining choices.  Here is a quick list with a quick description and links to each restaurants.       

Breakfast 

 Snooze - A fun Vibrant spot for breakfast and lunch. 

The Buzz - A great spot to grab coffee, breakfast to go and treats. 

Burgers

ShakeShack Scottsdale - National chain, great spot to grab a burger. 

Zinburger - A great spot in the Quarter for a burger and nice Happy Hour. 

Casual Dining

Tommy Bahama's - Island Spirit comes to Scottsdale, great patio bar and dining. 

The CheeseCake Factory - The Menu that never quits, something for everyone. 

P.F. Chang's - Modern Chinese cuisine, world famous chicken lettuce wraps. 

True Kitchen - Taking farm to table to the next level. 

The Mission - An upscale restaurant/lounge serving modern Latin Cuisine and hand crafted cocktails 

NORTH Italia - A modern upscale Italian restaurant offering a great collection of seasonal favorites, pastas and pizzas.   

Fine Dining

Eddie V's Price Seafood - A sophisticated fine dining experience located at The Scottsdale Quarter. 

Dominicks Steakhouse - A luxurious Fine dining Experience located at The Scottsdale Quarter. 

Mastro's Ocean Club - Great spot for a Steak, some Scallups or just hang at the bar. 

Morton's The Steakhouse - A classic American Steakhouse

Scottsdale Real Estate Report August 2022

The Scottsdale Real Estate market seems to have found its footing in August.  After the traditional summer decline of June and July, that was augmented by a steep rise of mortgage interest rates, August pending sales and closings have picked up pace.  Scottsdale closings (494) were up 12% from July and with 427 new pending sales August sales were strong. 

The overall Maricopa County values and sales were slightly up to mostly flat month over month, down from the high of April of this year, see data below. Scottsdale Values were up slightly month over month but inline with the values seen earlier in the year.  The market seems to come to grips with new mortgage interest rates, which are higher than in Covid times are still very low in the mid to high 5% range.    

As we head into the fall (also know as still summer in Arizona) interest rates should edge up slightly, inventory should remain near current levels and sales should continue at similar pace as August.  The Frantic days of post Covid-Low Interest rates of March and April are gone, sales should continue are the more normal pace.   

If you are looking to buy or sell in Scottsdale please give us a call at the Dahl Real Estate Group, 480-630-3888.  With over 30 years and over $1 Billion in Real Estate Sales, Experience Matters.  

One Scottsdale - New Dining and Retail coming to North Scottsdale

If you live in Grayhawk, Silverstone or any other area of North Scottsdale and travel up and down Scottsdale Road you have certainly seen the new construction at Legacy and Scottsdale Road.  Have you asked yourself, what is going in there, or When will that be finished?  Well, read further to answers to both those questions.  What is going in 75 acre retail, dining, hotel and residential development aptly named One Scottsdale.  

One Scottsdale is a master plan commercial development by Scottsdale based DMB Development.  One Scottsdale will include the area along Scottsdale Road just North of Loop 101 between Legacy and Thompson Peak, as well the area just East of Scottsdale Road South of Legacy.  

The first portion of One Scottsdale, a Hilton Homes2Suite hotel will is scheduled to be completed by the end of the 2022.  The first of the retail and dining should be completed in the early part of 2023.  It will be a great addition to North Scottsdale to have more shopping and dining options North of the Loop 101.  

While the first dining and retail options will option in early 2023, the balance of One Scottsdale will be built out over the 7 to 10 years.  The larger portion of development South of Legacy will include New luxury Condos, Portico.  Portico has recently began sales to great fanfare, these luxury condos will be a great addition to the North Scottsdale Real Estate. 

The Dahl Real Estate Group is the local Scottsdale expert to call when buying or selling your next Scottsdale Home or Condo.  We offer over 30 years of Experience and Over $1 Billion in Real Estate Sales.  Give us a call 480-630-3888 and lets start a conversation about your Scottsdale Real Estate Needs. 

Scottsdale Real Estate Report July 2022

The Scottsdale Real Estate market continues its return to normal, that return to normal hit a bump in the road in July.  The bump in the road in this case was slower sales of the summer months that have been part of the Scottsdale and greater Phoenix market for better than two decades.  The normal slowing was absent over the very heated Covid-19 Real Estate market of 2020 and 2021, well we are back to normal, sort of.  

The data below shows a significant slow down in both total sales and values.  However, it is important to take a closer look at the data and see what is the underlying reason for the slowdown.  First, the traditional slower summer months accounts for a 20% drop in sales volume based on history.  Second, there was a large drop off in the higher end sales (many of those potential buyers were enjoying much needed vacations) therefore returning a lower average sales price for all Scottsdale home sales.  Third, the previous months, June data included included a record setting $28 Million sale, Altitude at Silverleaf, spiking the average sales price higher for June.

Month to month data can fluctuate a great deal when dealing with a small sample set such as just the City of Scottsdale, that is why most published real estate data is for the county vs a city.  When looking at Scottsdale prices from April 2022 to July 2022, overall prices are down 4.5% and Price per square foot is down 3.4%, the actual decline in prices probably falls somewhere in between those two numbers.  

So what is really going on with the Scottsdale Real Estate Market?  Well, the market is cooling from the heated pace of 2020 and 2021.  Incredibly low mortgage interest rates fueled that heated pace.  Mortgage rates jumped significantly from March to May, almost doubling in that time.  Mortgage Rates have now moderated in the mid 5% range, they  actually dropped last week after the FED raised the FED Funds rate, you read that correctly the FED raised rate and mortgage rates dropped, why is that.  Well the FED does not set mortgage rates, mortgage rates are more closely tied to 10 Year Bond which is set by the market.  The 10 year bond rate came down because the market thinks the FED will slow there FED Funds rate increases moving forward, that remains to be seen.  

That is a lot to take in when you are just looking at  buying or selling a home in Scottsdale.  To keep it simple (Too Late), buyers in this market will have more choices of finding the right home and may see some price declines but remember those price decreases will most likely be due to higher interest rates. 

Sellers should certainly pay close attention to pricing your home correctly, unlike the previous two years where a rapidly increasing market would correct a pricing error, a flatter market will make selling your overpriced home much harder.  As always correctly priced homes are selling quickly and over priced homes are not selling.  

The long term value of Real Estate and real estate in Scottsdale remain strong.  The valley has strong jobs, it is still a good value compared to other parts of the country and mortgage rates are sill at historically low levels in the mid 5% range.  As more of the market adjusts to the current mortgage rates, sales with strengthen. The Market will give back some of the price gains from the past two years 

Arizona Short Term Rental Law 2022- SB1168

Governor Doug Ducey recently signed into law AZ SB1168, a new Arizona Short-Term or Vacation Rental Law.  Short tern rentals have become very popular over the past few years in Arizona and Scottsdale specifically.  Scottsdale and all of Arizona is a desirable vacation destination and short term vacation rentals provide a different experience then the tradition hotel or Luxury Resort. With the increased popularity, some push back has come from local residents and local cities.  

The new Law, SB1168, see full text of law here, was passed to address some of these issues that have been brought up in the past year or so.  The law seems to be a fair compromise, even receiving the blessing of industry titan Airbnb.  

The first item the new law addresses is that local cities, CAN NOT prohibit sort-term rentals/vacation rentals in their cities, an obvious win for the short term rental owners.  Many cities were pressing for this possibility as an increase in large scale parties in Scottsdale and Paradise Valley recently has led to numerous complaints and pressure on city officials. 

The main win for the cities is the ability to require licenses or permits for the Short term Rentals.  This will allow them to collect fees (currently maxed at $250 per year) and impose fines, as well as collect information such as name, email, Proof of compliance with transaction tax licensure and emergency contact information.  It also provides for a "three strikes and you are out" the cities can cancel licenses and permits if a short term rental has three violations within a 12 month period.  

The big question is what does this mean to you and your Scottsdale Real Estate.  What the main impact of this bill will be is that over time there will be less short term or vacation rentals in Arizona, not significantly but less.  History teaches us that any time you bring more regulation into the marketplace,  there will be less participants in the marketplace. Some short term rental owners will simply leave the marketplace as they do not want to hassle with licenses and permits.  The short term/vacation rental market will remain strong in Scottsdale and all of Arizona because of all that the area offers to vacationers, there will just be slightly fewer options over time.    

Vi Scottsdale - Luxury Senior Living 

Growing old is a way of life, we are all going to grow old, it is just a matter of how you deal with it.  One option is moving into a senior living home and there are certainly many options available based on your individual needs.  One choice in Scottsdale is Vi Senior Living, they offer two locations in Scottsdale,  Vi at Silverstone and Vi at Grayhawk. 

Vi Senior Living offers a Life Plan Community also known as a continuing care community.  Vi Senior Living offers a few different purchase options that include a purchase and monthly fee based on the size of your home.  Both of these properties offer great locations in North Scottsdale, close to everything including being close to Honor Health Scottsdale Thompson Peak Medical Center.   You can discover more information from the sales team at either property, contact info below

Vi at Grayhawk - Website - 888-974-2913

Vi at Silverstone - Website - 888-980-3029

There are many senior living care options available based on your individual needs.  Dahl Real Estate Group would love to help you with the sell your family home as make your final move, give us a call to start a conversation 480-630-3888.  You may also want to get a quick free home valuation as you start your search, simply click below.