Is Scottsdale Arizona Overpriced? Latest data and trends in North Scottsdale Real Estate.

Are Home Prices Dropping in Scottsdale AZ?

If you’re an out-of-state buyer eyeing the North Scottsdale luxury real estate market, you’re likely wondering about price trends amid broader economic shifts. Scottsdale, Arizona, renowned for its upscale lifestyle, shopping, sports, world-class golf courses, and stunning desert vistas, continues to attract discerning buyers from across the country. As of September 2025, the market shows signs of cooling in some segments, but the luxury sector—particularly in North Scottsdale—remains resilient. Drawing from reliable sources like Zillow, Realtor.com, and the Cromford Report, along with detailed graphs from local market analyses, this overview will help you navigate the current landscape and decide if now is the right time to invest.

Overall Scottsdale Real Estate Market Trends

The Scottsdale housing market in 2025 presents a nuanced picture. According to Zillow, the average home value stands at $831,655, reflecting a modest 1.0% decline year-over-year. Redfin reports a more pronounced drop, with the median sale price at $820,000, down 8.9% from last year, and homes taking an average of 79 days to sell. However, Realtor.com paints a different view for listings, with the median listing price at $1 million, up 4.6% year-over-year, and a median price per square foot of $461. What really matters? Inventory. Over the last 45 days Inventory in North Scottsdale has decreased, Pending Contracts have increased and inventory levels are dropping. The drop in inventory has actually put North Scottsdale in a “Seller-Favored” category.

According to Cromford, Scottsdale has moved from a balanced Market to a Sellers market.

Insights from the Cromford Report indicate a shift toward a buyer’s market in many areas, but not in North Scottsdale. With increased sales, and lower inventory, the luxury segment bucks this trend. High-end homes over $2 million are seeing stronger demand, with the report noting that luxury closings are holding firm despite broader market softening. This resilience is driven by Scottsdale’s appeal to affluent buyers, including retirees and remote professionals relocating from high-tax states like California. Homes that are in prestigious communities, with access to golf or a country-club atmosphere are holding strong. (www.LiveInScottsdale.com)

For out-of-state buyers, this means opportunities in a market that’s becoming more balanced. Inventory has risen—Houzeo notes a 23% increase year-over-year, with a 4.3-month supply—giving you more choices without the frenzy of bidding wars seen in prior years. However, expect competition in prime luxury enclaves, where desirable properties still command premiums.

Key Zip Codes in North Scottsdale Luxury Market

North Scottsdale’s luxury market spans several key zip codes, each with unique characteristics. Based on recent data and attached graphs illustrating median prices, inventory levels, and price per square foot trends, here’s a breakdown tailored to help you pinpoint areas aligning with your preferences:

• 85255 (DC Ranch, Grayhawk, McDowell Mountain Ranch): This zip code epitomizes North Scottsdale luxury, with gated communities and proximity to hiking trails. Zillow shows an average home value of $2,148,351, up 0.4% year-over-year. Realtor.com reports a median listing price of $2.1 million, down 7.8%, while Redfin’s median sale price is $1.5 million, up 0.3%. Attached graphs highlight steady price per square foot at around $581, with inventory up but luxury sales robust, making it ideal for buyers seeking modern estates.

  

  Luxury Real Estate Market in 85255 Zip Code

• 85266 (Boulders, Whisper Rock, Terravita): Known for its rugged desert beauty and exclusive golf communities, this area maintains strong values. Zillow’s average is $1,700,989, up 0.1%. Realtor.com lists a median of $1.7 million, flat year-over-year, but Redfin shows a median sale of $1.5 million, down 3.7%. Graphs from local reports show price per square foot at $521, with longer days on market (139 days average), suggesting room for negotiation on non-premium properties.

  

  Russ Lyon Sothebys leads the all other brokerages by nearly 3 to 1 in the North Scottsdale Luxury Market

• 85254 (Kierland, Paradise Valley Farms): A blend of luxury and family-friendly vibes, this zip offers access to top schools, large lots, mature landscaping, and shopping. Values here are slightly softer: Zillow at $1074,443, down 0.2%; Realtor.com median listing $999,000, up 3.8%; Redfin median sale $943,000, up 8.7%. Attached visuals indicate a median price per square foot of $456, with faster sales (80days), appealing for buyers wanting quicker closings. This zip code gives you an in-city feel, with access to all the fine dinning, the TPC Golf Course, as well as Kierland, The Quarter, and PV Reimagined Mall. If you want a family-feel community, or a lock and leave, this may be the zip code you want.

  

  J. Todd Simpson, Top-Tiered local Realtor at Russ Lyon Sothebys in North Scottsdale

• 85262 (Desert Mountain, Rio Verde): The pinnacle of North Scottsdale exclusivity, with vast estates and private clubs. This zip is seeing growth: Zillow average $2,100,543, up 1.3%; Realtor.com median listing $1.8 million, up 13.4%; Redfin median sale $1.7 million, up 6.1%. This zip code has a few unique attributes. On one hand you have the world rebound Desert Mountain Golf Community, while just down the road are 2-3 acres horse ranches. This area appeals to golf lovers, car lovers, and some of the best hiking trails in the Valley. Atached graphs underscore rising price per square foot at $567, with low inventory driving premiums for top-tier listings.

  
  

  

  Luxury Home Prices are Strong in North Scottsdale especially gated golf course communities.

  
  

These zip codes collectively demonstrate North Scottsdale’s strength in luxury, with attached graphs showing year-over-year price stability and gains in high-end segments, contrasted by softer mid-range values.

The Anomaly in Scottsdale’s Market

While overall prices in Scottsdale may show early signs of decline—driven by higher interest rates around 6-6.5% and increased inventory—an interesting divergence is emerging. Newly constructed homes and those undergoing full remodels are commanding top dollar, with price per square foot either holding steady or edging upward. Buyers are prioritizing turnkey properties that require no immediate work, reflecting a reluctance to tackle “honey-do” lists amid record high prices and down payments.

Conversely, homes needing updates, repairs, or maintenance are lingering on the market longer, often necessitating price reductions to attract offers. This split, highlighted in Cromford Report analyses and supported by attached graphs on days on market and price adjustments, creates opportunities for savvy out-of-state buyers. If you’re willing to invest in renovations, you could secure a luxury property at a relative discount; otherwise, focus on premium, move-in-ready options where values remain firm.

Advice for Out-of-State Buyers

Why is Scottsdale so popular? Consider Scottsdale’s year-round appeal: mild winters, vibrant culture, easy access, strong long-term demand and tax advantages make it a smart long-term investment. With mortgage rates stabilizing, now could be an opportune time to enter, especially as inventory grows. Work with a local expert to navigate inspections, water rights, and HOA nuances unique to Arizona. Let an expert, like J. Todd Simpson (https://share.google/tMnWKY70aM4AvFmKk) help you locate, and procure the home of your dreams. His 5-Star reviews showcase his expertise, knowledge, understanding of the Market and his desire to listen to the needs of his clients.

For personalized guidance, reach out to a trusted professional, like J. Todd Simpson at Russ Lyon Sotheby’s International Real Estate. Use the Top-Brokerage with one of the Top-Tiered Agents in all of Scottsdale, Paradise Valley, Cave Creek and Carefree. As part of the Van Patten Luxury Group, we bring over 70 years of combined experience and nearly $1 billion in real estate transactions. Our success stems from numerous 5-star reviews and a relentless focus on client results, ensuring every transaction is seamless and rewarding. https://share.google/tMnWKY70aM4AvFmKk

You can reach Todd at (480)465-1504 or Todd.Simpson@RussLyon.com

What is the best Real Estate Brokerage in Scottsdale? Russ Lyon Sothebys and the Van Patten Luxury Group.