Is 85254 Still the Magic Zip Code Amid Changing Real Estate Prices?

🏜️ Spotlight on 85254 — A Seller’s Snapshot

• Median sale price: ~$922,500 in June (+7.3% YoY)

• Homes sold: 222 in June (‑9.4% YoY)

• Time to contract: ~48 days average (down from 53)

• Sales competitiveness: “Somewhat competitive” — about 3% below asking on average, with inventory levels climbing daily.

Prices and sales are holding steady year over year, but an increase in inventory will level out prices, and potentially cause a decline in home prices.

📌 What this means for 85254 sellers: Prices are trending steady year-over-year, demand is holding steady, and moderate competition suggests the time is right—but positioning your home smartly is key to standing out.

📈 Market Action Index & Scottsdale Overview

Altos and First American data for Scottsdale (85254-85255):

• Market Action Index: ~35 (slight seller’s advantage) – plateauing from recent peaks

• Median list price: ~$1.3M city-wide; 85255 at ~$1.998M

• Inventory level: ~1,660 homes city-wide; tight supply in 85255 (≈309 homes)

• Days on Market (DOM): ~70 median, ~110 average DOM

• Price adjustments: 50–56% of homes see price drops; ~1–2% gain price increases; ~3–4% relisted

→ Interpretation: Sellers still enjoy an edge thanks to limited inventory, but over half of listings reduce price—signaling buyer caution and the need for competitive pricing and strong presentation.

📰 Regional & Economic Trends

• Luxury migration: Scottsdale is now the fastest-growing U.S. millionaire hub (125% growth from 2014–2024), drawing high-net-worth buyers seeking luxury homes and land

• City fundamentals: Low flat income tax (2.5%), booming tech sector, safe/resort-style living, and abundant acreage appeal reinforce buyer demand

• Phoenix metro context: Metro Phoenix inventory is up ~47% YoY, demand cooling, luxury sales support price stability while mid-range segments soften

The $Price per sq ft is holding steady meaning prices seem to be topping out.

🔍 85254 Compared to Broader Scottsdale

Metric	85254	Scottsdale City
Median Sale Price	$922K (+7.3%)	$910K (+7.1%)
Days on Market	~48 days	~69 days
Competition	Somewhat competitive, ~1 offer	Similar

📌 Takeaway: While broader Scottsdale feels slightly slower and pricier, 85254 moves faster—meaning well-marketed homes here can outpace the wider market.

🛠️ What Sellers Should Do Now

1. Price to market, not peak

   With over half the listings reducing price, a sharp yet realistic price point avoids dragging in DOM.

2. Stage and showcase expansion-ready luxury

   Buyers here seek move-in ready, well-appointed homes with space for upgrades—especially in 85254.

3. Highlight 85254’s advantage

   Quicker sales, solid price appreciation, and supply constraints make it desirable.

4. Leverage scarcity & confidence

   The MAI shows sellers still hold leverage—communicate that to justify pricing and terms.

5. Monitor price action

   With luxury demand shaping average figures, be adaptable if the sales heating up or cooling.

   
   

✅ Summary for Home Sellers

• Market condition: Gentle seller’s market—35 MAI, but plateaued

• Pricing: Up ~7% YoY; moderate competition, though price adjustments common

• Speed: 85254 homes contracting in ~48 days—well under metro average

• Demand trends: High-end migration, tech-driven buyers, limited inventory

• Recommendation: Price smartly to attract serious buyers quickly; stage for high-end appeal; market 85254’s speed advantage; be agile with buyer feedback.

What are real estate prices doing in Scottsdale Arizona?

🗣️ Final Pitch — Why choose Russ Lyon Sotheby’s, J Todd Simpson, Associate Broker:

I specialize in selling homes in 85254 and Scottsdale’s premium zip codes. I have lived here for over 25 years, have specialized in Luxury properties for over 25 years and our team has executed over $700Million in real estate transactions. With deep market insight and marketing strategies tailored to the unique demands of today’s luxury buyer—from staging to neighborhood-targeted outreach—I can ensure your property doesn’t sit. Let’s craft a listing that highlights your home’s best features, price it to perform—market it to get the most eyes on it, and get it sold.

Ready to explore your home’s market value and design a winning strategy? Let’s talk.

I love this quote: “ While your uncle Larry has a license and has sold two properties in the last year, our team has executed over $50M in transactions with 5-star feedback.”

Scottsdale Luxury Market top real estate Team