Wealthy part-time residents, deep-pocketed
golfers and affluent families have quietly
transformed north Scottsdale into a
luxury-home hub in less than a decade.
Home prices in the 85260 ZIP code, still a
relatively affordable part of the sprawling
north Scottsdale market, shot up almost 18
percent in 2003 after single-digit gains in the
previous four years, according to The Arizona
Republic's Valley Home Values report.
The typical house in the area that is split by
the Loop 101 and home to the booming Scottsdale
Airport commercial hub now costs about $324,000,
more than double the median home price for the
Valley.
In the city overall, prices increased 10 percent
between 2002 and 2003, triple the increase in
Mesa.
The increase is even more dramatic considering
that a new Scottsdale home sold for $162,000 in
1993, according to the Arizona Real Estate
Center. That's a 237 percent jump. Part of that
is because a wider variety of houses was being
built in the former bedroom community.
Now most of the city's new homes are going up in
north Scottsdale, which starts at Bell Road and
spans north and east to the McDowell Mountains.
Carol Greenidge moved from Colorado to Arizona
in November and closed on a 2,100-square-foot
house in DC Ranch in January.
She likes being close to her daughter, who lives
in Cave Creek, as well as the freeway and
the convenience of nearby shopping, art
galleries and restaurants. In Colorado, she
drove 20 minutes to Safeway. Here, it's a minute
away.
Greenidge, 58, also looked for houses in
Grayhawk, Troon and McDowell Mountain Ranch
before she bought in DC Ranch.
A psychotherapist in Colorado, she wanted a
change of scenery and is looking for a new
occupation, maybe something involving art, that
doesn't involve clients calling at night.
"The 7-foot blizzard last March 19 had something
to do with it," she added. "I was housebound for
six days."
Greenidge bought in a Scottsdale area
where overall values have been on a roll. The
average house overall, new and resale, in the
85255 ZIP that is home to DC Ranch cost $249,100
in 1998. That number jumped to $426,000 last
year. The gains came amid a falloff in the
number of sales.
There is less land to develop there and in the
adjacent ZIP codes, which make up the pricey
north Scottsdale market.
And prices are expected to keep climbing as land
becomes scarcer. DC Ranch had 1,000 people
interested in new neighborhoods before they were
publicly announced in February.
Don't expect another wave of large luxury
enclaves such as Troon, DC Ranch, Grayhawk or
Desert Mountain.
"Supply and demand is driver of the marketplace
in Scottsdale," said Ron Coleman of Arizona Land
Advisors. "It will continue to be that way for
the next 10 years. That equation will continue
to drive prices higher."
Coleman noted that Scottsdale is nearly
built out and much of the state land in the area
is targeted for preservation, pushing prices for
remaining land higher.
That means developers who shell out big bucks
for land need to build the sort of projects that
deliver high returns rather than production
subdivisions.
"Scottsdale still has room to grow," he said.
"But we will be more like Tempe and Buckeye. We
will continue to grow, but it will be all about
quality rather than quantity."
Scottsdale covers 117,000 acres. Developers and
investors already tied up most of the vacant
land available.
That's one reason why about 1,000 potential
buyers are asking for information about some new
neighborhoods in DC Ranch months before models
open later this year. Brent Herrington, vice
president of DMB, said the development company
may use a lottery to pick buyers if there's a
huge demand.
"We're hoping we don't have to implement that
kind of tool," he said. "But it just becomes too
much a circus."
Considering the high prices and the Valley's
relatively low median income, many wonder who
can afford to buy there unless they are selling
a high-priced house out of state.
There's a lot of quiet wealth in the Valley.
It's not just money from out-of-town buying
luxury homes in north Scottsdale.
Glen Creno
The Arizona Republic
Desert Showcase
