Cooling Sales of Scottsdale Homes Could Cause Recession

In just two years, the prices of Scottsdale homes “have risen so far so fast that the ‘typical’ family only has 80 percent of the income necessary to qualify for a mortgage on the ‘typical’ home.”

As long-term mortgage rates inevitably increase, there won’t be many locals left who will be able to afford Scottsdale homes, so prices will be forced to cool. The one concern of economists is that the cooling may cause a recession.

As consumers begin to close their wallets to the Scottsdale real estate market, there may be far-reaching implications for an area that so greatly benefited from the housing boom.

The strong Scottsdale homes market created hundreds of jobs in construction, banking and real estate. “If that disappears, a basic driver for the local economy disappears.”