It’s not news that houses cost a lot in Scottsdale, especially in the northern part of the city, but just how expensive they are was detailed in a new report by real estate listing website PropertyShark.com.

It said 85262 – which covers most of northern Scottsdale – has the second highest median price for homes in the state.

The median cost of a house in that ZIP code? $1.4 million.

That’s behind only Paradise Valley’s 85253, with a $2.9 million median price that made it 34th in the nation.

The 85253 ZIP code has been in the country’s top 100 priciest the last four years in a row, but this year’s showing was the highest yet with a 33% year-over-year price increase.

“The wealthy enclave remained strong compared to the rest of the region, where transnational activity slowed and price growth faltered in the latter part of the year,” the report says.

Coming in right behind Scottsdale’s 85262 ZIP code was Carefree’s 85377, which has a median house price of $1.2 million.

The report drew on actual closing sales in order to reflect real market conditions instead of listing prices, which represent sellers’ goals.

Those goals can be lofty though.

Online real estate site Zillow has homes listed in the 85262 for as much as $2.8 million while Russ Lyon Sotheby’s, a high-end real estate agency in the area, has homes listed in the ZIP code for as much as $7.6 million.

The law of supply and demand is starting to even out in 85262, according to Tami Henderson, a Realtor with Russ Lyon Sotheby’s International Realty who has 15 listings in the ZIP code.

Over the last few years, sellers were in the driver’s seat and in some cases, they were able to put enormous price tags on even the most modest homes and realistically expect bids that were at or over asking price, she said.

But with including soaring mortgage interest rates slowing down the demand, buyers are again gaining an equal footing with sellers.

That means not only are buyers getting nicer homes with more amenities for their money, they are also getting homes that are ready to move into immediately, Henderson said.

Another benefit of an even market is that buyers now may submit an offer on a home without having to compete with dozens of other buyers for the same home.

During the peak of the last housing rush, sellers had more ability to offer their homes “as is,” meaning they were pushing necessary repairs onto the buyers while not offering any price discounts, Henderson said.

That’s not the case anymore though.

“There is more negotiation on both sides now,” she said.

Many of today’s buyers are seeking similar amenities in luxury homes, Henderson said.

Often, they want single-story homes with grand views. Many are looking for elevated homes.

Large kitchens with back and pantries are popular now. Especially sought are luxurious back pantries that offer workspace for meal prep along with extra sinks, dishwashers and sub-zero freezers.  

Glass walls creating seamless transitions from inside to outdoor living areas are also at the top of the list.

Also in demand are outdoor living spaces with deep covered patios, seating areas with large-screen TVs, zero-edge pools and outdoor kitchens.

While contemporary homes are still in high demand, “we are now seeing people gravitate back towards old world elegance, modern farmhouse and rustic ranch style to name a few,” Henderson said.

The ZIP code with the highest median price homes in the country is 94027 in San Mateo County, California, with $7.9 million. California had 18 of the top 25 ZIP codes in the country.

“As mortgage rates reached 20-year highs and the economy began to falter, the overall U.S. housing market saw sales drop and price growth slow,” the report says.

“Yet, among the 100 most expensive zip codes in the U.S., prices were on the upswing in even more locations this year than last, with 86% of zips experiencing increases.

“That said, prices did grow at a slightly slower pace this year compared to 2021. More precisely, medians increased by 25% or more in just 16 zips in 2022 compared to last year’s 25. Overall, 2022 median price changes ranged between +39% and -41%.”