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Home Prices Spiking at High and Low End; What’s Happening Near You?

05-15-2018About MortgagesEddie Knoell

A recent report by Street Scout identified the Phoenix Valley neighborhoods with fastest and slowest growing appreciation. Wondering where your neighborhood falls on the list? We’ve organized the Valley’s 10 fastest appreciating and depreciating zip codes in bullet format.

Phoenix Valley’s 6 Fastest Rising Neighborhoods

We’ve identified six neighborhoods where prices are increasing at well over ten percent per year.

What do these neighborhoods all have in common? They are near urban core areas such as downtown Phoenix, Scottsdale and Mesa. It’s clear that regardless of the price range they’re in, buyers are looking for neighborhoods that are conveniently located to their work or amenities such as restaurants and shopping.

Street Scout’s report shows prices are rising fastest in affordable neighborhoods near downtown Phoenix, but also in Paradise Valley, the Phoenix area’s most expensive neighborhood. The six fastest rising neighborhoods are:

  1. 85009 – (Downtown Phoenix) up 22 percent; 2017 median price: $124,000
  2. 85040 – (Sky Harbor) up 20 percent; 2017 median price: $165,000
  3. 85004 – (Downtown Phoenix) up 16.8 percent; 2017 median price: $336,625
  4. 85253 – (Paradise Valley) up 14.29 percent; 2017 median price $1,400,000
  5. 85012 – (Downtown Phoenix) up 14.03 percent; 2017 median price: $552,500
  6. 85015 – (Downtown Phoenix) up 13 percent; 2017 median price: $209,950

4 Neighborhoods Where Prices are Declining

Interestingly, not all neighborhoods are seeing prices rise. Driven by millennial homebuyer preferences for short commutes and walkable neighborhoods, some rural and exurban areas of Phoenix Valley are seeing price declines. The takeaway? That old saw about “drive ‘til you qualify” no longer seems to appeal to today’s entry level buyers.

Areas seeing declining prices include:

  1. 85342 – down 6.95 percent, 2017 median price $151,000
  2. 85354 – down 4.1 percent, 2017 median $144,000
  3. 85262 – down 3.8 percent, 2017 median price $708,000
  4. 85087 – down 2.58 percent, 2017 median price $329,495

What’s Normal?

The zipcodes above indicate the outliers in the Phoenix area, but what’s happening to Phoenix prices more typically? According to Cromford Reports, the median sales price for the Greater Phoenix / ARMLS in 2018 so far is $252,985. That’s an increase of 5.1 percent over 2017; approaching the all-time high median price of $257,000 posted in 2006.

Wondering what’s happening in your neighborhood? Check out Street Scout’s home values map.