Metro-Phoenix residential home prices rising fastest in some of the most affordable communities
Metro-Phoenix home prices are rising most rapidly in a number of area communities, from Phoenix to Mesa—popular areas among younger buyers—and first-time Millennial homebuyers are driving the trend.
The first-time homebuyer market is bursting. Young house hunters have grown tired of renting and they can afford to buy their own homes.
Low inventory in the Metro-Phoenix area is also contributing to the price increases, and sellers are receiving bids well above their asking price. Without more homeowners deciding to sell in these affordable areas, it could get tougher for first-time buyers to handle the expense.
According to the Cromford Report, the number of Valley homes priced under $350,000 on the market is down nearly 20 percent from 2017.
Close to one-third of the Valley’s zip codes saw double-digit percentage price increases in 2017, according to The Arizona Republic/azcentral Street Scout Home Values report.
Between 2004–2006, the housing boom inflated home prices and sales. Investors drove sales as foreclosures mounted and prices plunged between 2010 – 2012.
But in a number of Phoenix-area neighborhoods, home prices have doubled area since the bottom of the market. Apart from the 30 ZIP codes in which home prices have rebounded from the crash, prices in an additional 40 neighborhoods are within 10 percent of recovering.
Metro-Phoenix home prices rising