What a difference a year has made in the Phoenix, AZ West Valley housing market. The latest numbers from the W.P. Carey School of Business at Arizona State University show that the average square-foot price received by sellers in the following West Valley Cities is up from July 2011 to July 2012.
Surprise – $61.93 to $76.3
Peoria – $76.58 to $95.33
Glendale– $62.48 to $79.07
El Mirage – $43.28 to $55.48
Goodyear – $66.00 to $86.00
Litchfield Park – $69.00 to $85.00
Buckeye – $49.00 to 61.00
Avondale – $51.00 to $66.00
Last month, in the ASU analysis of the Valley housing market, Sun City West was one of a handful of communities that saw a per-square-foot decline. The ASU study also showed that one of the only things to cool down this summer in the Valley has been rising home prices.
The median single-family home price in Maricopa and Pinal counties in July 2012 was $149,000, slightly down from $150,000 in June. Even though this was the first monthly median drop since last summer, the report’s author, Mike Orr, does not think it indicates a reversal.
“This small drop is likely a reflection of both the normal, annual summer slowdown in the Phoenix-area housing market and a natural pause in the soaring prices we’ve seen here,” said Orr, director of the Center for Real Estate Theory and Practice at the W.P. Carey School of Business. “Prices are likely to resume their upward direction in late September or October.”
The median single-family price was still up 30.7 percent from July 2011, when it was at $114,000. Realtors will note the average price per square foot went up 21.1 percent from last July.
“Seventy-eight percent of the existing homes available for sale are priced above $150,000,” Orr said. “That means competition for the other 22 percent is fierce. Most homes priced below even $250,000 are attracting a large number of offers within a short time, and offers often exceed the asking price. Ordinary home buyers are still struggling to compete with investors who offer all-cash, with no appraisal required.”
In fact, 54 percent of the homes that sold for $150,000 or less in July went to all-cash buyers, the report stated. The low supply in this range has many people turning to new-home construction. As a result, new construction permits went up a massive 87 percent from July 2011 to July 2012, Orr said. NEW Home Sales went up 58 percent year-over-year.
Almost all cities thoughout the Valley of the Sun – Metro Phoenix Area, have seen prices go up since last summer. Even the high-end areas of Scottsdale and Paradise Valley have had average prices per square foot go up 9 and 12 percent, respectively.