Average price per square foot increases in Phoenix metro
Recently released statistics show the average square-foot price in Sun City West, Arizona, increased in July. A month prior, Sun City West was one of many communities in the area that saw a decrease in prices. Real estate in Phoenix and its surroundings experienced price increases in nearly every ZIP code in July, according to iStockAnalyst.
According to the Daily News-Sun, the price per square foot of a home in Sun City West increased nearly $2, from $93.95 to $95.86 year-over-year in July. However, the average home price in Maricopa and Pinal counties in July dropped slightly to $149,000 from $150,000. This drop is reflected by the standard summer home sale decline, especially in an area that has seen an incredible increase in price in the past few months.
High end areas like Scottsdale and Paradise Valley have gone through increased prices, as well. The average price per square foot in these areas went up 9 and 12 percent, respectively. The median single-family home in the Phoenix area is up 30.7 percent over last July, noting a 21.2 percent increase in the average per square foot prices. The only areas near Phoenix that experienced a decline in average price per square foot are Rio Verde and Sun Lakes. Experts believe that the upward trend will continue through September or October.
“Seventy-eight percent of the existing homes available for sale are priced above $150,000,” Mike Orr, director of the Center for Real Estate Theory and Practice at the W.P. Carey School of Business at Arizona State University 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.”
Similarly, rents across the county continue to rise, 0.2 percent month-over-month and 5.9 percent year-over-year, according to the Sacramento Bee. This trend is making it even more appealing to buy, especially as home prices in Phoenix are 46 percent lower than they were five years ago, according to the Phoenix Business Journal. In July, the index was 154.84, which was one of the top seven declines out of 102 markets with populations of 500,000 or more.