Phoenix Real Estate Market October Recap

Looking for the latest trends in Phoenix real estate market? October showed that Phoenix can stay hot in the cooler months.

We saw record-breaking sales, higher rent prices and even stronger growth in Phoenix Real estate. Despite a drop in new listings, Phoenix real estate continues to lead the nation with yearly, and month over month growth!

Here are the must-know Phoenix real estate market trends for October!

New Listings Dropped 3%

The first 3 weeks of October produced 6,515 new listings across Greater Phoenix from 6,708 last year and is the lowest count we have ever seen in these 3 weeks. New listings are down 3% from last year.

Newer Listings were slightly higher in September than last year. October has gone back to the same weak inventory we saw this summer.

With the Phoenix real estate market on the rise, the median home value in Phoenix is $285,000. Phoenix home values have gone up 4.6% over the past year.

The median list price per square foot in Phoenix is $174, which is higher than the Phoenix-Mesa-Scottsdale Metro average of $165.

The median price of homes currently listed in Phoenix is $285,000 while the median price of homes that sold is $237,400. The median rent price in Phoenix is $1,499, which is lower than the Phoenix-Mesa-Scottsdale Metro median of $1,595.

Phoenix Ranks #1 For Growth

Phoenix real estate market leads the nation for month-over-month and year-over-year growth. The S&P Case-Shiller® Home Price Index® for August 2019. It covers sales between June 1 and August 31.

Here are the month to month changes:

1. Phoenix +0.90%
2. Tampa +0.34%
3. Miami +0.34%
4. Cleveland +0.28%
5. Atlanta +0.23%
6. Minneapolis +0.17%
7. Charlotte +0.14%
8. Boston +0.12%
9. New York +0.12%
10. Detroit +0.11%

The year over year changes was as follows:

1. Phoenix +6.3%
2. Charlotte +4.5%
3. Tampa +4.3%
4. Atlanta +4.0%
5. Boston +3.9%
6. Minneapolis +3.9%
7. Detroit +3.8%
8. Las Vegas +3.3%
9. Cleveland +2.9%
10. Denver +2.9%

With the national average for month-over-month growth was +.20%, where Phoenix checks in for .90% soaring to the top. The national year-over-year changes were 3.2% and Phoenix landed 6.3% for growth.

The Highest Rents In the Valley

Despite the fact rental rates nationwide are cooling, rental rates continue to rise in metro Phoenix.

Rent Cafe looked at ZIP codes in more than 130 markets in the U.S. and examined rents at about 15 million apartment units in properties that had more than 50 rental units. Average rent price data for July was provided by Yardi Matrix, an apartment market intelligence source, and RentCafe’s sister company.

The national average apartment rent increased by 3.3% to $1,472 in August compared with the same month a year ago, according to RentCafe.

In the Valley, the ZIP code with the most expensive apartments is in Scottsdale, with average rent that is nearly $300 more than the national average. Trulia reported that the median rental price in Scottsdale for the past 12 months was $2,270.

During that same time period, the average rent at the Phoenix metro level was $1,176, increasing a whopping 8%, or $86.

Here’s a quick look at the most expensive rentals in Arizona, by zip code, average rent, and year over year growth, according to RentCafe:

• 85254        $1,856        +7.8%
• 85251        $1,764        +7.3%
• 85004        $1,762        +3.3%
• 85255        $1,667        +5.0%
• 85003         $1,608        +4.4%

Chandler and Phoenix real estate both made appearances on the list. Both Promising places for new rentals.

Price Per Square Foot Jumps Up

This year continues to buck trends and keep everyone on their toes. The Current price per square foot clocks in at $181.97, the highest the Cromford Report has seen since the bubble back in 2005.

The recent advance is even more extreme for condos and townhomes, reaching $210.03.

Despite the current listing prices, cities in Arizona have been slowly dropping in their CMI ratings. In fact, only 3 of the 17 cities are showing improvement for sellers. These are Cave Creek, Tempe, and Peoria.

The largest declines seen were in Buckeye, Paradise Valley, Fountain Hills, Goodyear, and Avondale. Affordability and Inventory are still one of the biggest issues facing buyers in the Phoenix real estate market.

The County With 19% Increase In Closed Listings

October refreshed our inventory, but any new listings were quickly swooped up all over Phoenix. Greater Phoenix real estate saw a 6% increase in closed listings in October, which was easily overshadowed by the insane amount closed in Pinal County.

Pinal county saw almost a 20% increase in closed listings in October, jumping from 393 in 2018 to 470 in 2019 alone. Pinal County Includes the following City: Maricopa, Casa Grande, San Tan Valley, and others. This prompted us to take a peek into some of the larger markets in Pinal County, using Trulia.

Casa Grande has performed well and even saw some increases price per square footage in the past month. Trulia stated that the median sales price is $195,000, and homes are selling for about $124/sqft (increased by $10 last month). Generally speaking, Casa Grande has about 336 homes for sale, on average per month

Maricopa boosts more inventory than other cities, and a hefty median sales price is $219,900.

Homes are selling for about $112/sqft and increased by $1 dollar in September. Maricopa may be a relief for some investors who are scrambling to find flips. This area usually has 485 homes for sale.

San Tan Valley had a large spike in their median sales price last month. The median sales price is $245,000 and increased by $5000 in the last month alone. Homes are selling for about $126/sqft, and offers the most inventory of the three with about 554 homes for sale.

With such large growth in Pinal County, could this be the next big investing hub as Phoenix real estate market continues to become more competitive and inventory still struggles?

A Record-Breaking Sale In Prescott

The trending story in Phoenix Real Estate! A new record was set in real estate last week. An elegant luxury Prescott estate listed by Russ Lyon Sotheby’s International Realty closed for $2,050,000 making it the most significant luxury home sale to date in the area since 2017.

Prescott has seen some great movements in their markets.

Prescott’s home resale inventories are 157, which increased 9% since September 2019. The median list price per square foot in Prescott is $230. September 2019 was $227.

It wasn’t a surprise that Prescott boasted such a sale. The median list price in Prescott is $646,000.  With the average list size of 2,786 square feet.

Prescott has seen it’s list price flux slightly downward. A drop of 2% from September to October.

Who and where will the record break next?

A $54 Million Dollar Deal In Desert Ridge

Some much-needed development is set to finally start in Big Phoenix’s Desert Ridge City North. When development starts this could lead to a huge influx of inventory to the area. Crown Realty won the bid for the largest parcel of land, with 96.5 acres, in Desert Ridge’s core referred to as City North.

Crown Realty is buying the land for $54 million which had been valued at more than $120 million, according to court documents. Crown Realty which developed the Montelucia resort in Paradise Valley, also won the role to be “master developer” of Desert Ridge’s remaining 2,000 acres of vacant land.

The nearly 97-acre parcel Crown acquired is east of Desert Ridge Marketplace. It’s zoned for about 2,500 residential units, 2 million square feet of office, 500 hotel rooms and 100,000 square feet of retail.

Construction on the first phase, including new roads, will start in a few months, according to the developer.

The ideal to add a new Phoenix center with easy access to key amenities, short communities, and great living options.

Desert Ridge currently has a strong real estate market and these plans could easily skyrocket in the future. The Current house sale price checks in at $385,000. The price per square foot has increased by 3.8% from last year, with the average for square foot price $220.

Summary:

Phoenix real estate market continues to grow and shows no intention of slowing down. With listings down, rents and home prices continue to rise.

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Phoenix real estate market refused to slow down in October and we continue to lead the nation for growth. Here were the top headlines in Phoenix this past month!

1. New Listings Dropped 3%
2. Phoenix Ranked #1 For Growth
3. Scottsdale had the Highest Rents In The Valley
4. Price Per Square Foot Increased
5. Pinal County Saw 19% Increase in Closed Listings
6. A Record-breaking Salee Happened In Prescott
7. $54 Million Dollar Deal Happened In Desert Ridge

What was a top story we missed?