Phoenix area house prices up $23 per square foot in 9 months as of June 2012

Graphic depicting the $23 increase in price per square foot suggesting this is a good time to contact your Phoenix realtor to sell your investment propertyImagine it’s August of 2011. Now imagine you just asked me, a Metro Phoenix realtor, for my projections regarding home prices in our local real estate market for the upcoming summer of 2012. Now pretend I just pulled out my crystal ball, dusted it off, and boldly predicted a $23 per square foot increase in prices to begin the next summer. I also said you would be able to sell your house very quickly, even with no equity.

You may very well have said “Ron, peyote is a psychedelic drug native to Texas and Mexico. Are you having it imported to Arizona, and how much are you on right now?” Check here: Phoenix Housing Tracker Price Per square Foot.

This is a much more favorable time if you are considering selling your house. The chances of selling your home quickly in the Phoenix area are very good, and you may actually make some money in today’s market. Home prices were at $79 per square foot in August 2011. After closing out the month of May (9 months later) home prices across the entire Arizona regional MLS are $102 per square foot. This is the 1st time home prices (on the average) have been over $100 per square foot since December 2008. graphic of a Phoenix realtor taking a picture of a home for sale before placing it in the Arizona regional MLS

In practical terms a 2,000 square foot home would be worth $46,000 more than it was 9 months ago (2,000 SF multiplied by $23 = $46,000). People may even begin to have equity in their homes again. This has happened because of low inventory and bidding wars. Read more here: 47 Offers for a Bank Home Foreclosure in Phoenix.   Additionally, demand for homes has averaged 8,589 sales per month from March-May with the most recent month of May having 8,425 home sales. Get that information here: Phoenix Home Sales and Housing Tracker.

$102 per square foot is the average across the entire Phoenix MLS. Here’s a look at 10 popular cities and how they rank:

  • Scottsdale-$158
  • Ahwatukee-$118
  • Chandler-$105
  • Tempe-$104
  • Gilbert-$97
  • Phoenix-$92
  • Mesa-$87
  • Queen Creek-$77
  • Glendale-$73
  • Town of Maricopa-$54

Every one of the above cities has an inventory turnover of less than 1 month (with the exception of Scottsdale that has 2.1 months of inventory on hand). 9 months ago those same cities were turning inventory every 1.5 – 2.0 months.

Averages aside, prices can vary considerably from subdivision to subdivision and from city to city (as seen above). Contact us for a free market analysis if you are seriously considering selling your house.  We have a great marketing program to help you sell your house quickly in Phoenix and maximize your profit. See here for details: Sell my Phoenix area home

About the author: Ron Wilczek has been a Real Estate Agent since 1999 and the broker/owner of Metro Phoenix Homes since 2009. He represents clients in resale, new home construction, investment homes, and multi-family investments. He has been an avid blogger since 2008 concentrating on the Phoenix Housing Market with his “Facts, no Fiction” style.

Home Buyer Tools, Hot Real Estate News, Phoenix Housing Tracker Stats

Comments on this entry are closed.

  • Laurie Madsen Jun 14, 2012

    Yeah! My home is worth more.

  • Tyler S. Jun 14, 2012

    The banks will release more inventory and prices will drop again. Phoenix can’t be that much different from the rest of the country. Prices are still dropping across the country.

  • BigTex Jun 15, 2012

    Fantastic! Maybe I can take out a HELOC on my house. I could go on vacations, pay off debt, have a generally great time — then quit making payments and lose the house to foreclosure. No wait … did that once already. :-)

  • Missy Jun 16, 2012

    Interesting to see the cities above and below the Phoenix average. East Valley still rocks!

  • Jack Jun 16, 2012

    We have properties in Tempe and Ahwatukee. Ahwatukee has remained relatively strong over the last few years, but it’s good to see Tempe rising over $100 per square foot again.

  • Mick Jun 16, 2012

    It seems so surreal that prices could be going up that quickly. We have been deciding if we should buy a home for 2 years. Based on income and credit we have strong qualifications. We just never pulled the trigger because we kept thinking we could get a really good deal. Looks like that time is past.

    • Ron Wilczek Jun 16, 2012

      Mick, the time is not past. We’ve recently written that prices are still lower than they were 10 years ago AND interest rates are historically low. You can avoid some of the competition on today’s market by getting qualified for a FHA 203K rehabilitation loan and bidding on HUD properties.

  • Tim1951 Jun 16, 2012

    Housing growth is exploding in the West as a whole (up 20.6% Y-o-y), whereas the rest of the nation is more mild.

    A quick break down of the regions as defined by the US Census:

    NorthEast: down 3.7%
    South: Up 8.8%
    Midwest: Up 9.0%
    West: 20.6%

  • DJ Jun 18, 2012

    I just saw a report on CNN by about how the wealth of Americans has gone down considerably over the last 4 years. Of course most of that is because of the declining values of real estate due to foreclosures and such. It’s good to hear that we’re regaining some of that wealth in the Phoenix area.

    Funny comment Big Tex!

  • KLM Jun 18, 2012

    We talked in the past and I know how you do your numbers and I trust them. The question is how much higher do you think they’ll go? We all know what happened in 2005. Consumers, lenders, appraisers, and realtors (oh, and the federal government) would all be crazy to let the same thing happen again. But where does it stop?

    • Ron Wilczek Jun 18, 2012

      KLM — Wait … let me pull out that crystal ball I mentioned in the article and see what it says. I’m getting something … it’s saying “people want economic recovery badly and their judgment is clouded … clear the future is not” (that last part sounded like Yoda … I wonder if I have Yoda’s crystal ball?!) Seriously, supply and demand is at work here. The real answer will depend on many factors including the people you just mentioned (consumers, lenders, appraisers, realtors and the federal government) and how they all interact together. But we must add in a dose of the ever elusive “shadow inventory,” shaky employment, and consumer confidence.

  • Lenny M. Jun 18, 2012

    Let’s think about this. I have a choice of buying a used home, or a brand new home with the bells and whistles that I want, and that new house will probably cost less than the used home that could have outdated electric and plumbing problems which way should I go?

    I think the new home where everything is under warranty and if there are problems it’s repaired by the builder. A used home ready for foreclosure has a value of $25,000++ below the new home price and hidden problems inside the door.

  • Benjamin K. Jun 18, 2012

    Phoenix had the biggest drops in home prices after the crash so it makes sense that they would see gains in home prices sooner than other places that didn’t lose as much.