Valley home sales and prices are up and expected to keep climbing based on last month’s pace.
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Maricopa County home values climbed almost double 2015’s rate.
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Housing prices up in the Valley
What’s that home worth?
Home valuations in the Phoenix area, by the numbers
Metro Phoenix is in the midst of a condo building boom that is spreading to the suburbs.
Home builders are already constructing more townhomes and casita-style houses in Surprise, Peoria and Litchfield Park.
Infill condos in Glendale and the downtowns of other West Valley cities could follow if demand for the homes heats up as it has in other parts of metro Phoenix.
Now, condo developers are building high rises near downtowns, luxury loft-style homes next to shopping centers and smaller infill-connected homes in popular neighborhoods of Phoenix, Scottsdale and Tempe at a record pace.
Since last year, condo sales throughout the Valley have almost tripled, while prices are up 17 percent, outpacing gains for the housing market as a whole.
“Condos are gaining market share in the Phoenix area, selling in larger numbers and seeing higher prices,” said real estate analyst Mike Orr with the Cromford Report.
No big new condo projects are underway yet in the West Valley. But during the past few years, Valley condo developers have followed new infill apartments to popular neighborhoods.
And there are a couple of new upscale multi-family rental complexes planned or underway in Glendale, Goodyear, Surprise and Peoria.
Also, older condos in west Phoenix and Glendale are drawing more buyers and investors, who are renovating the homes. That is also often a sign new condo development could follow during the next few years.
Housing shift underway
A shift toward denser infill housing for metro Phoenix is occurring mainly because of changing lifestyles of baby boomers and millennials, who want luxury residences with the amenities of an urban setting.
Also, rising home values, in general, are helping people sell homes farther out and move closer in.
After their kids had graduated from high school, Lisa and Gregg Larson were ready to move from their north Scottsdale house into a smaller home.
The couple began looking a few years ago and put an offer on a downtown Scottsdale condo that fell through. Then last year, they saw the Enclave at the Borgata and bought their 3,000-square-foot loft condo near Lincoln and Scottsdale roads for more than $1.7 million.
“We moved from a 6,000-square-foot home but don’t feel cramped at all,” Lisa Larson said. “It’s like we have a custom home built just for us, surrounded by great places we can walk to.”
Most of the buyers of new metro Phoenix condos are either Millennials or empty nesters like the Larsons. Both groups want to be closer to restaurants, shops, job and often light rail. And they don’t want the upkeep of a house with a yard, so they can travel and go out more.
Urban homes in suburban settings
The desire for that connectivity feeling could lead to more condos and urban-style homes going up in metro Phoenix suburbs farther out.
Developers are trying to figure out where the next great hub for new condos will be in the southwest and southeast Valley.
“Behind the Valley’s infill growth is a trend toward people wanting to live near places they can interact with their neighbors more. said real estate analyst Mark Stapp, director of the Master of Real Estate Development program at Arizona State University.
“More suburban developments in the Valley can have that urban feel,” he said.
Go to StreetScout.com
Check out the newest features on Street Scout. We have launched additions to our real-estate website designed to help you find a place to live and thrive, whether you are buying or renting.
- Get the latest real estate news for metro Phoenix and your neighborhood.
- Soon see the priciest home sales in your area each week. We are tracking the biggest sales for 150 Valley ZIP Codes.
- Search a new map to check out Valley neighborhoods.
- Look at your latest home valuation. Street Scout has the most accurate home prices in Arizona.
- Get regular updates on your home’s value and home sales on your street.
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