There’s an old saying that God loves drunks and sportswriters, a saying that most likely was coined by a swaying sportswriter a couple of hours after deadline who had survived some sort of near miss on deadline. This, incidentally, has little to do with the point of today’s post except that there’s nothing more beautiful to a real estate blog writer needing a topic than someone offering a topic.
Enter the good folks at Zillow, who passed along a link to their data on the Phoenix market.
I don’t much think you need me to explain the overall trend for the Phoenix real estate market but what I do want to highlight is the differences in the decline in various areas. I’ve said quite often here and to prospective buyers that the Phoenix market varies greatly from city to city and, in some case, from neighborhood to neighborhood. Everything is down from the highs (slight understatement, there) but some areas are down less over the past year than others.
For instance, the Ahwatukee Foothills and North Gateway area (whatever that may be … Zillow has it listed, I only can guess it’s the I-17 corridor on the north side of town) have declined at a far lesser rate than Estrella in Goodyear, Laveen or (not pictured here) Maryvale. In fact, the median Zestimate (which almost is the same thing as a market value plus or minus) for Maryvale is sitting at $55,000 which means the homes are worth slightly more on average than they were when they were built in the 1970s.
Until two years ago, the Phoenix area’s many retirement communities had avoided the fall experienced by the rest of the market a year or two before that. And then reality struck and the prices started sliding and we’re still searching for some sort of level on which to build.
Now, there’s really two ways to look at the above chart. The first goes along the lines of “holy crap, our homes are worthless and we’re all going to die!” The second, somewhat more rational view, is there may be pockets of opportunity. Perhaps not the best opportunity on the planet for the short term given the rental rate to sales price ratio here compared to other areas in the nation, but opportunity nevertheless. It’s just a matter of looking at the trend, deciding where he market may have overcorrected a little and hoping that estimation is correct. With a longer time frame, the opportunity is there.
In any event, that’s the snapshot as provided by Zillow. And I need to tell you that you can search for Phoenix Homes for Sale at Zillow by clicking on the link.