For those of us who live in the Phoenix metropolitan area, excitement is in the air! It is the first of September, which means our reason for living here is just around the corner…patio living, walks in the neighborhood and cool evenings are on the way!
A new season means it is time to do yet another analysis of the real estate market in the greater Phoenix area. This includes cities in the east valley such as Chandler, Gilbert, Mesa, Scottsdale and Tempe as well as cities in the west valley such as Avondale, Buckeye, Glendale, Goodyear, Peoria, and Surprise. There are pockets of continuous growth while there are many areas that are still experiencing some ups and downs. Like other cities in the United States, the Phoenix real estate market got a “shot in the arm” when some buyers were able to take advantage of the temporary First Time Home Buyer Tax Credit. As nice as that was for many, it inflated the recovery of the real estate market, so one must keep this in mind while reading journals, newspapers and blogs that report August sales numbers.
There is one segment of the real estate market that seems to be leading the recovery. Even though the 55+ communities such as Sun Lakes, Sun Bird, Springfield and Del Webb Solera have experienced minor price decline since 2007, in 2010, they have been showing a steady increase in value. For example, per the Cromford Report, Sun Lakes, located south of Chandler, has seen an increase in the average sale price of $232,616 in November of 2009 to $244,756 in July of 2010. See chart below. In partial, this is due to the fact there are fewer short sales and foreclosed homes in the 55+ communities. These areas also continue to draw from those who want to live in a warmer climate during the fall, winter and spring.
Many of my clients, who are still working, are not ready to retire, yet are taking advantage of these low prices in the market, as compared to just four years ago. Knowing these prices may never be this low again, they are acquiring properties for their future. I have several clients who are renting their Arizona property until they retire and spend their winters here. With our sought-after winter sunshine, the 55+ communities are in demand for fall, winter and spring rentals. As the Baby Boomer generation continues to mature, the demand for these communities will always be present.
If you are interested in finding out more about how to take advantage of this market, please contact me at (480)688-3612. You can also start your no obligation search by clicking on Search Homes and fill in your criteria. If you want to see specific homes in Sun Lakes expand the plus symbol next to SE Valley, scroll down to Sun Lakes and fill in the rest of your home features.
I look forward to helping you with any of your real estate needs.
