5 most expensive cities in Arizona real estate market
If you’ve been watching the Arizona real estate market, it’s no surprise that we’ve seen home prices soar over the past 20 months. One factor that home buyers consider is the price per square meter. Even since last year, when the market saw incredible growth, we’ve been seeing price spikes of 20-30% per square foot across the board. *
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According to The Cromford Report, the cities with the most expensive square meter prices are:
• $ 549.71 – Paradise valley
• $ 372.07 – Scottsdale
• $ 337.12 – Carefree
• $ 298.31 – green river
• $ 295.03 – Well hill
The current price range per square foot is typically between $ 225 and $ 500 per square foot in the Phoenix metropolitan area. In the Valley these days, it’s impossible to buy or build a home for $ 100 or less per square meter.
One city that has seen tremendous growth and is expected to continue to see significant price increases is Queen Creek. Although this booming city is on the more affordable side, averaging about $ 200 per square foot, it has seen prices jump over 30 percent compared to last year, and prices continue to skyrocket.
According to The Cromford Report, some of the cities in Arizona that are on the affordable end of the spectrum include:
• $ 180.66 – Sun City
• $ 179.34 – Avondale
• $ 178.97 – Tonopah
Due to the nature of the pandemic and the trend of people working from home, buyers might choose to invest their money in a property that can get more square feet for their dollar. As a result, commuting plays less of a role when buying a home, which could tempt them to expand their search to these more rural areas. With low inventory levels in the market, buyers may have better chances of finding a home due to the increase in new developments in these areas.
One thing to keep in mind about these developing cities is that if you start with a lower price, they will have a larger percentage increase as they continue to grow. As such, buyers shouldn’t necessarily be wary of a huge price hike per square foot; it should be encouraged! It’s an indication of a growing neighborhood that is great for investing.
Based on these market trends, the Phoenix metropolitan area is projected to have strong first and second quarters in 2022 to continue this momentum. Buyers should therefore be aware that this price per square meter should remain constant and could even increase further.
*Source: The Cromford Report
Rich La Rue is a HomeSmart Phoenix Designated Broker. La Rue has over 38 years of experience selling and managing property from real estate agencies to regional and national operations. La Rue began his real estate career in Phoenix, Arizona in 1983 as a sales representative. In 1986 he obtained his license as a real estate agent in Arizona. He also holds a California Real Estate Agent License, GRI, CRS, and CRB designations, and e-PRO and SFR certifications. More information is available at www.richlarue.com.