Hot submarkets and new ‘entry level’ prices

(Disclosure: Rose Law Group represents Richmond American Homes.)

By Mike Sunnucks | Rose Law Group Reporter

Home prices in the Phoenix metropolitan area continue to increase with last year’s strong demand continuing into 2021.

“Prices are just going through the roof,” said Steven Hensley, advisory manager for real estate research firm Zonda.

Hensley points to submarkets with especially strong price gains this year — north Phoenix and the Coolidge and Florence areas of Pinal County.

Hensley said limited home supplies and strong demand from affluent buyers has been driving up prices in north Phoenix submarkets.

Those include subdivisions in the Desert Ridge area and along Cave Creek Road.

Hensley said prices in north Phoenix submarkets are up 12% since February. “There is just so much demand,” he said. “They have so many people on the waiting lists and they have so many people looking at home. There’s just not enough supplies up there.”

North Phoenix areas ranging from near Interstate 17 to areas closer to Scottsdale have not seen the aggressive home building volumes as other outlying areas of the region.

Hensley said prices in more affluent subdivisions range between $650,000 and $800,000.

Home prices in the Coolidge and Florence areas of Pinal County are up 18% this year, according to Zonda.

Hensley said home builders — including D.R. Horton, Richmond American Homes and Starlight Homes — are active in the Pinal markets.

Hensley said the demand for homes coupled with supply issues are redefining entry level price points.

He said Pinal County submarkets are seeing entry prices now at $300,000 to $350,000.

“$350 is the new $250,” Hensley said, referring to new home price gains.

He also pointed to areas of Goodyear where entry level prices are now $400,000.

“It’s happening everywhere,” Hensley said.

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