Here’s another example of how local real estate is. The news keeps reporting on the recovery of the Phoenix Metro real estate market, and it’s true, we have a very active market. However, from the charts below, you can see that, by city, there are some striking differences, particularly in Scottsdale.
In the City of Phoenix, it’s very clear that prices are on the rise, with annual appreciation based on the monthly average of price per square foot, rising from almost –20% in June 2011 to +20 in April 2012. That’s a 40% improvement!
Mesa has improved from the negative to the positive also, with current appreciation rates bouncing between 5 and 15% annually.
Tempe is showing huge gains, too. With prices steadily improving from almost –30% in February 2011 to about 15% currently.
Chandler is also on the rise, showing annual appreciation of over 20% in the past year.
However, the picture is not so clear in Scottsdale. In 2011, the market jumped from negative to positive appreciation twice! And has continued to improve for the early months of 2012. While the gains are almost as striking as the nearby cities, it’s not a consistent improvement, and has dropped off in the second quarter.
So, while appreciation in Scottsdale remains slightly positive, it still has not reached the double digit improvements seen nearby. So, essentially, it looks like there’s an opportunity for researching and investing in the Scottsdale real market while it lags behind. I’ll clearly state that I have no idea what the futures holds, but it is possible that Scottsdale homes will begin to see appreciation that other cities in Metro Phoenix have already experienced. Prices were slower to drop in Scottsdale, so it is quite possible that they’ll be slower to rebound.
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