Today we'll take a look at the real estate market in Phoenix's 85014 zip code. We'll be giving you a snap shot of the area and our take on homes & condo prices. In addition we'll look at the effect foreclosures are having on real estate values.
85014 is located in an area locals call Central Phoenix. The map will give you an idea where it is located.
The area is generally home to a younger population with the higher age numbers falling into the 20-40 range.
A variety of schools serve the area. Brophy and Xavier generally top the list for fine academics and the Madison Schools (Rose & Park) are well considered.
Locals have a number of fine restaurants to enjoy. I'm a fan of Lola's Tapas, Richardson's, Christo's and Two Hippies.
The area supports a broad residential real estate mix with single family homes (SFH), condos/townhouses/patio homes (Condos in our analysis), apartments and small rental properties.
Both home and condo prices have been highly affected by the foreclosure market. 24 of the 33 homes sold in 2009 and 13 of the 19 condos were either foreclosure properties or short sales. In other words, 69% of the sales in 2009 were due to foreclosure or near foreclosure... this is a bit higher than County average. As we have said many times, foreclosures drive down home values due to aggressive pricing strategies.
Below is a chart showing the asking price (in $/sq.ft.) of privately owned homes and bank owned properties. The difference is dramatic. The average bank owned property is priced at $120/sq.ft. less than the average non-bank owned home. WOW! It's no wonder the bank owned homes are first to sell.
In most of our downtown and central Phoenix research we see the SFH market out performing the condo sector. In 85014 both home types are facing the same difficulty. Inventory levels are to high: 11months for SFH and nearly two years for condos.
Most of the condo trouble is centered around afew properties with Citi on Camelback (Citi) topping the charts. Citi has, as of this post, 30 units on the market with 24 being foreclosure or short sales. The good news is sales in the complex are brisk indicating they may have found a bottom price point.
Our Conclusions: 85014 is pretty ripe for first time home owners and investors to swoop in for a deal. If you are trying to sell a personal residence, condo or home, you may want to take a serious look at the competition with regard to pricing; it's a jungle out there. I do not expect to see prices stabilize until inventory numbers start approaching 8 months and foreclosures drop to under 30% of the sales. The graph below from citi-data.com pretty much sums it up.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
www.urbanteamaz.com (our web site)
www.greatinvestmenthomesaz.com (our first time real estate investors site)
Additional recent Phoenix real estate market and home value analysis can be found on Urban Life at:
