We thought we'd take a look at real estate activity and trends in downtown-central Phoenix zip code 85013. The region is a mix of single family homes and Urban style homes. Several historic neighborhoods are found in this zip code including: Medlock Place, Pierson Place, Woodlea, Campus Vista and Yaple Park.
I'm a big fan of this region. It has loads of character with a variety of historic, mid-century and urban architecture. The Metro Light Rail is walking distance for many residents giving easy access to downtown and Tempe. The Clarendon Hotel has just gone through a significant remodel and their rooftop patio/bar is a local favorite.
The active listing inventory is a pretty even mix of single family and condo/urban style homes. The single family home market is selling well, unlike the condos. Our "distress-o-meter" for May 2009 puts the area as guarded but recovering.
Many factors are taking positive turns in the 85013 single family home market. The number of active listings is going down, the number of pending listings is rising, the months of supply has gone down markedly and the pending listings sales price is up a bit. Probably the most exciting information is that the number of bank-owned listing is falling...yeah! This is important since bank-owned homes depress prices.
The condo market is not doing so well. There are many properties such as Executive Tower, Hawthorn and Solaris that have a lot of units on the market. Those considering buying in these and other units should investigate the health of their HOA's. See the Urban Life post on HOA's for more on this subject.
Our principle concern is the general Valley-wide rise in new foreclosures. In the last month, pre-foreclosure lletters were sent to about thirty 85013 residents while five homeowners lost their homes. If foreclosures continue to rise, expect housing prices in the area to continue to fall a bit, however, we don't expect significant price drops.
CONCLUSIONS: Buyers have a great opportunity to pick up a home at a very affordable price. In addition, we believe homes along the light rail and close to the developing downtown ASU campus will perform better than homes in many other areas of the Valley. As mentioned, use caution when buying a condo to ensure the HOA is in good shape and a significant special assessment doesn't surprise you in a few months.
Gene Urban
The Urban Team at Realty Exeuctives
602-234-5777
