My long commute to work is easily the least favorite part of my day. So much so that I’ve actually started to contemplate selling my house and moving closer to the office (and the airport!). When Satinder Haer from Zillow offered to write a guest post for my blog about the Phoenix real estate market I was more than happy to see what she had to say.
So without further ado…
Where to Get the Most for Your Money in Phoenix Real Estate
Buying or selling in today’s real estate market is a constant negotiation. Home shoppers want to stretch their buying dollar while sellers want to maximize their profit. When buying a home, you want to enjoy the search for your dream home, but it’s hard when weighing finances, local real estate trends and the smartest investment. For a seller, timing the sale to a market upturn helps maximize profits. But as a home seeker, you need to find pockets of surplus inventory to get the most bang for your buck.
If you’re searching for real estate in Phoenix, these three areas are going to provide the best investment for your money.
The community of Alhambra is located only eight miles from downtown, and is one of the most developing urban villages of Phoenix. This area spans from 43rd Avenue on the west to 7th Street on the east, and north to south from Northern Avenue to Grand Avenue. Alhambra neighborhoods boast an impressive rise in home values throughout the past year. After experiencing a 7.6 percent increase in value from May 2014 to May 2015, the market is expected to increase an additional 3.4 percent in the next year. It’s an excellent time for buyers to snag a house in this area while the median home value is only $127,400 and trending upwards. Additionally, Alhambra features stunning historic homes not found in any other part of Phoenix. With median monthly rent costing $1,100, buying is more affordable for many residents. In fact, the breakeven horizon in Alhambra is only 1.5 years, meaning it’s more financially advantageous to buy than rent if you’ll be in Alhambra for more than 1.5 years.
Camelback East Village
Neighboring Alhambra is Camelback East Village, also a favorable market for budget-focused buyers. Camelback East Village, often referred to as East Phoenix, has two “core” areas. The first covers 24th Street to Camelback Road, while the second spans from 44th Street to Van Buren Avenue. While pricier than some other villages in Phoenix, with a median home value of $245,000, Camelback experienced 5 percent appreciation in the last year. Values are projected to rise another 2.7 percent throughout the next year. If the stunning views from this neighborhood aren’t enough to entice you into buying immediately, the rent comparison will. Median monthly rent in Camelback is $1,329, considerably higher than rents in Phoenix ($1,180). Even with a breakeven horizon of 2.8 years, Camelback is a competitive market boasting abundant hiking options and highly-rated schools.
Central City encompasses the greater downtown area and is experiencing the most growth of all the Phoenix urban villages. Home values in Central City rose 13 percent in the past year and are anticipated to rise yet another 4.2 percent within the next year. The growth of this neighborhood is not unprecedented due to its proximity to the airport, the beautiful Salt River and a short commute to downtown jobs. The median home value in Central City is $100,800 and rents are a steal at the median monthly cost of $991. However, buying is still more favorable than renting with a breakeven horizon of just 1.2 years.
Some Phoenix markets are far better environments for sellers. Neighborhoods such as North Mountain, Estrella and South Mountain are all showing low inventory and high competition. As a home shopper looking to get the top deal for your money, avoid these neighborhoods that favor sellers. Finding a quality deal in Phoenix is possible, but you have to narrow your shopping markets for success.