Median prices fall in the Phoenix East Valley, making home ownership much more affordable

Our market has seen a recent increase in buyer activity and as I’ve mentioned in previous posts, we are seeing a declining inventory in the Phoenix Metro Area.  Great news for home sellers and still enough value pricing to keep buyers happy. 

Why this surge in buyer activity all of a sudden?  Probably a combination of factors including buyers are just plain tired of waiting.  Interest rates have remained low and home prices in every market have fallen.  This has greatly impacted affordability in the Phoenix area.

During the height of our Seller’s market in 2005, home prices escalated much faster than salaries and most found the dream of home ownership simply that…a dream.  Now dreams are coming true!

Just how much have prices fallen?  Final numbers were just released for March 2008.

Chandler saw median prices decline from $293,850 in March of 2007 to $234,000.  That’s almost $60,000 in savings for the home buyer which calculates to between $400-$500 less in monthly payment depending on mortgage program.  March saw a significant decline from the month before when the February 2008 median price in Chandler was $245,000.

Other East Valley stats for home values in March 2007 to March 2008 are as follows:

Gilbert values went from $295,500 to $245,000

Mesa values went from $242,700 to $200,000

Scottsdale values went from $635,000 to $525,000

Tempe values went from $278,750 to $237,000

Phoenix values went from $228,000 to $185,455.

If the current buyer activity continues with decreasing inventory, we should see prices stabalize in the very near future!

Amy Jones RealtorAmy Jones specializes in residential, vacation homes & cabins, as well as retirement communities in the communities of Ahwatukee, Chandler, Fountain Hills, Gilbert, Maricopa, Mesa, Paradise Valley, Queen Creek, Scottsdale, Sun Lakes, Tempe and the White Mountains communities of Pinetop/Lakes & Show Low. 

 

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