Homes across the Phoenix metropolitan area have seen a strong resurgence in value over the last five years, and this is especially evident in the Desert Ridge neighborhoods. We analyzed data from Redfin for the zip codes 85050 and 85054 to get a clear picture of what this growth means for our community.

Median Sale Price

If you have had a house in Desert Ridge since 2012, I’m sure you have noticed the listing prices in your neighborhood skyrocket in the last few years. The good news is, even if you bought in 2015 you have probably already realized a positive return on your investment. Based on our analysis, median sale prices in the area are up 2.88 percent in just a two years! The news only gets better if you’ve had your home longer though. According to Redfin’s Real-Time Housing Market Data Center, we have seen significant increases in median sale price for most of the past 5 years! Here’s how they break-down:

  • 3-Year Return: 13.48% (Median price increase from $285,500 to $330,000)
  • 5-Year Return: 18.49% (Median price increase from $278,500 to $330,000)

It is extremely important to note, however, that some of the increases have been the result of new housing developments in the area.

Price per Square Foot

In an effort to truly understand what’s driving these price increases, we decided to also evaluate price per square foot over the same period of time (which currently sits at an average of $193.50 per square foot). Similar to median sale price, this metric shows a very positive trend for homeowners in the area. Here’s a snapshot of the improvements:

  • 1-Year Increase: 1.5% (Up from $190.50 per square foot in 2016)
  • 3-Year Increase: 11.89% (Up from $170.50 per square foot in 2014)
  • 5-year Increase: 21.19% (Up from $152.50 per square foot in 2012)

While these increases aren’t as dramatic as the growth in median sale price, they definitely show the same positive trend for homeowners in the area.

Days on Market

One area that we haven’t seen much change in over the past 5 years is the median number of days on market. In 2012, houses were on the market for 56 days. This has remained relatively constant (besides a huge increase in early 2015 to 80 days). The most recent data says that the median number of days on the market is 54. If you need to sell your home quickly, we’d recommend listing it at the beginning of the summer months where we typically see the median number of days drop dramatically. In June of 2017, we saw this number drop to 45 days. The summer months also see a huge influx in inventory every year, making home prices more competitive.

Going Forward

Every tool we used to evaluate market data suggests that home prices will continue to increase throughout 2018, which means this will continue to be a sellers’ market. If you plan to sell your home and move in the next year, be aware that you may be paying a premium for your next home!