By Catherine Reagor | Arizona Republic
Home prices shot up the most during this year’s second quarter in posh and affordable metro Phoenix neighborhoods, from Scottsdale to south Phoenix.
The rising prices in those two market segments show buyers paying cash weren’t deterred by higher interest rates, and those who needed mortgages opted for lower-priced houses, say housing market watchers.
Most Valley areas with the biggest drops in home prices were mid-market, areas of interest to buyers needing mortgages who may have been put off by the payments required by higher interest rates.
Now that mortgage rates are sliding, home prices and sales could climb.
During the three months that ended June 30, 96 Phoenix ZIP codes saw median home prices climb or stay flat, according to the Arizona Regional Multiple Listing Service. That compares to the second quarter of 2023.
And 19 ZIPs posted drops in median home prices during this year’s second quarter.
“Meh” was how Veteran housing analyst Tom Ruff with The Information Market, a division of ARMLS, described the metro Phoenix housing market during the second quarter.
April, May and June are typically the best time for Valley home sales, but not this year.
“The home buying and selling season did not perform as well as we’d hoped, nor did it perform as well as it typically does,” said Ruff. “We saw little movement in terms of buying, selling or prices.”
The Valley’s median home price held steady at $440,000 during the summer, even as sales dipped.
Where home prices are climbing the most
Here’s a rundown of the top metro Phoenix ZIP codes for year-over-year increases in median home prices during the quarter that ended June 30.
ZIP code 85054 in the north Phoenix/Kierland area led the Valley for price increases, posting a 42.3% jump in its median home price, which hit $853,928.
ZIP 85266 in north Scottsdale saw home prices climb 24% to a median of $1.5 million.
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