I’m often asked “how’s the market?”   Most homeowners are curious what their property would sell for, even if they don’t intend to move for 20 years, and so the next question is often “how much has the market appreciated?’

The answer is “it depends.”    Real estate is local, so where your house is located is a huge factor.   The price range your house falls within also matters.  Because the under lying market forces of supply versus demand influence the rate at which your property’s value will climb.   We generally expect area prices to appreciate in the Metro area about 3-5% per year now that the housing bust is well in the past.  The is a broad number spread across the metro area and all housing types and prices ranges.

The Cromford Report breaks it out further in the chart below.  The previous 12 month’s sales/closings reflected in ARMLS (Arizona Regional Multiple Listing Service)  for the Phoenix metro area are broken into  pricing bands.  The biggest gain was in the $1.5 to $2M pricing band – that market saw 19.5% appreciation! Homes $500-$800,000 had negative appreciation.  Homes price up to $100k saw 8.7%, and  up to $200k saw 6.1%.  This is interesting and useful information whether you are contemplating selling, or are shopping.  However, keep in mind that location is huge – and these numbers are just averages across the valley.  Also huge are condition, functionality, amenities and upgrades.  Call me if you would like to discuss or have questions!