The modest calming of the U.S. housing market that began late in the summer has continued into early fall, the latest market report1 from Zillow shows. Buyers are finding slightly more selection, more price cuts and a bit more time to evaluate a home before it goes under contract. But in Metro Phoenix, the market is still red-hot with home prices skyrocketing 32.2% over the last 12 months — with the five Metro Phoenix neighborhoods with the biggest home price increases showing increases in median home prices that exceed 40%.
“The housing market continued its gradual return to some semblance of normalcy in September, helped by the typical seasonal cool-down in shopping conditions that we expect to see every fall,” said Jeff Tucker, senior economist at Zillow. “Homes are still selling quickly, and prices have not receded, but it’s not quite as extreme a sellers’ market as we saw back in the spring and summer. Buyers today will benefit from a little more time to pick the right home and a few more listings to choose from.”
The Zillow Home Value Index (ZHVI) for the U.S. rose to $308,220 in September, up 1.6% from August. That’s the second straight slowdown after monthly appreciation peaked this year at 2% in July. But for Phoenix, the ZVHI hit $410,028 in September, a month-over-month increase of 2.1%.
Some of the hottest Metro Phoenix neighborhoods are also seeing the biggest increases in home prices. Here are the five Metro Phoenix neighborhoods with biggest home price increases over the past year.
No. 1: ZIP code 85253 — Paradise Valley
ZIP code 85253 was No. 1 in Metro Phoenix for the biggest home price increase over the past year, with the median price of a home in the high-end reaching $2.398 million, a 50% increase in the last year.
No. 2: ZIP code 85250 — Scottsdale
ZIP 85250 in Central Scottsdale is the second-hottest neighborhood in Metro Phoenix with a 44.4% increase in the median price of a home. The median price of a home in ZIP code 85250 is now $516,000.
No. 3: ZIP code 85260 — Scottsdale
Home prices in ZIP code 85260 in Northeast Scottsdale are right on the tails on their neighbors to the south. The median price of a home in ZIP code 85260 climbed 43.8% to $575,000 over the past year.
No. 4: ZIP code 85297 — Gilbert
The East Valley remains an attractive location for those looking for a new home and the Gilbert neighborhood in ZIP code 85297 is an example of that. ZIP 85297 has seen home prices increase 42% to $518,750 over the past year.
No. 5: ZIP code 85262 — Scottsdale
Giving Scottsdale three of the hottest ZIP codes in Metro Phoenix is the North Scottsdale ZIP code of 85262, where the median price of a home climbed 40.3% to $1,175,000 over the past year.