Metro Phoenix’s new condominium craze took a breather last year.
Overall, condo sales inched up in the Valley during 2018, but new condo sales fell almost 11 percent.
Condo prices climbed in about half of Valley neighborhoods but dropped in many areas including downtown Phoenix, which isn't a bad thing.
Despite developers putting up thousands of new condos during the past few years, the slowdown appears to be from not enough affordable new condos for first-time buyers and too few pricier condos for baby boomers downsizing.
Both groups want to buy in the Valley’s most popular central areas: downtown and midtown Phoenix, central Scottsdale, Kierland and downtown Tempe.
Buyers looking for new high-end condos don’t have as many options as they did because projects are selling out, and more new affordable condo projects are just getting underway, said David Newcombe, a condo expert with Scottsdale-based Launch Real Estate.
“The resale market is selling well for the “right” condos in well regarded buildings, but it has certainly softened a little,” he said.
Condo sales numbers
Overall, condo sales ticked up 3% to 18,741 in 2018, according to The Arizona Republic’s Street Scout Home Values. The Street Scout data comes from The Information Market, owned by the Arizona Regional Multiple Listing Service.
The compares to a 12% increase in metro Phoenix condo sales in 2017.
New Valley condo sales dropped almost 11% during 2018, after jumping 57% in 2017.
Where condo prices are climbing
85006 ZIP code – Coronado/Garfield neighborhoods
Home and condo prices have soared in this central Phoenix neighborhood with two historic districts. Condo prices skyrocketed 233% from $75,000 to $250,000 in the Coronado/Garfield area, mostly because of pricier new condos.
A more affordable condo project called Verde Park in the Garfield neighborhood is underway now. Prices will start in the $170,000s.
85143 ZIP code – San Tan Parkway
This area in Pinal County still has very affordable condos, but prices are climbing. The overall median cost of a condo here shot up 164% last year from $31,500 to $83,250.
85040 ZIP code – South Phoenix
This central area is another neighborhood where condo and home prices are climbing but remain affordable. The neighborhood’s condo price climbed 94% to $165,000 during 2018, mostly due to new developments in the area.
85254 ZIP code – Kierland
This Phoenix/Scottsdale neighborhood is a hot spot for posh new condos with several towers underway. The area’s overall median condo price reached $352,000 in 2018, a 64% jump from the prior year.
85043 ZIP code – Southwest Phoenix
Near Tolleson, this central area is another affordable draw for condo buyers. The median climbed 41% to $127,000.
Top 5 areas for condo price drops
Most of the decreases in condo prices in these neighborhoods stem from lower prices on new condos being built. But overall lower prices still make the areas more affordable for buyers.
- Paradise Valley’s 85253 ZIP code saw condo prices fall 20% to a median of $325,000.
- Central Phoenix’s 85003 ZIP code experienced an 18% decline in condo prices. The median price in the area, home to the historic Willo district, fell to $335,000.
- North Glendale’s 85303 area saw condo prices fall 17% to $99,308. The area has several older complexes that are more affordable.
- Goodyear’s 85338 ZIP code posted a 14% decrease in condo prices. The overall median was $148,000
- Downtown Phoenix’s 85004 ZIP code saw condo prices drop 9% to $245,000 last year. The area is getting much-needed more affordable condos.
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