The 2024 housing market in the greater Phoenix area is showing signs of improvement and better opportunities for both buyers and sellers than it did last year, according to real estate experts.
However, to gain a better understanding of how the Phoenix housing market is evolving, Phoenix REALTORS compared median home sale prices in 2023 with those of 2022 and found the top five metro Phoenix zip codes with the biggest median home sale price increase.
According to the Phoenix REALTORS annual report, the five metro Phoenix zip codes with the biggest median home sale price increase in 2023 over 2022 include: Desert Ridge (85054), Arcadia and Arcadia Lite (85018), Downtown Phoenix (85007), East Shea Blvd. (85259) and North Scottsdale (85262).
The Desert Ridge zip code 85054 saw the biggest median home sale price increase in 2023 over 2022. It increased by 27.2%, which is equivalent to $772,445. The second largest median home sale price increase took place in the Arcadia and Arcadia Lite zip code 85018, which increased by 13.6% and $1,039,250. The Downtown Phoenix zip code 85007 followed with a median home sale price increase of 10.6% and $527,500. Scottsdale witnessed median home sale price increases in two zip codes, including the 85259 zip code in the East Shea Blvd. neighborhood, which increased by 10% and $1,122,450, and the 85262 ZIP code in North Scottsdale, which increased by 9.1% and $1,500,000.
On the contrary, the biggest median home sale price drops in 2023 over 2022 took place in El Mirage, which saw a decrease of 10.3% and $350,000, the city of Maricopa, which saw a decrease of 10.4% and $355,000, Litchfield Park, which saw a decrease of 11.1% and $479,990, Waddell, which saw a decrease of 15.4% and $459,000 and the Phoenix zip code 85021, which saw a decrease the largest decrease of 16.7% and $400,000, according to the National Association of Realtors.
Phoenix REALTORS’ annual report also revealed that the asking price of buyers in 2023 decreased slightly by 1.7% compared to 2022. Additionally, the strongest market in 2023 came from homes priced between $300,000 and $400,000, which gained 5.1% in sales over 2022. Metro Phoenix’s expensive zip codes also did well in 2023 as more homes in the $500,000 plus range sold than those priced under $400,000. Home size also played a role in the 2023 housing market, which saw a 13.5% year-over-year increase for homes over 2,500 square feet but a decrease for homes under 2,500 square feet.
