AZ Real Estate 03-30-2014

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CATHERINE REAGOR REAL ESTATE

Luxury market tilts to buyers

In metro Phoenix, the median price is $205,000, which can buy a 1,900-square-foot house with three or four bedrooms. The median price is tied to location. PHOTOS BY ELENA LEON SEEFELDT/ELS STUDIOS

A happy median Reference point represents typical home in a given market

Sue Doerfler The Republic

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azcentral.com

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edian price: Analysts use it to explain how the real-estate market is doing. It’s the midway point. Half the homes are priced more, half are priced less. In addition to being a benchmark for the real-estate industry, it’s a point of reference for homebuyers and sellers, too. It represents the typical home in size, features and price in a given area. Valleywide, paying the median price means buying a $205,000, 1,900-squarefoot home with three or four bedrooms, said Mike Orr, director of the Real Estate Center at the W.P. Carey School of Business at Arizona State University. That home might need fixing up or updating, as it probably will be in an older neighborhood, said Bobby Lieb, a real-estate agent with HomeSmart Elite Group. He typically represents Phoenix, Scottsdale and Paradise Valley homes for sale. Don’t expect to find such a home in every locale. Median price and what it includes differ among cities, even among neighborhoods. Median price is tied to location, Orr said. Land values, proximity to good schools and shopping, conditions of neighborhoods and other factors all influence the sales price, and thus the median price of homes. Some parts of the metro area have higher land values and thus higher medians.

See MEDIAN, Page R3

The fixtures you can expect to see in a median-price house vary by area.

Valley

A median-price house may require updating. This one was remodeled in 2013.

Median price: $205,000. Sales price: $205,000. Location: Near Seventh Street and Glendale Avenue, Phoenix. When built: 1954. Square footage: 1,335. Number of bedrooms: Three. Other features: Remodeled in 2013. New dual-pane windows, custom alder wood front door, two bathrooms, stainless-steel kitchen appliances, tile and carpet. The home sits on a large corner lot.

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igh-end house shoppers have a lot more choices now. The luxury house market in metro Phoenix is beginning to shift again toward buyers as more owners of houses priced $500,000 and higher try to sell. The number of houses for sale priced between $500,000 and $1 million in Phoenix’s Biltmore and Arcadia areas, Paradise Valley, Scottsdale, Carefree, Cave Creek and Fountain Hills has climbed 50 percent in the past year, according to the latest Walt Danley Realty report done with Arizona State University realestate analyst Mike Orr. High-end home sales were strong for most of 2013 but slowed late in the year. In February, seven Valley houses sold for more than $3 million, and 12 sold for prices between $2 million and $3 million. That compares with six sales of houses priced above $3 million and11houses priced between $2 million and $3 million during February 2013. This month, listings are up and sales down, the same trend happening at the more affordable end of Valley’s housing market. Currently, 2,977 houses priced above $500,000 are listed for sale in the areas tracked by the report. That compares with 2,212 in March 2013. The best way to compare pricing for high-end houses is by square foot. The average was $268 in February, a 26 percent increase from August 2011, the market low point. Here is a breakdown for some areas showing the average price per square foot of houses sold in February through regular sales: » Arcadia: $310. » Scottsdale: $254. » Paradise Valley: $369. » Biltmore: $273. » Fountain Hills: $179.

Reach the reporter at catherine .reagor@arizonarepublic.com.

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