Ok, yesterday I had some extreme examples of irrational housing prices, so today, I wanted to come a little closer to center.  A little closer to what the average home owner may be feeling is happening to the value of their own home.  Again, with a couple of specific examples.

North Phoenix Example

This is a Brady floor plan, built by DR Horton in the Dynamite Mountain Ranch subdivision, which is found in North Phoenix, near I-17 & Happy Valley Road.

Sold: 1/29/2003  $199,885

Sold: 9/15/2006  $420,000

Sold: 4/17/2009  $210,000

Size: 2313 Square Feet, 3 bedroom, plus den, 2 bath, granite counters, maple cabinets, pool

DR Horton built this floor plan in a number of locations throughout the valley, but Dynamite Mountain Ranch is a personal favorite of mine (I manage a number of rental properties there, along with owning 2 rental properties there myself).  The home’s layout results in a very practical and efficient use of space, with each room being large enough to breath in, yet no room being excessively large or tiny.

When this home sold last month, it was as a foreclosure.  All of the appliances were still in the home along with the cabinets (not always the case with a foreclosure).  The flooring was in good shape (mix of tile and carpet) and the walls were custom painted throughout, which was also in good shape.  Oh, and I shouldn’t forget the pebble tec swimming pool with water feature in the back yard.  Overall, this home was actually in better condition, than when it was purchased new (when considering the addition of the pool and painting).

North Scottsdale Example

This is another Brady model by DR Horton, but this time in the Scottsdale subdivision of Horseman’s Park near McDowell Mountain Ranch.

Sold: 5/23/2003 $338,729

Refinanced in 2005 & 2006

Sold: 3/26/2009 $385,000

Size: 2313 Square Feet, 3 bedroom, plus den, 2 bath, granite counters, maple cabinets

Once again, this home was in pretty good condition, without any glaring deficiencies like missing appliances and/or cabinets.  As you can see, Scottsdale’s prices are higher than Phoenix for an equivalent home, but the price changes over the last 6 years are not much different.

Again, for this look at prices, I chose what I consider to be average homes for the area.  These are not homes way on the outskirts of town, miles and miles from a freeway.  These are both homes within a few minutes of major shopping and dining, freeways, employment centers, and entertainment venues.

(PS- McDowell Mountain Ranch currently has a woefully limited supply of quality homes for sale.  If you are a home owner in McDowell Mountain Ranch, with a well cared for, move-in ready home, that is considering selling, you will find there is actually pretty strong demand for your home.)

Is there a point here?

Hopefully the point here is obvious.  Once again, I’m only showing a couple of homes, but these sales are very typical of subdivisions sales results throughout the central part of the valley, rather than the outlying areas.  The majority of homes selling today are selling for prices approximately equal to their price back in 2003.  Nearly all of the massive run up in valuation that was experienced in the 2004-2006 time period has at this point been wiped away.

Looking for a deal, when it comes to buying a home today?  Take out your box of darts.  Stand opposite a map of Phoenix and its surrounding suburbs.  Put a blind fold on.  Throw a dart at the map.  Wherever it lands, that’s a good deal.

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