Phoenix Real Estate Prices High But Shopping Outside the City May Not Be the Answer

There is no question that the Phoenix real estate market is still hot. Although sales might have slowed a bit in August, the market is still far stronger than it was in 2004. The number of recorded sales for the month “increased from 2,990 to 3,050,” but the demand for Phoenix real estate is most noticeable in the giant chasm between the median prices of 2004 and 2005, which increased from $143,000 to $206,000.

The monthly mortgage that a Phoenix real estate owner was paying in 2004 was $865, while in August of 2005 it was $1,250. These increasing prices are leaving potential Phoenix real estate buyers with two options, signing for a creative yet potentially dangerous mortgage or moving further out into the valley, where prices are lower.

To many the more affordable housing a little further out appears to be the best option, but many experts warn that “being saddled with longer commute times” is becoming costlier as gas prices increase.