Desert Ridge Real Estate Outperforming Many Areas
January 26th, 2009 categories: Desert Ridge
Now that several of the major home builders have backed out of their purchases on land in Desert Ridge, it seems as though the existing builders have a chance to become more profitable in 2009 and perhaps we can see an overall recovery to the residential sales in the Desert Ridge real estate market.
The fact that several these purchases are now defaulted is not great news as many of the projects included area infrastructure improvements as well, like parks, roads, etc. It is also not great to see all the desert cleared to the East of CityNorth and now to see that project halted in its current state. It remains to be seen what the City of Phoenix will do with those incomplete projects and the land.
The bright side though is that existing home builders like Del Webb at Fireside, DR Horton at Cielo and Toll Brothers at Villages at Aviano are all reporting an increase in traffic. Toll Brothers just started construction on a new building after months of holding off on new to decrease existing inventory. Also consider that Del Webb opened Fireside at Desert Ridge in February of 2007 and is almost 50% sold…all that being accomplished in a huge real estate down turn.
Current new home prices are averaging around $148 per square foot up to $700 sq foot. Most single family homes are closer to $160 – $175 per square foot. Also note that in Aviano at Desert Ridge, the average cost per square foot for all resales that sold in 2008 was $171 per square foot.
There is no question that real estate prices have dropped dramatically in the Desert Ridge area, but considering that many areas of the valley are struggling to get $100 per square foot, Desert Ridge is holding its own. One has to believe that the centralized location, area amenities and proximity to major employers like the Scottsdale Airprark, American Express and several large resorts is a big reason.
The point of this post is to note that we are seeing new home inventory reducing and hopefully price stabilization will soon follow. We are not out of the woods with area short sales or foreclosures and for that reason we are going to see incredible bargains to still be available. There are currently several home bargains in Aviano that are $127 – $135 per square foot. However, my long term forecast for the area is positive as I analyze this market compared to many other areas in the valley.
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