With the nationwide real estate market in flux I'm often asked how Phoenix is doing. Home prices have come down; existing homes remain on the market longer and large builders are weathering an earnings decline storm... resulting in their offering of significant incentives.

Still, there are areas of the country that appear to be outperforming. One of these areas is Maricopa County... which is the fastest growing county in the country. It includes these incorporated cities and towns:  Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Guadalupe, Litchfield Park, Mesa, Paradise Valley, Peoria, Phoenix, portions of Queen Creek, Scottsdale, Surprise, Tempe, Tolleson, Wickenburg and Youngtown.
See: http://www.maricopa.gov/county_glance/default.asp?link=population

The second fastest growing county in the nation is Pinal County... which borders Maricopa. In much the same way that Dallas and Fort Worth encroach upon each other, there are segments of Pinal County that can be included in the loose designation for this area that we call "The Valley of the Sun". Pinal County includes: Apache Junction (part of Apache Junction is in Maricopa County), Arizona City, Blackwater, Casa Grande, Chuichu, Coolidge, Dudleyville, Eloy, Florence (County Seat), Gold Canyon, Hayden (part of Hayden is in Gila County), Kearny, Mammoth, Maricopa, Oracle, Queen Creek (part of Queen Creek is in Maricopa County), Queen Valley, Sacaton, San Manuel, Santan, Stanfield, Superior, Winkelman
See: http://en.wikipedia.org/wiki/Pinal_County%2C_Arizona

Depending upon the affiliation of their Multiple Listing Service (MLS) affiliation, valley realtors are often able to assist in any of the above cities but many tend to specialize in certain cities or regions of the valley. Most persons moving to the valley tend to prefer the Maricopa County cities of Phoenix (particularly the Ahwatukee section), Scottsdale, Chandler, Tempe, Mesa and Gilbert. In Pinal County the premier cities are Queen Creek and Maricopa. I'll give you an overview of the cities and what they have to offer.

Phoenix is now the fifth largest city in America. As a result, housing is mirroring what happens in cities of this size. Home prices are going up and builders are unable to build new home communities because there are no large tracts of land suitable to build single family homes. Most new construction is of the Condo variety. Existing homes exceed $300k and cost per square footage is higher than all other areas I've mentioned, except Scottsdale which is much more pricey. I recommend Phoenix if you're looking to be very close to the Airport or downtown financial sector. It's also a preferred designation for those who want to be close to entertainment and at the center of valley activity. There are some newer communities with the "lifestyle" amenities that offer active adults and the frequent traveller fun with limited upkeep.

The southernmost section of Phoenix is called Ahwatukee. It has become a destination for the well-heeled who would rather live there than Scottsdale or Paradise Valley. As far as new home development goes, there is only one single family home builder who has land on which to build. They have two communities: one with homes in the $600k+ range and other closely spaced two story homes which begin in the $200s.

Scottsdale is high on the lifestyles scale. Many people come to Scottsdale first as tourists and later as winter visitors or residents. There are many new townhome and condo developments that are in the high $200's ... there are also condos that are selling for beyond $1 million. Scottsdale's homes come at a price premium- it is one of Arizona's tourist destinations and one will find that homes sell there at a higher price per square foot higher than all other areas except its small neighbor- Paradise Valley.

Tempe is south of Scottsdale. Home to ASU, it is small and built out. Any new construction comes by way of a phenomena called "in-fill". These are properties that have been purchased... existing buildings torn down, with new properties being built in its place. Tempe is directly east of Phoenix. Due to its great proximity to the hub-bub of the valley's most entertaining locals, it is a prime destination. It's also land-locked and higher priced... yes, it's a supply and demand thing.

Mesa is east of Tempe. It's a bedroom community that offers the more affordable homes than any of the cities I've written about so far. Surprisingly, Mesa actually has a larger population than better-known cities such as St. Louis, Miami, and Pittsburgh. It is the second most populous suburban city in the United States (see http://en.wikipedia.org/wiki/Mesa%2C_AZ ) Though it's very large geographically, it's also land locked. There are very few new home developments. Much of the land that has become available is on the far east side of town.

Southeast Maricopa county is home to Chandler and Gilbert. Chandler has many new home communities. Its proximity to freeways that connect the larger cities of the valley has made it a prime destination. There are many new home developments in current phases of construction but the building boom will be over within the next two years. There are no longer any large tracts of land sufficient for new home communities- that is unless a few remaining farmers decide to sell the remaining land that is not currently earmarked for new home development.

Gilbert is east of Chandler and South of Mesa. Formerly a sleepy agricultural town, Gilbert is a town (not a city)... it's the most populated town in America and, last decade, grew faster than any other town in America. Most new home communities start in the $200k range and go much higher. Home to outstanding school systems, many people I work with tend to want to look at homes in Gilbert, Chandler, Mesa and Scottsdale. Many of them are disappointed that their favorite homes tend to be in the $3-500k range... but, with growth comes scarcity and higher prices.

Among the cities that new residenced find highly desirable in Pinal County are Queen Creek, Maricopa and Florence. Queen Creek has the most new home developments in the Valley. One can find large homes at small prices. It is not uncommon to find nice homes in the $100/sq ft while most areas of the valley tend to be in the $150-250/square. The only cavaet to this location is distance. A trip to the Airport will probably take an hour. There are those who look to stay away from the metropolitan setting and desire more breathing room. Queen Creek offers this but not for long. The secret of Queen Creek is out and prices are hard to pass up.

Maricopa is south of Ahwatukee. It's a city nestled in the hills about 30 miles south of Phoenix. In 2,000 it had just over 1,000 residents. The number today is beyond 21,000. It is estimated that the population will exceed 100k within four years. http://en.wikipedia.org/wiki/Maricopa%2C_AZ ... Maricopa has changed so quickly that a casual visitor may return today and hardly recognize the place from one month to the next. It went from being a a sleepy outpost on the way to San Diego but is now a city on the move. There are many new home communities that are favorably priced and have the amenities the many residents desire.

Most people from the valley who have not visited Queen Creek or Maricopa probably assume that these places are too far away. Most people who move to these locations tend to enjoy them... especially since the new freeways make them more accessible.

Last on my list is Florence. It is home to one community that I think offers a great value proposition. Pulte / Del Webb has developed a community called Anthem at Merrill Ranch. Their prices are incredibly low when compared to the rest of the valley. Their amenities are among the best the valley has to offer: championship caliber golf course, waterpark, climbing wall, tennis complex, walking trails, skate park, indoor basketball, catch and release fish pond, soccer fields, beach volleyball, baseball fields, very large community center and exercise facility.

The place is breathtaking. They have a retirement community section for active adults. They also have communities for family residential. The greatest drawback is that most people don't know where it is or assume that it's too far from the heart of the valley. Also, since it's essentially a brand new city some of the essentials (good schools, abundant shopping, etc.) are in the start-up phase.

OK. There it is... an overview of the valley. For those who would like to look further into pricing for existing and new homes please go to www.newhomesaz.com

Chuck Willman - 480-292-0600