It’s clearly a seller’s market in metro Phoenix, where homebuyers are competing for an unusually low supply of existing homes on the market.
Even so, there are certain pockets of the Valley where the action is hottest.
In a study conducted exclusively for the Phoenix Business Journal, Zonda identified the hottest neighborhoods for homebuyers around the Valley.
Click on the gallery to see which Valley neighborhoods rank in the top 50 for overall real estate activity in 2020.
The Zonda Heat Index determines the “hotness” of each market by changes in average sales price, sale volume and total transaction volume, as well as new home activity and absorption, where applicable.
The average closing price is for combined attached and detached sales among both new and resale homes for sales during 2020, compared with 2019.
Tim Sullivan, senior managing principal with Zonda, said that the index is weighted mostly to the average price change in each market.
“The study only includes ZIP codes with a meaningful amount of activity so it is limited to those with at least 100 transactions during each year,” he said.
Zonda research found that the average price of new homes sold in 2020 was $408,693, up 4% from $394,105 in 2019. For resale homes, home prices averaged $379,827 in 2020, up 16.7% from $330,911 in 2019.
“There are 15 ZIP codes with an average total sales price of over half a million dollars,” he said.
But one ZIP code stood out among them all. The No. 1 ZIP code in 2020 was 85142 in Queen Creek.
“Not only was it the top-ranked market in terms of the market heat, but it also was the top ZIP code in new home closings volume,” Sullivan said.
In 2020, 1,868 homes sold within that ZIP code.