Tempe Real Estate Rises to $597K Average Amid Sales Dip, Outpacing Nearby Phoenix

The real estate market in Tempe, AZ, has demonstrated robust growth between June 2023 and May 2024, with average property values increasing from $565,000 to $597,000. Despite this rise in property values, the price per square foot has remained relatively stable, with a slight variant ranging between $294 and $308. However, the market has seen a decline in the number of properties sold, dropping from 1,468 in June 2023 to 1,351 in May 2024. This indicates a slight cooling off in market transactions while property values continue to increase.

When compared to nearby cities, Tempe shows a distinct market profile:

• Paradise Valley, for example, emerges as the most upscale area with the highest property values and prices per square foot, reaching up to $5,050,000 and $814 respectively in May 2024.
• Mesa, on the other hand, dominates in terms of sales volume, recording as many as 6,262 properties sold in the same period, which overshadows the numbers from Tempe and other cities.
• Chandler and Gilbert display trends similar to Tempe with upward trajectories in property values. Chandler’s average property value as of May 2024 stood at $500,000 with a price per square foot of $301, while Gilbert’s was slightly higher at $599,000 with a price per square foot of $305.
• Phoenix, despite having the highest inventory with 106 properties, had average values at about $494,000 and a price per sq ft of $298, aligning closely with those of Tempe.

Drilling down into the month-to-month performance in Tempe, the average property value saw a consistent increase, culminating in $597,000 by May 2024. The price per square foot in May hit $314, reflecting a peak for the period under review. Although the number of properties sold declined, the overall sale price in May was $502,083 with a price per square foot of $308, indicating that properties continued to fetch high prices despite a lower transaction volume.

Moreover, Paradise Valley continues to attract high-value buyers, while Mesa captures those looking at volume.

Tempe and its counterparts like Chandler and Gilbert offer a middle ground with strong growth in property values albeit at differing sales volumes and price points. Phoenix, with its vast inventory, still maintains competitive pricing, showing a balanced demand-supply dynamic.

Overall, the real estate market in Tempe and its surrounding areas is vibrant and varied, offering opportunities for a diverse range of buyers and investors. As the trends indicate growth in property values amid fluctuating sales volumes, potential investors should monitor closely for optimal entry and exit points in the coming periods.