New Homes – Where and How Much are We Talking?

By Buying, Mike's Articles, Phoenix Metro Real Estate News August 19, 2019

Last week we touched on the comparison of buying a new home versus a used one. We said, “With the current scarcity of existing homes for sale should buyers consider buying a new build? Or is resale still the preferred course? With Caveats. Big caveats. Buyers should consider a new build.”

The major caveat to that advice is of course, Location. Location. Location. Fourth to that is price. Unless you’re buying new in an infill community, which would often be town-homes rather than single family detached, you will need to head for the outskirts of town for that new home community. The big question there is, “How do you spell c-o-m-m-u-t-e?”

“Oh yea, there is something else out there of potentially huge value: The new Interstate 11 planned to go from Mexico to Canada – through Tonopah. Hmm.”

Home Buying 101: The further away from the center of everything, the less the price of  everything – real estate-wise that is. Actually I just made that up, but it has kind of a nice ring to it, wouldn’t you say?

Investors, Bill Gates for example, are buying up tens of thousands of acres way west of Phoenix, as in Tonopah. In Gates’ case, his real estate investment firm wants to build a “Smart-Tech” city known as Belmont. Oh yea, there is something else out there of potentially huge value: The new Interstate 11 planned to go from Mexico to Canada – through Tonopah. Hmm.

https://www.bizjournals.com/phoenix/news/2017/11/30/bill-gates-puts-remote-arizona-area-on-map-sparks.html

Infill is usually more of an urban setting. Since the crash, builders have wisely bought and developed “infill” properties for affordable housing. This trend is still happening, though affordable land is evaporating. We’ve also been seeing luxury unit development in downtown Phoenix and Scottsdale where older properties are being demolished making room for new high rises.

Single family detached new build communities are mostly production tract homes. Custom home construction is most often found in Paradise Valley and Scottsdale.

If you want single family detached construction you’ll pay a premium. For example, new single family homes have a median price of:

  • Paradise Valley: $3,895,000 (Low of $955,000)
  • Scottsdale: $1.7 Million (Low of $325,000)
  • Cave Creek: $649,000 (Low of $371,000)
  • Phoenix: $529,000 (Low of $217,000)
  • Surprise: $330,000 (Low of $236,000)
  • Buckeye: $310,000 (Low of $200,000)
  • Maricopa: $233,000 (Low: $191,000)
  • Tonopah: $316,000* (Median for all homes: $250,000)

(*There’s only 1 new home for sale and 10 resales)

And as mentioned last week, if you or anyone you know wants to see new home communities, contact us. We’ll show you what’s out there and we’ll be your representation, rather than only the builder representing you. And there’s no cost to you!

About the Author
Michael Bodeen, Associate Broker

     I was born and raised in San Rafael, California, from the mid 50’s to the early 70’s. I had super parents who worked hard to provide 5 kids with a good Catholic education – despite my best attempts to overthrow the knuckle-cracking regime of Sister Mary Anselma. My dad worked as a self-employed butcher until his retirement at 65 and enjoyed many wonderful years until mom passed away in 1992.

     Dad passed away in the fall of 2006 having lived a great and full life into his early 90’s! In California, I attended college in Chico and Sacramento as a “Sosh” major, but like many of my contemporaries, I did not have a clue what I wanted to do when I grew up. Because of my age, I missed the Vietnam War and into my early 20’s I had many typical youthful indiscretions.

     Thankfully, that was a brief period of my life, and with greater thanks, not too much damage was sustained in those early and rebellious years. And by the way, those thanks are due to the answered prayers of faithful relatives who prayed for years that a wayward Michael would turn his life over to the Lord, and in January of 1982 that’s what happened.

     I lived in Sacramento, California in the mid 70’s, and later moved to Truckee, California, which is near Lake

Tahoe and Reno, Nevada. Truckee’s often labeled the “coldest spot in the nation.” Why did I move there?

My father-in-law was a real estate broker in Donner Lake, California, and despite his cantankerous disposition, he seemed very successful in his real estate endeavors. I joined him in sales in July of 1976.

    The Truckee and Lake Tahoe area was a wonderful place to raise a family, but a difficult and cold environment to live in, but we did so for 18 years. In 1994, my wife, Karen, and I visited Scottsdale at a friend’s request, and within 8 months, our family of 5 had relocated to “the valley” – or is it a desert? Whatever it is, it’s warm. At any rate, 24 years have gone by since we made the break from the late great state of confusion, uh, California, and it’s turned out to be a great move.

     As for hobbies, I enjoy family, friends and travel. My kids Robert, Kendra, and Jonathan are now 40,

34, and 31 respectively. I recently became “gramps” for the 4th time as well. It’s a nice time of life. Karen remains as lovely on the inside and outside as the day we were married. We continue to wonderfully grow together as the years advance. As an ordained Christian Chaplain, I volunteer Preaching at Florence Prison with Along Side Ministry. The ministry helps make the formerly incarcerated able to function, even thrive, on “the outside.”

     Should you choose to have me represent you in the sale or purchase of your home, you’ll be receiving my 40+ years of real estate knowledge, counsel, and experience (including negotiation experience).

    Beyond the transaction, I’m always available to you, should you ever need my real estate advice.