Hottest 'hoods: These areas of metro Phoenix are on fire with home sales in a softening market

By Angela Gonzales

Zonda has identified the hottest Valley ZIP codes for real estate activity in the first half of 2025, with this year's top 10 featuring a balanced mix between cities in the East and West Valley.

The Zonda Heat Index was prepared exclusively for the Phoenix Business Journal.

In previous years when Zonda would conduct this exclusive study, the Zonda Heat Index was weighted more heavily on price appreciation, showing the neighborhoods most prized by homebuyers. For 2025, the company has considered multiple factors.

"The Zonda Phoenix Heat Index for the first half of 2025 ranks the metro area ZIP codes based on the year-over-year change in total sales, average sales prices, and the average price per square foot as well as the year-to-date total and new home sales volume, with an equal weighting between sales and price metrics," said Sean Fergus, executive director of economic research for Zonda.

The Valley's housing market was sluggish during the first half of 2025, as mortgage interest rates continued to hover around 7%.

Home inventory is on the rise as of Sept. 29, with 14,211 single-family homes available in the metro, up from 14,082 the previous week, according to The Cromford Report. These numbers do not include homes under construction.

"New homes have become cheaper than existing homes primarily due to builder incentives, a decrease in new home sizes, and a standoff between sellers and buyers in the existing home market," said Keith Burton, Realtor with the Rider Elite Team. "This unusual market trend first emerged in 2024 and has continued into 2025."

More than 66% of homebuilders are offering perks, including rate buy-downs, design credits and closing cost assistance, Burton said. They're also designing more affordable homes with efficient layouts, he added.

Apache Junction makes its way to top of the ranking

Homebuilder activity at Superstition Vistas put the 85120 Apache Junction ZIP code at the top of the Zonda Heat Index. In that ZIP code, 645 home closings were recorded in the first half of 2025, according to Zonda's research.

With an average sale price of $462,631, the 85120 ZIP code showed a 17% increase in home prices and a 14% increase in volume, pushing the ZIP code to the top of the list.

Radiance at Superstition Vistas, a master-planned community being developed by D.R. Horton Inc. (NYSE: DHI), is one of the top-selling master-planned communities in the nation. RCLCO ranked Radiance at No. 19 on its national list.

Brent Davis, Phoenix division president for D.R. Horton, said more than 1,250 homes have closed at Radiance since launching home sales in 2023 for a community that will boast 5,000 homes.

Prices range from the low $400,000s to more than $600,000, he said.

"We believe the location and affordable price points, along with the overall community and amenities are what is driving buyers to Radiance," Davis said.

Radiance at Superstition Vistas is one of the fastest-growing master-planned communities in the nation.

D.R. Horton Inc.

Davis gave kudos to city of Apache Junction staffers for their support on the project. In late 2020, Apache Junction was able to unlock development in Superstition Vistas with a successful state land auction sale, said Matt Busby, assistant city manager for Apache Junction.

"This was a transformational project for our community that allowed us to annex thousands of acres," Busby said. "Permitting for single-family homes continues to be robust in this southern portion of Apache Junction, and we are now talking to a growing number of employers and retailers who are also interested in locating in the Superstition Vistas area."

With a population of 44,309, Apache Junction is the fourth-fastest growing city in metro Phoenix, at 7.7% growth in the last year, according to the U.S. Census Bureau.

Brookfield, D.R. Horton combine for 10,000 homes

While D.R. Horton is building 5,000 homes at Radiance at Superstition Vistas, Brookfield Residential is responsible for another 5,000 homes on its 1,400-acre portion of the community, called Blossom Rock at Superstition Vistas. Brookfield Residential is one of several homebuilders that are building homes within Blossom Rock.

Of the 645 home closings within Apache Junction during the first half of 2025, 171 of them were at Blossom Rock, said Eric Tune, senior vice president of development for Brookfield Residential.

"We've had another 57 close between June and Sept. 28," he said.

"About 72% of our buyers are coming from less than 20 miles away — East Valley natives," he added.

Blossom Rock at Superstition Vistas features Painted Sky Park, the Dutch Clubhouse and pool pavilion.

Brookfield Residential

In two weeks, a new community center will be unveiled, while construction is kicking off on the next phases of development.

"We're getting ready to start selling more lots," he said.

These lots will smaller, in a higher density portion of the community. Miami-based Lennar Corp. (NYSE: LEN) is one of the homebuilders that took 120 lots for that more dense area of Blossom Rock, Tune said.

Plans call for starting construction of model homes in October for those smaller homes on smaller lots. The model homes are scheduled to open in February, said Jeff Gunderson, senior vice president of land operations at Lennar.

Overall, Lennar owns 850 lots within Blossom Rock.

Not only was Lennar the first homebuilder to close escrow at Blossom Rock, taking the first 155 lots, it then paid $49 million for 122 acres of vacant land at the community in January, with plans to build another 575 homes.

Of the first 155 lots, 153 are either completed or under construction, Gunderson said.

By January, construction is expected to begin on the model homes of the 575 homes on the vacant parcel Lennar purchased. Those models are expected to open next May, he said.

If interest rates continue to drop, Tune expects to see a tapering of homebuilder incentives, including rate buydowns, hopefully sometime in 2026, he said.

"With interest rates still being elevated, the difficulty lies with getting the right price and payment for all the buyers that are in the market today," Gunderson said.

Final Thoughts:
The East Valley continues to dominate metro Phoenix’s housing activity as builders like D.R. Horton, Brookfield Residential, and Lennar drive massive development in Apache Junction’s Superstition Vistas. Despite a softer market overall, the area’s affordability, amenities, and growth potential are fueling strong buyer demand. The 85120 ZIP code’s rise to the top of Zonda’s 2025 Heat Index shows that even in a high-rate environment, the right combination of location and pricing keeps sales moving.