These metro Phoenix neighborhoods had biggest home price increases, decreases

By Catherine Reagor

A popular Tempe neighborhood near ASU and freeways was the top area in metro Phoenix for home price increases during the past year.

South Tempe’s median home price jumped 23% to $554,000 during the 12 months ending in August, according to Homes.com.

Chandler’s Ocotillo neighborhood, named after a big development in the area, posted the biggest home price drop. Its median plummeted 28% to $559,000.

Metro Phoenix transitioned to a buyers’ market last winter as the number of home listings increased and the number of home shoppers declined.

Metro Phoenix's median home price was $440,000 in August, flat from July and from August 2024, according to the Arizona Regional Multiple Listing Service.

Top neighborhoods for home price gains

After south Tempe, Litchfield Park in the West Valley saw a 17% jump in its median price to $515,000. The area is home to the Wigwam Resort.

Phoenix’s northern neighborhood, Stetson Valley, home to Deem Hills Community Park and near the Taiwan Semiconductor Manufacturing Co. plant, posted a 12.6% increase to $687,000.

The median price in the north central Scottsdale neighborhood dubbed Horizons, because of nearby schools with the same name, increased 11.2% to $695,000.

Northwest Phoenix’s gateway neighborhood, south of Anthem and Lake Pleasant, had an 11% price gain to $642,000.

Where home prices fell the most

After Ocotillo, east Chandler posted the second-biggest drop. That area’s median fell 18.2% to $450,000.

Chandler’s central Ridge, close to its popular downtown, saw its prices fall 15.4% to $438,000.

The median home price in south Scottsdale, nicknamed SoSco, fell 13.4% to $515,000.

Prices decreased 11.3% in Sun Lakes, a West Valley area named after a large retirement community there. The median in August was down 11.3% for the year tracked.

“If we get more buyers enticed by lower rates, we could move into a more balanced market soon,” Tina Tamboer, senior housing analyst with The Cromford Report, said.

Home prices typically are more stable in a balanced market. Prices climb in sellers’ markets as happened in late 2020 until mid-2022, when 30-year mortgage rates dropped to about 3%.

The housing market started to slow from a frenzy in late 2022 as mortgage rates climbed to 7%.

The average 30-year rate is currently 6.3%.

Homes.com uses geo-mapping to track neighborhoods' overall median price, which includes single-family houses, townhomes and condominiums.

Final Thoughts:
Metro Phoenix’s housing market is showing a clear split — with some neighborhoods seeing sharp price gains while others experience notable drops. South Tempe led the region with a 23% increase, while Chandler’s Ocotillo saw a 28% decline. Overall, the market remains steady, with a median home price of $440,000 and signs that lower mortgage rates could soon bring balance between buyers and sellers.