Finding The Best Deals In The Valley

House hunters looking for bargains in neighborhoods that they expect will jump in value still can find some deals.

The old formula of buying a cheap house on the fringes of development and waiting for it to appreciate still works. But that game is more competitive, with smart buyers and investors trying to get in early before builders jack up the prices.

The resale market is just as competitive.

Top neighborhoods have been discovered, bought and resold over and over, pushing prices beyond the reach of many first-time buyers.

Some shoppers are stunned to learn that they're priced out of their target neighborhood, forcing the bargain hunters to try to buy in early in a neighborhood that they believe will eventually takeoff.

"I tell my clients that in some respects, if you want a great deal, you have to be a pioneer," said Brad Zupp of Coldwell Banker Success Realty. "You have to be kind of a contrarian."

House shoppers who do their homework can still find deals in and around metropolitan Phoenix. The Arizona Republic's analysis of home-sales data from Marketron shows several emerging housing hot spots across the city in both the new home and resale markets.

Some of them are taking off because of new freeway connections, some are near historic districts, and some are affordable compared with nearby neighborhoods. Here is a sampling of some of those ZIP codes and the reasons why they're starting to simmer:

• Buckeye, 85326: The West Valley burg surrounded by miles of farms is about to boom. New-home sales bounded from 58 in 2002 to 367 last year with the average price increasing to about $122,000 from $117,600. Both trends are headed straight up as building kicks into gear at the massive Verrado community.
• Queen Creek, 85242: It's no secret that this Pinal County crossroads near the San Tan Mountains is in play. There were 725 houses built there last year compared with 253 in 2002. The average new house cost about $174,700 last year, pricey compared with fringe markets such as Surprise and Laveen but up less than 3 percent year-to-year.
• Phoenix, 85041: Sales of both new houses and resales boomed in this hot spot in the Laveen area of the Baseline Road corridor. Buyers like it because nearby Central Avenue provides a straight shot to the downtown office hub and Baseline is a pipeline to Interstate 10. The area feels close-in compared with cities on the fringe. The average house there sold for $58,000 in 1998. Last year, the median price for both new and resale houses exceeded $137,000, way up but still cheap compared with stretches of the East and West Valley that are a greater distance from the central city.
• Scottsdale, 85251: Quick access to the Loop 101, now complete through north Scottsdale, makes this resale spot stand out. So does its proximity to the city's downtown, Scottsdale Fashion Square and the booming commercial corridor unfolding on both sides of the 101. The kicker: It's the only ZIP north of Thomas Road bordered by the freeway where the average house sells for less than $200,000. Head north and spend an additional $50,000 or $100,000, or more.
• Anthem, 85086: Resales are red hot in the community north of the Valley, jumping from 340 in 2001 to 857 last year. Combined sales of new and existing homes were among the highest in metropolitan Phoenix, with the average house going for $241,000 last year compared with $165,000 six years ago.
• Peoria, 85383: The only ZIP in the far northwest Valley where the overall median exceeded $250,000. Close to Lake Pleasant with plenty of mountains and rolling terrain, the area is home to the immense West Wing Mountain housing development. Another sizable one called Vistancia is under construction. Real-estate players like to call this area the next Scottsdale and, price-wise, they're in the ballpark. The average house there sold for $270,000 last year, double the approximately $134,000 in 1998.
• Phoenix, 85013: This spot is next door to the swanky North Central Avenue 85012 ZIP and contains some of central Phoenix's newest historic neighborhoods. Bounded by Thomas Road and Glendale Avenue, 85013 is minutes from work for downtown denizens and close to the action for sports fans or folks with theater tickets. Resales have tapered off slightly in the past six years but prices are on a roll, up 54 percent to $151,000 last year.

Sam Roberts, 31, had her heart set on buying in a Phoenix historic neighborhood until she began shopping. She was surprised to learn that such houses can easily run $200,000, or much higher, and many of them were smaller than she expected for the price.

She decided instead on a new house at 31st Avenue and Baseline Road in the 85041 ZIP, the Laveen hot spot. The 1,700-square-foot, three-bedroom house had a base price of $146,000 and she had yet to decide on upgrades.

Roberts is a computer specialist for the Apollo Group and her office is near 40th Street and Broadway Road. She's moving to Laveen from Mesa, where she had an apartment, and initially was worried about the commute.

"I almost didn't want to look at houses that far out," she said.

"The concern was I don't want to drive far to work. I get cranky."

But she tested the drive time on different routes and found the longest to be 20 minutes in rush-hour traffic.

Her strategy is to stay in the house for five years to cash in on the appreciation, then shop the historic neighborhoods again.

"I really don't feel like I'm giving anything up," Roberts said.

"I feel like I shifted my priorities once I understood what was out there."

	Martin Spilo D.L. Jones and Associates 3668 W. Anthem Way, Suite B-158 Anthem, AZ 85086 623-363-5685