By Megan Ternes-Barkstrom aka BLONDIE REALTOR®
North Central Phoenix's real estate market is experiencing notable changes, particularly in two of its most desirable areas: the “7's Corridor” and the Royal Palm neighborhood. These shifts are mirroring trends seen in other sought-after Phoenix communities like Arcadia and Arcadia Lite, where older homes are being replaced with luxury properties, and demand for both single-family homes and condos continues to rise.
The 7’s Corridor: A Growing Trend of Teardowns and Luxury Rebuilds
In the iconic “7’s Corridor” of North Central Phoenix, properties with approximately 15,000 square foot lots are seeing increased activity. Homes in livable condition in this area are currently selling in the $1.1M to $1.2M range. However, the real story lies in the growing trend of teardown and rebuild projects. Many buyers are opting to demolish the original 1950s ranch-style homes to make way for modern luxury builds.
These new luxury homes are fetching impressive prices in the market, with some approaching $4M, depending on the size and finishes of the new construction. The price of land in this corridor is on an upward trajectory, driven by high demand from builders seeking to create high-end properties in a prime location.
Royal Palm Neighborhood: Teardowns and Remodels Driving Price Growth
Similarly, the Royal Palm neighborhood is seeing a comparable trend with properties on larger lots. In this area, homes with similar lot sizes are selling for between $700K and $800K if they are teardowns. After demolition, the price for newly constructed luxury homes in this area can reach around $2.3M, with some properties even targeting price points as high as $3.9M, depending on the scope of the build.
Interestingly, homes in the Royal Palm area that have undergone significant remodels, preserving the original 1950s bones while updating the interiors, are also fetching strong prices. Properties with more than 3,500 square feet of living space and modernized features are selling for around $1.5M, with further potential for price appreciation as the demand for these remodeled properties continues to grow.
The Larger Trend: A Changing North Central Landscape
The transformation in both the 7’s Corridor and Royal Palm neighborhoods is reflective of a larger trend in North Central Phoenix, where older homes are being replaced with larger, more luxurious properties to meet the demands of today’s buyers. This shift is similar to what has been seen in the Arcadia and Arcadia Lite neighborhoods, where older ranch-style homes are being demolished to make way for modern, high-end construction. It is my hope that builders and investors will keep the 1950's ranch home architectural charm in mind when erecting new builds - doing this will allow for a more cohesive blend of original, updated, and new-build properties, thus preserving the North Central Corridors originality.
As North Central Phoenix continues to attract attention from luxury homebuyers and investors, the real estate market is expected to remain competitive, with increasing property values and growing demand for both new builds and remodeled homes. For buyers and sellers alike, this means the opportunity for significant returns in a rapidly changing market.
In conclusion, whether you're in the market for a teardown project in the 7's Corridor or a remodeled home in Royal Palm, North Central Phoenix offers exciting possibilities for those looking to invest in one of the city’s most dynamic real estate markets.