Rising home values aren't a given. Here are 5 metro Phoenix areas where home prices dipped

Not all metro Phoenix neighborhoods saw home prices climb in 2018.

Downtown Phoenix, among the handful of areas that saw prices dip last year, is the biggest surprise. But there are reasons for all the price declines.

Here's a look at the areas that saw price dips, according to The Arizona Republic’s Street Scout Home Values.

The Street Scout data comes from The Information Market, owned by the Arizona Regional Multiple Listing Service.

85004: Downtown Phoenix

Cranes are a regular part of the skyline as Phoenix’s core is in the midst of a revival, but the area’s overall median price dipped 4 percent to $322,000 in 2018 from $333,250 in 2017.

It’s not that values are falling in the area drawing many new residents. Instead, new-home prices have dropped as developers try to provide more housing affordable to workers and students in downtown Phoenix. The price on new homes fell from $423,000 in 2017 to $175,000 last year. That drop pulled down downtown Phoenix’s overall median. But the area's resale median price climbed a few thousand dollars to reach $327,000 in 2018. 

Since downtown Phoenix has very little affordable housing, the drop in new-home prices could help the area draw more residents.

SEE OUR DATABASE:  Home values in metro Phoenix: See how your ZIP code fares

85266: North Scottsdale

This far north Scottsdale ZIP code, home to several golf communities such as Whisper Rock, saw prices dip 2 percent last year from $700,000 to $687,000.

Declines in the stock market like the ones during the second half of 2018 often are felt more by luxury homebuyers.

It’s typical for million-dollar home sales to decline when stocks do. This neighborhood, stretching almost to Carefree, has many million-dollar homes.

Home prices in this ZIP code are still 14 percent from its peak in 2006.

85387: Surprise

In the West Valley, this large ZIP code includes part of retirement community Sun City Grand in Surprise.

The area’s overall median home price fell 2 percent last year from $281,161 to $276,928. That drop comes after home prices climbed by more than 7 percent in the area during 2017.

There are several different types of communities in this sprawling ZIP code so it's hard to pin the price decline to one reason.

85012: North-central Phoenix

Home prices were steadily and even rapidly climbing in this popular neighborhood, also known as uptown Phoenix, until last year when the median price dipped 1 percent from $550,000 to $545,000.

Bobby Lieb of HomeSmart Elite Group said prices could be down a bit in the area due to homes south of Camelback selling for less because there are restrictions on renovations in the historic areas.

North of Camelback, there are small new neighborhoods going up. Home prices north of Missouri Avenue typically climb above a million.

85377: Carefree  

Carefree in the far north Valley, with its huge signature boulders and luxury homes, saw its median home price fall from $710,000 to $707,973, about 1 percent.

This upscale enclave could have also been impacted by stock market drops.

Carefree still ranks among the Valley's priciest areas.

MORE ON STREET SCOUT HOME VALUES:

• A look at 2018 home values in metro Phoenix and what to expect in 2019
• 5 metro Phoenix neighborhoods with biggest home price jumps in 2018
• Where did homebuyers flock? 5 areas with the biggest increases in home sales
• Rising home values aren't a given. Here are 5 areas where home prices dipped
• 5 Phoenix-area neighborhoods that offer the best value for first-time homebuyers
• Looking for a mansion? Here are the 5 priciest areas in metro Phoenix
• 5 Phoenix neighborhoods posting the biggest home price gains since the crash
• Ready to trade up? Where move-up homebuyers are heading to find deals

See home values by ZIP code on our Street Scout map

Reach the reporter at Catherine.Reagor@arizonarepublic.com or 602-444-8040. Follow her on Twitter @Catherinereagor.

Support local journalism.Subscribe to azcentral today.