But therein lies the great opportunity for investing and buying a second home in Arizona. According to CoreLogic, Arizona had one of the highest increases in property values. According to the Zillow Home Value Index, the highest state average price was reached in February 2006 at $265,000, and the lowest in August 2011 at $126,000. As of March 2012, the average home price in the state is recovering and now sits at $130,000. In Phoenix, MLS listings are back to a level considered normal, as are inventory levels, with a 90-day supply.
You can see from the median sale prices below, that the major areas and cities of Arizona have stabilized and are already on the upswing. Peak Median Lowest Median Median Price City Price Price May 2012 Phoenix $235k $80k $108k Scottsdale $467k $211k $312k Mesa $232k $101k $126k Tempe $260k $125k $159k As in Florida, Arizona housing prices are rising despite the fact that there are still a lot of underwater mortgages and negativity trickling out of the housing and credit crisis. As per the CoreLogic Negative Equity Report, Arizona has a foreclosure inventory of 2.5 percent, a ninety-day-plus delinquency rate of 6.7 percent, and 48.3 percent of mortgaged homes are in negative equity territory.