Home sales heating up in ZIP code 85206

Buying a home in Mesa's 85206 ZIP code has John Karreci beaming like the cat who swallowed the canary.

He and his wife, Shannon, are purchasing a 2,700-square-foot, six-bedroom home near 39th Street and U.S. 60. They'll be moving there from Tempe. And his mother, who now lives in Glendale, also will be moving in.

"They accepted our offer for $175,000 on a house that four years ago was sold for $450,000," Karreci said. "They were asking for a little over $200,000 ... so that was a smoking deal if you ask me."

The Karrecis weren't the only ones wanting to buy a house and live in 85206. Online real estate brokerage site ZipRealty named 85206 the hottest market in the Valley for homebuyers in its first quarter Home Hunters Report. The ranking is based on the number of online home searches in each ZIP code and city.

"The 85206 ZIP code has always been a hot area," said Christy Gillan, ZipRealty's district director of Phoenix. "Unfortunately, with that being said, it was hit hard by the foreclosures, as well. So there's a lot of inventory right now, a lot of foreclosures and a lot of short-sales are on the market right now. They're being priced very aggressively ... the banks are responding quickly, and the inventory is coming on and moving off much quicker than before."

As for city rankings, Mesa, Chandler and Gilbert were among the hottest cities in the U.S. for homebuyers in the first quarter, according to ZipRealty.

First-time buyers, move-up buyers, investors and winter visitors are focused on buying in 85206, Gillan said.

"The demographic is really all-encompassing," she said. "The area has always been popular for the retirement community, but even younger people are buying out there."

Brian O'Brien, a real estate agent with Red Brick Realty, is trying to find a home in the $140,000 range in east Mesa for a client, but fierce competition has shut them out of the market."I have been searching specifically in 85205 and 85206 ... and those homes are sold," he said. "They have multiple offers on them, and we cannot seem to get an offer accepted because of the high amount of volume in those zip codes. I can't get something available for us to purchase because they have been snatched up or they are fighting over them. They are bidding two, three or four offers at a time."

There are several reasons why 85206 is hot for home hunters, O'Brien said.

"Northeast Mesa is a very attractive part of Mesa, that's No. 1," he said. He also cited the popularity of schools in the Red Mountain High School attendance area and low crime rates.

"You have nice neighborhoods that are normal, family neighborhoods. You have phenomenal interest rates and you have affordable homes," O'Brien said.

Karreci said there's numerous advantages to living in 85206.

"It's fairly inexpensive right now, obviously," he said. "It's convenient as far as proximity to my work and my wife's work, the taxes are cheaper and the school's got a pretty good rating as far as everything goes," he said. "I consider it the nicer part of Mesa because it's right on the border of Gilbert. Gilbert's a nicer town, and you get all the bonuses of Gilbert without being in Gilbert."

Randy Courtney, designated broker at Courtney Valleywide Properties, said 85206 has "exploded with activity" practically overnight.

"There's good, affordable housing and it's fairly newer," he said. "You go into the ZIP codes going farther west and it becomes much older fast. It (85206) has a lower price point and more condos, and more winter visitors are targeting that area because it is kind of a retirement hub."

It's a great time for buyers, but not for sellers, particularly those who bought their homes just before the market plunged, said Doug Coats, associate broker with Long Realty Partners.

"It is reasonable to believe that we are at 2004-2005 pricing, and what those homes were selling for in 2004-2005 is probably what they should be selling for today," he said. "God forbid if someone purchased in 2006-2007, they owe more than the home is worth. The motive for someone selling is important. If they'd just like to live a little closer to here, maybe a little closer to work or maybe they need a little bit larger house, then they need to consider not selling at all and just riding this out."