Below is a chart with the annual appreciation for each city since January 1st, 2001.  The measurement was taken mid October 2008.  This includes single family homes and the appreciation is based on the percent change per square foot.

Of course if we looked a all cites last year the appreciation rate would be higher.  For instance, it was 11.5% in Scottsdale or 9.6% in Gilbert.  So, this last year has had a large impact on the yearly appreciation rate.

City	Annual Appreciation based on % change per Square Foot. (from 1/1/2001)
Fountain Hills	8.9%
Scottsdale	8.1%
Paradise Valley	7.6%
Tempe	7.2%
Carefree	6.6%
Cave Creek	6.4%
Chandler	6.1%
Mesa	6.0%
Phoenix	5.7%
Peoria	5.6%
Glendale	5.4%
Gilbert	5.1%
Anthem	3.3%
Goodyear	2.7%
Avondale	2.6%
Surprise	2.6%
Litchfield Park	1.8%

(ARMLS data crunched by The Cromford Report)

This kind of data supports the idea of buying real estate for the long term not only if you are an investor but a home owner.  Despite the dramatic price drops in the recent 2 years the annual appreciation-if purchased before the excess period- is still quite good and in many cased above the historic average of about 5%.   Even 2.6% annual appreciation is not bad if you consider leverage.

The averages above are for quite large cities.  Each area and price range has it's own market characteristics: some areas in Phoenix may have appreciated less while others may have had a much higher appreciation rate. 

If you would like this data for some of the other cities not listed above please contact us.