For those of you wondering where the regular Market Updates disappeared to …. I now write a monthly article in local paper Maricopa Monitor, so I though I would just start posting those articles here. I appreciate all of you who follow that, and here is April’s update:
The residential real estate market in Maricopa remains extremely busy but funny enough YTD sales lag behind 2017, albeit slightly. Through March of this year, 403 SFD residential homes had sold compared to 410 through the same time period last year, so while the difference is minimal it certainly feels a lot busier than it did last year as most real estate agents can attest to. While the number of sales are slightly behind last year’s pace, the average sold price of those homes has increased by over 9% to $202,352 for the month of March, bringing the YTD average now to $201,237, and the new build sales are helping to bolster that average. Since the first of the year 78 newly constructed homes have sold, or 21% of the total. Those new homes have sold on an average of $109.37 per square foot. Conversely, 332 resale subdivision homes have sold in that same time period at an average of $98.35 per square foot, so the 11% difference in the average sold price per square foot and the amount of sell through is translating to higher home values across the board, which is great news for current home owners.
And the new build trend continues unabated. Another 81 new SFD permits were issued by the City in March, which follows January’s 106 permits and February’s 97. There are currently 102 new build spec homes listed as available on the MLS out of a total of 308 subdivision homes listed city wide, so 30% of all available inventory is a new build home and this trend will likely hold through the year, with nearly all subdivisions offering an assortment of floor plans with new construction. Consumers do enjoy some benefits with new construction as well considering the warranties, easy financing, and often a new contemporary look and these incentives can be convincing.
On the resale side, 40% of all sales were secured with conventional financing, 31% used an FHA loan, 10% used a VA loan, and 18% were cash transactions, and these stats have been real consistent over the last 18 months. There are currently some really good loan programs for resale homes and just a tip for those new home consumers, you can use your own financing, but often times you will lose the concessions being offered if using builder financing, so do your home work and go in prepared and it never hurts to have a local real estate agent with you when negotiating. Have another great week.