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Maricopa Market Update May 2018

When it rains, it pours and there was certainly a deluge of April home sales in Maricopa. 198 residential subdivision homes sold in Maricopa this April, marking a 31% increase over April 2017’s sales total of 151 homes. The average sold price rose by more than 8% in April to $207,431, however the average days on market rose by 18% primarily due to rising inventory. In fact, the average number of available listings this April surpassed that of April 2017, marking the first month in the last 9 months that current available inventory was stronger than at the same time period for the previous year.

April’s strong performance though could just be a harbinger of things to come as the City issued another 77 new build permits in April bringing the YTD number of permits issued now to 391 and all indications are that this rapid pace will not slow down any time soon. In fact 37% of the total available inventory are new build homes with 105 newly constructed homes currently listed on the MLS at an average of $119.02 per square foot. 47 newly constructed homes are under contract pending close of escrow and since the first of the year, 111 new build homes have sold, selling at an average of $109.47 per square foot. By comparison, 174 resale homes are currently listed on the MLS at an average of $104.73 per square foot. 250 resale homes are under contract and since the first of the year, 548 resale homes have sold at an average of $100.67 per square foot.

How do these numbers compare to 2017? Well through the same time period last year only 35 new build homes had sold at an average of $114.17 per square foot, and 592 resale homes had sold at an average of $90.37 per square foot, so new build sales year over year have increased by over 100%, while resale homes are just keeping pace with last year. The contemporary look and new floor plans of the new models are being well received by consumers and new homes do have attractive warranties but consumers are best advised to do their homework as resale homes are selling for approximately 10% less per square foot, and do offer attractive upgrades, landscaping etc. It’s a diverse housing market and interest rates are still historically low, so if you are currently navigating the market whether selling or buying, do your homework and consult a local Realtor. Have another great week.

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April 2018 Market Update

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.

 

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Maricopa Market Update October 14, 2017

The number of available homes has jumped up since the last update with 324 subdivision homes now listed on the MLS at an average of 104.13 per square foot, but that average is greatly influenced by the new build spec homes. 106 new build spec homes, almost 33%, of the total available inventory of homes are new build spec homes in Maricopa and they alone are listed at an average of $112.56 per square foot. When you subtract the new build, the resale homes are listed at an average of $99.92, so there is terrific value to be found in resale homes particularly when you have a market that is largely driven by developers. 214 subdivision homes are currently under contract pending close of escrow, and since our last update 107 homes have sold, selling at an average of $93.29 per square foot and bringing our YTD numbers now to 1,458 homes sold at an average of $92.60 per square foot. By comparison, through the same time period last year, 1,323 homes had sold at an average of $86.71 per square foot, so the Maricopa residential market is currently tracking up 10% in terms of homes sold, and nearly 7% in terms of the average sold price per square foot.

The numbers are in for September 2017 and it proved to be a strong month. Sales of subdivision homes over September 2016 were up over 20% with 167 homes selling this year versus the 138 homes sold in Sept. 2016. The average sold price for SFD home last month rose to $200,886 up over 11% from Sept. 2016’s average of $180,366, and the total dollar volume rose by more than 34% to $34.5 million. The mix of buyers has also stayed very consistent this year with 40% of all buyers using conventional financing, 29% using FHA loans, 17% were cash transactions, and VA loans shored up the balance of 14%. If you would like a more detailed analysis of your home or neighborhood, call or email any time. Have another great week.

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Maricopa Market Update September 23, 2017

The number of available homes has inched up once again over the last couple of weeks with 317 subdivision homes currently listed on the MLS at an average of $102.84 per square foot. 216 home are currently under contract pending close of escrow and sales have stayed strong with 69 homes selling over the last couple of weeks, selling at an average of $94.10 per square foot, bringing our YYD numbers now to 1,344 homes sold at an average of $92.51 per square foot. By comparison through the same time period last year, 1,224 homes had sold at an average of $86.56 per square foot so the market is currently tracking up just under 10% in terms of sales and 6.8% in terms of the average sold price per square foot. Last year’s average sold price per square foot came close to finishing over the $90 mark but fell short at the end, however this year that benchmark will be surpassed and the question is, how long until we see the $120 to $130 averages seen in the Chandler/Gilbert areas?

Here’s some interesting information on new builds, which are a huge component of the current market. There are currently 92 new build spec homes available on the MLS, which is 29% of the total availability, so one of every three homes currently available is a new build. 60 new build spec homes are currently under contract, but just 21 new build homes have sold over the last 90 days, selling at an average of $111.12 per square foot. With 60 homes under contract and just 21 sold in the last 90 days, it’s obvious that demand has ramped up over the last month and with the thin inventory of resale homes, buyers are taking advantage of the new build incentives, warranties, and financing options, however buyers would be wise to do their homework before deciding which way to go. While the new builds do offer attractive incentives, etc., the average sold price per square foot of resale homes over the last 90 days is just $86.03, or 28% less than that of the $111.12 new build average over the same time period, so do your homework and consult with a local Real Estate professional before deciding which option is best for you. Have another great week.

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Maricopa Market Update September 9, 2017

The number of available subdivision homes stays above the 300 mark for the second straight week as 307 homes are currently available on the MLS as of this morning, listed at an average of $102.37 per square foot. 222 homes are currently under contract pending close of escrow, and it was another average week in sales as 32 properties sold over the last 7 days, selling at an average of $96.23 per square foot. The pace of demand for housing in Maricopa has been very consistent throughout the year. It has been the supply of homes that has slowed that pace down on occasion so an increase in supply will not only help bring more buyers to the market but will also help stabilize values.

August 2017 followed July 2017 and became the second straight month this year that lagged behind 2016. Sales of SFD homes in Maricopa fell by 11% with just 145 homes sold versus the 164 homes sold in August 2016. Despite that decline in sales though the average sold price of SFD home increased by over 12% to $198,600 up from the August 2016 average of $176,700. The mix of buyers for August also changed up a bit as 40% of all August sales were purchased with an FHA loan; 28% were conventional loans; 20% were VA loans, and just 12% of August transactions were cash. Because of the sales declines realized in July and August of this year, our strong year over year gains that we were seeing earlier in the year have lessened but the growth is still on a positive trajectory. YTD sales are up over 7%, the average sold price of a SFD home in Maricopa is up over 10% to $193.391, and the total dollar volume YTD is up over 18% to $252 million. Conventional loan purchases still lead the pack at 42%; FHA loans comprised 29% of all YTD sales; VA loans comprised 13%; and 16% of all YTD transactions were cash. If you would like a more detailed analysis on your home or neighborhood, call or email me any time and have another great week.

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Maricopa Market Update September 2, 2017

The number of available subdivision homes topped 300 for the first time since the beginning of the year as 305 homes are now actively listed on the MLS at an average of $101.81 per square foot. 225 homes are currently under contract pending close of escrow and it was a strong week in sales as 40 properties sold over the last 7 days, selling at an average of $95.58 per square foot and bringing our YTD numbers now to 1,236 homes sold at an average of $92.25 per square foot. By comparison through the same time period last year, 1,141 homes had sold at an average of $86.52 per square foot, so the market continues to track up 8.3% in terms of homes sold and 6.6% in terms of the average sold price. The current average sold price for SFD subdivision home in Maricopa is currently $192,445 up almost 10% from last year’s average of $175,002.

So it’s always interesting to look at current sell through vs current availability at various price points to give you a sense of where the bulk of buyer demand has been over the last 6 months:

  • 120 Maricopa subdivision homes have sold over the last 6 months at or under $150,000; 14 homes in this price range are currently pending close of escrow, yet there are 0 homes currently available at this price point.
  • 306 subdivision homes have sold over the last 6 months between $150,000 and $175,000; 62 homes in this price range are currently pending close of escrow, yet just 48 homes are currently available.
  • 242 subdivision homes have sold over the last 6 months between $175,000 and $200,000; 59 homes in this price range are under contract, and just 86 homes are currently available.
  • 126 subdivision homes sold over the last 6 months between $200,000 and $225,000; 37 homes within that price range are pending close of escrow and 55 homes are currently available.
  • 115 subdivision homes sold over the last 6 months between $225,000 and $250,000; 25 homes in this price range are currently pending close of escrow and 48 homes in this price range are currently available.
  • 85 subdivision homes sold over the last 6 months between $250,000 and $300,000; 24 homes in this price range are currently pending close of escrow and 48 homes are currently available.
  • 31 subdivision homes sold over the last 6 months over $300,000; 14 homes in this price range are currently pending close of escrow and 25 homes are currently available.

The residential market in Maricopa is on a sustainable 6.6% rise and I don’t expect that to abate anytime soon considering the infrastructure and commercial development in the area so if you have been on the fence as to whether to buy or sell, give us a call to help you navigate this active market. Have another great week.

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Maricopa Market Update August 25, 2017

The number of available homes on theMLS ticks upwards once again but still falls well short of last years availability. 293 subdivision homes are currently available on the MLS, listed at an average of $101.94 per square foot. 237 homes are currently under contract pending close of escrow, and it was a decent week in sales as 30 properties closed escrow over the last 7 days, selling at an average of $91.86 per square foot and bringing our YTD numbers now to 1,186 homes sold at an average of $92.14 per square foot. By comparison through the same time period last year, 1,092 homes had sold at an average of $86.52 per square foot so while the sales pace has lost a little steam over the last couple months, the Maricopa residential market is still tracking up 8.6% in terms of homes sold and 6.4% in terms of the average sold price per square foot.

So let’s take a look at the current mix of available homes. Of the 293 subdivision homes currently available, 81 are new build homes listed at an average of $114.16 per square foot, and just 3 homes are distressed properties, listed as either a short sale or bank owned home, and they are listed at an average of $97.78 per square foot. In the 55+ community of Province, there are just 24 SFD homes currently available listed at an average of $139.01 per square foot and of those 10 are newly constructed Meritage spec homes. So in terms of traditional resale homes in the subdivisions of Maricopa, excluding Province, there are just 185 homes available and considering that 237 homes have gone under contract in the last 45 days, there remains approximately a 30 day supply of homes at best. Buyer demand has fallen off of the hectic pace seen earlier in the year but that is typical for the summer months and I fully expect demand to ramp up again as the weather cools. If you are considering selling your home, this is a favorable market and first impressions are everything, so consult with an area professional on pricing strategy and curb appeal before testing the waters. Have another great week.

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Maricopa Market Update August 19, 2017

The number of available homes has inched up over the last few weeks but still remains low in terms of current demand. 298 subdivision homes are now available on the MLS, listed at an average of $101.48 per square foot. 223 homes are currently under contract pending close of escrow, and since my last update on July 11, 203 homes have sold, selling at an average of $94.22 per square foot and bringing our YTD sales numbers now to 1,162 homes sold at an average of $92.12 per square foot. By comparison through the same time period last year, 1,066 homes had sold at an average of $86.73 per square foot, so while the market has lost a little steam from earlier this year, sales are still tracking up 9% in terms of homes sold, and 6.2% in terms of the average sold price per square foot.

July 2017 was one of the few months that failed to keep pace, or exceed the pace of the previous year as sales of SFD homes fell by more than 5% this July versus July 2016. The average sold price of a SFD home in July rose by just over 9% but available inventory continues to struggle with the current pace of demand as the average number of active listings is still consistently off by 10%. As mentioned earlier though the YTD numbers are still strong and trending upwards: 9% gains in sales; 10% gain in the average sold price; and over a 21% gain in total market dollar volume. The mix of buyers YTD shows that 44% of all 2017 contracts were conventional financing; 28% were FHA financing, 11% were VA loans; and 17% of all purchases so far this year have been cash transactions, and these ratios have been very consistent throughout the year.

On a personal note, I took some time off and set out on road trip through Arizona, Nevada, Idaho, and Utah and for those of you, who like me have grown tired of the terrible service in the airline industry, I encourage you to jump in the car and set yourself free. We met some real characters, ate some delicious small town diner food, and saw some landscapes that you never see from 30,000 feet. I am already planning my next road adventure, but I will also begin a regular weekly market update for those of you who like to keep your finger on the pulse of this market, so if you would like more detailed information on your home, shoot me an email or call any time. Have another great week.

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Maricopa Market Update July 11, 2017

The needle on available homes will just not move as 281 subdivision homes are once again listed available on the MLS, listed at an average of $101.01 per square foot. 235 homes are currently under contract, and sales have been fairly strong as 109 homes have sold since our last update on June 21, selling at an average $93.13 per square foot. The dog days of summer are upon us and typically buyer demand tends to wane a bit this time of year, and the data proves it.

So let’s take a brief look at June 2017 vs June 2016; sales of subdivision homes were down just over 1% with 181 homes selling this June vs the 183 homes sold last June. The average sold price however of those subdivision homes shot up by more than 13% to $200,800 vs June 2016’s average sold price of $177,336. Days on market fell by 20%, primarily due to the lack of inventory, and the total dollar volume was up by more than 10% to $37.5 million. Conventional loans dominated the month with 42% of all purchases, FHA loans comprised 30% of all purchases, cash purchases were 17% of the market with VA loans shoring up the remainder. The number of available homes continues to lag last year as the average availability is down by 20%.

The YTD numbers however show that the market is strong and sustainable. Subdivision home sales are up by 13% to 944 home sold through the end of June, versus last years total of 836 homes sold for the same time period. The YTD average sold price for a subdivision home is up by just over 10% to $191,466 versus last year’s YTD average of $173,825, days on market is down 15% and the total dollar volume is up nearly 25% to $190 million. The pool of buyers has also been real consistent throughout the year with 45% of all YTD purchases using conventional loans, 27% using FHA loans, 11% using VA loans, and 17% using cash. Based on current demand, there is less than a 60 day supply of homes so if you are currently looking to purchase, stay vigilant and when the right home presents itself, don’t hesitate. And if you would like us to help you navigate this market, call or email any time. Have another great week.

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Maricopa Market Update June 21, 2017

Well it’s one step forward and two steps back in this current market with record heat thrown in. Maricopa officially hit 120 degrees yesterday but it is a dry heat, and the number of available homes has once again dropped slightly over the last two weeks. 277 subdivision homes are currently listed as available on the MLS, listed at an average of $101.60 per square foot. 266 homes are currently under contract, and 91 homes sold over the last two weeks, selling at an average of $90.79 per square foot and bringing our YTD numbers now to 854 homes sold at an average of $91.38 per square foot. By comparison through the same time period last year, 735 homes had sold at an average of $86.01 per square foot, so the market is currently tracking up 16% in terms of homes sold and 6% in terms of the average sold price per square foot. Important to note is the fact that the average number of available homes is down nearly 30% this year from last, yet sales continue to exceed last year, meaning new builders will stay very active for a while.

Let’s take a brief look at how May 2017 finished up and for those of you who follow the market there are no surprises. Sales of SFD homes were up over 26% from May 2016 (193 homes sold this May vs 153 sold in May ’16). Total dollar volume increased by 45% to $40.6 million, driven largely by increasing values as the average sold price of a SFD home in Maricopa rose by 14% to $197,130 from last year’s average of $172,744. In terms of buyers, conventional loans once again led the pack financing 35% of all purchases in May 2017; 31% were purchased with FHA loans; 17% were VA loans, and 15% of all purchases were cash deals. The Maricopa residential market is surprisingly resilient. We fell the hardest of all Valley suburbs in the 2007/2008 housing crash, yet we recovered the fastest, and today we lead the Valley in terms of commercial and infrastructure development and home values. Maricopa is the hidden gem in the Phoenix Valley, come and find out why and call or email anytime we can be of help. Have another great week.