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Maricopa Residential Market Update May 19, 2017

Well the number of available homes has remained consistent throughout the last 5 months, and consistently below the level of demand. 284 subdivision homes are once again available on the MLS, listed at an average of $100.98 per square foot. 261 homes are currently under contract pending close of escrow, and it was another good two weeks in sales as 86 homes sold over that time period, selling at an average of $91.67 per square foot bringing our YTD numbers now to 657 homes sold at an average of $91.31 per square foot. Note the YTD average sold price per square foot now has topped the $90 mark for the first time in over ten years, no doubt as a function of the supply/demand imbalance.

So let’s take a quick look at how April 2017 did against April 2016 and then a look at how the first 120 days of the year compare with last year’s results. As expected, all current market data are on positive trajectories and more importantly sustainable trajectories in my opinion. For the year, sales are up however we did realize a slight decline in April 2017 with just 151 subdivision homes sold versus the 156 homes sold in April 2016, a 3.2% decline. However the average sold price of a single family residence in Maricopa for the month of April was up 10% over April 2016 to $191,331; total market dollar volume was up almost 7% to $30.3 million; days on market dropped 17% and all of this activity was driven by a 32% average drop in the number of available homes. The average number of available homes last year listed on the MLS hovered around the 450 mark. This year, the average hovers around the 300 mark, yet demand is as strong as ever so we are on the cusp of a housing shortage if these dynamics stay the same.

YTD the market is on an impressive course. Subdivision homes sales are over 12% to 562 homes sold (through April 2017), versus the 500 homes sold through April 2016. The average sold price of a single family residence is up almost 8% to $186,352, total market dollar volume is up almost 22% to $110.5 million, and average days on market is down almost 7%, so trend lines are strong and market activity has been very consistent through the first 4 months of 2017. Where are the buyers coming from? 17% of all YTD sales have been cash purchases, 48% of all YTD sales were purchased using a conventional loan, 24% were purchased using FHA loans, and 11% were purchased using VA loans. Historically, and by that I mean over the last 8 years, FHA and VA loans dominated the Maricopa market yet we see this year that conventional loans have taken the lead and this is primarily due to the Pathway to Purchase down payment assistance program which was widely used in this market however funds for that program have dried up so we may see those percentages change a bit as we get deeper in the year. If you would like a more detailed analysis of your home and neighborhood, please email or call any time. Have another great week.

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