In Arizona, as the weather cools the real estate market typically heats up and that dynamic could be on full display this year as market forces are all aligned for what could be a very active winter.
Home values in Maricopa are still 20-30% below home values just 20 minutes north and increasing annually at sustainable rates, new home developers are building attractive new homes in all subdivisions, new loan programs are offering favorable terms, and interest rates for primary residence buyers with decent credit scores are below 4%.
To put that in perspective, a .5% drop in the interest rate translates to increasing the buyers purchasing power by approximately $10,000-$15,000 or more depending on the price point, so people who have been on the fence and indecisive of when to buy … the time is now. Take advantage of these low rates and the increased and diverse selection of resale and new-build homes.
As previously mentioned, the new home developers have certainly been busy this summer as 260 new SFR (single family residence) permits were issued in June and July and YTD, 721 permits have been issued. In terms of resale homes on the areas MLS, 304 SFR homes are currently available (down almost 20% in the last 90 days), 262 homes are currently under contract, and YTD 1,428 SFR homes have sold in Maricopa selling at an average of $112.31 per square foot.
The new-home developers’ share of the current market has dropped to 12% in terms of availability with 72% of the current market comprised of traditional resale homes, 10% of the current market are investor-owned “flip homes” and less than 2% of the market are distressed properties.
The real estate market is certainly changing as are a lot of markets with the emergence of technology and the ease of buying and selling, and consumers are smart to explore their options. Protecting the equity of your largest asset is extremely important and maximizing that equity potential is the key to any real estate transaction.
Presenting your home to potential buyers, negotiating a contract, and completing the escrow process can be stressful but a good local Realtor will minimize those stress levels while at the same maximizing your bottom line. When you decide to sell, explore all avenues and consult with local industry experts before you go to market … your equity will thank you.
Have another great week.