A tale of two markets may be the best description for the Maricopa residential market as nearly 40% of the current available MLS inventory are new-build homes, yet the permits for new development has dropped significantly since July.
There are 81 new-build homes currently available on the MLS listed at an average of $129.66 per square foot, while 205 traditional resale homes are also available listed at an average of $113.59 per square foot. Permits for new-build homes peaked in July with 148 permits issued but that number has dropped off dramatically with just 84 issued in August, 48 in September, and just 20 so far this October.
The drop in permits is not a reflection of a slow-down in buyer demand rather than a pause to build out the lots already permitted, but it is something to note as the inventory for new-build spec homes may thin out this fall and build times are ranging from 4-8 months.
The resale market continues to be strong as 205 homes are currently available on the MLS listed at an average of $113.59 per square foot with 172 homes accepting contracts in the last 30 days, so based on current demand there is an approximate 45-day supply of homes, which leans towards a sellers market.
In terms of sales, through September of this year, 1,544 residential homes (new and resale) have sold, selling at an average of $111.88 per square foot. By comparison through the same time period, residential sales for 2018 totaled 1,492 homes, selling at an average of $102.34 per square foot so while values are consistently on the rise, so is the demand.
When to list your home is always a good question and while the seasons do have some impact, the current competition is an often better measure. How many similar resale homes in terms of square footage, upgrades, location, etc., are currently available on the MLS and at what price points? How many of those similar resale homes have gone under contract and sold in the last 90 days? How many similar new builds are available?
Keep in mind, the buying process for a new-build is much easier but there are trade-offs and it’s important to emphasize the improvements your home offers versus a similar new-build in all of your advertising. That is built-in value to the consumer. There are many factors to consider when marketing your home so do your homework and protect your equity …. you earned it.
Have another great week.