The Maricopa residential market finished strong in 2019 and all market indicators are up heading into 2020. In terms of the numbers of subdivision homes sold, 2019 finished up 8.4% with 2,054 homes sold this year versus 1,894 homes sold in 2018.
In terms of value, the average sold price per square foot for all of 2019 was $112.72, up 9.2% from $103.14 in 2018. And to put that in just a little more perspective the numbers closing out 2017 were 1,837 homes sold at an average of $84.18 per square so the market has been trending up for several years actually and at sustainable rates.
There is no bubble to fear. Please keep in mind the sold price per square foot is simply a broad market average and should not be used to determine value … please consult a local Realtor for a more precise value for your home.
In terms of buyers, conventional loan buyers dominated the market and were behind 40% of all transaction. FHA buyers accounted for 33% of all transactions, VA buyers comprised 13%, and 10% were cash. There are differences in the types of loans buyers use to complete the purchase so be aware of that when selling your home and reviewing offers.
Many buyers in this market are asking for seller concessions to assist them with their closing costs. However, that number declined by 5% in 2019 versus 2018, suggesting more buyers have cash reserves now which also strengthens their purchasing power. That being said, 35% of all transaction in Maricopa in 2019 included seller concessions.
New-build permits dropped slightly in 2019, down to 987 issued versus 993 in 2018 and 789 in 2017. Developers are actively building in most subdivisions and bringing a new array of interesting floor plans. They are also offering $500 down and many other incentives to attract home buyers, and this is direct competition to the resale market. So if you are looking to list and sell soon, learn the competition and consult a local Realtor. Resale homes have many advantages and the unique features of your home can help cut through the clutter of a busy market.
Remember when it come to your home ….. don’t half asset. Have another good week.