The once little town of Maricopa is growing up right in front of our eyes. The railroad overpass has changed the way we all commute around town and new commercial enterprises are springing up all over but so are new residential roof tops.
Year to date, new-build permits now exceed last year’s total and we still have well over a month left in the year. There have been 1,196 new SFR (single family residence) permits issued YTD, with 662 of those issued just since Aug. 1. By comparison, 998 SFR permits were issued in all of 2019 and 993 were issued in 2018 so developer confidence in Maricopa is currently very strong.
As of this week, just 109 SFR subdivision homes are available on the MLS but when new-builds are extracted from that total, there remains just 85 resale homes for buyers to choose from in Maricopa. Considering that 329 homes have gone under contract in the last 30 days, there is not a lot of inventory based on current demand and naturally this market dynamic has an upward pressure on home values.
The 24 new-build homes available on the MLS are listed at an average of $169.84 per square foot, but over the last 90 days 68 new-build homes have sold at an average of $155.92 per square foot. By comparison, the 85 resale homes available on the MLS are listed at an average of $134.53 per square foot and over the last 90 days, 502 resale homes have sold at an average of $132.91 per square foot.
On strictly a price per square foot basis one can make the argument that resale homes offer more value but there are advantages to a new-build home as well. So if you are currently looking to purchase, do your homework and consult with an area Realtor — they know the market.
Also if you are looking to sell in the next few months, know your competition in both the resale and new-build categories and set the pricing strategy accordingly. There is only one opportunity to have a favorable first impression and days on market can diminish returns, so again consult with a local Realtor and protect your equity. You earned it.
2020 has been an interesting year so please enjoy the holidays and know that family and friends make everything great. Always. Have another good week.