The number of available subdivision homes ticked up once again over the last 7 days with 362 homes now listed on the MLS at an average of $96.99 per square foot. 148 homes are currently under contract, down from 158 the week prior and it was another good week in sales as 34 homes sold over the last 7 days, selling at an average of $83.68 per square foot and bringing our YTD numbers now to 1,462 homes sold at an average of $78.53 per square foot. By comparison, 1,284 homes sold through the same time period last year at an average of $75.08 per square foot, which translates to a 13.8% increase in sales and a 4.5% increase in the average sold price per square foot.
So the tightening of economic policy has begun. Janet Yellin took the bold move of raising the rate by a quarter point this week after 7 years of a zero Fed interest rate and signaled that more modest increases were possible. At this point now you have to take her seriously. Yellin indicated that she would gradually raise the rate if the economic measures of labor and inflation remain steady and considering the fall of oil prices it is likely that inflation will not worsen any time soon, and knowing that the unemployment rate is a highly manipulative number, I think another quarter point raise in the rate is likely within the next 6 months. So how does this effect mortgage rates?
Holy November, Batman. November sales proved to be the strongest of the year and I will have more on the in just a bit. First of all there was a slight drop in the number of subdivision homes available over the last week, the first weekly decline in over a month with 354 homes now listed on the MLS at an average of $96.90 per square foot. 159 homes are currently under contract, down from 165 the week prior, and it was another decent week in sales with 23 homes closing escrow and selling at an average of $83.57 per square foot, bringing our YTD numbers now to 1,427 homes sold at an average of $78.41 per square foot. Earlier this year I was convinced the average sold price per square foot would reach the $80 mark, but that trajectory did level off a bit over the summer. The good news is that the 4% appreciation in that measure is on a firm foundation.
The number of available homes remains consistent over the last week with 362 subdivision homes listed on the MLS at an average of $96.55 per square foot. 163 homes are currently under contract, quite a drop from last week’s number of 186, and consequently it was a good week in sales with 31 homes closing escrow over the last 7 days and selling at an average of $84.05 per square foot bringing our YTD numbers now to 1,403 homes sold at an average of $78.33 per square foot. As we near the year’s end and after a couple of good weeks in sales, the Maricopa market is now tracking at a 12.8% increase in homes sold and a 4.6% increase in the average sold price per square foot.