The number of available homes are once again on the ascent albeit at a slightly slower pace this week. 454 subdivision homes are now listed on the MLS, up from 441 the week prior, and listed at an average of $96.06 per square foot. 160 homes are currently under contract, down from 162 the week prior, and it was a good week in sales with 33 homes selling over the last 7 days, selling at an average of $92.46 per square foot, and bringing our YTD numbers now to 82 homes sold at an average of $86.77 per square foot. Just a quick note here, the weekly average sold price per square foot of $92.46 is the strongest selling average in 9 years. Now obviously this is just a week’s sample size but stronger demand, a growing commercial infrastructure and consumer confidence in the local economy are all current contributing factors to our strengthening home values. By comparison and oddly enough, 82 homes were also sold in January of 2015, however those homes sold at an average of $76.49 per square foot, so while sales were even with last year, the market realized a 13.4% increase in the monthly average sold price per square foot.
So let’s take a look at the breakdown of the January’s sales numbers by category.
Another week and another uptick in the number of available homes with 441 subdivision homes now listed on the MLS, up from 424 the week prior, and listed at an average of $95.68 per square foot. 162 homes are currently under contract, up from 157, and 24 homes sold over the last 7 days, selling at an average of $82.04 per square foot and bringing our YTD numbers now to 49 homes sold at an average of $83.55 per square foot. Just by comparison, we are off of last year’s sales pace by 10% but the average sold price per square foot has increased by over 9% from last years average. Obviously though these numbers are extrapolated from a very small sample size so it’s much to early to predict any trends however buyer demand has felt really good since the beginning of the year, which may have something to do with the fact that interest rates are likely to tick up in the last half of this year but as we have discussed earlier, the 30 year FRM (fixed rate mortgage) is tied to the yields of 10 year treasury notes and since the DOW has been plunging, treasuries are enjoying strong demand so actually 30 year FRM rates have dropped slightly in the last week. Buyers should definitely take advantage of this current dynamic because rates under 4% are historically low as any seasoned buyer can attest to.
The number of available subdivision homes jumped up by more than 7% once again over the last week with 424 homes now listed on the MLS at an average of $95.60 per square foot. The number of homes under contract jumped up as well with 157 homes now in pending status, up from 138 the week prior, and 19 homes sold over the last 7 days, selling at an average of $85.09 per square foot and bringing our YTD numbers now to 29 homes sold at an average of $83.36 per square foot. It’s been a busy 2016 so far with the number of available homes increasing by nearly 20% and homes receiving accepted contracts up by nearly 15%.
So let’s take a look at the current inventory mix of new homes, distressed homes and traditional resale homes and
The number of available homes jumped up by more than 6% over the last 7 days with 394 subdivision homes now currently listed on the MLS at an average of $96.35 per square foot. The number of homes also rose to 138, up from 127 the week prior but it was sluggish first week of sales as only 10 homes sold over the last week, selling at an average of $82.14 per square foot. The increase in active listings was not unexpected and I think you will see that number rise into the mid 400’s over the next 90 days as a result of some of our Canadian neighbors begin to divest themselves of the market down here and taking their investments home which will bring a favorable return for them considering the current exchange rate. A wider selection of homes is always good news for folks currently looking to purchase, and interest rates continue to remain at historic lows although that could change later in the year based on the Fed’s action last December so if you are in the market and interest rates are a determining factor, I would suggest making that purchase in the first six months of this year.
So how about 2015? In short, it was a good year for the Maricopa residential market. 1,534 subdivision homes
The number of available subdivision homes has remained consistent over the last 14 days with 369 homes now listed on the MLS at an average of $96.44 per square foot. 128 homes are currently under contract, down from 148 two weeks prior, and 42 homes have sold over the last two weeks, selling at an average of 84.11 per square foot. So since I last posted an update, the year has passed and a quick look at the 2015 sales shows that we ended the year with 1,503 homes sold at an average of $78.70 per square foot. Based on those numbers, the 2015 market realized a 14% gain in sales and a 4.7% gain in the average sold price per square foot. Next week I will have a more comprehensive look at 2015 and some analysis on what 2016 might bring. Until then, this is the last weekend of a long and fun holiday, so enjoy the day and get ready the year ahead.