Maricopa Residential Market Update December 10, 2016: The number of available subdivision homes drops slightly and sales continue to keep a consistent pace. 297 homes are currently listed on the MLS, listed at an average of $99.19 per square foot, which incidentally is the highest listing average of the year, influenced by the high number of new build homes on the MLS which at the moment totals just over 18%. 202 homes are currently under contract and 58 subdivision homes sold over the last 14 days, selling at an average of $86.76 per square foot. As we get closer to the Holidays I think you will see a pause in new listings however after the first of the year that number has historically risen. At the current pace of demand there is less than a 60 day supply of homes which could lead us into a sellers market if inventory stays low.
So let’s take a look at November sales versus last November, and a quick look at YTD numbers. As expected, November 2016 did not disappoint with gains in all measures. Sales of SFD homes were up 12.5%, total dollar volume was up 17%, and the average sold price of SFD subdivision home in Maricopa for the month was $187,244, a 4% increase from November 2015’s average of $179,612. What’s interesting is the financing used in these purchases and the impact the Pathway to Purchase program has had. 45% of all November purchases were conventional loans and almost 100% attributed to the Pathway to Purchase program. 18% of November’s purchases were cash, 25% were FHA loans, with VA loans bringing in the balance of 9%. Speaking of the conventional loans and their connection to the Pathway program consider that YTD, conventional loans are up over 9% with over 600 homes sold using conventional financing this year versus just 437 for the same time period last year.
The YTD numbers are also strong and have served to stabilize the gains made over the last few years as well as lay the ground work for what I believe will be a very strong 2017. YTD sales of SFD subdivision homes in Maricopa are up 9.3%, the total dollar volume is up over 18%, and the YTD average sold price of SFD subdivision home in Maricopa is up over 7% to $178,047 versus last year’s average of $165,981. The breakdown of those purchases are as follows; 37% were conventional loans, 31% were FHA loans, 19% were cash purchases, and interestingly enough 2% were seller financing, which is a unusually high number of those type of arrangements. Nevertheless, the residential market in Maricopa is strong on all fronts, from new builds to resale’s the averages are trending up and the number of homes falling into distress has been on a downhill trajectory for a number of years with less than 3% of the current inventory designated as a bank owned or short sale. If you would like more specific market data, please call or shoot me an email anytime. Have another great week and Merry Christmas to you and your family.