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Maricopa Market Update February 18, 2017

The number of available homes is at a 2 year low with just 266 subdivision homes currently active on the MLS listed at an average of $99.29 per square foot. To put that into perspective the average number of available homes throughout February 2016 was 503, so we are currently tracking at just a little over half of that inventory level. 232 homes are currently under contract, and just 38 homes have sold in the last two weeks, selling at an average of $88.47 per square foot and bringing our YTD number now to 150 homes sold at an average of $86.80 per square foot. By comparison through the same time period last year, 120 homes had sold at an average of $86.78 per square foot, so the market is flat lining in value but tracking up 25% in terms of homes sold. Also considering the 232 homes that have gone under contract within the last 45 days and the current availability of just 266 homes, there is less than a 60 day supply of homes based on current housing demand. Sellers take note.

So let’s take a quick look at January, which historically is the one of the slowest months of the year. 103 subdivision homes were sold in January 2017 which is a 14% increase over January 2016 sales of 90 homes, and a 24% increase over January 2015 sales of 83 homes and January 2014 sales of 85, so January 2017 is out of the gate strong and in my opinion is a harbinger of what promises to be a strong 2017 in terms of residential real estate in Maricopa. The average sold price of a single family detached home in January 2017 increased by 7.6% to $180,215 from January 2016’s average $167,489, which helped bolster the total dollar volume by nearly 21% to $19.5 million. Interestingly enough, despite the low number of available homes, the days on market inched up by 4% in January and a lot of buyers are taking advantage of the Pathway to Purchase program, which is quickly drying up. Just over 50% of all homes sold in Maricopa in January were sold using conventional financing which strongly indicates the Pathway program. There are of course a few exceptions but the Pathway program has been extremely beneficial to many home buyers, and again the funding for that program is quickly drying up so if you are currently looking to purchase, don’t delay. Aside from conventional loans, 20% of January purchases used FHA financing, 20% were cash purchases and 10% were VA loans. With 80% of all contracts using financing, appraisals become a looming factor in completing deals and with a market that still has a small level of distressed properties along with a very active new build market, pricing strategies are very important as is the need to support your contracted price by making market information available for the appraiser including receipts for upgrades if available. A missed appraisal not only frustrates both parties but can also be an unfortunate waste of time and money so it’s very important to get it right the first time. If you would like more specific information for your particular home, please call or email any time and have another great week.