The number of available subdivision homes has remained remarkably consistent over the last several months with 305 homes actively listed on the MLS once again this week, listed at an average of $99.25 per square foot. 144 homes are currently under contract, and since the first of the year 40 homes have sold, selling at an average of $83.46 per square foot. By comparison through the same time period last year, 20 homes had sold at an average of $84.06 per square foot so buyer demand is obviously stronger out of the gate this year and all indications are that demand for housing will continue to be strong as commercial development in the area grows, employment expands, and consumer confidence rises.
The dust has settled on the 2016 residential market in Maricopa and the numbers are up across the board. More importantly the trajectory of the market is as robust as it has been in the last 10 years. Sales of residential homes in Maricopa increased by nearly 11% in 2016 with 1,702 homes sold versus the 1,534 homes sold in 2015. The average price of a single family residence in Maricopa realized an increase of 7.3% to $178,461 and the total dollar volume of the 2016 market increased by an impressive 20% to nearly $317 million having been spent in the Maricopa housing market last year. The mix of contracts are as expected with the exception of an uptick in conventional loans due to the popularity of the Pathway to Purchase program. 37% of all 2016 contracts were conventional loans, 32% were FHA loans, 11% were VA loans, 19% were cash contracts, and 1% were of the “other” variety, namely seller financing. For those folks currently looking to purchase, the Pathway to Purchase funding is rapidly being depleted and loan officials have indicated that the program could end by April, so keep that in mind as you search for that right home.
New builders continue a rapid pace of new home development with an average of 30-40 permits being issued monthly. The subdivisions of Homestead and Province lead the way in new build development with The Villages, Rancho at the Lakes, and Glennwilde also seeing a lot of activity. The recent announcement by Lucid Motors to invest $700 million into the Casa Grande market with a new electric car manufacturing company will energize that community as well as Maricopa with plans to hire as many as 2,000 people. Training for these positions will be conducted at technical colleges in the Valley and at the Central Arizona College in Maricopa and plans are to have the first vehicle for sale in 2018. This development alone will have a significant impact on the housing market and combined with the commercial developments of Culver’s, Big 5 Sporting Goods, and the Edison Pointe retail complex, the City of Maricopa is poised to have a new look, and a lot of positive energy going into the New Year.