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Maricopa Market Update October 29, 2016

The needle on the number of available homes just wont move much as 324 subdivision homes are once again listed on the MLS, listed at an average of $97.87 per square foot, however I will note that the current listing average is slightly skewed by the unusually high number of new builds listed. 57 new build homes, or nearly 18% of the total available inventory are currently listed on the MLS, listed at an average of $121.68 per square foot, so when the new build homes are stripped away, the average list price of the remaining resale homes drops to $92.83 per square foot which is still the strongest average of the year for resale homes. 193 homes are currently under contract, down from 212 the week prior, and it was a decent two weeks of sales as 59 homes sold over that period, selling at an average of $89.73 per square foot and bringing our YTD numbers now to 1,383 subdivision homes sold at an average of $86.85 per square foot. By comparison, through the same time period last year 1,250 homes had sold at an average of $77.42 per square foot, so the Maricopa residential market is tracking up 10.6% in terms of sales, and up 12.1% in terms of the average sold price per square foot.

All the trend lines are up in Maricopa and more importantly they are sustainable. Overall sales are up 10%, the average sold price of SFD home in Maricopa is up 6%, the total dollar volume is up nearly 7%, and of course new build activity is up substantially over last year rivaling the new build activity of 2005. The City reports that on average 35 new build permits are pulled each month, and in July nearly 100 permits were reportedly issued and all of this activity is not only filling out many of the subdivisions in the area but also helping to increase resale values. The key factor to sustaining this current expansion in the residential market is continued growth in the commercial infrastructure and that component of the market is also growing. Big 5 and Culver’s are currently under construction, Edison Point which will offer over 130,000 square feet of retail and restaurants will soon begin construction on the south side of Fry’s and of course the railroad overpass will begin construction in June of 2017 so there is a lot to be optimistic about in Maricopa and consumer confidence is obviously strong. If you are currently considering a home purchase in Maricopa there is no better time than now. Home values are still 30% less than what you will find just 20 minutes north, and the current and projected growth in the area bodes well for increasing home values down the road. And be sure to ask your lender or Realtor about the Pathway to Purchase program. Have another great week.