By Pat Lairson
Here is a quick view of how we closed out the year in 2015 with a glimpse of some history so you can clearly see a trend of home prices increasing in Maricopa. These numbers reflect resale and spec homes for single-family dwellings listed on the Multiple Listing Service up to Dec. 22 of each year.
There were more investors in 2013 buying distressed properties and resale homes. I believe this is why there is an increased amount of closed sales that year. You can see we have held steady this year in both sales and price increase with an average price increase just under 10 percent from last year.
Consumer confidence is one factor that drives the market. I think consumers are clear that it is a good time to buy a home. The Federal Reserve did raise short-term interest rates. This rate, which is used when banks lend money to each other overnight, was held near zero to support economic recovery the last several years.
The Feds upped the target rate range a quarter point, to between 0.25 and 0.5 percent. Interest rates are still at a historic low, which means it is really cheap to borrow money.
Even with a slight rate hike in 2016, for the average buyer this should not have a negative effect on their ability to purchase a home. More new-home builders are coming to the Valley in general. More builders will be coming to Maricopa, too, or expanding the territory they are currently building in.
We have about a four-month supply of inventory. Supply and demand, interest rates and jobs are all factors that affect the real estate market.
With our commercial growth, more jobs are and will be added for Maricopa residents. Overall, 2016 should be a great year for real estate.
Pat Lairson is a Realtor with Coldwell Banker Residential Brokerage.