By Pat Lairson
By now, you may have already voted or are about to. The question so many are asking is, “How will the election effect the housing market?” There is no doubt the next president’s economic and employment policies will be a key influence on the health of the nation at large and the price you may pay for a mortgage.
A recent survey reveals increasing numbers of Americans believe the 2016 presidential election will have a negative effect on the housing market.
The survey, by national real estate firm Redfin, shows 27 percent of homebuyers believe the election will hurt real estate. The poll was conducted May 17-23 and includes responses from 975 homebuyers in 36 states, Redfin says.
On the flip side though, 63 percent of respondents believe the election will have no or little effect on the housing market. The real estate market is robust in Arizona right now. Resale and new-build sales are moving, and we have a nice even market between buyers and sellers in Maricopa.
Of course, a lack in consumer confidence or a substantial increase in interest rates or unemployment could slow the market and maybe even create higher inventory, which could create a stronger buyer’s market.
In Maricopa, there is no reason to lack confidence about buying a home at this time. I say this from a very realistic perspective and by analyzing the market at large. Even if there is a mortgage rate increase after the election, it will likely be a slow increase over time. A mortgage can still be bought for under market rent, and even though lenders are still strict on lending guidelines, there are various down payment assistance programs available.
Home prices have increased, but not at an inflated pace, and Maricopa still averages about 40 percent less per square foot than homes in neighboring Chandler.
We have 323 active listings available on the market. Almost 25 percent of those listings for sale are in the 55+ subdivision of Province. At the time of this writing there are 215 homes pending or under contract waiting to close. Between Sept. 12 and Oct. 13, 139 homes closed in Maricopa at an average of $86.92 per square foot. This means there is about a two-month supply of inventory.
The new build market is also moving forward with many empty lots in subdivisions being filled.
Pat Lairson, Realtor
The Maricopa Real Estate Company