Home median list price keeps rising

In a recent announcement to residents, city officials crowed that the median list price of a home in Maricopa had risen to $300,000.

The crowing is about to get louder.

As of Feb. 15, the 7-day average of median home list prices had increased another 10%, to $329,990, according to the Arizona Regional Multiple Listings Service.

“Maricopa has seen an influx of development since its 2003 incorporation,” according to the city’s statement. “Development has proven to be extremely valuable, with property in town very important for builders, and homeownership is proving to be a worthwhile investment as well.”

Median home list prices have been hovering in the high $200,000 range since late 2020 before hitting the $300,000 mark on Jan. 22. From January 2020 to January 2021 the median price has risen 25%.

Prices continue to rise as a seller’s market persists amid low inventory.

“The real estate market, specifically pricing, is going through what is similar to a perfect storm,” said Brian Petersheim, a Realtor with HomeSmart Success. “Multiple circumstances are happening concurrently to push listing prices higher and faster than we have ever seen.”

Petersheim said three factors are at work not only in Maricopa, but throughout the metro area:

• More people are moving into the Valley than out.

• There is a shortage of resale homes (down 80% from two years ago).

• A shortage of lumber and concrete are slowing build times and the number of new homes.

“I expect the market to continue in the same direction it has been going as many homebuyers are outpriced in Maricopa County,” he said. “Pinal County is one of the areas that homes are still affordable, and there will always be buyers that appreciate value.”

Meanwhile, real estate agents are writing 15-20 offers for clients and still being outbid, Petersheim said. Some buyers are removing inspection and appraisal contingencies to strengthen their offers, but they are still having a hard time against cash offers.

“I get stopped at the grocery stores or the post office all the time and people ask me ‘How’s the market doing?’” he said. “I ask them, ‘Hey, do you remember last year when you had to search and search everywhere in town for toilet paper?’ and they say, ‘Yeah. I remember that.’

“I look at them and say, ‘That’s our home real estate market right now.’”

Petersheim is also watching to see if a recent Valley trend returns to Maricopa.

Many builders are holding “lotteries” for home lots, he said. There may be 100 interested buyers on the list but only three names are drawn to be able to move forward with new-home construction.

Such lotteries were common in the city in the mid-2000s.

“While it is more prevalent in the larger cities — Chandler, Gilbert, Glendale and Mesa — the lottery system may find its way back to Maricopa sooner rather than later.”