Phew! I thought 2022 would never get here.
The median home price in Maricopa at the beginning of 2021 was $290,335 and at the end of calendar 2021, the median list price was $413,990, which translates to a growth far above the norm for any type of asset. Please keep in mind the comparison is of listing price, not sales price.
Historically, a “normal” real estate market, with the ebbs and flows, has generally appreciated approximately 4% per year, according to experts. The past decade that number has easily been over the 4% but nothing along the lines of 2021.
The Maricopa real estate market, and honestly the entire Phoenix metro area, along with many other areas in the country would be categorized as a “strong seller’s market”
In a “strong seller’s market” homeowners are able to pit multiple buyers against each other to get over asking price within hours or days of listing their home. There were so few homes and so many buyers that sellers could easily hold out for prices that were unheard of previous years.
Buyers, on the other hand, made concessions that were uncommon up to this point. Buyers either needed to make their “best offer” upfront or use an escalation clause which could automatically raise their offer to a preset amount. Some buyers even bought the home “as-is” or removed the appraisal contingency.
As we open a new door and step through a new portal, what are we leaving behind in Maricopa Real estate?
- 2021 had months with the lowest inventory of homes for sale that I have seen since I began tracking in 2006.
In Maricopa since the early 2000’s the average number of homes currently for sale would average about 300-350 homes. sometimes a bit lower, sometimes a bit higher, but for about ½ of 2021, there were only 125 or so homes available. Buyers ended up fighting over homes and some buyers were never able to purchase one.
- More brand-new homes being built in 2021 than any year previous.
Tracking throughout 2021, there were more new homes built than any other year since Maricopa has been a city. From January 2021 to the end of December 2021, over 1847 new homes have been permitted and built.
- Some of the longest construction times quoted by builders due to some supply issues.
In the past, builders were quoting 6-8 months from contract to move-in for a new home. Currently the builders are quoting 10 months to a year. Recently, some of those buyers coming up to the year mark are being notified that it will be several more months until completion. Reasons given by builders for the extension include a shortage of timber, concrete and appliances.
- The highest sold prices ever in Maricopa, with some homes selling for over $600,000
There were seven homes in subdivisions in Maricopa that sold for $600,000 or more in 2021, but there are ZERO from 2003-2020. The six homes were located in the Lakes, Province, Glennwilde, Rancho El Dorado and two in Homestead!
These are the specs on the 2374 sold in Maricopa from 1/1/2021-12/31/2021
$202,000 Least expensive home- 3bed/2bath, 1893 sq.ft. in Rancho El Dorado- open kitchen, needed TLC and updating. 43357 W. Chisholm Dr.
$660,000 Most expensive home-3bed/3.5 bath, 3142 sq. ft. single story in Province- attached casita, home backs to the lake, private pool, 3 car garage, loaded with upgrades. 19795 N. Puffin Dr.
Number of bedrooms – 2374 sold homes
3 bed – 1063
4 bed – 871
5 bed – 233
6 bed – 23
7+ bed- 4
Garage parking: of the 2374 sold
2 car- 1915
3 car- 438
4 car- 21
Price ranges of the 2374 sold:
$200,001-225,000 – 16
$225,001-250,000 – 88
$250,001-275,000 – 217
$275,001-300,000 – 304
$300,001-325,000 – 363
$325,001-350,000 – 372
$350,001-375,000 – 352
$375,001-400,000 – 253
$400,001-425,000 – 155
$425,001-450,000 – 106
$450,001-475,000 – 54
$475,001-500,000 – 41
$500,001-550,000 – 33
$550,001-599,999 – 13
$600,000+ – 7
The forecast for 2022 indicates a strong showing by the current builders, with new builders coming in. I am hoping that the builders are able to solve the building material shortage and we can increase the supply of new homes by lowering the build time. Many of the builders are offering multi-generational single-story floorplans as many families are growing and expanding with parents and grandparents.
Prices will continue to rise but the amount of the increase will be much lower than 2021. Our fair city will continue to grow with more businesses, big and small.
Most residents don’t realize that there are 24,339 homes currently in Maricopa, but developers actually have land and plans set aside for another 45,879 homes. That would mean that we are currently only 36% built out!
We have a great city with some great residents. We chose Maricopa for a reason! Smile, be kind to one another and together we will make the city even better.
Welcome to Maricopa- “the Friendliest City in Arizona!”
Brian Petersheim is a local Realtor with Homesmart Success