Mother Nature is turning up the heat in Arizona this summer but is the real estate market finally cooling off?
Maricopa real estate has been crazy over the past year. That is not in doubt when you consider:
- Buyers requiring financing are being outbid by cash offers – even over asking price.
- A shortage of construction materials is forcing builders to quote up to a year for delivery of a home.
- The pandemic had sellers not wanting strangers in their home and buyers not wanting to view homes in person.
- A sizable exodus from California with many folks deciding the Valley has what it takes to plant new roots.
- Buyers with a home to sell or a reliance on seller concessions finding it difficult to win a bid.
Sounds bleak, right? So far yes, but there may be light at the end of the tunnel.
For the past three months the number of active listings has continued to increase from an all-time low of 52 available homes in Maricopa in March. Listings climbed to 80 homes in April, 98 in May and then 125 in June.
Another bit of good news for the prospective home buyer is a trending decrease in home sales for the past three months. There’s generally been a decline in demand for the last four months: 205 sales in March, 190 in April, 194 in May and 161 in June.
Based on the increase in supply and the decrease in demand, it would appear the market outlook is improving for buyers. Yet home prices continue to rise.
Just four-and-a-half months ago, the median sales price in the city of Maricopa hit $300,000 for the first time. By July 1 the median home price of homes jumped nearly 19%, to $356,411. If prices continue rising much more, many purchasers may be unable to afford a home.
But it is possible that supply will continue to increase and demand will continue to slack. If so, within a few weeks, prices may level out and the market may shift toward a better balance. But currently, unless the trend continues, inventory is so low that it hasn’t even affected the pricing yet.
Brian Petersheim is a Realtor with Homesmart Success.