Homestead home construction

By Brian Petersheim

In 2019, the city of Maricopa real estate market finally came to a stable point. For the past 10 years we have been seeing nearly double-digit growth year after year with an average increase of 9.2% per year. Historically, a “normal” real estate market, with the ebbs and flows, has generally appreciated 4% per year, according to experts.

This year’s growth falls below that number. The median home price in Maricopa at the beginning of 2019 was $231,215, and at the end of 2019, the median price was $236,501, a growth of 2.3% over the year.

Of the homes sold in 2019, a large percentage sold during the summer months, when schools are out.

2018 was largely classified as a “strong seller’s advantage,” but by the beginning of 2019, we downgraded a notch to classify the Maricopa real estate market as a “slight seller’s advantage” and has remained there the remainder of the year.

There is still a high demand for homes, but with the number of brand-new homes available at great pricing, sellers of the resale properties are forced to stay competitive with pricing and may need to include closing-cost assistance and home warranties for the buyer.

As a quick reference of how much builders compete against the resale of homes in Maricopa, here are the stats:

NEW HOME Building permits
2013: 444
2014: 283
2015: 347
2016: 506
2017: 789
2018: 993
2019: 945

THESE ARE THE CLOSED HOME NUMBERS in the city of Maricopa. A total of 1,949 homes were sold through Dec. 11, 2019. One out of every four homes sold was a brand-new home. Some of the new builds are “built to order” and never appear in the “homes sold” data.

Median listing price Jan. 1            $231,215
Median listing price Dec. 11         $236,501
Average days on market                65 days

Least expensive home sold          $124,000
3-bedroom, 2-bath, 1,666 square feet in Rancho El Dorado, 42430 W. Oakland Drive

Most expensive home sold          $470,000
6-bedroom, 3.5-bath, 4,380 square feet in Cobblestone Farms, 22737 N. Sunset Drive

Number of bedrooms
2 bed     118 (mostly in Province)
3 bed    871
4 bed    734
5 bed    197
6+ bed  29

Garage parking
2-car      1550
3-car      388
4-car      11

Sales price range
Under $150,000                 3
$150,001-$175,000           98
$175,001-$200,000           500
$200,001-$225,000           481
$225,001-$250,000           377
$251,001-$275,000           222
$275,001-$300,000           131
$300,001-$325,000           75
$325,001-$350,000           36
$350,001-$400,000           18
$400,000+                          8

In 2019, there was a huge resurgence of builders coming “home” to Maricopa after leaving the area for a decade. With the construction of the overpass, builders Lennar and K. Hovnanian Homes have joined Richmond American in construction on the south side of the tracks.

North of the overpass, D.R. Horton has completed its building in Glennwilde only to start building a large number of homes in Tortosa and Rancho Mirage. Other builders still adding homes to the area include KB Home, Starlight, Scott Communities, LGI Homes, Meritage and Fulton Homes.

Currently in the city of Maricopa
21,140 homes constructed
1,685 improved lots (streets and utilities in)
37,243 unimproved lots (planned for homes, but unimproved)

The forecast for 2020 indicates a strong showing by the current builders, with many of the floorplans being built most frequently as single-story homes. Some of the of the newest homes offer a multi-generational floorplan, which has an extra living area, bedroom, bathroom and kitchenette designed to provide space for multiple generations to live together under one roof but still retain some privacy.

Prices will continue to rise, albeit slower than the past decade. The city will continue to grow, bringing larger businesses, and, as that happens, more people will become familiar with the city of Maricopa and not confuse it with the county.

Sellers should consider interior paint/carpet if selling and should offer a “free” home warranty to the buyer to compete with the new builds.

Brian Petersheim is a local Realtor with Homesmart Success. He can be reached at 602-206-9644 or BrianPetersheim@gmail.com.