By Dayv Morgan
2017 turned out to be a great year for the residential housing market in Maricopa, with many positive trends. Sellers had reason to celebrate as the median price of homes saw a significant increase, from $174,500 to $190,000, or 8.9 percent, according to data from the Arizona Regional Multiple Listing Service (ARMLS). Additionally, sellers were able to get their asking prices in a relatively short amount of time – homes sold at an average of 98.5 percent of the listed price and in an average of 64 days on the market.
The residential rental market also saw increases in price, as many Canadian landlords took advantage of a favorable exchange rate and decided to sell their homes in 2017. As of January 2018, there were only 40 homes for rent, with only one of those priced under $1,000 per month, and a median price of $1,200 per month.
However, a recently proposed item could have a big impact on these statistics. Last November, a developer presented a plan to the City Council for building multifamily structures in Maricopa. Because there are currently no apartments in Maricopa, this would help fill a need for individuals seeking a 1-2 bedroom property, and would likely help keep rental prices from escalating further.
Additionally, the State Route 347 overpass will soon begin construction and is estimated to be completed in late 2019. Once finished, we will likely see greater parity in prices between the neighborhoods on the north side and south side of the tracks because of this added convenience. There are currently no new homes being built on the south side, which will likely change as well.
Unknown, however, is the impact on homes during construction. Many residents on the south side of Maricopa commute north to the Phoenix area. So, if there are frequent road closures and inconvenient detours lasting for months at a time, it is possible homes south of the tracks could become less desirable and harder to sell until construction is completed.
While 2017 had lots of highlights for sellers, the 2018 outlook is also bright, with new homebuilders leading the way. At first glance, the current levels of inventory appear to be trending the wrong way. The supply of homes in MLS as of Jan. 15, 2018, was 454 listings, compared to 384 on the same date in 2017. However, upon closer look, it can be seen that over 20 percent of those listings are actually for new homes, either under construction or completed spec homes.
And several companies are set to open new model homes this year that have yet to list their homes in MLS, including Fulton Homes in Glennwilde, Costa Verde Homes in Santa Rosa Springs and Scott Communities in Sorrento. This will accompany the already-existing builders – KB Home, DR Horton, LGI Homes, Starlight Homes and Meritage Homes. Because there are still many shovel-ready improved lots throughout Maricopa, it is possible we could see even more builders break ground later this year. And as the new homes sell and builders raise their prices, resale prices are sure to follow suit. So buyers will be happy with additional inventory options and areas to choose from, while sellers can expect to enjoy steady increases in price.
Dayv Morgan is a local Realtor with HomeSmart Success and can be reached at 480-251-4231 and DayvMorgan@gmail.com