2020 Real estate market recap and review
2020 was a crazy year. So many noteworthy events in just the short span of 12 months! In 2020, the city of Maricopa real estate market favored sellers strongly much of the year. The year of 2020 will forever be ingrained in our minds as “Corona Virus” and “Crazy Elections”. We can now add the moniker “Huge home value gains”.
The end of 2019 was classified as a “slight” seller’s market, and by the middle of January 2020, it was reevaluated as a “strong” seller’s market which has continued throughout the year. The year was filled with buyers losing out on purchasing their dream homes even though they offered full price, sometimes more. On the seller’s side, the first weekend of the listing, many were inundated with showing and multiple offers for their home! The strong seller’s market was not just confined to the city of Maricopa. Real estate agents all over the Valley were struggling to get their buyers offers accepted with the low home inventory.
There was a slight hiccup in March when the state of Arizona went into a lockdown due to Covid-19. Three things happened in March due to the lockdown.
- Lenders raised the required credit scores to buy a home. Some buyers that were already approved were unable to close on their home because they no longer qualified.
- Real estate professionals were deemed “essential” shifting selling and buying a home to video walkthroughs and virtual open houses.
- Many of the “we buy houses” companies canceled their purchases under contract due to the unknown market effects leaving sellers scrambling.
As we now see nine months later, the market was uncertain for just a week or so, and then it picked up where it left off.
Historically, a “normal” real estate market, with the ebbs and flows, has generally appreciated approximately 4% per year, according to experts. This year’s growth climbs well above that number with listing prices increasing over 20% for 2020.
The median home price in Maricopa at the beginning of 2020 was $236,501 and at the end of 2020, the median price was $289,100, which translates to a growth of 22% over the year. Please keep in mind the comparison is of listing price, not sales price.
Many of the buyers that had the luxury of time decided on purchasing a new build, which could take 6-10 months to build, but they were able to avoid being outbid and were able to travel back to their current homes knowing that they purchased a home in Maricopa!
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
2019:987
2020:1403 (by 12/09/20)
THESE ARE THE CLOSED HOME NUMBERS in the city of Maricopa (12 months), A total of 2000 homes were sold through 12/9/2020. One out of every five homes sold was a brand new home!
Median listing price 1/1/19- $236,501
Median listing price 12/11/19- $289,100
Average days on market in 2020- 42 days (the lowest it has been in a decade) Good for sellers, but bad for buyers!
Least expensive home sold in 2020- $169,000 3bed/2bath 1309sqft single story in Rancho El Dorado 42380 W. Anne
Most expensive home sold in 2020- $500,000 5bed/3bath 3305 sqft lake front home with pool and hot tub. Home has nearly every upgrade imaginable. 40636 W. Parkhill in the Lakes @ Rancho.
Number of bedrooms of the 2000 sold homes
2 bed- 121 (mostly in Province)
3 bed- 910
4 bed- 722
5 bed- 224
6 bed- 18
7 +bed- 5
Garage parking: of the 2000 sold homes
2 car- 1595
3 car- 386
4 car- 19
Sales price of the 2000 sold homes (price range)
Under $150,000------- 0
$150,001-175,000----- 8
$175,001-200,000----- 142
$200,001-225,000----- 402
$225,001-250,000----- 512
$251,001-275,000----- 349
$275,001-300,000----- 225
$300,001-325,000----- 132
$325,001-350,000----- 105
$350,001-375000------ 62
$375,001-400,000----- 34
$400,000+ ----- 29
In 2020, there was a record breaking of brand new homes being built which is great considering the lack of supply of resale homes available.
Some of the noticeable changes are the filling of some partial subdivisions including 3 builders currently in the Lakes @ Rancho, 3 builders in Tortosa and homes being built in Palo Brea and Santa Rosa Crossing.
Currently in the city of Maricopa
22,718 homes constructed
2,625 improved lots (streets and utilities in)
34,292 unimproved lots (planned for homes, but unimproved)
The forecast for 2021 indicates a strong showing by the current builders, with new builders coming in. I even expect a parcel or 2 of land to be zoned residential and improved in 2021, Many of the new builds will be single story with some offering multi generational floorplans as many families are growing and expanding with parents and grandparents.
Prices will continue to rise, and supply will stay low through the summer. Our fair city will continue to grow with more businesses, big and small. Most residents don’t realize that there are 22,718 homes currently in Maricopa, but developers actually have land and plans set aside for another 35,000 homes. That would mean that we are currently only 40% built out!
Welcome to Maricopa- “the Friendliest City in Arizona!”
Brian Petersheim is a local Realtor with Homesmart Success
602.206.9644 or BrianPetersheim@gmail.com
www.MaricopaNewhomes.Net