With Mother Nature turning up the heat in Arizona this summer, is the real estate market finally cooling off?
The past year in Maricopa real estate has been a crazy one:
- Buyers requiring financing being outbid by cash offers even over asking price.
- Shortage of building materials causing builders to quote up to a year for a home.
- A pandemic causing sellers to not want strangers in their home and buyers not wanting to view homes in person.
- A mass exodus from California of folks deciding that the Valley has what it takes to plant some new roots.
- Buyers that either have a home to sell or are relying on seller concessions were unable to win the 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 for sale in Maricopa in March of 2021.
March 2021- 52 active listings,
April 2021- 80 active listings
May 2021- 98 active listings
June 2021- 125 active listings
Another bit of good news for the prospective home buyer is that there is a trending decrease in home sales for the past three months. The graph below shows that there has been a decrease in demand four months in a row.
March 2021- 205 sold listings,
April 2021- 190 sold listings
May 2021- 194 sold listings
June 2021- 161 sold listings
So far, based on the increase in supply and the decrease in demand, it seems that everything is improving for the buyers, but unfortunately the prices of the homes are continuing to rise. Just four and a half months ago, the median sales price in the city of Maricopa hit $300,000 which had never been seen here before. Fast forward to July 1,2021 and the median price of homes is $356,411! If prices were to continue rising, many purchasers could be unable to afford a home.
In conclusion, If the supply continues to increase and demand continues to slack, in a few weeks prices may level out and the market may shift more toward a balanced market, but currently, unless the trend continues, inventory is so low that it hasn’t even effected the pricing yet!
Brian Petersheim is a Realtor with Homesmart Success
Call/text 602.206.9644