While the Maricopa Residential Market still realizes significant gains over 2017, buyer demand has dropped off slightly. Year over year comparable sales are down just under 10% over the last 60 days but year to date the residential market is still up over 15% with over 1660 subdivision homes sold. The average price point YTD of a single family residence in Maricopa is currently $211,899 up 8.5% from last year’s average of $195,235. Helping bolster the rise in the average sold price is the number of new homes sold. 20% of all home sales in the last 60 days were newly constructed homes sold at an average of $116.64 per square foot, while the remaining sales were traditional resale homes selling at an average of $103.05 per square foot, so while new construction does have favorable warranties and does help lift the overall market, the value is still found in resale.
One of the most important decisions any home buyer needs to consider when purchasing their home is financing, and with a booming economy, interest rates are on the rise. According to Kurt McClearen with Nova Home Loans, the average 30 year fixed interest rate with no discount points on a primary residence, for a prime credit borrower with a 20-25% down payment is now slightly over 5%. However, when you start talking about minimum down payments, such as 3-5% down for Conventional programs average rates range between 5.25-5.375% for prime credit borrowers. But as usual, perspective is paramount. The important thing to remember, that MANY people are forgetting, is that historically we are still seeing very favorable rates. To the people moving into their second home, that purchased their first home with a rate in the 3’s of 4’s, something with a ‘5’ in front of it seems very high. To the people downsizing into a retirement home who purchased their last home in 2000 at 8.5%, something in the 5’s sounds very reasonable. This is important to keep in mind as we head into 2019 and rates continue to tick upward. By historical measure, a 5.25% mortgage rate is very favorable and with a growing economy and infrastructure expansion, consumers can definitely buy with confidence in Maricopa and the Phoenix valley but consult with a local Realtor and do your homework on resale versus new build and be sure to shop interest rates and secure the best financing possible.