REAL ESTATE
Despite interest rate hikes, REAL ESTATE HELD STEADY IN 2023 BY BRIAN PETERSHEIM SR.
NEW-HOME BUILDING PERMITS
1,844
1,512
1,149
993 987
888
789
506
444
283 347
2013 2014 2015 2016 2017 2018 2019 2020 2021 20222023
I f someone were to ask me to describe the Maricopa real estate market in 2023, I would say, except for lofty interest rates, it went through its normal cycle. The number of homes listed at the beginning of 2023 neared 700, but by mid-year that declined to 450 homes and finished at 570. The average sale price in Maricopa in January 2023 was $365,000 and ended the year up slightly at $370,582 in December. The graph of the home prices is congruent with the number of listings. Prices started low, peaked in the summer and cooled down near the holidays. Although the starting and finishing numbers don’t show it, home sale prices in Maricopa climbed from January until peaking in June ($381,000) and then declined to where we are today. The housing market has seen a lot of ups and downs over the last few years. In 2021, homes were like toilet paper at the beginning of the pandemic. There was no inventory and when buyers saw a house they liked, they would buy it immediately, sometimes paying a premium. In 2022, inventory started very low but throughout the year, inventory increased at an alarming rate. In late 2022 there were many homes on the market. Last year, the Fed raised interest rates several times. The Maricopa housing market, like in the entire Phoenix metro area, was categorized as a “slight seller’s advantage” at this time last January. The local market peaked in June and started cooling back down. Now, we are very close to a neutral market. For sellers, there are buyers out there, but they have a nice selection of homes from which to choose. The seller’s home needs
THE $600K BARRIER 0 6 38 25 Homes that sold for over $600,000 in Maricopa. 2003-2020 2021 2022 2023
2023 HOME STATISTICS 2,005 $59,000 3 beds/2 baths 1,296 square feet Hidden Valley 51603 W. Pony Road Least expensive (non-HOA) $740,000 3 beds/2.5 baths 2,580 square feet The Lakes at Rancho El Dorado 22334 N. Daniel Drive Sales Most expensive
to show like a model home. The nicer the backyard, the better. The home must be listed at market price. There is no more listing a home high and getting multiple offers. For buyers, depending on the number of days the home has been listed, asking for concessions may be a good move. LOOKING FORWARD As we open a welcoming new door in 2024 and step through, what are some things we can
expect from the real estate market? 1. A resurgence of brand-new homes.
Homeowners are struggling to compete with builders who are offering aggressive financing incentives. 2. Of the 550 homes currently for sale in Maricopa, 292 — more than half — are brand new. 3. Because builders have sister companies that write mortgages, the home builder has the resources to sweeten the pot with concessions and interest rates a normal home seller can’t match. The forecast for 2024 indicates an increase in the negotiation power for the buyer. With a home seller’s main competition being builders, sellers will need to offer more concessions. Closing cost assistance and concessions allowing buyers to reduce their interest rate will
$404,136 2022 median sale price
$370,724 2023 median sale price
Data source Multiple Listing Service
56 New Resident & Visitor Guide 2024 • InMaricopa.com/NewResidentGuide
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