real estate
NUMBER OF BEDROOMS
2020 real estate recap By Brian Petersheim
In 2020, there was a resurgence in the number of new homes under construction, a much-needed complement to the tight inventory of available resale homes. Some noticeable changes include the filling in of some partial subdivisions. Three companies are building in both The Lakesat Rancho El Dorado, and Tortosa, and homes under construction in Palo Brea and Santa Rosa Crossing. The forecast for 2021 indicates a strong showing by current builders, with new builders coming in. Expect a parcel or two of land to be zoned residential and improved in 2021. Many of the new-builds will be single- story with some offering multigenerational floor plans 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 there are 22,718 homes currently in
121 (mostly in Province)
2 3 4 5 6 7
910
722
224
18
T he Maricopa real estate market strongly favored sellers for much of the year. And though 2020 will be forever ingrained in our minds for the coronavirus and crazy elections, we can now add huge home value gains. The end of 2019 was classified as a “slight” seller’s market, but by the middle of January 2020, it had become a “strong” seller’s market, which continued throughout the year. The year was filled with buyers losing out on dream homes even though offering full price – and sometimes more. On the seller’s side, the first weekend of a listing meant many showings 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. In fact, Phoenix metro had the highest year-over-year increase —11.4% through September 2020 — in the 20-City Composite Case- Shiller Home Price Index. It was the 16th straight month in which home prices in Phoenix increased more than any other city. There was a slight hiccup in March when the state of Arizona went into a lockdown due to COVID-19. Three things resulted: 1. Lenders raised the required credit scores to buy a home. Some buyers already approved were unable to close on their home because they no longer qualified. 2. Real estate professionals shifted selling and buying a home from an in-person experience to video walkthroughs and virtual open houses.
Kevin Vasquez
3. Many of the “we buy houses” companies canceled purchases already under contract due to the unknown effects of the pandemic on the market. Many sellers were left scrambling. Ultimately, the market was uncertain for just a week or so, and then it promptly picked up where it left off. Historically, a “normal” real estate market with typical ebbs and flows has generally appreciated about 4% per year, according to experts. Homes appreciated in 2020 at a much higher rate, with listing prices increasing more than 20% in Maricopa. The median home sale price in the city at the beginning of 2020 was $220,000. Twelve months later, the median sales price was $249,500, an increase of 13.4% over the year. Many buyers, with the luxury of time, decided to buy a new-build, which can take 6-10 months to complete. But they could avoid being out- bid and travel back to their current homes knowing they had purchased a home in Maricopa. At least one of every five homes sold, 20%, was a new-build. To illustrate how builders compete against the resale of homes in Maricopa, here are the stats:
5
GARAGE PARKING
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. Brian Petersheim is a local Realtor with Homesmart Success. He can be reached at 602-206-9644 or BrianPetersheim@gmail.com.
1595
2-car
386
3-car
19
4-car
HOME PRICES
CITY OF MARICOPA
22,718 2,625 34,292 Homes constructed
0
Under $150,000 $150,001-175,000 $175,001-200,000 $200,001-225,000 $225,001-250,000 $251,001-275,000 $275,001-300,000 $300,001-325,000 $325,001-350,000 $350,001-375,000 $375,001-400,000
8
142
402
2020 HOME STATISTICS
512
2,033 Homes sold
349
Improved lots (streets and utilities in)
225
132
$220,000
$249,500
Unimproved lots (planned for homes)
105
NEW-HOME BUILDING PERMITS
62
Median sales price growth
1,417
42 Average days on market (Lowest in a decade)
34
AVERAGE DAYS ON MARKET
29
$400,000+
HOME SALES
90
993 985
2,702
2,535
75
2,271
789
$169,000 3-bedroom, 2-bath 1,309-square-foot in Rancho El Dorado, 42380 W. Anne Lane Least expensive
Most expensive
1,950
1,865 1,927 2,072 2,033*
$500,000 5-bedroom, 3-bath 3,305 square feet in The Lakes at Rancho El Dorado, 40636 W. Parkhill Court
1,786
62 65 64
1,703
1,516
1,485
1,320
506
896
754
42
444
585
347
253
60
283
2013 2014 2015 2016 2017 2018 20192020
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2015 2016 2017 2018 2019 2020
Data source Multiple Listing Service; 2020 stats through Dec. 13, 2020.
Source: ARMLS (may not include all new-build sales)
*through Dec. 13, 2020
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New Resident & Visitor Guide 2021 • InMaricopa.com/NewResidentGuide
InMaricopa.com/NewResidentGuide • New Resident & Visitor Guide 2021
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