Maricopa city
Another article in todays AZ Republic about the real estate market. This one focused on Pinal County with emphasis on Maricopa city and the Santan area. The article profiled several sellers and real estate agents. Of course the big question is "what is going to happen in the real estate market?"
The immediate problem for the sellers in the area is that a new build costs less than an existing home. Open houses are getting very little traffic and the price of gas is making these outlying communities less and less attractive. The real estate agent talked about the builders offering higher commissions and the sellers are dropping prices at $10,000 increments.
An investor was also interviewed. His take was that he can live with losing $200 on a rental as long as his equity is going up $10,000. In other words, he still thinks he is getting price appreciation while the people with homes on the market are cutting their price. I think it is a big contradiction. Of course, what investor is going to tell the Republic they are losing money and are about to panic?
I thought I would take a look at the MLS data to see what is really going on. So "just the facts ma'am." According to the MLS (which mainly covers the resale market):
At the present time there are 879 homes for sale in the city of Maricopa.
Jan 06- 95 Solds, Average days on market (DOM) was 47, average $ per foot was $139.89 and the average square footage was 1,888
For analysis:
Jan 06- 95 sales, 47 DOM, $139.89/ft, 1,888 sq ft
Feb 06- 58 sales, 66 DOM, $138.42/ft, 1894 sq ft
Mar 06- 105 sales, 65 DOM, $138.57/ft, 1953 sq ft
Apr 06- 88 sales, 76 DOM, $145.56/ft, 1853 sq ft
May 06- 46 sales, 77 DOM, $135.66/ft, 2019 sq ft
Jun 06- 58 sales, 100 DOM, $128.31/ft, 2013 sq ft
There has been one sale in July- 95 DOM at $115/ft.
April was a good month, there was about a 5% drop in price from May to June and DOM jumped about 30%.
If you are a buyer in Maricopa, make your first offer at around $110/ft.
If you are selling in Maricopa, list your home at around $120/ft.
The immediate problem for the sellers in the area is that a new build costs less than an existing home. Open houses are getting very little traffic and the price of gas is making these outlying communities less and less attractive. The real estate agent talked about the builders offering higher commissions and the sellers are dropping prices at $10,000 increments.
An investor was also interviewed. His take was that he can live with losing $200 on a rental as long as his equity is going up $10,000. In other words, he still thinks he is getting price appreciation while the people with homes on the market are cutting their price. I think it is a big contradiction. Of course, what investor is going to tell the Republic they are losing money and are about to panic?
I thought I would take a look at the MLS data to see what is really going on. So "just the facts ma'am." According to the MLS (which mainly covers the resale market):
At the present time there are 879 homes for sale in the city of Maricopa.
Jan 06- 95 Solds, Average days on market (DOM) was 47, average $ per foot was $139.89 and the average square footage was 1,888
For analysis:
Jan 06- 95 sales, 47 DOM, $139.89/ft, 1,888 sq ft
Feb 06- 58 sales, 66 DOM, $138.42/ft, 1894 sq ft
Mar 06- 105 sales, 65 DOM, $138.57/ft, 1953 sq ft
Apr 06- 88 sales, 76 DOM, $145.56/ft, 1853 sq ft
May 06- 46 sales, 77 DOM, $135.66/ft, 2019 sq ft
Jun 06- 58 sales, 100 DOM, $128.31/ft, 2013 sq ft
There has been one sale in July- 95 DOM at $115/ft.
April was a good month, there was about a 5% drop in price from May to June and DOM jumped about 30%.
If you are a buyer in Maricopa, make your first offer at around $110/ft.
If you are selling in Maricopa, list your home at around $120/ft.
posted by Terry at 11:15 PM
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