Market Update for Arizona home prices $250,000 or less
When I hosted my radio show (Real Talk USA with The Real Estate Guy®) from 2015-2016, I continued to preach the entry level price point was disappearing. I decided to do a little research today while I wait for my afternoon appointment to arrive. Year to date, Jan 1st to today (March 9th) there have been 439 closings in Maricopa County. The criteria I used for these home were as follows:
Single Family Home (detached), at least 3 bedrooms, 2 bathrooms, a minimum of 1,400 square feet and a 2 car garage, I didn't cap the price point, which is why the total sales since January 1st was 3,098, I look at the prices from $250,000 and less, and that number was 99. Yep, you heard me correctly, ninety nine homes sold in 2019 (YTD) in our largest populated county in Arizona (Maricopa, has, according to 2017 census reports, 4.307 Million People, also making it the 4th Most populated county in the country! Futhermore, our population in Maricopa County is greater than 23 other states!
Some economists indicate our market in Arizona will slow down, I agree. The growth itself will continue, but at a slower pace. This is NOT to be confused with value. People misinterpret market growth and market value. Values in Maricopa county remain strong, our inventory has increased since December 2018 for what was our norm of 2.4 months to what it is today, 4.2 months.
So what is the average sales price this year? Well, based on the above criteria, the average sales price is $357,460 with an average market time of 65 days. Wrapping this up in a nice little bow for you, here is what this means: FHA, a Govt. Loan product, which is available to first time home buyers, maxes out around $315k. Conventional and VA Products vary on max pricing, but both are achievable in this price point. Cash or course, is always accepted.
Taking it one step further, lets break down the $250,000 or less homes that closed this year. The average sale price at $250,000 or less was $226,588 with an average market time of 57 days. Understand, the market time is from time the home is listed to when the home closes and ownership transfers.
The eye opener here is the days on market is not much different from the $250k and less price point to the average for the year of $357,460. What does stand out is the price gap between the two. Entry level homes are what has driven our housing market and will continue to do so.
For more information on this and anything else related to the Arizona market, especially the entry level homes, reach out, happy to assist in any way.
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