How’s the Market? Here is the June 2018, West Valley Market Report. Unlike many other states, summers in AZ are typically a slower real estate market. Largely due to seasonal visitors looking for vacation homes, investment homes are not as abundant in the summer months. As temps heat up, sales tend to slow, unless of course your home has a pool! I always joke that June-August I sell pools, not homes! Inventory levels had a slight up tick last month in most cities, while others remained the same as the previous month. Maricopa county remained at only 2.38 months of inventory, same as July. An indicator of this increase could be attributed to low sales. Closed sales for June were down compared to last year in most West Valley cities, Laveen -23.%, Avondale -19.1%, Surprise -13%, Tolleson -10.8%, Peoria -6.5%, Phoenix -5.3%, Glendale -4%, & El mirage -1.8%. Another contributing factor to low sales is the lack of homes for sale, for example, El Mirage, the fact that there are only 54 homes on the market in the entire city and sales were only down -1.8% is still a positive outcome. Maricopa County sales were down -4.0% over last year. A few cities saw some increases in closed sales, Goodyear was hot, hot hot with a 35.7% increase, Buckeye was 1.6% and Litchfield Park 1.3%.
Decrease in transactions also brought a decrease in the median home prices in some West Valley cities, although nothing that would suggest a market bust, thats for sure. Year to date home values are still up over 2017. Median home prices dropped in Buckeye, Goodyear, Laveen, Peoria, Phoenix, and Tolleson. While others reported increase in median home prices, Avondale, El Mirage, Litchfield Park and Surprise.
MARKET INSIGHTS: The biggest trend we are seeing are buyers searching for single level homes with pools. All price ranges, all sizes, this seems to be the biggest request for home buyers. We are also seeing a lot of what I call “prepping for retirement home buyers,” folks retiring in the next 3-7 years and purchasing a home now to rent out until they retire. Wise move as they are securing a home at todays prices, todays interest rate, while having the tenants pay the mortgage.
MYTH: As I previously joked, selling pools is my summer job, however these days it seems year round, home buyers are wanting pools.I would also like to dispel a common myth I hear all the time, that a pool gives only gives you $10-15,000 in value on your home. While that may have been true in the past, certainly not in todays market. Well as I mentioned a single level with a pool is todays hottest commodity, thats not to say that two stories with pools are also highly requested, pools in the Phoenix market have a much higher return than you would think. Check out a comparison in the MLS of some random size homes sold with and without pools and see for yourself.
Single level, 2000 square foot, average price, without pool $241,420, with pool $272,680 (+ $31,260)
Two story, 2800 square foot, average price, without pool $281,961 with pool $321,230 (+ $39,269)
Single Level, 2400 square foot, average price, without pool $302,796, with pool $331,058 (+ $28,262)
Two story, 2800 square foot, average price without pool $282,053, with pool $317,710 (+ $35,657)
Single level, 2400 square foot, average price, without pool $350,261, with pool $429,833 (+ $79,572)
Two Story, 2800 square foot, average price, without pool $330,338 with pool $367,887 (+ $37,549)
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Tags: Buyers, Market Condition, Market Reports, Sellers