Our local real estate market usually cools down in the fall – much more so than our weather. And while we are seeing some numbers changing slightly like fall foliage, there are no strong signs that we will see any significant decline in the near future.
The average number of days a listing spent on the Maricopa County market rose again slightly, from 26.05 days in July to 27.2 days in August.
According to The Cromford Report, 53% of sales in Maricopa County in August were above list price, up from 57% of sales in July. One could argue that rising list prices are responsible for more sales to, and not above, those prices, but a slight decrease in sales price per square foot – from $ 260.60 per square foot in July to $ 258.61 in August – makes a slightly different point .
In August, 416 MLS listing sales were closed in Glendale and 343 in Peoria. Today there are 261 active and available listings in MLS in Glendale (excluding properties under contract or pending escrow closure) and 218 active listings in Peoria.
That’s 63% of the one-month inventory in Glendale versus 59% last month and 64% of the one-month inventory in Peoria versus 56%. But while we’re seeing slightly higher numbers in Peoria and Glendale, the total inventory in Maricopa County is 75% of closed sales in August, up from 73% in July.
According to ShowingTime, the platform brokers use to schedule most MLS appearances, showings of Peoria listings in the $ 200,000 to $ 399,999 range had an average of 13.9 screenings per listing, while Glendale homes were in the 200,000 range up to $ 399,999, an average number of 15.6 screenings per listing. That’s still quite a bit of buyer activity, and not all demonstrations are scheduled via ShowingTime, so the actual numbers are usually higher.
Mortgage rates will remain stable, according to Freddie Mac. On September 16, the National Mortgage Rates reported weekly US averages of 2.86% for a 30-year fixed rate, 2.12% for a 15-year fixed rate, and 2.51% for a five-year ARM.
Buyers’ funding method can affect how competitive their listings are, how much they end up paying for a home, or whether they even get an offer for a qualifying property. According to MLS statistics, 74% of Maricopa County’s shoppers funded their home purchase in August, while the rest paid cash.
Buyers using a conventional mortgage paid at least $ 220,000 in Maricopa County, $ 250,000 in Glendale, and $ 265,000 in Peoria. Buyers with these loans are more likely to be accepted by sellers as they have fewer restrictions. With fewer restrictions, many properties qualify for a conventional loan that does not qualify for FHA or VA funding. Conventional financing accounted for 73.2% of the financed sales in August.
In August, FHA buyers in Maricopa County paid at least $ 200,000 for a three-bedroom, two-bath single-family home. Peoria FHA buyers paid a minimum of $ 345,000 and Glendale FHA buyers paid $ 300,000. FHA buyers accounted for 9.1% of funded purchases in August, significantly less than the number of conventional buyers.
Maricopa County VA buyers paid a minimum of $ 260,990, Glendale VA buyers paid a minimum of $ 315,000, and Peoria VA buyers paid a minimum of $ 350,000. VA loan-funded home sales accounted for just 6.6% of sales in August. Unfortunately, VA-funded offers are often less popular, especially in this hot housing market where conventional buyers are so numerous.
Other financing methods were used for the other financed transactions. For the week that ended August 29, only 3% of Maricopa County sellers contributed to their buyers’ closing costs.
At the other end of the market, the most expensive single-family home sale in Maricopa County closed last month for $ 9.6 million. Peoria’s highest priced single family home sold for $ 1.55 million and the highest priced single family home in Glendale sold for $ 2.285 million.
If you think your finances could use a change, you know you are not alone. Homeowners, renters, and landlords are encouraged to contact or visit the Department of Housing and Urban Development’s housing advisory program at 1-800-569-4287 Consumerfinance.gov/Housing Finding help.