Are you thinking about a new home for the new year? Anyone trying to purchase a home right now will tell you that even as prices and interest rates continue to rise, you need to move quickly in this market. But don't think you have to revise your resolutions just yet; just be prepared.
Cromford Report data tracked around a 2% month over month increase in the average final sale price per square foot in Maricopa County in the 4th Quarter of 2020. This while the average days on the market dropped to 39.8 from 47.85 in Quarter 3. Both are trends expected to continue this trajectory in the new year.
During December, 413 MLS listing sales closed in Glendale and 417 in Peoria. Today there are 124 active and available listings (not counting properties already under contract or pending close of escrow) in MLS in Glendale and 143 active listings in Peoria. That's 30% of one month's inventory in Glendale, down from 40% in November) and 34.3 % of one month's inventory in Peoria (down from 47% in November). Today's Maricopa County inventory is 49.6% of December's closed sales, down from 69.5% in November.
According to ShowingTime, the platform REALTORS use to schedule most of the MLS showings, Peoria saw an increase in showing traffic in the $300,000-399,999 range, with a higher percentage of traffic, 37.39% averaging 12.33 showings per listing. This increase bumped it up to the most popular price range in Peoria, moving the $200,000-$299,999 range to second place at 25.57% of December traffic, with an average of 12.54 showings per listing. The $200,000-$299,999 range still had the most showings in Glendale, averaging 14.65 showings per listing, which accounted for 40.32% of showings. Listings in the $300,000-399,999 range averaged 12.38 showings per listing, 31.88% of showing traffic. Not all showings are scheduled through ShowingTime, so actual numbers are typically higher.
According to Freddie Mac, mortgage rates are beginning to rise gradually. As of January 14, 2021, National Mortgage Rates reported U.S. weekly averages of 2.79% for a 30-year fixed, 2.23% for a 15-year Fixed-Rate, and 3.12% for a 5-Year ARM.
December entry-level prices for a detached home with three bedrooms and two baths rose in the west valley across tracked financing options. While the lowest price paid for a home with Conventional Financing in Maricopa County dropped to $175,000, Glendale Conventional Buyers saw an increase to $225,000, and Peoria Conventional Buyers an increase to $238,000. Buyers using FHA financing saw increases in prices paid with minimums of $185,000 in Maricopa County, $225,00 in Glendale, and $244,000 in Peoria. Maricopa County VA Buyers also saw increases to $217,000, Glendale VA Buyers saw an increase to $260,000, and Peoria VA Buyers paid a minimum of $322,500.
According to MLS statistics, the number of buyers financing their purchases in December rose from 76.4% to 82.7%. Conventional financing made up 71.3% of those sales, FHA financing 13.7%, VA financing 6.8%, and the remaining sales used other financing methods.
If your finances are in need in the new year, please know that you are not alone. If you're a Homeowner, contact your Lender to see what programs they are offering. If you're a Tenant, rental assistance is available through the Arizona Department of Housing website at www.saveourhomeaz.gov. If you're a Landlord, you can apply for aid at https://arizonatogether.
