The Maricopa County real estate market continues to favor sellers over buyers, but, there are several mortgage financing options available and interest rates remain near historic lows. This gives buyers more options to purchase and presents sellers with more choices. The month of February was an active one, and the overall real estate environment stays on a healthy track. This combination causes home values to rise at a realistic and sound rate, providing more stability in the market at-large, across the county.
Maricopa County Median Home Selling Price
As usual, detached single family dominated the month of February. A total of 5,816 real estate transactions closed, with the single family residence median sales price coming-in at $240,000, according to figures compiled by the Arizona Regional Multiple Listing Service. The average sale price for February was $309,058 and there were a total of 5,526 pending sales in Maricopa County last month, reports the ARMLS.
Mortgage Rates
Current home loan rates give buyers plenty of motivation to get into the market, with a 30 year, conventional mortgage interest rate of approximately 3.73 percent and conventional, fixed rate 15 year notes going for about 3.02 percent. Though mortgage rates change daily, a 30 year FHA loan, jumbo loan, and 5/1 adjustable rate mortgage are all hovering in the low to mid 3 percent range. Though the Federal Reserve announced it would begin to incrementally raise rates, mortgage debt instruments still remain at near historical lows. This presents buyers with more options and is a driving factor in how the local real estate market performs.
February Sales by Type and Prices
There were 5,816 real estate transactions closed in the month of February, with 2,396 being conventional loans, 1,714 cash transactions, 1,251 FHA loans, and 393 VA loans. Conventional loans continue to be the most popular type of buyer financing, which is a great sign for the local market as buyers have to commit more upfront but still save thousands over the life of the loan with low interest rates. For the month of February, the average list price to sale price ratio stood at 96.99 percent, demonstrating sellers are receiving near asking price when accepting purchase offers. The average sale price last month increased as well.
Maricopa County Market Equilibrium and Days on the Market
The number of active listings in February in Maricopa County reached 22,906 and was the highest number available of homes for sale in the last nine months, from June 2015. In addition, there were a total of 9,398 pending listings in the county in February, which is also the highest in the same nine month period from June 2015. This could help to shift the overall county market dynamic, making it a bit more favorable to buyers. The average days on the market fell to just over 80 days. This is an improvement from past February months for the last three years running. The days on the market represent how long properties remain active in the local multiple listing service until going under sales contracts.
Distressed Properties
In February in Maricopa County, distressed properties -- which include short sales, foreclosures, and bank owned properties --- made-up just 6.1 percent of all sales. This is also a sign the local real estate market continues to remain healthy.