By Frank May, Real Estate Agent
The start of the year brings encouraging news for the 85383 real estate market. Homeowners in the area have witnessed a significant increase in average property values, with a year-over-year rise of $51,118. This trend is favorable for both homeowners, who enjoy seeing their property’s value grow, and buyers, who benefit from immediate equity growth upon purchasing.
A notable shift in interest rates has also contributed to this positive market dynamic. Rates have decreased by approximately 1.5% compared to a few months ago, easing the transition for buyers and sellers alike. Previously, sellers were reluctant to relinquish low-interest rate mortgages for rates nearing 8%. However, with current rates hovering around 6%, making a move has become more feasible for those wishing to change their living situations.
This adjustment in interest rates has also spurred buyer activity. There has been a 26% increase in homes under contract in the past month, indicating a robust buyer market. Lower interest rates are undoubtedly a contributing factor to this upsurge in demand.
Additionally, the drop in gas prices, with costs falling below $3 at locations like Costco, provides a further economic relief. While grocery prices remain a concern, the decrease in fuel costs is a welcome change for many.
In the new-build sector, developments in Aloravita, located at 71st Avenue, north of Jomax, are experiencing high sales volumes. Potential buyers considering new homes should consider representation to navigate the nuances of new construction purchases. For example, identifying potential issues like utility boxes blocking RV gates is vital. Aloravita is also expanding south of Jomax down to Happy Valley, offering early buyers a chance to build equity as prices rise during construction. I’ve seen prices go up as much as $50,000 while a house was being built. With the models set to be ready around March and six different builders across the north and south sides, the choices for buyers are plentiful.
Other developments are also underway, and information on these new homes is readily available upon request.
For any inquiries regarding the market, home valuations, or if you know someone interested in relocating to the area, please feel free to contact me at 623-203-1800. I am always ready to share the many benefits of living in this vibrant community.
Frank May grew up in the Valley, graduating from Northwest Christian School and Northern Arizona University. He is a real estate agent with RE/MAX Fine Properties and has been helping both buyers and sellers for over 20 years. He has been a Dave Ramsey Endorsed Local Provider (ELP) since 2003. Learn more at mayteam.com.