Do you want to buy a house in Queen Creek, AZ?
Are you wondering what the future of the Queen Creek housing market looks like?
If so, you’re not alone. Many people are interested in the AZ housing market for a variety of reasons. Maybe they’re looking for a place to retire. Maybe they’re looking for an investment property. Or maybe they just want to live in a beautiful and affordable community.
Whatever your reason for wanting to know about the Queen Creek housing market, you’ve come to the right place. In this article, we’ll take a look at what the future of the Queen Creek housing market looks like. We’ll also give you some tips on how to find the perfect home in Queen Creek along with listing price and other details.
Let’s get into it.
An Increase In Supply
We have seen a dramatic increase in supply, with gains of 32% between April and May in the greater Phoenix area. A combination of factors typically will go into the rise in supply. One aspect is that many people realize the gains in equity in their existing homes. Another is that people that started a new construction home as much as a year or earlier are seeing the large cash position upon the recent completion of those homes. The monthly average sales price per square foot was $302.64 versus $243.36 last year, which is a gain of 24.4%!
While there is positive news on the home equity front, listings under contract have been down more than 6% since last month, with closed sales down 9% from April 2021. Overall demand is getting weaker, and a few factors are playing into this. The monthly average median home price has grown 24.9% to $466,000 versus $373,000 last year. Affordability is becoming an issue for many Arizona residents. The median price points coupled with current interest rates in the mid-5 % range are creating difficulties for buyers. Information deemed reliable but may not be updated as per current home values.
The Past Trends Of AZ Queen Creek Homes Market
While we do not have a crystal ball to indicate what will ultimately happen in this market, we can review the past and trends. Between 2005 and 2008, many vital factors dominated the market and eventually increased regulation.
- First, many purchases with 100% financing gave homeowners no equity from the start.
- Secondly, loans were short-term with interest-only, and some had adjustable rates. Third, many unstable buyers with stated income loans and potentially no credit checks. Flip investors also fueled the market with no intent to live in nor rent homes creating many vacancies.
- Finally, new home developments outpaced the population growth for about 10 years.
In contrast, current appreciation is fueled by buyers with significant down payments creating high equity from the outset. Loans are primarily principal and interest payments with a set term and fixed rates. Buyers are more stable with great credit and increased income.
There is more of a “real” demand with buyers that intend to occupy or rent the home to fill voids in vacant homes. Finally, new development is struggling to keep up with demand, and the pace of home building has been low for the prior 10 years. All of this seems to indicate more of a leveling in a still strong seller’s market that may see some price reductions on “overpriced homes”.
Strategies To Navigate In Market
What are some strategies to navigate this market? That is the question. I work with each buyer and seller, as a real estate agent, to develop an individual strategy based on their ultimate goals. Here are some strategies I have recently worked with.
- First, if you are a buyer looking in a competitive price range, it is essential to revisit homes on the market for longer than 7 days. There is a possibility of room to negotiate with the seller’s agent. I build rapport with the other agent to find out what the seller is willing to consider to craft the best offer.
- Second, do you see home but feel it is priced just out of reach? This is another avenue to consider if the home may be priced high due to the seller not realizing market conditions, and there may be flexibility.
- Third, do you have a lower down payment, and the interest rate priced you out of the market? With changing market conditions, seller concessions may be possible. This will help defray some closing costs and allow you to buy down the rate.
- Finally, you must meet with your agent, and they have both the knowledge of the market and understand your situation. If the agent cannot build rapport or listen to your needs, this can pose an issue when negotiating.
Professional Presentation Of Sellers
Sellers also have options in a changing market. It is essential that your home is professionally presented on the market. Your home should be clean and staged properly to attract attention. A professional marketing suite of services should be used to attract attention to your home. List price is important to draw attention away from the increasing number of homes entering the market.
Having an agent that follows up with showings and has the ability to build rapport will create more opportunities to maximize your price and keep your days on the market low. In a changing market with more supply, the homes that show the latest trends and have updates will attract attention and the higher price points. It is key that professional photos (not cell phones), virtual tours, and video are utilized where appropriate. Highlighting community and area features will also be important to capture a higher audience.
Contact me with any questions about market conditions and the proper plan for a buyer, seller, or buyer/seller. It is important that you have the right representation to capitalize on your investment.
FAQs
1. Will Housing Prices Go Down?
It’s difficult to predict the future of the housing market, but currently, prices are predicted to stay steady or even increase slightly in the next few years. This is good news for those looking to buy a home in Queen Creek!
2. Are There Any New Developments Planned for Queen Creek?
Yes! Several new developments are planned for Queen Creek, including new shopping centers, restaurants, and parks. This is great news for those who want to live in a growing and vibrant community.
3. What’s the Job Market Like in Queen Creek?
The job market in Queen Creek is strong and growing. Many new businesses are moving to the area, so there are plenty of opportunities for employment.
4. What’s the Weather Like in Queen Creek?
Queen Creek has a desert climate, so it’s hot and dry most of the year. However, the winters are mild and there is little rainfall. This makes Queen Creek a great place to live if you enjoy sunny weather.
