Sun Lakes AZ Market Report
The Sun Lakes AZ market report is a hot topic. In fact, it’s the most frequent topic of conversation when working with buyers and sellers. They want to know what s the market doing and if it a buyer’s or seller’s market. And how many days on market they can expect if they are selling Great questions – we can answer those questions.
In short, home values are up which is great for seller’s but buyer demand is down which is not so good for seller’s. Let’s start with home values. The Cromford Report is a real estate resource we use in the professional real estate business. It measures and analyzes real estate statistics overall and in specific markets. The annual median sales price of homes in all of Sun Lakes as of May 8th (measured on a weekly basis) is $230,000. That is up from 2011 and 2013 at the same time when the value was only $210,000 and significantly up from 2012 when it was $189,000 – that’s almost a 22% increase in home value in two years!
How hot is the market and in whose favor?
The Cromford indes is a measurement of how “hot” the market is for either a buyer or seller. An index of 100 is neutral – neither a buyer’s or seller’s market. The higher the index above 100 the hotter the market for the seller and the same holds true for numbers below 100 – the smaller the number the better for the buyer. Let’s look at what was happening just last summer. You may recall inventory was low – very low – fewer than 90 homes on the market out of almost 10,000 homes. That and high demand from buyers created an index in July/August 2013 of 369.9. We listed and sold homes in less than a week in that market. But the index began a free fall and fell to below 150 by end of 2013. That was partially due to increasing inventory but demand from buyers was also waning. Some said it was the Canadian dollar decline and others blamed the more strict mortgage qualification guidelines and rising interest rates. Truth of the matter is most of the homes purchased in Sun Lakes are cash buyers. True the Canadian dollar was in decline but we were still selling homes. We found Canadians buying less expensive homes than they might have otherwise preferring to stay in a more “liquid posture” if they needed to sell. The fact is buyer demand weakened dramatically. The index fell to 98.9 in March and has climbed back to 115.9 -improving but still favorable for buyers.
168 homes are currently for sale in Sun Lakes Arizona. Compare that to September of 2005 when the inventory was only 61. Inventory drops in the summer and increases in the fall but at 61 can you imagine what the was at that time? Prices were nearing an all time high before the market crashed in 2008.
Statistical Market Analysis
As of today 280 homes have sold in Sun Lakes since January 1, 2014 with an average sales price of $224,516 and average square footage of 1800. The highest priced home sold thus far was in Oakwood Country Club and sold for $510,000 and the lowest of $46,676 was in Sun Lakes Country Club (Phase 1). Average days on market was just under 70.
Visit our free MLS homes for sale website to search for all Sun Lakes Arizona homes for sale or contact us. We are full time residents of Sun Lakes and specialize in Sun Lakes AZ real estate. Follow us on social media or subscribe to our blog for regular updates on Sun Lakes AZ market trends.