Phoenix November solar home sales rebound after October drop

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Phoenix area solar home sales rebounded 12.16 percent month over month according to recent data from the Arizona Regional Multiple Listing Service (ARMLS) from November 1, 2015 to November 31, 2015.

There were a total of 74 verified solar home sales in Maricopa County for the month of November, up from the 65 confirmed sales in October.  Homes with a solar leases (whether monthly lease payments or prepaid monthly solar leases) accounted for 62of the 74 sales (84%) while homes with solar owned electric systems accounted for the balance of 12 Phoenix area solar home sales in November 2015.

The median price for a solar home fell back to $247,500 (more in line with July’s numbers than the $257,000 we saw in October).  Leased solar homes had a median price of $237,500 (down from the median of $250,000 in October) while the median price for a solar owned home dropped to $266,000. The median price for a single family residence under $500,000 in Maricopa County in November was $222,749, up from October 2015.

The median days on the market for a resale home in Maricopa County was 40 days in November 2015.  Solar in general stayed within reach of the average market with an median time to sell at 42 days.  Phoenix homes with a solar owned system took less time with an average of 47 days while Phoenix area homes with solar leases took 41 days in November. The average days on the market for a solar home in Maricopa County was 61 days versus a market average of 57 days (solar leases had an average market time of 62 days while solar owned was 54 days).

Two-thirds of the total solar home sales in Maricopa County were in APS territory (70.3%) while the remaining 29.7 percent of the solar homes were within SRP territory.  SRP solar homes sold in 54 days versus solar homes selling in 41 days in APS territory.  The median price for a solar home in APS territory and SRP territory was $247,500.

Mortgages helped finance 89.2 percent of all solar sales in the Phoenix area in November, up from the previous month.  Conventional financing (Fannie Mae and Freddie Mac mortgages) accounted for 40.5 percent of the total solar home sales in the Phoenix area while FHA and VA financing total 33.8 percent and 13.5 percent respectively. Cash home buyers purchased 10.8 percent of the total Phoenix solar homes for sale in November.  Sellers contributed towards buyer’s closing costs in one-quarter of all sales (32.3 percent).

The typical solar home sold in the Phoenix area in November was a 3 bedroom, 2 bath home with 2,003 square feet on a 7,880 square foot lot.  The solar home was built in 2002 and had a 7 kW solar array on the roof.

Phoenix area solar home sales are just as much affected by the slowing market as other niches in Maricopa County.  Real estate inventory is on the rise while sales are slowing or stagnant.  Anecdotal evidence from area Realtors report a slow down in showing activities though this cannot be confirmed from the lockbox reports that have been discontinued by ARMLS.  Heading into the holiday season, expectations are for a slowing November and December. Inventory should slowly increase until the first of the year when market activity heats up.  Real estate agents overall are still across the board with their marketing of solar homes, pushing for estimated savings and the key component to selling.  Some of the agents continue to struggle with lease transfers, not usually as a result of the leasing company or buyer’s inability to qualify for the lease, but due to the lack of foresight to include the lease transfer in the contract and oversight of the transfer process.

Considering selling a home with solar? Want to know how much additional value solar adds to your home? Give Rob, the Solar Home Broker, a call at 480-888-1234!

NOTE:  Only resale single family residences that sold during the month of November 2015 in Maricopa County with a sales price of $500,000 or less were used in the analysis (non-luxury market).  Properties priced over $500,000 fall into the luxury category and were not used in this analysis. All sales were verified to have a solar electric (solar PV) system that was owned outright by the home owner or had a solar lease.  While all attempts were made to ensure quality and accurate data, I am limited by the data reported (for example, only 29.2 percent of listing Realtors actually inputted the size of the solar system).  Homes with only solar water heaters or solar thermal pool systems that did not have a solar electric system on the roof were not included due to the extreme differences in these types of systems.
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