Solar home sales in the Phoenix area held strong in January to start the new year despite a 26 percent decline in overall home sales in the area, according to data from the Arizona Regional Multiple Listing Service (ARMLS).
In January 2015, there were a total of 78 solar home sales, 28 solar homes had a solar lease while the other 50 homes had an owned solar photovoltaic (PV) system on the roof. Solar home sales represented 1.63 percent of the total home sales in Phoenix during January, up from 1.25 percent of December area home sales.
The median price for a solar home in January fell 2.6 percent to $248,400, but 28 percent higher than the Phoenix median sales price of $194,700 (which also fell 1.17 percent from the month before). Single family homes continued to dominate the majority of the solar home sales, representing 93.6 percent of all solar home sales for the month (up 1 percent from December).
Homes with a solar lease outpaced the general resale market. The average solar home sold in 104 days with homes with solar leases sold within 78 days on average, approximately 18 percent faster than the Phoenix market average for January.
The age of sold homes with solar continued to be fairly evenly mixed. 14.1 percent of the Phoenix area solar homes were 5 or less years old. 25.6 percent of the homes were 6 to 10 years old while 21.8 percent of the homes were 10 to 20 years old. 38.5 percent of the solar homes in the Phoenix area were 20+ years old. These percentages have been fairly consistent throughout the past 12 months.
Financing continued to play a significant role in Phoenix solar home sales. Conventional financing (Fannie Mae and Freddie Mac mortgages) accounted for 51.3 percent of the total solar home sales in the Phoenix area (the same as November’s data) while FHA and VA financing total 9.0 percent and 5.1 percent respectively. Cash home buyers purchased 32.1 percent of the total Phoenix solar homes for sale in January, up approximately 3 percent from December 2014.
The number of new listings jumped significantly in January with 220 new solar home listings (though that is not a big surprise as new inventory dropped in December and typically increases after the first of the year). Meanwhile, the current inventory of solar homes in Phoenix rose to 540 solar homes for sale in ARMLS, giving us a 6.9 month supply of solar homes for sale, though the general market saw a 41.27 percent increase in supply of homes in January for the Phoenix area.
Sales were generally more spread out across the valley in January though concentrations of sales can be seen in the Sun Cities, Goodyear and parts of the far east valley (see Phoenix solar heat map).
With the Super Bowl over and the excitement of all of the car shows and golf tournaments wrapped up, I expect Phoenix home buyers to jump in the market in February. With incredibly low interest rates and a slight drop in median prices for the months, there are plenty of home buying choices throughout the Phoenix area. Buyers are feeling better about the economy and I do not hear a lot of complaining about the sub $2.00 gas prices in Phoenix. If you are thinking about selling, now is the time to get your home on the market for the Phoenix real estate market peaks during February – May time frame for activity.
You can read more about the general real estate market in Phoenix and the monthly sales at GreenLeafAZ.com
Considering selling a home with solar? Want to know how much additional value solar adds to your home? Give the Solar Home Broker a call at 480-888-1234!