Solar Home Sales in Phoenix Begin Their Summer Slowdown

Phoenix Solar Home Sales June 2016

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Phoenix area solar home sales dropped in anticipation of the typical summer slowdown in Phoenix according to recent data from the Arizona Regional Multiple Listing Service (ARMLS) from June 1, 2016 to June 30, 2016.

Phoenix Solar Sales in General

There were a total of 141 verified solar home sales in Maricopa County for the month of June, down from the 157 confirmed sales in May. Homes with a solar leases (whether monthly lease payments or prepaid monthly solar leases) accounted for 93 of the 141 sales (66%) while homes with solar owned electric systems accounted for the balance of 48 (34%) of the Phoenix area solar home sales in June 2016.

Median Price for Phoenix Solar Homes

The median price for a solar home in Phoenix bounced up to $270,000, up from $265,000 in May. Leased solar homes had a median price of $260,000 (down slightly from the median of $262,000 in May) while the median price for a solar owned home dropped to $278,500 in June from $296,000 the month before. The median price for a single family residence under $500,000 in Maricopa County in June was $240,000, the same as May 2016.

Marketing Time for Solar Homes

The median days on the market for a resale home in Maricopa County was 47 days again in June 2016. Solar in general stayed within reach of the average market with an median time to sell at 44 days. Phoenix homes with a solar owned system took less time with an average of 48 days while Phoenix area homes with solar leases took 40 days. The average days on the market for a solar home in Maricopa County was 66 days versus a market average of 60 days (solar leases had an average market time of 57 days while solar owned was 79 days).

Solar Sales By Phoenix Utility Companies

Almost three-quartersof the total solar home sales in Maricopa County were in APS territory (73.1%) while the remaining 26.9 percent of the solar homes were within SRP territory. SRP solar homes sold in 37 days versus solar homes selling in 47 days in APS territory. The median price for a solar home in APS territory was $268,000 and SRP territory was $281,500.

Impact of Mortgages on June Solar Home Sales in Phoenix

Mortgages helped finance 87 percent of all solar sales in the Phoenix area in June, up slightly from the previous month. Conventional financing (Fannie Mae and Freddie Mac mortgages) accounted for 51.8 percent of the total solar home sales in the Phoenix area while FHA and VA financing total 19.9 percent and 14.9 percent respectively. Cash home buyers purchased 12.1 percent of the total Phoenix solar homes for sale in June. Sellers contributed towards buyer’s closing costs in one-third of all sales (32 percent).

Typical Solar Home Sold in Phoenix

The typical solar home sold in the Phoenix area in June was a 3 bedroom, 2 bath home with 2,104 square feet on a 7,750 square foot lot. The solar home was built in 2002 and had a 7 kW solar array on the roof.

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 June 2016 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 27 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.