November 2023 in Phoenix’s real estate market has been marked by intriguing developments, particularly in the solar home sector. Amidst broader economic challenges and seasonal market trends, solar homes have shown resilience and a unique trajectory.
Median Prices for Solar Homes in Phoenix
The median price for solar homes in November stood at $495,000, marking a slight decrease from October’s $474,900. However, this headline figure conceals more nuanced movements within different categories of solar homes. Owned solar system homes saw a significant increase to $580,000 from October’s $550,000, indicating robust demand for these premium, energy-independent properties. Meanwhile, financed solar system homes also saw a rise in median price to $495,000, up from $474,000. On the other hand, leased solar system homes experienced a modest increase to $435,000, and homes with prepaid solar lease systems witnessed a decrease to $575,000 from the previous month’s $618,850. These fluctuations across different types of solar homes suggest varying levels of market sensitivity to broader economic conditions.
Comparatively, the median price for all resale homes in Phoenix was $439,900, up from October’s $435,000. This incremental increase across the board reflects a steady market, albeit with the subtle impacts of broader economic forces at play.
Total Solar Home Sales in Phoenix in November
A total of 368 solar homes were sold in November, representing 8.0% of the total resale volume. While this volume is a slight decrease from October, it is significant in the context of the year-over-year increase of 5.7%. Sellers of solar homes received 99% of their asking price, outperforming the 98% received by sellers of non-solar homes. This higher achievement rate indicates a continued and perhaps growing appeal of solar homes among buyers.
Ownership trends within the solar market have also seen a shift, with 58% of the sales being owned solar systems, up from 50.3% the previous month, and 42% being leased systems. This suggests an increasing inclination towards owning solar infrastructure, possibly driven by a desire for long-term savings and environmental considerations.
In the broader historical context, the median price of solar homes has increased by 5.02% year over year, compared to the overall resale market in Phoenix, which saw a more modest increase. This highlights the enduring appeal and perceived value of solar homes in a market that is becoming increasingly conscious of sustainability and energy efficiency.
Overall Analysis of Solar Home Sales in November
The general health of the Phoenix housing market continues to be shaped by several factors. Inventory levels remain low, with just under 16,000 homes, although this is a 37% increase compared to three months ago. The supply of homes stands at about 3.5 months, indicating a market that is neither overstocked nor severely under-supplied. Foreclosure rates remain negligible, but the high mortgage rates continue to temper buyer enthusiasm. The gradual retreat from the 8% mortgage rates offers some relief, yet the market remains cautious.
Additionally, the seasonal slowdown typically observed during the holiday season further impacts market dynamics. This period often sees a reduction in new home inventory and sales, aligning with the traditional patterns of the real estate market.
In conclusion, Phoenix’s solar home market in November 2023 tells a story of resilience and adaptability. Despite economic headwinds and seasonal market shifts, solar homes continue to attract buyers, reflecting a broader shift towards sustainable living. As mortgage rates and market conditions evolve, the solar home segment in Phoenix remains a key area to watch, offering insights into the future of residential real estate in the region.
You can download the report here: https://www.solarhomebroker.com/wp-content/uploads/2023/12/Maricopa-Solar-Stats-Dec-2023.pdf