As the year 2023 wanes, the Phoenix housing market continues to display its unique dynamics, particularly within the solar home segment. October’s data paints a picture of resilience and nuanced shifts, especially when contrasted with the broader market.
The median price for solar homes in Phoenix for October stood at $474,900, a slight uptick from September’s $469,500. This increase, subtle yet indicative, reveals more when dissected. Homes with owned solar systems, which traditionally lead the market in terms of value, saw a decrease to $550,000 from September’s $565,000. However, homes with financed solar systems experienced a climb to $474,000, a notable jump from the previous month’s $449,950. Likewise, leased solar system homes edged up to $425,000, and those with prepaid solar lease systems markedly increased to $618,850. These figures suggest a diversifying market where different types of solar systems cater to varied buyer preferences and economic capacities.
The median price for all resale homes in Phoenix was $435,000, marginally up from September’s $432,190, demonstrating a broader market resilience. The solar home sector, however, continues to outperform the general market in certain aspects. A total of 415 solar homes were sold, representing 8.0% of October’s total resale volume. This sales figure, while slightly lower than September’s, remains significant and underlines the steady demand for solar-equipped properties.
Notably, sellers of solar homes received 100% of their asking price, outshining the 98% received by sellers of non-solar homes. The close balance between owned (50.3%) and leased (49.7%) solar systems in sales underscores a market that appreciates both the long-term investment of ownership and the flexibility of leasing.
Historically, the median price of solar homes has risen by 3.24% from October 2022, showcasing a year-over-year growth that contrasts with the broader resale market’s stagnation. Additionally, the volume of solar homes sold has increased by 13.7% year over year, a testament to the growing appeal of eco-friendly living in the face of climate challenges.
The general market health in Phoenix, however, reflects the complexities of the current economic environment. Inventory levels remain tight, with just below 16,000 homes available, a 37% increase from three months ago. This inventory translates to a three-month supply, indicating a market that is neither overflowing nor excessively strained. Foreclosure rates, at a minimal 0.5%, reinforce this view of a market not plagued by distress sales.
Mortgage rates, having recently retreated from the 8% high, continue to exert pressure on the market. The higher rates are deterring some potential buyers, especially those reminiscing about the sub-5% era. Sellers, too, are reluctant to exchange their low-interest rate mortgages for the uncertainty of current rates. This hesitancy on both ends keeps the inventory levels from ballooning, maintaining a balance in the market.
In conclusion, as we navigate through October 2023, Phoenix’s solar home market emerges as a segment marked by resilience and adaptability. The fluctuating prices across different solar home categories reflect a market that is responding to diverse buyer needs and economic realities. With mortgage rates being a key influencer, the future trajectory of this market will likely hinge on broader economic trends. However, the sustained interest in solar homes highlights a deeper, more enduring shift towards sustainability – a trend that may well define the future of residential real estate in Phoenix.
You can download a PDF version of the monthly solar sales statistics here: https://www.solarhomebroker.com/wp-content/uploads/2023/11/Maricopa-Solar-Stats-Nov-2023.pdf