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Sonoran Mountain Ranch Home Market Trends
Based on Past Transactions


How Buyers Have Paid

28.9%

FHA Financing (328)

15.7%

Cash (178)

47.8%

Conventional Financing (543)

6.0%

VA Financing (70)

1.4%

Other Financing (16)
Buyer's Loan Payment Type

0%

Adjustable Payment (1)

0%

Balloon Payment (2)

82%

Fixed Payment (839)

17.6%

Other Payment Types (180)

83% of Home Loans made in Sonoran Mountain Ranch had a 30-yr Fixed Rate

One of the most popular loan products used to purchase a Sonoran Mountain Ranch home over the last 10 years was 30-Year Fixed Conventional Financing. Many buyers who purchased their homes with conventional financing typically had above average credit, were able to afford their own repairs and did not rely on special incentives or down payment assistance. FHA financing has become another popular loan with homebuyers in Sonoran Mountain Ranch as a result of the 2008-12 housing crisis. Approximately 82% of the total loans used to purchase Sonoran Mountain Ranch homes were fixed because buyers were weary of adjustable rates and increasing loan payments.


Is it a Seller's Market or Buyer's Market?
Seller Assistance Indicator

A good indication of whether Sonoran Mountain Ranch is a buyers or sellers market is to measure any financial assistance a seller provided a buyer in past sales.

As a rule of thumb, Buyers often ask for closing cost assistance more often in a weak market. The above graph represents the percentage of sellers who provided some kind of assistance to Buyers in past transactions.

For example, from JUNE 2008 to MARCH 2012 the data indicates it was a BUYERS MARKET - and from MARCH 2012 to JUNE 2014 a SELLERS MARKET was trending. Today, we are in a stable SELLERS MARKET because buyers are asking for less seller assistance.

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Sonoran MOuntain Demographics

What is the health of the Sonoran Mountain Ranch Market?
Distressed Home Sales Decreasing

Gauging the overall health of the Sonoran Mountain Market means keeping a close eye on distressed sales!

It's been an extremely turbulent 10 years for Sonoran Mountain Ranch. Hopefully, we've seen the end of the housing market value crisis. The above chart illustrates a yearly percentage of the number of distressed properties sold. For example in 2006 there were no distressed sales because many sales at that time were between new homebuilders and buyers moving into Sonoran Mountain Ranch. Shortly after (between 2007 and 2013), distressed home sales skyrocketed to their highest levels at 83.5%. In 2010, there were 132 distressed sales out of 158 total. The good news is that since January 2011, Sonoran Mountain Ranch has been on its way to a slow recovery. Today, distressed sales make up only 6% of the total sales through September 2016. This is great news for Sellers and not so good news for investors or bargain hunters.

This data was gathered using the Arizona Multiple Listing Service and does not include home sales made without real estate broker assistance. Distressed sales include Short Sales, HUD, Pre-Foreclosures, Probates, Lender-Owned (REO), Auction and Relocation Sales.

Rental Leases vs Closings

2013 was a strong year for rentals in Sonoran Mountain Ranch. Many homes purchased between 2010 and 2013 were purchased by investors who bought properties at huge discounts in order to hold onto them until they increased significantly in value.

Investor-Seller Discount
Click Here to Rent in SMR

In the meantime, tenants helped to sustain the owners' mortgage payments with their rent payments until the owner decides to sell. One can predict that once the owner-investors determine that their home prices begin to stabilize or drop, they will begin to start selling. What this means for other home owners in the area is that their home prices could decrease because of competition between investors. Even though the investors' goal is to maximize their capital gain, they can be very competitive with average sellers who don't have the same amount of equity to work with. As a result, owner-occupant sellers often lose the game of price-cutting as investors still make a nice profit from their 2010 home purchase.

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Troy Elston, REALTOR®
West USA Realty
16150 N Arrowhead Ftn Ctr Dr., Suite 100
Peoria, AZ 85382
602.740.1035

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