Sun-Kissed and Sustainable: The Solar Home Market in Phoenix, September 2023
Phoenix’s housing market, renowned for its resilient appeal, is experiencing a nuanced shift, especially in the realm of solar homes. In the bustling metropolis that basks under the generous Arizonian sun, the solar home sector has become a fascinating study of economic and environmental interplay. September 2023 weaves a tale that’s both bright and shadowed, revealing the dichotomies within the solar home market.
Median Prices for Solar Homes
The month witnessed the median price for solar homes slightly retracting to $469,500, subtly dimming from $470,000 in August. A closer look at the types of solar systems unveils a divergent tale: homes with owned solar systems sparkled at $565,000, while those with financed systems were priced at $449,950. Homes with leased systems experienced a dip to $420,000, whereas those with prepaid lease systems were pegged at $547,500. These disparities not only highlight distinct buyer tendencies but also signify deeper economic and policy influences percolating through the market.
In a realm where 452 solar homes found new owners, constituting 8.2% of the total resale volume, an intriguing scenario unfolded: sellers of solar homes garnered a stellar 100% of their asking prices, slightly outperforming non-solar homes which commanded 99%. The categorization of solar home sales revealed a close match between owned and leased systems, with a 52%-48% split respectively. Though solar homes lingered slightly longer on the market, with an average 58-day sale period compared to the 54-day average of all resale homes, the metrics underscore a compelling attraction towards sustainable living.
Year over Year Look
Delving into the history books, we observe a 7% YoY descent in solar homes’ median price, contrasting a mere 1% downturn for the broader market, which settled at $432,190. While the volume of solar homes traded contracted by 4% YoY, it’s pivotal to observe this in tandem with the overarching 15% YoY dip in total resale market volume.
Overall Real Estate Market
The wider lens on Phoenix’s market health reveals a landscape gently rippling with change. Inventory, though still tight, has risen by approximately 20% over two preceding months to hover slightly above 13,000 homes, correlating to a somewhat alleviated 2.42-month supply. Meanwhile, foreclosure rates remain trivial at 0.5%. However, the slow upward crawl of mortgage rates toward 8% casts a lengthening shadow on buyer sentiment and financial calculus, squeezing those nostalgically recalling the sub-5% era.
Phoenix’s solar homes thus present a luminous, albeit complex, narrative amidst fluctuating economic waves. The sustained appeal and valuations of such homes, especially those with owned systems, point toward an intrinsic valuation of sustainability among buyers. Yet, with mortgage rates rising and subtle contractions in volumes and pricing, the trajectory of this sunlit market sector invites meticulous observation and analysis.
Navigating through this intricately woven tale of economic variables and sustainability, future chapters in Phoenix’s solar home market saga will assuredly be both enlightening and pivotal, serving as a beacon for homeowners, investors, and policy-makers in aligning sustainability, affordability, and economic stability in the times to come.
You can download a PDF version of the Phoenix area solar home sales report at: https://www.phoenixhomebuying.com/wp-content/uploads/2023/10/Maricopa-Solar-Stats-Oct-2023.pdf