Illuminating Trends: An In-depth Exploration of Phoenix’s Solar Home Sales in September 2023
Amidst the sun-drenched landscapes of Phoenix, there unfolds a peculiar yet enlightening story within the residential sector: the journey of solar home sales through the tapestry of economic oscillations. In September 2023, the median price for a solar home slightly dimmed to $469,500, a modest dip from August’s $470,000. Yet, beneath this seemingly stable surface lies a rich, nuanced narrative.
When segregated based on the type of solar systems, a mixed bag of figures comes to light. Homes featuring owned solar systems witnessed a median price surge to $565,000, while those with financed systems stood at $449,950. On the contrary, leased solar systems’ homes experienced a cooling down, reaching $420,000, and homes with prepaid solar lease systems recorded a median of $547,500. Evidently, the variances within these subsets mirror an amalgam of buyer preferences and perhaps a latent caution influenced by larger economic factors.
Total Solar Homes Sold in Phoenix
In September, the market saw a total of 452 solar homes being sold, accounting for an appreciable 8.2% of the total resale volume. Intriguingly, sellers of solar homes received a spot-on 100% of their asking price, subtly outshining their non-solar counterparts, who secured 99%. Furthermore, owned solar homes continue to lead the race, making up 52% of the total solar sales, with leased systems tailing closely at 48%. Though the journey from listing to sale for a solar home extended to an average of 58 days compared to the 54 days for all resale homes, the robustness in the figures above signals an unblemished appeal for such sustainable dwellings.
Historical figures, however, cast shadows that warrant contemplation. The current median price of solar homes has descended by 7% YoY, juxtaposed against the broader Phoenix resale market that has seen a slender 1% dip YoY, and rests at a median of $432,190. Furthermore, a 4% YoY contraction in solar homes sales volume could point towards emerging frictions in demand-supply dynamics, especially given the 15% YoY dip in the overall resale market volume.
General Real Estate Market Market Highlights
A glance at the general health of the Phoenix residential market unveils persistent themes. Inventory levels, though still constrained, are twinkling slightly brighter at just above 13,000 homes – a cautious 20% elevation over the last two months. This corresponds to a lean 2.42 months of supply in the current context. While foreclosure rates continue to linger at a negligible 0.5%, the creeping mortgage rates, nearing an intimidating 8%, cast long shadows on potential buyers, particularly those recalling the sub-5% era.
In this intricate play of numbers and economic subtleties, several reflections emerge. The unwavering allure for solar homes, underscored by the 100% realization of asking prices, hints at a persistent value perception among buyers. The premium, especially for owned solar systems, signifies an embedded confidence in sustainability, despite the overall cooling of prices and sales volume.
Conversely, the rising mortgage rates and their concurrent impact on both seller and buyer behavior warrant a vigilant eye on forthcoming trends. Will the sun continue to shine favorably on solar homes even as it navigates through the economic clouds cast by interest rates and inventory shifts? As we traverse through the evolving chapters of Phoenix’s housing market, these are narratives worth probing further, offering both buyers and investors alike pivotal insights into the intricate balance between sustainability and economic pragmatism in home buying decisions.
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