Purchase Price Reaches New High
January 3, 2022
Beware: New Homestead Law May Delay A COE
In this report we review the median purchase price, median monthly rent, sales, and listings for single family resale homes in Greater Phoenix. The information in this report was compiled from Arizona Regional Multiple Listings Services, Inc. (ARMLS) data.
When will it stop? Once again, the overall median purchase price for a single-family resale home in Greater Phoenix reached a new high. It was $469,000 in November. This is 2% higher than the October 2021 median purchase price of $460,000. See Chart One. Year-over-year, the November 2021 overall median purchase price is $100,000 or 27% higher than November 2020. For more information on median purchase price trends Table One compares the median purchase price from October 2021 to November 2021 for 26 cities that are in either Maricopa County or Pinal County. Table Two compares the median purchase price for the same 26 cities year-over-year. November 2021 sales of 5,862 were just slightly higher than the 5,841 sales in October 2021. November 2021 sales were 376 or 6% less than sales in November 2020. November 2021 listings were 1,319 or 19% lower than October 2021. This is to be expected. This is a seasonal drop in sellers listing their homes. Seasonal the two months of the year with the lowest number of new listings are November and December, with December having less new listings than November. November 2021 listings were 92 or 2% less than November 2020. The overall median monthly rent for a single-family resale home in Greater Phoenix in November 2021 was $2,252. This is $43 or 2% less than in October 2021. This is a seasonal drop in rent. November 2021 median monthly rent was $377 or 20% higher than November 2020. Table Two compares year-over-year median monthly rent for the 26 cities.
Beware: New Homestead Law May Delay a COE
Effective January 1, 2022 HB 2617 becomes law. This law increased the homestead protection from $150,000 to $250,000. While the new law protects more of a homeowner’s equity the law also makes a recorded money judgment a lien against the homeowner’s homestead residence. Previously if a creditor had a money judgment against a homeowner, to collect a creditor had to initiate a judicial process ending in a sheriff’s sale. This is no longer the case. The new law does have certain procedures that must be followed and documented of record when there is a money judgment against a homestead property that is selling. This is what may delay a COE. The legislature has established the following procedures on the sale of a homestead property:
- In situations where proceeds are less than 80% ($200,000) of the homestead amount, as determined by the settlement statement, the following items will be needed:
- Executed Homestead Affidavit
- Statutory partial release executed by the Title Company to record at close
- In situations where proceeds are equal to or exceed 80% (between $200,000 and $250,000) of the homestead amount, as determined by the settlement statement, the following items will be needed:
- Executed Homestead Affidavit
- 20-day notice to judgment creditors
- Notice must be sent at least 20 days prior to COE
- Notice must be amended if the anticipated proceeds to seller increases by more than $10,000
- Notice must be made by certified mail
- Statutory Partial Release executed by the Title Company to record at close, if no objections received by judgment creditors
- Release from judgment creditor if creditor objects within 20 days prior to close
- In situations where proceeds exceed $250,000, as determined by the settlement statement, the following will be needed-
- Release from judgment creditor
So, if a seller is going to receive equal or more than the 80% of the $250,000 homestead protection a twenty-day notice must be sent to the creditor. The creditor must approve of the sale for the title company to close the transaction. This is what may delay a COE.
The information contained in this article is for general information purposes only. And should not be construed as legal or financial advice or opinion on any particular facts or circumstances from this publication or the author. Readers are urged to consult with an attorney and accountant.
Chart One: Overall Median Purchase Price & Overall Median Monthly Rent for Greater Phoenix