The following is the “Executive Summary” from the Sonoran Lifestyle Real Estate 1st Quarter, 2013 Market Report. It is a 23 page detailed analysis of the Fountain Hills Real Estate Market. For more information or a copy of the report, call the company’s office located on the Avenue of the Fountains. Their number is 480-816-5557.
In Fountain Hills, we have definitely left the Great Housing Recession behind. Fountain Hills residential inventory (all products–single family homes, patio homes condos and townhomes) continues to be at low, healthy levels and after a robust winter where many Fountain Hills property owners got on the “price increase train” and brought their homes to the market, the run-up of inventory seen during February and March has started to recede again as the market has absorbed the inventory. While PRICES are on a very slow, steady rise on average, it is the PRICE PER SQUARE FOOT that is significantly increasing, owing to smaller, higher-quality homes that sold during 1st Quarter, 2013.
- Notice that we no longer have any inventory of Homes/Patio Homes under $200,000…the first time since 2007!
- We have hit a 4-year high-water mark at $171/sq ft for Single Family (only) housing last seen in February, 2009.
- Another healthy indicator…notice that in the $600,000-$800,000 price strata (page 3) there is only about 6 months of inventory…wow!
- There were four sales of homes over $1.5 million last quarter alone…compared to 6 in all of 2012.
A comparison of Single Family & Patio Home prices for the end of the 1st Quarter, year over year indicate a 26% (Y-O-Y) increase. Condos and Townhomes show a 1st Quarter, Y-O-Y gain of 14%, still very strong!
Throughout local neighborhoods, almost without exception there appears to be 3-6 months of inventory, except in the case of FireRock where approximately 9 months of inventory exist. As FireRock members sort out their options for operation and ownership of the golf club, this may remain a fluid situation. Yet, there are currently some nice pending sales in the community that will close during 2nd quarter…stay tuned!
Custom Homesites remain at a somewhat sluggish pace, although the lower end of the market has certainly started to disappear, with only 16 lots available under $100,000 as opposed to 24 one year ago! We are also seeing homebuilding come alive in Fountain Hills, both with speculative home construction and also custom housing. This will be an interested market as we progress forward. Keep in mind that the newest homes in the area are approximately 6 years old, and Arizonans often like their new homes.
Distressed property sales (combined short sales and bank-owned inventory) have dwindled from a high of 50% in late 2010 to only 10% in the current market. There are only 16 Bank-Owned properties currently for sale in Fountain Hills…compared to 70 properties for sale in late 2010!
Should you have any questions about the reports, please don’t hesitate to contact your sales associate for more information!