Be sure to ask for your copy of the Sonoran Lifestyle Real Estate 2013 Mid-Year Fountain Hills Market Report. Contact your Sonoran agent!
The second quarter of sales activity is nearly always the strongest of the year, and 2013 was no exception. Residential inventory (at 242 units available) has decreased to its lowest level in over 5 years. In fact, most indicators–sales, inventory and prices–all could be taken off the page from the 2nd quarter of 2008. Yet, remember when we were all licking our wounds and estimating that our values had rolled back to those of 2001-2002…amazing how a few quarters can wipe out all that pain. Of course, the second half of any year is really the telling tale: Will sales velocity stagnate? Will inventory rise? Will prices decrease as eager Sellers feel they’ve missed their window of opportunity? Will long-term interest rate increases or other national issues affect the sales velocity? Stay tuned!
Homes Prices: Yes…a thousand times, yes. Prices are going up. However, we have no reliable indicators to tell us how high or how sustainable price increases will be. At the street level, for those of us involved in the business, we continue to be blessed with out of state and international visitors who value our beautiful community with its high quality of living, casual southwestern lifestyle and stunning scenery. Local folks are still making decisions to move up, move down or move on for personal reasons like job transfers or aging and health related issues. There was a big price jump this quarter, however much of that was owing to a handful of very high end home sales that have been slower during the past few years and may appear to be picking up steam. When comparing the 2nd Quarter 2012 (with 21 homes sold YTD above $800,000) to the 2nd Quarter 2013 (with 32 homes sold YTD above $800,000) one might begin to believe that the high wealth individuals are starting to gain their confidence again.
While PRICES are picking up steam, it’s the PRICE PER SQUARE FOOT that is significantly increasing…Refer to the Month-by-Month Analysis of Single Family Home Prices and you’ll see a significant jump from June to July…an increase of $26/ft to $197/ft. HOWEVER, one month or even one quarter does not a trend make. If large luxury home sales remain constant, this trend may continue!
Condominiums seem to have gained ground last quarter after being somewhat sluggish during 1st quarter. What is most interesting is the amount of inventory of condos available on the market. With only 81 units available, its no mystery why prices have now reached a four year high.
Custom Homesites also gained ground this quarter, with an impressive 30 sales..reducing inventory and giving hope to those who’ve continued to hold waiting for the custom home building market to return. We are receiving more calls and questions about custom home building…an indication that reduced resale housing affordability and quality is causing potential homebuyers to consider the inconvenience of building in order to achieve what they desire
Distressed property sales (combined short sales and bank-owned inventory) have dwindled from a high of 50% in late 2010 to only 11% 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! Call us at 480-816-5557.