Third quarter in Fountain Hills is often the great equalizer of what might otherwise be a record setting year. And the 3rd Quarter of 2014 was no exception! Just when we start to believe that prices are clearly in an upward trend, along comes the 3rd Quarter to keep us humble!
Not that this is a bad thing! Those of us who participated as agents, buyers, sellers or property owners in the skyrocketing years of 2004-2007 know that a quickly rising market comes with many risks, not the least of which is a nasty decline as the bubble bursts.
As you will see on the following pages, Inventory of all market segments is higher than the same period in 2013, but still not terribly high historically. To have only 4% of local homes available for sale is a sign of strength in any market…there were times in our history when it was not uncommon to have 10% of the community available for sale. Total Residential Sales Volume of $61 million for the quarter is slightly higher than one year previously at $60.7 million, but it’s probably more important to acknoweldge that there are many towns the size of Fountain Hills around the country that would love to do $60 million volume in a YEAR…let alone in one quarter! Prices of Homes declined somewhat throughout 3rd Quarter, and have started to increase again in the 4th Quarter; the year-to-date average of $504,068 is still very respectable in the bigger picture of the past 6 years. The Fountain Hills market always retreats during the 3rd quarter, and sometimes into the 4th Quarter, yet nothing in our local statistics indicates this should be a trend going into the 1st Quarter of 2015. There are still many strong, financially capable buyers shopping for homes…either locals who are moving around, or out-of-state folks looking for their spot in the sun. And savvy shoppers they are…it makes a great deal of sense to purchase when prices are modest!
We continue to be encouraged by the number of homes and condos available under $400,000. Currently there are 171 homes under $400,000–46% of the inventory–and many of these present excellent investment value and opportunity for appreciation. If you’ve ever wondered whether a rental property investment is a good way to plan for your future, contact us to help you understand more about this great opportunity!
And, if you know a family that is looking to enjoy the quality of life in the community, encourage them to contact us at Sonoran Lifestyle Real Estate. Historically, Fountain Hills has always treated it’s affordable housing owners very well in a reasonably decent market, and we see no signs on the horizon that indicate anything but. There are opportunities for equity gain that will provide a nice future for those with vision!