Tag Archives: Fountain Hills Quarterly Market Study

The Fountain Hills Real Estate Market was on fire during the 4th Quarter of 2014, posting the highest 4th quarter  sales volume since 2006 with $73 million ($78 million in Q4/2006).  4th Quarter saw a total of 180 residential sales, a sales pace we haven’t seen since 2005 when 209 residential units sold during 4th Quarter.  Year over year results are impressive as well, as we finish 2014 with $296 million, a volume we haven’t seen since 2008 with $284 million.  Fountain Hills booked 722 sales of homes & condos during 2014, a sales pace not reached since 2006 when 712 units were sold…wow!  Average sales price of all Fountain Hills homes & condos sold in 2014 is $410,413 versus 2008 when the average price was $482,205.

Custom homesites still have not found traction, but with home prices growing at a substantial rate, it’s only a matter of time before home buyers turn to the economies of homebuilding as an alternative, yet we believe that construction prices and build times are not yet competitive or stable enough to make buyers comfortable.  And, there are currently alot of very nice homes on the market, providing a reasonably updated option for most folks to choose.  The savvy investors, however, will understand that buyers in future years will want more updated options and energy efficient choices…those who purchase homesites for long-term investment will likely be treated well in the future.

Speaking of inventories, total Fountain Hills inventory currently sits at 497 homes (approx. 5% of our total market) versus 426 units one year ago, an increase of only 15%.  And, with prices returning to 2008 levels, many folks who’ve been waiting to recover from purchasing in 2006 and 2007 (at the high of the market) are able to consider moving on to other opportunities.

All of this is so very encouraging for both Sellers and Buyers.  For Buyers, there is plenty of inventory to choose from and prices are still reasonable.  For Sellers, especially savvy sellers who understand the value of competitive pricing and aggressive staging and marketing, there appear to be many opportunities to capitalize on a strong market during the coming year.

We continue to be encouraged by the number of homes and condos available under $400,000.  Currently there are 199 homes and condos in this price strata, or 40% of the inventory.  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

To view a copy of the 4th Quarter, Fountain Hills Market Summary, go to 2014 Year-End Study

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!

The Fountain Hills market is simmering gently on the back burner, just short of a full boil.  Residential sales during the 2nd Quarter, while not as strong as the same period in 2013, still posted total volume that is the third highest quarter since 2007, during the height of the market.

Fluidity in the market appears to be tempered by some good, old-fashioned and conservative practices that keep the market–and values–from rocketing skyward, but still strong.  Lending, while easily available and very affordable, places strong requirements on the borrower to prove their ability to repay a loan.  Recently, we also began to feel the effects of the Dodd-Frank Act, in particular affecting Seller Carry-backs, a segment of our market that often provided a safety net for buyers and sellers who wanted to take advantage of the tax and income benefits(sellers) and lower lending costs and restrictions (for buyers) afforded by a Seller carrying a note against their real estate.

As you will see on the following pages, Prices of Homes remained somewhat consistent (and  on the rise, depending on the period of time you use to analyze the data), yet there are 29% more homes on the market than one year ago and less homebuyers–23% less for the 2nd quarter ending 2014 compared to 2013.  These trends follow first quarter, 2014.

There has been some media emphasis on affordability in the marketplace.  While it’s true that only 34% of our residential inventory is below $300,000, there are still 35 homes and 74 condos under that price point.  Many of them could use some updating, but they are often on large homesites (single family) or in solid condo communities that offer upward appreciation for those that would like to build sweat equity.  Many of them have already been nicely updated.  So, instead of feeling that affordability is a serious issue, we believe that consumer confidence and education is more the culprit.  We believe that many in the affordable housing market don’t believe there are programs for them or that they need more cash than they possess.  On the contrary, there are exceptional lending programs available that offer 5% downpayments;  Sellers will often provide closing cost assistance that reduces cash down payments, and we are even  seeing a new conventional lending program that allows for upgrades/updates to the home that can be allowed in the mortgage.

The great news is that Fountain Hills is still a very attractive destination for home buyers of all ages.  There is also a nice selection of larger homes with family-friendly floorplans and yards that are priced competitevely.

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.

Click Here to view the SUMMARY Fountain Hills 2nd Quarter Market Analysis 2014.  For a full Report that includes details on your SPECIFIC NEIGHBORHOOD…contact your Sonoran Lifestyle Agent at 480-816-5557.