Friday, May 10, 2013

Will Fountain Hills Home Prices Continue Momentum?

The Phoenix Business Journal recently reported that Phoenix home prices were up by 30% in March 2013, and that home inventory remained low at roughly a one-month supply. Is this pace sustainable? And how closely are these trends tied to Fountain Hills real estate?

Our local market isn't moving as fast, but home prices are still trending higher than last year. Fountain Hills homes are spending an average of 76 days on market.

A year ago, home sales in Fountain Hills were running about the same pace. Consistent demand from home buyers is allowing us to absorb new listings in a reasonable timeframe.

The median price for a Fountain Hills home is running 28.4% higher than a year ago. In this sense, we are echoing some of the trends in the Greater Phoenix-Scottsdale area. Our homes spend a little more time on the market as we do not have as many investors. All the same, sales are brisk, and homes under $300,000 are getting a lot of activity.

We do not yet have a balanced market, due to the fact that home owners have been reluctant to place their homes for sale. Despite our improved home values, the market is still below the price peaks of 2005-2007. Some home owners may be holding out hope that values will draw closer to those highs in the near future.

However, we do not have the same brand of rocket fuel available today that placed home values on the moon several years ago. Mortgages are much more difficult to obtain today. While there are investors influencing the market, they are cash buyers, and not speculators leveraged with easy debt. At the same time, home builders are gearing up to fill demand, which will improve home inventory.

When it comes to future home prices, no one has a crystal ball. Knowing when to sell your Fountain Hills home is more a matter of information rather than market timing! If you are interested in obtaining the current market value of your home, I would be happy to help you!

If you are thinking about selling your Fountain Hills home, my 30+ years of experience in Fountain Hills real estate will be your advantage. I will provide you with a complete home sale consultation to help you price your home correctly, and net top dollar from the sale.

Why wait? Contact me today for expert assistance!

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