Contact Howard!

Contact Howard!

Howard Harris Real Estate Expert

Current
Mortgage Rates

Archives

Categories

Fountain Hills Housing Supply Is Dwindling . . . Really It Is

May 04

filed under: Buying A Home, Living In Fountain Hills, Market Conditions, Real Estate

Inventory lowTomorrow I am closing on a single family home for one of my buyers here in Fountain Hills. It really was not an easy peasy process to find them a property in their price range. The first house we looked at was a lender owned property that got an accepted offer on the same day we were ready to submit our offer. The next property we submitted an offer on was among several other offers and ours was not the highest and best offer. The third property we submitted an offer on was accepted but the inspection did not go well and among other things in the inspection, the property needed a new $10K roof.

I am wiping my brow and thinking phwew, not sure thats how you spell “phwew” but what I am trying to say is that I am really thrilled that we found the Fountain Hills property that is set to close tomorrow, our fourth and final offer. My client got a great home for $190,000. The reason for my phwew is I was running out of properties to show them. I am not only encountering this in Fountain Hills but in other areas throughout the valley as well.

The Fountain Hills housing supply has dwindled down to 388 residential properties as of today. Of these 206 are single family homes in the following price ranges. Here is the breakdown of current months supply of these single family homes in Fountain Hills utilizing sales for the past year.

  • (14) homes priced under $200,000 equals a  2.27 months supply
  • (42) homes priced between $201,000 and $300,000 equals a 3.52 months supply
  • (31) homes priced between $301,000 and $400,000 equals a 4.65 months supply
  • (28) homes priced between $401,000 and $500,000 equals a 2.55 months supply
  • (12) homes priced between $501,000 and $600,000 equals a 10.18 months supply
  • (5  ) homes priced between $601,000 and $700,000 equals a 6 months supply
  • (6  ) homes priced between $701,000 and $800,000 equals a 6.02 months supply
  • (6) homes priced between $801,000 and $900,000 equals a 12 months supply
  • (11) homes priced between $901,000 and $1,000,000 equals a 11.96 months supply
  • (35) homes priced between $1,000,001 and $2,000,000 equals a 17.5 months supply
  • (16) homes priced between $2,000,001 and $3,000,000 a 16 months supply

A six months supply of homes is considered to be a “neutral” market. Less than a six months supply is a seller’s market and more than a six months supply is a “buyers market”. These numbers are great for sellers looking to sell a property $500,000 and under. Buyers should not look for much of a discount off these asking prices. As a matter of fact you may be confronted with a multiple offer situation.

Obviously a different situation in the $800,000 and above price range with double digit months of inventory. Still it is interesting to see how low the inventory is for homes priced between $600,000 and $800,000, only eleven properties.

There is no question that our Fountain Hills market has gained lots of traction in the past few months. It is not all doom and gloom out there. I do believe we are starting to turn a corner.  Now if gasoline prices would come  down. . .

If you are thinking about purchasing a property in the Fountain Hills or any other area in the Valley, we would be happy to assist you in finding the right property for you. Contact us at your convenience.

Written by Howard Harris