“Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security.”
-Russell Sage, American Financier and Politician
As Realtors, we are often approached in grocery lines, PTO meetings or even at the doctor’s office with “I hear real estate is coming back?” Well, yes, that’s true. In fact, it’s been true since November, 2011, when our market bottomed out and began its gradual, uphill climb. This climb will contribute to family wealth. A keen eye to keeping your home maintained, updated and using your years of occupancy to build equity places many homeowners in a great position to consider moving forward.
Is it that simple? Yes. Yet, there’s also a certain amount of magic in the timing of your acquisition and disposal of the property that, hopefully, can be timed to take the best advantage of a market cycle.
Today, Arizona is not yet back to the prices achieved in 2006. Will we get there again? Yes, probably. Likely higher. We’ll get there in one of two ways…either by a slow and steady climb or by another “boom” period. Some US markets have already surpassed their previous market highs. Yet, one thing that the “boom-bust” cycle taught us is that wide swings in value may not always be ideal.
A balanced market is a beautiful thing. A slow and steady rise where anyone who wishes to participate can do their homework based on their own needs and make a good decision with the help of good professional guidance. They can make a decision that allows their family to have a wonderful, heartwarming place to reside, be nurtured and spend their years with loved ones. And, they can also take advantage of equity growth that will help them build their family wealth.
Is it time for your next chapter? Let’s talk, and we’ll help you understand all the elements that go into a sound decision! One thing is for sure, it’s always best to make these changes on your terms!
The problem with real estate is that it’s local. You have to understand the local market. Robert Kiyosaki
The Fountain Hills real estate market at Mid-Year, 2016, is nicely balanced and has experienced a consistent increase in values each year since 2011. These rates of increase have been in the range of 1% to 8% year-over-year, but have not been the wild 25% returns often reported. In the current market, large swings in value are more indicative of a seasonal bump in activity, but are usually not sustained.
SINGLE FAMILY AND PATIO HOMES:
At Mid-Year, 2016, the average price of Single Family Homes and Patio Homes (see below for Condos, Townhomes and Geminis) is $525,296. This is a 3.5% increase over mid-year, 2015 avg. price of $507,644. Note that just 6 months ago, at Year-End 2016, the year-over-year increase had been 1.2%, so perhaps there is some acceleration in this rate of increase, but 3rd and 4th quarters can always be the great equalizers!
There are currently 235 homes on the market, compared to 246 one year ago. What is also consistently changing is the number of homes under $400,000, with 46% of our market in this category at Mid-Year 2016 compared to one year ago with 47%.
Mid-year Currently, 13% of inventory is over $800,000 compared to one year ago when 11% fell into that category.
CONDOS, TOWNHOMES AND GEMINI/TWIN HOMES
At Mid-Year 2016, the biggest movement in our market has been in Condos, Townhomes and Geminis. Sales activity has increased by 18% Y-O-Y, and the Average Price of this product at Mid-Year 2016 is $212,409, which is a 9% increase Y-O-Y 2015. The big story is in the diminished inventory of this product, with only 73 condos currently on the market at Mid-Year, representing a 2.5 month supply, and a critical inventory shortage below $200,000. This is good news for condo investor who may have been holding out for the best time to sell!
NOTE: We love sharing information about our market! This Mid-Year 2016 Market Report is a condensation of our full analysis that is over 30 pages long. If you would like to see this amount of detail, please contact your Jay and Dori Team Rep at Sonoran Lifestyle Real Estate. You can reach us at JayAndDori@SonoranLifestyle.com.