I was in Fountain Hills all day yesterday showing homes to California transplants to AZ. After previewing the first home, they asked me about ‘the market’ , the Fountain Hills and Scottsdale real estate market. The question was posed in result to a chance meeting they had earlier with a salesman at a local golf outlet who added his 2 cents on where there the greater Phoenix real estate market is headed. The employee was very kind, though, scared Mr. & Mrs. Fountain Hills real estate buyer with buzzwords like ‘double-dip’ housing recession and ‘ghost’ or ‘shadow inventory’ . Again, I am sure had the best intentions.
So, naturally, my clients asked my thoughts. I prefaced my comments with ‘I dont have a crystal ball’ , etc…. but from what I am witnessing on a daily basis, I see 2 things:
(1) we have too much inventory to see any measurable price increase in the next 12 months.
(2) I do NOT see any price drop coming for premium real estate. What do I mean ?
We have a lot of homes for sale due to massive over-development during the Phoenix real estate boom. As a result, there are many ‘cookie-cutter’ homes which offer few distinctions from others within that price point. As a result, if a home like that is going to sell, it needs to be the lowest priced. However, for Scottsdale real estate that is unique , mountain views, city light views, golf course properties, etc….. there is a limited supply and when a home is priced correctly, it sells, and sells quickly.
After looking at 8 homes in Fountain Hills, the buyers wanted to take a second look at their favorite home on Golden Eagle listed at $486K with 4 bed , 3 bath, 3,000 square feet with a heated pool/spa and breathtaking mountain views from the back. This was a unique property, the only truly special of the 8 we had previewed that day. So my clients said , ‘let’s make an offer’ ! I called the agent to get the details and the agent told me that they have ‘Eight’ offers !! Yes, that’s ’8′ offers!!
Understandably, the buyers are very disappointed. Fortunately, there is a 2nd home for sale in Fountain Hills they like as much and we are going to write an offer today. However, they said to me that the initial question about ‘the market’ was answered. Simply, if there is a great home at a great price, there are a lot of buyers out there who are ready to purchase in AZ.In fact, the inventory for that market is shrinking. Prices on ordinary homes may drop, though if you want something unique in greater Phoenix, I firmly believe (and my clients do see as well) that you will not see any more drop in prices; there is too little inventory and many buyers for that to happen.
James Wexler ~ Associate Broker ~ 480-221-8080
Showing properties
1 - 4 of 43.
See more city of Fountain Hills real estate.
(all data current as of
5/17/2012)
-
$350,000 : 15723 E Cholla Drive, Fountain Hills3 beds, 2.50 baths
-
$407,000 : 17307 E Alta Loma --, Fountain Hills2 beds, 2.00 baths
-
$499,900 : 11612 N Dawnridge Court, Fountain Hills4 beds, 2.00 baths
-
$399,000 : 17123 E Malta Drive, Fountain Hills3 beds, 3.00 baths
Listing information deemed reliable but not guaranteed. Read full disclaimer.
