April market news:
The Verdes has a great month with 15 more sales (26 up from 11 in March) in April. The median home price appreciation continues to rebound from a “cool” winter selling season, and Fountain Hills is also gradually slowing down. Not alarming, just heading into a slower summer season typical of our market.
So, what is the pricing sweet spot? The price range with the lowest months of supply available in Fountain Hills is the $300,000 to $349,999 range with two weeks of supply. The slowest selling segment in Fountain Hills is the $1M-$1.5M properties with 11.3 months of supply. In Rio Verde the $350,000-$400,000 has only 0.8 months of supply, and Tonto Verde has only 2 months of supply in the $400,000-$600,000 range. Slowest seller in the inventory in Rio Verde is priced in the $600,000s with 12 months to deplete the supply, and 7 months in Tonto Verde to sell out the properties in the $700,000s. This is according to the Wilcox report from our friend at Grand Canyon Title Fletcher Wilcox.
Here are a couple of tidbits to share from the Wilcox report about recent home purchase and home financing in Fountain Hills: 66% of sales were financed with conventional loans, 27% were cash, 5% were VA and only two sales in entry level priced homes were financed by FHA. Older homes also lead the way in sales with homes built between 1980 to 1999 making up 63.5% of single-family home sales sold in the first three months of 2019. Reason for this I would suspect is the building boom in the 1980’s loaded the market with inventory, and the 2008 crash and the slow new construction recovery left little on the table for a resale buyer.
Call the Verdes-Lifestyle Team if you are ready to make an appointment for a consultation and find out what your home is worth.