2024 REAL ESTATE
MARKET UPDATE FOUNTAIN HILLS
2024 FOUNTAIN HILLS YEAR-END 2023 REAL ESTATE REAL ESTATE REPORT MARKET UPDATE
2024
FOUNTAIN HILLS REAL ESTATE
MARKET UPDATE It’s often a challenge to define what a “good” market is. We’ve certainly seen bad markets; the year 2008 comes to mind. Yet often it’s the case that a good market for one segment of the population is not as beneficial for others.
Remember the old saying “We’re in pretty good shape for the shape we’re in!” Well, that perfectly describes the Fountain Hills real estate market. The average sale price of Fountain Hills in 2023 at $812,375 is less than 1% lower than the all-time high of $817,980 in 2022. Is there anything to read into the <1% decrease in Fountain Hills prices in 2023? No. In fact, the fact that it was less than 1% is remarkable after the go-go Covid years when prices soared 29% is a strong indication that Fountain Hills real estate is still very popular and home values are very strong. The key story of 2023 however is the low volume of sales activity that occurred with only 615 sales transacted, the lowest level of the last decade. This matches the extremely low levels of inventory available: With a total of 970 listings available during 2023, Fountain Hills has only 59% of inventory that was available in 2014, a number that has decreased each year during the decade. In fact, 2023 had the lowest number of sales on record since 2008. It’s often a challenge to define what a “good” market is. We’ve certainly seen bad markets; the year 2008 comes to mind. Yet often it’s the case that a good market for one segment of the population is not as beneficial for others. That would describe the last decade with a scarcity of inventory that caused home prices to increase, rewarding homeowners handsomely. Yet there are many, many would-be buyers who are not only shell-shocked by the continual rise in prices, but now, also, the current high interest rates.
LACK OF INVENTORY IS THE MAIN CULPRIT! Factors affecting availability of inventory include the lack of homebuilding during the past 15 years in the wake of the 2008 financing debacle. Builders left the business and did not return. With the high risk factor associated with homebuilding, their numbers were not replaced. And despite the calamity of that era, construction prices continued to increase as did land costs, making it extremely difficult to build affordable housing in today’s market. Following is an analysis of Fountain Hills housing segments. FOUNTAIN HILLS RESIDENTIAL: REDUCED SALES VOLUMES OVERALL • Overall there were 615 sales of residences in 2023 a 20% decrease from 762 sales in 2022 • The biggest category of sales occurred between $500,000 – $1 million (298 sales) which was down 26% from the 378 sales that occurred in 2022 • Sales of homes $1 million to $3 million (108) were down 35% from 2022’s 304 sales • Homes over $3 million (16 in 2023) saw a 60% increase over 2022 sales (10 homes)
480.837.9801 Main Office & Property Management 16824 E. Avenue of the Fountains #12 Fountain Hills, AZ 85268 info@SunPropertiesAZ.com
INVENTORY OF HOMES FOUNTAIN HILLS • Inventory decreased by 12% overall • Homes priced $500k to $1 million (447) were down 15% from 2022 (524 active listings) • Homes priced $1 – $3 million (235 in 2022) were down only 2% with 239 active listings in 2022. • Homes over $3 million (36) increased 16% over 2022’s 31 active listings.
LENGTH OF TIME TO SELL A HOME • Market Absorption is the measure of how many months it will take to sell a home • The average absorption in 2023 increased to 2.69 months from 1.79 months in 2022, which is still historically low. During the past decade, the average absorption rate was 4.1 months. During 2021, the height of the Covid era, the rate was 1.08 months. Year
Avg. Price
Inventory
# Sold
Volume
Absorption Rate (# of Months to Sell)
2023
$813,897
970
616
$501,360,552
2.69
2022
$817,980
1098
762
$623,300,760
1.79
2021
$692,646
1267
1106
$766,066,476
1.08
2020
$583,423
1355
992
$578,755,616
2.63
2019
$475,560
1399
907
$431,332,920
3.49
2018
$457,812
1536
906
$414,777,672
4.13
2017
$428,534
1628
843
$361,254,162
5.46
2016
$399,373
1606
836
$333,875,828
5.70
2015
$403,915
1723
771
$311,418,465
6.86
2014
$409,854
1655
724
$296,734,296
6.99
2024 FOUNTAIN HILLS YEAR-END 2023 REAL ESTATE REAL ESTATE REPORT MARKET UPDATE
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FOUNTAIN HILLS HOUSING SEGMENTS & NEIGHBORHOODS CONDOMINIUMS: • Condominiums provide an advantage for those who want carefree maintenance of the exterior of their home. Often, a condominium community will offer amenities like a pool, spa or other fitness and recreation-based amenities, where maintenance is provided at a convenience. We find these are often extremely cost effective for those who don’t want their own pool or are away for long periods of time. Condo fees will not only cover the maintenance costs of those recreational amenities, but also insurance, exterior maintenance, repairs and services like trash. Monthly fees eliminate the surprise of having to replace or maintain a roof, exterior repairs and maintenance, landscape and pool maintenance and repairs. Condominium communities are also a great opportunity to meet new and interesting people! • Fountain Hills Condominiums: In 2023, there were 230 condos sold in the community. Of those, the average condo had 1455 sq. ft. with 2.5 bedrooms and 2 baths and sold for $451,023 or $307 per square foot. It was on the market for 63 days prior to closing. The median age was 26 years. Age, design and features have much to do with the price of housing. For instance, in the graph below, note the differences in size, price and price/ft for each era of condominium housing. Era
# Sold
Size
Sold Price
Average Sold $/ft
Condos built Pre 1990
61
1149
$316,753
$286
Condos built 1990-1999
80
1390
$425,055
$305
Condos built after 2000
89
1722
$566,392
$324
Often, a condominium community will offer amenities like a pool, spa or other fitness and recreation-based amenities where maintenance is provided at a convenience. We find these are often extremely cost effective for those who don’t want their own pool or are away for long periods of time.
SINGLE FAMILY HOMES: • Just like condominiums, homes in Fountain Hills have become larger and more elaborate with the decades. There were 383 single family and/or homes sold during 2023. In the graph below, note that not only have homes grown, but bedroom count, baths, garages and lot size also became larger. Era
Beds
Baths
Levels
Garage
Size
Sold $
Sold $/ft
Dom
Lot Size
Homes built Pre 1990
3.6
2.5
1.2
2.2
2,234
$687,666
$318
70
17,129
Homes built 1990-2000
3.9
2.6
1.2
2.5
2,522
$843,802
$342
66
16,300
Homes built after 2000
4.5
3.6
1.3
3.0
3,550
$1,634,185
$454
97
26,004
MARKET AVERAGE
3.9
2.9
1.2
2.5
2,740
$1,035,126
$368
77
19,637
480.837.9801 Main Office & Property Management 16824 E. Avenue of the Fountains #12 Fountain Hills, AZ 85268 info@SunPropertiesAZ.com
2024 FOUNTAIN HILLS REAL ESTATE MARKET UPDATE
Fountain Hills offers some lovely neighborhoods of custom homes that were built largely between 1985 and 2000, while some may be either older or newer. These homesites are much larger than most suburban residential homesites.
480.837.9801 Main Office & Property Management 16824 E. Avenue of the Fountains #12 Fountain Hills, AZ 85268 info@SunPropertiesAZ.com
LUXURY HOME NEIGHBORHOODS: Adero Canyon and FireRock Country Club stand apart among local luxury communities for the beautiful views and extraordinary homes each offer, even though the two communities are wildly different. They also stand out for their sales volume and also for their price per square foot. Many of the Adero Canyon homes are smaller, yet sales of the larger homes within the community (over 2800 sq ft) sold at some of the highest prices per foot. FireRock Country Club offers the private golf environment that became so popular during and after COVID, when the need to feel a part of a community and the relaxation of golf both experienced a renaissance. Neighborhood
# Sold
Size
Sold Price
Sold $/ft
Lot Size
Adero Canyon
20
2,570
$1,517,415
$580
9,775
Crestview at Fountain Hills
3
6,997
$2,447,667
$378
100,966
Eagle Ridge at Fountain Hills
3
4,559
$2,460,478
$521
38,951
Eagles Nest
3
8,022
$4,333,333
$534
91,352
Firerock Country Club
16
5,994
$3,129,374
$560
29,152
Palatial Estates
1
5,011
$2,283,000
$456
44,802
Shadow Canyon at Sunridge Canyon
2
4,520
$2,281,250
$511
40,050
LAKESIDE VILLAGE: Lakeside Village is a one-of-a-kind neighborhood that is not only unique to Fountain Hills, but frankly, in the world. Where else can you view one of the World’s tallest fountains throughout the day, enjoy amazing trails and paths, enjoy family activities at a playground, water park, musical instrument park or 18-hold championship disc golf course. Within a short walk there’s a dog park, skate park, soccer fields and more playgrounds. Walk to restaurants, pubs or coffee shops? Sure! Grocery shop only minutes away. You bet. The variety of housing ranges from small vacation homes to grand villa style homes. Neighborhood
# Sold
Size
Sold Price
Sold $/ft
Lot Size
Arriba del Lago
2
1,910
$852,500
$446
8,908
Bella Lago Condominiums
3
1,804
$722,667
$400
0
Diamante del Lago
7
1,620
$631,557
$390
6,480
FountainHead Condominiums
5
1,801
$691,400
$385
0
Lakeside Resort Casitas
2
649
$283,500
$437
0
Lakeside Patio Homes
7
1,705
$657,071
$389
5,288
Lakeside Villas Condominiums
2
1,795
$723,500
$403
0
Morningside
4
1,503
$568,531
$378
4,909
Plaza Waterfront Condos
1
1,830
$795,000
$434
0
Puerto del Lago
2
2,240
$862,500
$418
7,510
Rancho Montana
2
1,546
$564,500
$366
8,899
CUSTOM HOME NEIGHBORHOODS – A RENAISSANCE: Fountain Hills offers some lovely neighborhoods of custom homes that were built largely between 1985 and 2000, while some may be either older or newer. These homesites are much larger than most suburban residential homesites. The homes represent a variety of housing styles, but the very oldest of these is less than 50 years old. Lately, we’ve seen an interesting renaissance of these neighborhoods with homes being updated, upgraded and given beautiful facelifts. Many have intriguing mid-century modern architecture that is fun to update. The values are excellent and the large lots offer a wonderful opportunity for numerous hobbies! Homes in these neighborhoods range from the $400,000’s to over $1 million. There are some great opportunities for those willing to put in a little extra work!