Fountain Hills Market Report

FOUNTAIN HILLS

MARKET REPORT YEAR-END COMPARISON, 2017 VS 2016

2017 WHAT A DIFFERENCE A DECADE MAKES

It’s been 10 Years since the first warning shots were fired in the skirmish that became the “Great Recession.” The 2017 Year-End Market Report offers a look back at what happened in those ensuing years, and where we are today. Spoiler Alert: The Fountain Hills market came out of those times in very good shape!

2017 has shaped up to be a good year for sellers of Fountain Hills real estate. After a slow start in January, the market caught fire in mid-February and never looked back. Prices are up in most sectors, inventory is near a historic low. Exceptions to the success stories are custom homesites and some high-end homes, yet even those aren’t doing too badly.

QUICK FACTS

835

TOTAL RESIDENTIAL SALES

AROUND TOWN Fountain Hills is definitely riding a wave of enthusiasm, and for good reason. We are seeing more younger folks make the community their home. New businesses are coming to town, and, in general, the community looks amazing! Fountain Park is a wonderful place to hangout (aerators prevented the annual challenges the lake normally faces), and our downtown is looking like, well, a downtown!

Park Place at Fountain Hills is currently completing Phase I and II of a three phase development. The current buildings include 230 apartment rentals ranging from 675 sq. ft. (1/1)

AVG LOT PRICE

$146,843

plans to 1347 sq. ft. (3/2) plans. Prices range $924 to $2,424/month. The buildings include “luxurious high-end features and amenities – multiple pools, state of the art fitness center and parking for each unit” according to sales material. The Sales Team reports 10% of the community is reserved and move-ins are expected in February, 2018.

Adero Canyon: Currently, much of the custom home (future) inventory in Adero Canyon

$533,123 AVG PRICE SINGLE FAMILY/PATIO HOMES

is being converted to a new plan that will enable Toll Brothers to develop more affordable housing in the canyon. Stay tuned on that, but a representative of Toll Brothers indicated: “single-family detached housing would range from 1,900 sq. ft. to 3,000 sq. ft.; models could be up to 4,000 sq. ft. with basements. Some of the parcels are designated for townhomes that would range from 1,700 to 2,000 sq. ft. with up to 3,000 sq. ft. with basements.”

EVIT (East Valley Institute of Technology) is now open at the Four Peaks campus in Fountain Hills, bringing career and college prep courses to students of high school age and

AVG PRICE CONDOS, TOWNHOMES AND GEMINI/TWIN

$233,292

beyond. Classes in Human Anatomy & Physiology for Medical Careers, Cyber Security, Digital Photography, Graphic Design, Nursing Assistant and Video Production are offered at EVIT Fountain Hills branch campus.

OVERALL MARKET Residential prices climbed dramatically in 2017, at a combined (all ­residential units: single

➔

family + condos) average of 7.5% appreciation to an average combined price of $431,357.

AVG RESIDENTIAL APPRECIATION

7.5%

This was a stark contrast to the 2016 increase of only 2.7%. A total of $362.7 million in homes and condos changed hands, the highest volume of sales since 2008, but still less than the boom years of 2004-2007.

SINGLE FAMILY/PATIO HOMES Single Family and Patio Home prices finished 2017 5% ahead of 2016. At YE:2017, 30% of SF/PH inventory is under $500,000, while 62% of 2017 sales were under $500k, indicating a very strong Seller’s market in this strata. Homes over $1 million account for 28% of current

AVG PRICE PER SQUARE FOOT OF SINGLE FAMILY HOMES, DEC 2017

$217/FT 480.816.5557 16824 E Ave of the Fountains Fountain Hills, AZ 85268 Sonoran@SonoranLifestyle.com

SonoranLifestyle.com

inventory but only 7% of 2017 sales. Developer sales in Adero Canyon also began in 2017.

Some of these are not accounted for in MLS statistics, but still point to a growing trend in this segment.

CONDOS / TOWNHOMES/ GEMINI TWIN HOMES During 2017, 289 unit sales of C/T/G are down 4.4% from 2016, likely owing to less ­inventory made available during the year. YE:2017 sale prices average $233,291, 10% higher than YE:2016. 80% of all C/T/G sales in 2017 were under $300,000, which is where 60% of inventory currently sits.

MARKET REPORT

CUSTOM HOMESITES

Incorporated as a town in 1989, the community has a total area of 18.2 square miles. With a population of 24,482, the density of the community is 2.1 persons per acre, one of the lowest in Maricopa County! The hilly terrain with its beautiful arroyos and canyons provides dramatic views of the eastern mountain ranges including the Mazatzals, Goldfields, McDowells and Superstitions.

The boundaries of the community are completely natural, with mountains, Indian Communities and the McDowell Mountain Regional Park the backdrop for this world-class community. Of course, the World Famous Fountain is its centerpiece, providing a reminder at the top of every hour throughout the daytime of how lucky folks are to live and work here.

180

161

160

114

90

160 80 140 60 120 40 180 100 20 160 080 140 60 120 40 100 20 80 0 60

UNITS SOLD UNITS SOLD

UNITS SOLD

120 180 100

40 20

180 160

0

161

58Single 90 58

47

139

61 RANGE 60 PRICE 47 $500-600k $600-800k

$400-500k 114

$800-$1m

$1-1.5m

$400-500k

$1.5 m +

11 11

60

PRICE RANGE Comparison of Fountain Hills @ Year-End 2016 vs 2017 47 $300-400k

11 11

31 27 2017 SF and18PH Units Sold 26

87

58

31 26

27

18

61

$200-$300k

$500-600k

$600-800k

$800-$1m

$1-1.5m

Condos/Townhomes/Geminis Sold by Price 27

31 26

18PH Units Sold 2017 SF and

2016 SF and PH Units Sold

PRICE RANGE $500-600k $600-800k

Comparison of Fountain Hills @ Year-End 2016 vs 2017 $300-400k

$400-500k

$800-$1m

$1-1.5m

Condos/Townhomes/Geminis Sold by Price 2016 SF and PH Units Sold

170

$1.5 m +

11 11

170

$1.5 m +

2017 SF and PH Units Sold

91

87 Comparison of Fountain Hills @ Year-End 2016 vs 2017

Condos/Townhomes/Geminis Sold by Price

140 170

38

28

91

87

15

13

140 < $200k

< $200k

28

91 Units Sold 2016

Comparison of $200-300k

PRICE RANGE Fountain Hills @ Year-End: $300-400k38 $400-500k

$600-800k

4

3

12

25

2016 $500-600k vs 2017

23

$200-300k

< $100k

12 < $100k

2

PRICE RANGE Fountain Hills @ Year-End: $300-400k $400-500k

4

2016 Units Sold

2016 vs 2017 $500-600k

2017 Units Sold

Comparison of Fountain Hills @ Year-End: 2016 vs 2017 25

23

Custom Homesites Sold by Price

23

6

2

25 6

5 $200-300k

$100-200k

2016 Lots Sold

$100-200k

$200-300k 5 6

2016 Lots Sold

0

3

3

1

1

PRICE RANGE $300-400k

$400-500k

3 2 3 2017 Lots Sold

1

$500-600k

1

PRICE RANGE $300-400k

$400-500k

3 Lots Sold3 2 2017

1

$500-600k

1

PRICE RANGE < $100k

$100-200k

$200-300k

2016 Lots Sold

$300-400k

$400-500k

2017 Lots Sold

$600-800k

3

Custom Homesites Sold by Price

5 12 25

2

28 Custom Sold

by Price 2016 Homesites Units Sold 152017 Units Sold

Comparison of 25

3

$500-600k

2017 Units Sold 15 13

13

<25 $200k

4

2

PRICE RANGE $300-400k 38 $400-500k

$200-300k

87

25

5

60 Patio Homes Sold by Price

2016 SF and PH Units Sold

0

20 5 15 0 10

146

90

20

20 30 15 25 10 20 530 15 025 10

139 61& Homes

87

$300-400k

$200-$300k

40 30

Family

161

140

120 180 100 160 80 140 60 120 180 40 100 160 20 80 140 0 60 120 40 100 20 80 0 60

87

Comparison of Fountain Hills @ Year-End: 2016 vs 2017

146

114

$200-$300k

140

Comparison of Fountain Hills @ Year-End: 2016 vs 2017 146 139

Single Family Homes & Patio Homes Sold by Price

140

UNITS SOLD

Stunning sunrises and 300 days of sunshine; friendly people and lots of fun activities to share with them; a healthy lifestyle of creative local eateries and outdoor recreation, beautiful scenery, flowers and critters found nowhere else in the world. That’s Fountain Hills and we’re delighted to share it with you!

Comparison of Fountain Hills @ Year-End: 2016 vs 2017

Single Family Homes & Patio Homes Sold by Price

UNITS SOLD UNITS SOLD

WELCOME TO FOUNTAIN HILLS

FOUNTAIN HILLS, AZ REAL ESTATE YEAR-END 2017

UNITS SOLD UNITS SOLD UNITS SOLD

In this era of Fountain Hills history, custom homesites are not the large market factor they were in the 1990’s through mid-2000’s. Accounting for only $8 million in volume, the 61 homesites that sold at an average price of $146,843 are just a whisper of the hundreds of homesites that closed 2004-2008 when prices averaged from the $400,000’s to the $600,000’s.

Currently, one of the last batches of “developer” homesites is preparing to be released in the Eagle’s Nest community.

$500-600k

$600-800k

$700,000

ABOUT THE MARKET REPORT We hope you find the Fountain Hills Market Report helpful and that it brings you to a better understanding of our community’s home values.

Just a few notes to help you make the best use of the Market Report: You’ll notice we separately analyze Single Family/Patio Homes from Condos/Townhomes/Gemini Twins.

We do this because we believe the two buyer profiles have different lifestyles and financial needs.

Trying to understand values in Fountain Hills is a bit, well, subjective! Views and orientation are key factors that can change with the curve of a street ... and we have plenty of those! Other aspects like floorplan, finish levels, age, construction quality, and HOA structure will impact value more still. To know the TRUE value of your home, we encourage you to contact us for either; 1) A copy of the “Full Report Backup,” a 30+ page document which is, essentially, the base data included in the Market Report, or; 2) A detailed custom analysis of your home.

To request this, go to https://sonoranlifestyle.com/ for-sellers/

For more information about homes, condos, rental properties or homesites in Fountain Hills, AZ, please contact one of our local associates.

480.816.5557 16824 E Ave of the Fountains Fountain Hills, AZ 85268 Sonoran@SonoranLifestyle.com

SonoranLifestyle.com

10-Year History: Fountain Hills Sales Price and Volume (Single Family Homes & Patio Homes)

$350 million

$600,000

$300 million

$500,000

$250 million

$400,000

$200 million

$300,000

$150 million

$200,000

$100 million

$100,000

$50 million

$0

$0 2008

2009

2010

2011

2012

2013

Avg Single Family/Patio Home Total Sales Volume

$300,000

2014

2015

2016

2017

Avg Single Family/Patio Home Price

10-Year History: Fountain Hills Sales Price and Volume (Condos, Townhomes & Geminis)

$80 million $70 million

$250,000

$60 million $200,000

$50 million

$150,000

$40 million $30 million

$100,000

$20 million $50,000

$10 million

$0

$0 2008

2009

2010

2011

2012

Avg Condo/Townhome/Gemini Total Sales Volume

2013

2014

2015

2016

2017

Avg Condo/Townhome/Gemini Price

The above charts detail Fountain Hills’ sales activity for the past decade. While 2017 prices and volume were the highest year since 2009, the market has not yet reached 2006-2008 levels.

ABOUT SONORAN LIFESTYLE REAL ESTATE Sonoran Lifestyle Real Estate is a specialty real estate firm focused on high intensity residential marketing and property management in Fountain Hills, Arizona. The company also assists clients in Scottsdale, Rio Verde, Goldfield Ranch and the Valley of the Sun. The sales team is experienced and effective, always willing to go the extra mile for clients that become, more often than not, good friends!

Situated in the heart of Fountain Hills, only a half block from the World Famous Fountain, Sonoran Lifestyle offers a unique office environment designed with state of the art technology to quickly educate clients about the unique character of the community. We invite you to take advantage of the company’s extensive array of tools, including the “Sonoran Lifestyle Relocation Guide,” at www.SonoranLifestyle.com/Guides.