Limited inventory is an ongoing problem across the country especially in the Phoenix area where we have one of the lowest inventories in the US. Why is this happening? The population is continuing to grow and builders are not building as much, homeowners are still underwater and waiting for prices to go higher, people can’t afford to move up to a larger home. The sellers that have their homes on the market now are seeing them sell rather quickly, some in a matter of days. This usually applies to single family homes as the condo market in Fountain Hills and Scottsdale tends to slow down when the winter visitors are gone.
The luxury market is making a turn and seems to be cooling off as well, which always occurs when spring turns to summer, but the size of the decline is much larger than we saw last year at this time.
Geographically we see severe inventory declines since May 16 in the following areas for homes listed over $800,000:
Rio Verde 85263 – down 45%
Scottsdale 85250 and 85251 – down 37%
Gold Canyon 85118 – down 36%
Carefree 85377 – down 33%
Phoenix 85016 – down 32%
Fountain Hills 85268 – down 31%
Scottsdale 85266 – down 26%
Scottsdale 85255 – down 25%
Scottsdale 85262 – down 25%
Phoenix 85018 – down 18%
Paradise Valley 85253 – down 17%
Scottsdale 85259 – down 11%
These areas account for almost all of the decline. Inventory in a few other luxury homes areas like Mesa 85207 has increased instead. Scottsdale 85260 and 85258 are unchanged.
Market Stats for Fountain Hills and Scottsdale. The market is balanced when the index is at 100. Above is a seller’s market, below is a buyer’s market.
If there is anything I can help you with, give me a call at 480 888 6708 or email me and I’ll get back to you ASAP.
Available homes for sale in Fountain Hills