The biggest draw back is that the housing inventory is extremely low. This is not just a Fountain Hills phenomenon but this is happening nationwide, and why?
Normally, low inventory means there is more buyer demand but what we are facing is lack of supply not necessarily more buyers. The reason is potential sellers aren’t putting their homes on the market at all.
In a report from CoreLogic which says inventory is low because so many homeowners have negative equity—they owe more on their mortgages than their homes are worth, so selling would not give them enough money to pay off their loans.
For the homeowners who do have equity you’re probably thinking, If I wait a year or two I could get a higher price. Also some second home owners have decided to rent out their homes instead of selling. The urgency to sell is very low unless you have to make a move, but for now, many are staying put!
The inventory crunch will get worst for the remainder of the year with Thanksgiving and Christmas right around the corner. Hopefully come January we will see increases in the housing supply since this is our peak season. You can view Fountain Hills market stats here.
Are you thinking about buying or selling your Fountain Hills real estate? I would love to talk with you! For a quick response, you can contact me at 480 888 6708 or email me regarding Fountain Hills neighborhoods, price trends, short sales, etc. I’ll get back to you ASAP!