In the last several years, the real estate market has offered some surprises to homeowners and investors. Skyrocketing median home sale prices, leaps in interest rates, and a shortage of available housing inventory has created unique selling environments in most local markets within the United States, perhaps giving some folks a bit of pause when it comes to pulling the trigger on buying or selling a home. The real estate market forecast has had significant changes of direction over the last several months as consumers wait to see what the Fed will do with interest rates. Forecasters have made their projections for the remainder of 2023 on the national scale. To understand what those projections mean for you in the Fountain Hills housing market, it’s essential to become familiar with the data to make informed financial decisions.
What forecasters are saying about the rest of 2023 for the nation
During the early months of the Covid-19 pandemic in 2020, the real estate market nationwide experienced tremendous changes. The shortage of building materials slowed new home builds to a crawl, forcing home buyers to look at a small range of housing inventory. This created a high demand for listed homes, driving up the prices to levels not seen before and ushering in a seller’s market.
But the momentum has begun to slow in 2023. Though median home prices are still substantially higher today than they were pre-2020, they have noticeably cooled. The first year-over-year drop in median home prices in years was recorded in April 2023, signaling that the market boom was coming to an end.
The rise in interest rates
over the last year has made many homeowners stay put, but there is still more demand than supply. Most real estate market forecasts show that median home prices might drop even more through the rest of 2023 but will eventually level off. What does this mean for Fountain Hills?
How does this impact the real estate market in Fountain Hills and Maricopa County?
Rising interest rates may have created buyer hesitation in the Fountain Hills area, and local market dynamics are proof of this. With fewer buyers on the market, the median sales prices
for homes for sale in Fountain Hills reached $682,031 in June of 2023, a decrease of almost 25% year-over-year. The month of June also saw 70 homes sold, a drastic drop compared to the prior month’s 122.
Based on current trends, and especially with the Federal Reserve’s announcement that more interest rate hikes may be in the future
, experts are saying that the local market may experience another dip in median home prices over the next year but will still see a favorable seller’s market by the end of 2023. Despite recent interest hikes and inflation, the Fountain Hills real estate market remains strong, with just one foreclosure in the month of June
. It’s also important to note that some homes are still selling for above their asking price. Fountain Hills’s luxury homes are moving at moderate paces, and the area’s high desirability will provide a cushion for sellers looking to get top dollar for their houses.
Maricopa County’s real estate market is on trend with Fountain Hills. Housing inventory has dipped consistently when compared to previous years, with October 2020 seeing 15,200 homes listed. In July of this year, the county had an active listing count
of 6,948. Median sales prices
of homes for sale have dropped to $485,000, a nearly nine percent decrease year-over-year.
Should you buy, sell, or hold when it comes to Fountain Hills real estate?
If you have owned your Fountain Hills home for years, the chances are that you have more equity than you did before the pandemic. If you are in a position where you have to sell, now might be a time to consider it. Though you may make less than you would have a year ago, your home will still have more value today than in previous years, ensuring a solid return on your investment.
If you wish to buy a home in Fountain Hills, you’ll most likely pay less today than last year. And if the forecasts are correct and interest rates increase again before the end of the year, now is an excellent time to enter the market.
Whether you are a buyer looking to find your first home, a veteran seller, or an investor eager to diversify your portfolio, you should work with a skilled real estate professional who understands the complexities of the local market. As a buyer, you’ll have a pro that can masterfully negotiate for the best possible price. And if you want to sell your home, the local real estate agent you hire will use their marketing expertise to showcase your home to qualified and motivated buyers. A local real estate agent will also have industry connections and can easily find commercial and residential properties that boast a great return on investment for those looking to capitalize on the market and create long-term wealth.
While it’s possible to purchase or sell a home without the help of a realtor, it’s highly advised against. Fountain Hills’s real estate market is constantly fluctuating. In order to stay ahead of the competition and make sound financial decisions, working with a real estate specialist is necessary. Using a realtor to sell your Fountain Hills home will mean more money in your pocket, even after their commissions are paid. Homes sell for substantially more when an agent is used, as opposed to selling it on your own.
Enter the Fountain Hills real estate market with Tracy Phillips at your side
The decision to buy or sell a home is not one to take lightly. No matter what the market conditions are, you will want to use the guidance and skills of a professional to help secure the best deal possible. Real estate expert Tracy Phillips
has years of experience in the greater Scottsdale housing market and will work diligently to help you sell or purchase your home from start to finish. Get in touch with Tracy today
for a free home valuation or consultation.