The Phoenix Metro area is one of the stand out real estate markets as the nation recovers from the downturn. Prices have risen considerably since the bottom. But has this price gain trickled up all the way to the luxury market?
The easiest test of the luxury market in Arizona is Paradise Valley. It is the highest priced zip code and while Scottsdale and Phoenix have very high end neighborhoods there’s more of a mix than in PV.
Paradise Valley Real Estate Statistics
Here’s the easiest indicator. Prices have risen. There was a bit of a double bottom in Paradise Valley, although much of that can be attributed to seasonality. On pure price the bottom was at the end of Q1 in 2011.
Inventory is still super low. It’s the main driver of rising prices now even in the luxury market. Hopefully we see more options for buyers coming on to the market as fall approaches.
Days on the market is hovering around the 6 month market. Which considering the median price point in Paradise Valley is not that long. There’s still some distressed inventory on the books which drags out the days on the market.
While median price shows more gains median price per square foot is only really starting to show gains now. The reason it lags as an indicator is that many of the sales have been older homes a lower percentage of new build custom estates which push the price per square feet up.
The luxury market is up. You won’t see the crazy gains the Phoenix market has seen with bidding wars etc. but it’s definitely turning up. As for what’s next keep an eye on inventory. If inventory doesn’t rise prices will. If in fall the market place becomes more crowded with sellers we may see more of a flattening of prices.