Could the Luxury Markets in Phoenix be Seeing Signs of Life?

Courtesy of Barb Savoy-Pacella, ABR, CHMS, CEO Keller Williams Arizona Realty

www.PacellaGroup.com

Could the luxury markets in Phoenix be seeing signs of life?

Most would agree that 2009 and 2010 were very challenging years for the Phoenix area luxury markets, but there is optimism on the horizon. 

Associates at the Paradise Valley and Scottsdale Luxury Tours are reporting luxury properties that are coming onto the market for only a few days and receiving multiple offers.  December 2010 marked the stabilization of the median home price in Paradise Valley for a full twelve month period.

The data indicates that sales in the $1,000,000 to $1,500,000  price range valley wide are gaining momentum with an 8.3% absorption rate, and even at the $4,500,000 to $5,000,000 range, absorption is at 6.9%.  That's obviously not a "recovery," but certainly an improvement from the 4% to 5% range previously.    

Paradise Valley is humming along with a 13% absorption rate in the $1,000,000 to $1,500,000 price range and 14.3% in the $4,500,000 to $5,000,000 range.  If you consider that the overall absorption rate valley wide in all price ranges and property types is 20.5%, Paradise Valley seems to be holding its own.

As we are aware, real estate is about price, location, and condition.  Well priced luxury homes in great locations are selling.  

Current Conditions in the Phoenix Market:

• There are 29,515 single family detached listings currently in MLS. That is a decrease of 1073 listings from last week, which is significant.

• There are 36,159 total listings currently active in MLS, which includes condos, townhomes, patio homes and lofts.

For additional information about the Phoenix market, please contact us at www.PacellaGroup.com