This year, the Phoenix real estate market has had plenty of reasons to cool. And in some places, at some price points, it has corrected from a frenzied pace that was becoming difficult to sustain. That being written, the average sale price across the valley has risen by 11.5% since January of this year.
In other areas, though, and particularly at a luxury price point — which refers to properties priced in the top 5% of the local market — demand is outpacing inventory, particularly in Paradise Valley, North Scottsdale and Arcadia. That demand is not only sustaining a competitive real estate market in those parts of the Phoenix metro area, but it’s causing prices to increase, fueling what could be described as a luxury housing boom.
Sales data reveals that Paradise Valley luxury prices have increased by nearly 22% in 2023, while they’ve jumped nearly 9% in North Scottsdale and they’ve skyrocketed by double digits in the Biltmore area of Phoenix.
In fact, data indicates that sales prices on luxury properties across the Valley have increased more than 12% since this same period last year. At the same time, inventory for luxury properties has decreased by nearly 20%, creating a predictable pinch for buyers who are eager to enter Arizona’s luxury market.
It is no wonder as Arizona, for years, has been a national leader in population migration. The state’s desirable climate, its proximity to diverse excursions — from the mountains to the coast — and its relatively low tax burden, when compared to other highly populated areas, make it an attractive spot for those looking to relocate.
Not to mention, what is needed to purchase a modest home elsewhere has the potential to secure a property in the luxury market here, which is to say, Arizona’s very nature elevates a buyer’s purchasing power.
And, with the abundance of creative financing options available to buyers, a lending environment characterized by higher rates isn’t deterring buyers. Those options are purchasing luxury properties more attainable, qualifying a larger pool of potential buyers and further fueling demand.
From Paradise Valley real estate to Phoenix and Scottsdale real estate, the luxury market is doing its best to keep pace with demand while also offering homes that luxury buyers want. And what exactly are buyers looking for when it comes to luxury real estate?
They’re in search of exclusive features, premium finishes, and exceptional craftsmanship and quality. From custom kitchen elements to upscale outdoor living spaces to premium home automation and one-of-a-kind water features, luxury home buyers appreciate exclusivity, privacy and novelty.
And in Arizona, there are no shortage of opportunities to find luxury homes with those features. From custom estate homes set on acreage to gated communities offering security and privacy, luxury home buyers have a wealth of options from which to choose.
When it comes time to purchase, home buyers looking for a luxury property greatly benefit from the guidance of a real estate agent who specializes in the luxury market. Agents with experience in the luxury market have established networks that buyers can benefit from, from financing to listings, and they’re more in tune with expectations, availability of properties and the differences that set certain areas apart.
Looking for a luxury property? Reach out to our team!
If you’re considering a home purchase or sale, the team at Halpern Residential is ready to help. We keep an eye on market trends so you don’t have to. Moving or investing in real estate is an exciting time of transition, and we’re ready to help you with it. Contact me today so I can learn more about how I can support your needs.