Here in the Valley we consider the true Luxury Market to be properties valued at $1,000,000-plus.
According to Arizona regional MLS there are currently 1,524 homes listed between 1 and 2 million and 816 that are listed over 2 million. The closed sales so far in 2016 have been 254 between 1 and 2 million and 92 over 2 million.
The sales based on current inventory have 1 to 2 million priced homes at six months of inventory and 2 million-plus at nine months of inventory.
The inventory for luxury homes is high and the buyer pool currently is small.
According to Michael Orr, director of the Center for Real Estate Theory and Practice and the W.P. Carey School of Business, “Demand at the higher Luxury Market is the softest we’ve seen in a long time. I expect this weakness
will continue as long as we experience uncertainty in the financial markets worldwide.”
The report went on to say that homes between $250,000 to $500,000 were up 2-6 percent in 2015 and that homes between $500,000 to $2,000,000 moved only slightly upward.
The overall high end Luxury Market has excessive amounts of inventory which creates an abundance of competition. Most sellers are needing to make price reductions and even added incentives to sell in this market.
The same holds true in Ahwatukee. Currently in the three ZIP codes 85044, 85045 and 85048 there are 25 active luxury listings from $1,040,000 in Calabrea to $3,400,000 in Canyon Reserve.
The average days on market for the active listings is 153. There are currently six homes listed above $1,000,000 under contract from $1,125,000 in Ahwatukee Custom to $1,500,000 in Tapestry Canyon.
The average days on market for the under contracts is 160.
Ahwatukee luxury sales in 2015 were up from 2014. We had 17 closings over a million. Seven were located in the Ahwatukee Custom area (85044) and the rest of them were in 85048 communities such as Canyon Reserve, Eagle Ridge and Tapestry Canyon.
So far in 2016 there has only been two sales over a million in Ahwatukee. One of them sold for $1,500,000 in Whistling Rock and the other sold for $2,400,000 in Summerhill.
Both homes are located in Club West, are over 7,000 square feet and are two of the newest custom built homes in all of Ahwatukee.
Spring is usually our best season for selling luxury homes. With this in mind and the current pending and closing listings we are hopeful for that this trend will continue into 2016!
— Bonny Holland is with Keller Williams, Sonoran Living in Ahwatukee Foothills. Reach her at 602-369-1085, www.leadingluxuryexperts.com or on Facebook and Twitter.
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