Arizona Luxury Home Market Report - High End Homes Market Trends
Let us take a look at how the single-family luxury market fared during the third quarter. We will count homes that were listed for $500,000 or more and closings through ARMLS only. Our comparison period will be the third quarter of 2016.
Supply:
Looking at active listings excluding those in AWC (Active With Contract) or CCBS (Contract Contingent on Buyer Sale) status as of October 1, the total number declined by 4% from 4,096 to 3,946. The decline was 6% in the price range from $500,000 to $1 million, from 2,667 to 2,508. The price range from $1 million to $2 million increased slightly from 916 to 920 while the price range over $2 million increased 1% from 513 to 518.
Demand:
Third quarter closings were up a very strong 22% from 1,500 to 1,835. The increase was greatest over $2 million where closings rose 33% from 48 to 64. The range between $1 million and $2 million was next with an increase of 24% from 211 to 262. Between $500,000 and $1 million closings increased 22% from 1,241 to 1,509.
Supply versus Demand:
The price range from $500,000 to $1 million went from 6.5 to 5.0 months of inventory based on the quarterly sales rate
The price range from $1 million to $2 million went from 13.0 to 10.5 months of inventory
The price range over $2 million went from 32.1 to 24.3 months of inventory
Pricing:
Despite a significant improvement in the inventory position, the price range between $500,000 and $1 million only managed a 0.7% increase in average $/SF from $192.47 to $193.89
The price range from $1 million to $2 million fared worse, with the average $/SF dropping 1.2% from $280.84 to $277.39
The price range over $2 million saw a 14.3% decline in average $/SF from $455.43 to $390.34
The overall pricing for single-family homes over $500,000 declined 0.6% from $224.12 to $222.67.
In summary; having said that, some ZIP codes did much better than others. Average $/SF was at least 10% higher in 85018, 85020, 85234, 85250, 85254, 85298, 85377 and 85383 when compared with 3Q 2016. However several of these are ZIP codes with only a small number of luxury sales. The large ZIP codes did not do well, with 85255 down 4% and 85262 down 6%.
