During the month of April, there were a total of 378 luxury homes for sale in the city of Phoenix in Arizona, USA. These homes were priced $600,000 and more.
43 interested buyers had their offers accepted by luxury home owners looking to sell their homes.
Phoenix saw 54 real luxury home buyers during the month of April 2013. These were real buyers who actually negotiated, showed up at closing and got the keys to the luxury homes.
This Market Update is just for the City of Phoenix in AZ and does not include Scottsdale, Paradise Valley and other areas in Maricopa County. Please email Dorette Oppong-Takyi if you would like to receive the update for a specific city, subdivision or area in Maricopa County.
Homeowners who decided to sell their luxury homes compared to last year.
Phoenix had 378 home owners looking to sell their luxury homes this past month compared to 94 homeowners same time last year in April 2012.
That was a 302% increase, which could be due to increase in home prices giving homeowners some equity or break even points.
With almost 3 times the same number of luxury homes on the market, than we had last year, it helped a little bit with our problem of inventory shortage that faced the real estate market in 2012. Hopefully as more home owners decide to sell, the problem will be solved.
How Many Luxury Home Buyers Actually Engaged in a Transaction?
The number of Luxury home buyers who actually not just looked at homes, but negotiated with luxury home sellers and came to an agreement to buy, increased from 37 same time last year to 43 this year.
Compared to the number of homes that came up for sale, the number of serious buyers was not that impressive. The number of serious buyers below a $1 million was not bad but that for homes priced $1 million and above was quite bad based on the number available for sale. This could be due to affordability or other factors because the number of luxury homes for sale priced over a million also increased.
Even though there were 6 luxury homes for sale in Phoenix during the month of April 2013, priced over $4 million, there was no activity in terms of any contract being accepted by sellers after any negotiations that may have taken place. Same scenario for any of the 32 homes that were on the market priced between $2,000,000 and $2,999,999.
Real Luxury Home Buyers Who Ended up Owning A Luxury Home in Phoenix
Last month Phoenix saw 54 real luxury home buyers. These were buyers who ended up owning a luxury home for sale in Phoenix.
This was up from 33 in April of last year by 63%. There was no sale of a luxury home $3 million plus during the month of April 2013. The most expensive home that was sold in the CIty of Phoenix was for $2,525,000 compared to $3,000,000 during April in 2012.
How long did it take Luxury homes to sell?
Homes took a much shorter time on the average to sell in April 2013 than it did in April 2012.
This is could be partially due to the decrease in the number of short sales we are seeing in the Phoenix Area.
Since there is no third party involved in the decision making during a regular home sale compared to a short sale, it takes a much shorter time to close the transaction.