Last Month the Phoenix luxury real estate market did well. According to the Cromford Report, it was the best December since 2006.
The luxury market saw 109 closed transactions for luxury homes priced $1,000,000 and above.
January 13 – December was a huge month for luxury homes sales – the best December since 2006 with 109 closed transactions across Greater Phoenix for homes priced at $1 million and above. This was an increase of 10% over December 2013. Only 2 of the closed sales were distressed and these were short sales.
By price range, comparing December sales for single family homes across Greater Phoenix:
$500,000 to $600,000 – highest number of units sold through ARMLS since 2006
$600,000 to $800,000 – highest since 2006
$800,000 to $1,000,000 – highest since 2006
$1 to $1.5 million – same as 2012
$1.5 to $2 million – equaled the previous record set in 2006
$2 to $3 million – highest since 2007
Over $3 million – 1 fewer than last year
The ultra-high end was not quite as impressive as recently, but 2014 was the best full year since 2008 with 84 closings for homes priced over $3 million.
Once again we did not see any resales over $10 million, the highest price paid being $9,750,000 for a home listed at $10,995,000
There are 11 optimists listing homes over $12,500,000, which is the highest price ever paid for a resale home in Greater Phoenix. There are 4 homes listed over $20 million. Finding a buyer for a re-sale over $12.5 million is a huge challenge. Buyers with this sort of money to spend usually build new. Such a new sale doesn’t in the records appear because the recorded transaction transferring ownership of the parcel to the buyer usually occurs while it is an empty lot. Payment for the construction of the home is not a recordable event as no transfer of real estate takes place, only improvements on the existing lot. This makes new ultra-high-end custom home sales very difficult to track for price, completion date and sq ft. The assessor’s data on sq. ft., is usually wildly different from the builders plans submitted.
With the Luxury market heating up, if you are looking to buy, now is the time to step in before it becomes a seller’s market making it difficult to negotiate better terms for luxury home buyers.