Greater Phoenix Luxury Real Estate Forecast for Q3

The Arizona luxury real estate market has been booming in 2023, largely because of the high demand from affluent buyers who are looking for luxurious homes in desirable locations.

 

According to the latest report from the Arizona Association of Realtors, the median sales price of luxury homes in the state has reached $1.8 million. This is a 12.5% increase from June 2022 to June 2023.

 

The inventory of luxury homes also decreased by 18.7%, indicating a strong seller’s market.

 

The forecast for the third quarter of 2023 is fairly optimistic, as the economic recovery and low taxes continue to attract more buyers to the Arizona luxury real estate market.

 

The most popular areas for luxury homes are Phoenix, Scottsdale, Paradise Valley, and Sedona.  Buyers shopping in these communities can find a variety of styles and amenities based on their preferences and lifestyles.

 

The Arizona luxury real estate market is expected to remain competitive and dynamic, offering excellent opportunities for both buyers and sellers.

 

Q3: Current Trends in Luxury Residential Homes

Greater Phoenix’s attractive offerings, such as wall to wall sunshine, comparatively low taxes, and a lower cost of living, have attracted homebuyers from all income brackets. In recent times, this appeal has intensified, drawing the attention of some of the nation’s highest earners to the booming luxury home market.

 

As temperatures heat up, so does the demand for luxury housing in the Valley. Some industry experts have gone so far as to describe the market as “on fire,” pointing to examples like the Arizona Biltmore Resort mansion, which was originally acquired through foreclosure for $4.25 million and is now listed for an impressive $15 million.

 

According to recent data, Arizona welcomed over 5,200 high-earning households in just one year, ranking it third among the states that attracted the most high-earning households, following Florida and Texas.

 

Many of these out-of-state buyers have set their sites on luxury homes in the Phoenix area. Take a look at data from Redfin for some of Greater Phoenix’s most popular luxury communities.

 

Data shows that the median price of homes in Paradise Valley increased by 21.9% year-over-year, reaching $4.5M in June 2023. The average time on market for homes in Paradise Valley was 104 days in June 2023, compared to 53 days in June 2022. The number of homes sold in Paradise Valley rose from 32 in June 2022 to 38 in June 2023. Going into quarter three of this year, the Paradise Valley market is considered not very competitive.

 

According to Redfin, the median sale price of homes in North Scottsdale increased by 8.7% year-over-year in June 2023, reaching $1.0M. The average time on market for homes in this area was 55 days, more than double the time from last year. The number of homes sold in June 2023 was 468, a decrease of 24% from June 2022. North Scottsdale is considered somewhat competitive going into quarter three of this year.

 

According to the latest data, the median home price in Arcadia dropped to $1.4M in June, a 7.7% year-over-year decrease. The average days on market for homes in Arcadia increased from 31 in June 2022 to 69 in June 2023. There were 85 homes  sold in June 2023, a decrease of 15% from June of last year. Arcadia is not considered to be very competitive right now.

 

According to recent data, the median home price in Biltmore rose by a whopping 68.5% year-over-year in June 2023, reaching $775K. The average time on market for homes in Biltmore was 35 days in June 2023, compared to 25 days in June 2022. The number of homes sold in Biltmore increased from 27 in June 2022 to 37 in June 2023. The Biltmore market is considered somewhat competitive going into quarter three.

 

Data shows that the median sale price of homes in the North Central Corridor dropped by 6.6% year-over-year in June 2023, reaching $958K. The average market time for homes in this area increased from 22 days in June 2022 to 50 days in June 2023. The number of homes sold in June 2023 was slightly higher than the previous year, with 48 transactions compared to 46. The North Central Phoenix market is considered somewhat competitive going into quarter three.