Are high-end homes ($800,000 plus) selling in Phoenix?

Asked by Alan Chandler, Cleveland, OH Wed Oct 3, 2007

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Joe Bourland, Agent, Avondale, AZ
Mon Nov 19, 2007

Others have responded with great stats and excellent answers. Bottom line is there are still buyers in every category of homes. Whether a particular home will sell is another story. Best home at the best price is key.
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Debt Free Da…, , 85260
Mon Nov 19, 2007
If they haven't been, help may be on the way. Jumbo rates are in the mid 6's again. During the subprime meltdown they really got hammered and were up in the low 8's, ouch...
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Lloyd Fox, , Phoenix, Scottsdale, 85254, 85255, 85258, 85259, 85260, 85020, 85018, 85014, 85032
Tue Oct 16, 2007

The sales of high end homes have slowed like everything else. Please consider that luxury and second home sales typically run from January through May in our market. When you say Phoenix, you need to be real specific about area to fully evaluate the pace of sales. Some areas are still doing well and others are being crushed in the price range. if an area has "new build" or recent investor closings coming on the market, like Desert Ridge, they're hurting. Areas like Arcadia, Central Corridor, etc., although slowing, aren't nearly as full of vacant homes with dramatic price reductions.
No matter the price range, the game is the same...Price, Marketing and Preparation. It's a competition and their are a record numbers of competitiors every day
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Ulises Romo, , Phoenix, AZ
Thu Oct 11, 2007
On average 4000 homes still sell a month. And I would bet that a few are in that price range, I ran a comp and found that in the last 6 months 1818 homes are pending and or sold for that price and higher.

Since Phoenix is geographically large, this includes Scottsdale, Paradise Valley, Fountain Hills, Goodyear, Glendale, Litchfield, etc... So Yeah the luxury home market is still hot. Maybe even better for the fact that a buyer is probably going to pay less than list price.
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Dan Mullarkey, Agent, Scottsdale, AZ
Thu Oct 4, 2007
When I look at the Phoenix luxury market, I see it in 2 categories: North Phoenix (newer homes) with areas such as Desert Ridge, Tramonto, 85254, etc. To the south, you have the older, historical neighborhoods like Willow, F.Q. Story, Encanto etc.

I did a search and looked at everything north of Dunlap (N Phx) and to the south for the month of September. N Phoenix is faring much better, with days on market (DOM) @ 166. Homes are selling in the $260's/sf at about 15% less than list price. Average sales price is $1.15M.

Central/South Phoenix isn't selling as quickly. Only one sold, and it took 277 days. There are however several pendings but the average DOM there is just about the same. Pending and Sold price per sq foot is much higher though, in the $380's. Average sales price is above $2M.

So, N Phx luxury homes sell faster but at a lower price and lower price per sq ft. It is tough to compare the areas because of the character of the historic neighborhoods vs the newer homes of N Phoenix but if you look strictly at the numbers, they give you a pretty good idea of what to expect.

Hope that helps!

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Dean Carver, Agent, Chandler, AZ
Wed Oct 3, 2007
Luxury Home sales HAD been doing pretty well until Q3 of this year and have since dropped significantly. $5 million and up is still robust though with the entry level $1.2 to 1.6m homes moving briskly until last month. Anything below $1m and especially in the $600-800K range has performed VERY poorly over the last quarter. I look for prices to come down significantly over the next quarter.
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Paul Slaybau…, Agent, Scottsdale, AZ
Wed Oct 3, 2007
Hi Alan,
Jay already provided the broad market snapshot, so I'll just add that it really depends on the specific community. There are plenty of pockets where well priced homes in that range are selling at a good pace. In general, though, with the hikes in jumbo loan rates, the lower end of the luxury home market can be somewhat tricky (as most buyers will need to finance more than the maximum conforming loan limit of 417k). With the inflated volume of inventory that Jay correctly demonstrates, it really comes down to knowing the market for the particular property. Pricing, condition, marketing and subdivision absorption rates. Many of the properties that are sitting on the market are lacking in one or more of these elements.
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